© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X Chapter 5 DESIGNING SERVICE DELIVERY SYSTEMS Terry Hill

© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X OVERVIEW DIMENSIONS that affect appropriate delivery system DISTINCTIVE CHARACTERISTICS of service operations FACTORS involved in service delivery Service delivery system DESIGN Service PROFILING REFLECTIONS

© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X DISTINCTIVE CHARACTERISTICS OF SERVICE OPERATIONS Service/product MIX INTANGIBLE nature of services SIMULTANEOUS provision/consumption TIME DEPENDENT capacity Customers as PARTICIPANTS CUSTOMER management PEOPLE skills Effective services are REPRODUCIBLE SITE selection NO PATENTS on services

© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X Exhibit 5.3 from page 147 FACTORS INVOLVED IN SERVICE DELIVERY (Categories of service) p 147

© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X SERVICE DELIVERY SYSTEM DESIGN The MARKET provides the external context for the service delivery system The service ENCOUNTER and EXPERIENCE are the essence of the delivery system Customer RETENTION is one of the key aims of the service delivery system (Overall) SOME KEY POINTS

© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X BACK OFFICE or FRONT OFFICE PHASE 1 SERVICE DELIVERY SYSTEM DESIGN (Detailed)

© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X BACK OFFICE or FRONT OFFICE The DELIVERY SYSTEM PHASE 2 PHASE 1 SERVICE DELIVERY SYSTEM DESIGN (Detailed)

© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X SERVICE DELIVERY SYSTEM DESIGN (Phase 1 - Back office or front office) No customer contact Easier scheduling Higher processing volumes BACK OFFICE FRONT OFFICE Facilities represent organisation Manage queue lengths Ease of customer use Wider staff roles Line of visibility

© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X SERVICE DELIVERY SYSTEM DESIGN (Phase 2 - The delivery system) p 154 Exhibits 5.10 from page 154

© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X SERVICE DELIVERY SYSTEM DESIGN Information technology  e.g. ATMs and teleworking E-commerce  e.g. travel booking, call centres and grocery shopping Alternative approaches  e.g. eye microsurgery (IT-based and other designs)

© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X Exhibits 5.13 from page 161 SERVICE DELIVERY SYSTEM DESIGN (Alternative approach - eye microsurgery) p 161

© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X SERVICE DELIVERY SYSTEM DESIGN (Other issues in system design) ENHANCING services Level of customer PARTICIPATION Maximising use of SKILLED staff Level of server DISCRETION

© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X SERVICE DELIVERY SYSTEM DESIGN Profiling - p 169 Exhibits 5.10 from page 154

© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X SERVICE PROFILING p 170

© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X SERVICE PROFILING Exhibits 5.21 from page 169

© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X REFLECTIONS

© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X

© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X Exhibit 5.23 from page 171 REFLECTIONS

© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X DIMENSIONS AFFECTING APPROPRIATE DELIVERY SYSTEMS Service COMPLEXITY The TECHNICAL dimension of what the service comprises The BUSINESS dimension in terms of volume and the market order-winners and qualifiers to be supported THE MARKET

© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X The technology/people MIX The NATURE of the services CATEGORIES of services COMPLEXITY of the service VOLUMES MARKET order-winners and qualifiers FACTORS INVOLVED IN SERVICE DELIVERY

© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X FACTORS INVOLVED IN SERVICE DELIVERY (The technology/people mix)

© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X Exhibit 5.2 from page 147 FACTORS INVOLVED IN SERVICE DELIVERY (The nature of the service being processed)

© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X OVERALL SERVICE DELIVERY SYSTEM DESIGN

© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X DETAILED OVERALL SERVICE DELIVERY SYSTEM DESIGN

© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X IT-based and OTHER designs DETAILED OVERALL SERVICE DELIVERY SYSTEM DESIGN

© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X SERVICE DELIVERY SYSTEM DESIGN (Overall)

© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X Exhibits 5.5 and 5.6 from page 149 SERVICE DELIVERY SYSTEM DESIGN (The importance of customer retention)

© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X Exhibits 5.7 and 5.8 from page 150 SERVICE DELIVERY SYSTEM DESIGN (The importance of customer retention)

© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X SERVICE DELIVERY SYSTEM DESIGN (Phase 1 - Back office or front office)

© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X Exhibits 5.18 from page 164 SERVICE DELIVERY SYSTEM DESIGN (Other issues in system design)

© AMD Publishing/ Terry Hill 2005 T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: / X Exhibits 5.19 from page 165 SERVICE DELIVERY SYSTEM DESIGN (Other issues in system design)