MTSU 1 Designing Quality Services

MTSU 2 The Nature of Services Services are unique Quality of work is not quality of service Service package contains a mix of tangible and intangible attributes ámore

MTSU 3 The Nature of Services High-contact services are experienced Effective management requires an understanding of marketing and personnel, as well as operations Services often take the form of cycles of encounters more

MTSU 4 Nature (continued) Quality often difficult to measure and, therefore, to control Performance measures such as productivity are difficult to measure Everyone is an expert

MTSU 5 Differences Between Services and Products Products are generally tangible; services are generally intangible Services are created and consumed at the same time Services cannot be inventoried

MTSU 6 Differences Between Services and Products Services are highly visible to consumers and must be designed with that in mind Some services have low barriers to entry and exit Location is often important to service design

MTSU 7 Classification of Services Low Degree of Customer Contact –more like a manufacturing system High Degree of Customer Contact –more difficult to control –more difficult to rationalize –customer can affect the time of demand, the exact nature of the service, and the quality of service

MTSU 8 Service-System Design Matrix Low High Sales Opportunity Production Efficiency Mail contact On-site Technology Phone contact Face-to-face Tight spec Face-to-face Loose spec Face-to-face total customization Buffered core (none) Permeable System (some) Reactive System (much) Degree of customer/service contact

MTSU 9 Designing and Developing New Services The degree of standardization of a service The degree of customer contact in delivering the service The mix of physical goods and intangible services

MTSU 10 Design Guidelines Have a single, unifying theme, such as convenience or speed. This will help personnel to work together rather than at cross-purposes. Make sure the system has the capability to handle any expected variability in service requirements.

MTSU 11 Design Guidelines Include design features and checks to ensure that service will be reliable and will provide consistently high quality. Design the system to be user-friendly. This is especially true for self-service systems.

MTSU 12 Service Blueprinting Establish boundaries for the process and decide on the level of detail that will be needed Identify the steps involved and describe them. If this is an existing process, get input from those who do it. Prepare a flowchart of major process steps èmore

MTSU 13 Service Blueprinting Identify potential failure points. Incorporate features that minimize the chances of failures Establish a timeframe for service execution, and an estimate of variability in processing time requirements –Time is a primary determinant of cost –Variability can also impact time, so an estimate of that is also important more

MTSU 14 Blueprinting (continued) Analyze profitability –Determine which factors can influence profitability, positively and negatively –Determine how sensitive profitability is to these factors

MTSU 15 Trends in Service Design Increased emphasis on customer satisfaction and increased pressures to be competitive Increased emphasis on reducing the time needed to introduce a new service Increased emphasis on reducing the time needed to produce a new service èmore

MTSU 16 Trends (continued) Greater attention to the capabilities of the organization to deliver the service Greater attention to environmental concerns Increased emphasis on designing services that are “user friendly”

MTSU 17 The Role of Operations Responsible for service systems –procedures –equipment –facilities Responsible for managing the work force

MTSU 18 Designing Service Organizations Capacity is a dominant issue since services cannot be inventoried Identify the target market Determine the service focus or competitive advantage Develop the service package Design the delivery system

MTSU 19 Factors To Consider The process and the service must be developed simultaneously A service operation lacks legal protection The service package constitutes the major output of the development process

MTSU 20 Factors To Consider Service package often determined by the training individuals receive Service offerings can be changed overnight

MTSU 21 Process Design in Services Quasi manufacturing - production of goods takes place along a production line with almost no customer interaction Customer-as-participant - high degree of customer involvement in the process of generating the service Customer-as-product - service is provided through personal attention to the customer

MTSU 22 Service Quality Dimensions Tangibles Reliability Responsiveness Assurance Empathy SERVQUAL survey tests expectations and perceptions >> Gap for these 5 dimensions.

MTSU 23 Service Quality Dimensions Availability Professionalism Timeliness Completeness Pleasantness

MTSU 24 Unified Theory for Services Management Proposition 1: The Unified Services Theory – With services the customer provides significant inputs into the production process.

MTSU 25 Unified Theory for Services Management Proposition 2: The Unreliable Supplier Dilemma – With services the customer- suppliers often provide unreliable inputs.

MTSU 26 Unified Theory for Services Management Proposition 3: Capricious Labor – With services the customer-labor may ignore, avoid, or reject technologies or process improvements which are intended to increase quality and productivity. As a result, customer buy-in to process changes must be carefully addressed.

MTSU 27 Unified Theory for Services Management Proposition 4: Everyone Presumes to be An Expert – With services the customer often provides product specifications (what to make) and process design (how to make it), often with the invitation of the service provider.

MTSU 28 Designing Quality Presentations Your assignment is to provide a quality presentation (in your TQM class?). Identify sub-processes of the presentation (and presentation preparation process) and flow chart. Include fail points. How can you improve this process?

MTSU 29 Quality Services – New Areas Government Health care Education

MTSU 30 Designing Quality Services