Product Design & Process Selection - Services

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Chapter 7 Product Design and process Selection – Services
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Product Design & Process Selection - Services Operations Management For Competitive Advantage Chapter 6 Product Design & Process Selection - Services

Chapter 6 Product Design and process Selection – Services Service Generalizations Service Strategy: Focus & Advantage Service-System Design Matrix Service Blueprinting Service Fail-safing Characteristics of a Well-Designed Service Delivery System 2

Service Generalizations 1. Everyone is an expert on services. 2. Services are idiosyncratic. 3. Quality of work is not quality of service. 4. Most services contain a mix of tangible and intangible attributes. 3

Service Generalizations (Continued) 5. High-contact services are experienced, whereas goods are consumed. 6. Effective management of services requires an understanding of marketing and personnel, as well as operations. 7. Services often take the form of cycles of encounters involving face-to-face, phone, internet, electromechanical, and/or mail interactions. 4

Service Businesses Facilities-based services Field-based services 5

Internal Services Internal Supplier Internal Customer External 6

The Service Triangle The Service Strategy The People Systems The Exhibit 6.1 The Service Triangle The Service Strategy The People Systems The Customer 7

Service Strategy: Focus and Advantage Performance Priorities Treatment of the customer Speed and convenience of service delivery Price Variety Quality of the tangible goods Unique skills that constitute the service offering 8

Service-System Design Matrix Exhibit 6.6 Service-System Design Matrix Degree of customer/server contact Buffered Permeable Reactive High core (none) system (some) system (much) Low Face-to-face total customization Face-to-face loose specs Sales Opportunity Production Efficiency Face-to-face tight specs Phone Contact Internet & on-site technology Mail contact Low High 9

Example of Service Blueprinting 11

Service Fail-safing Poka-Yokes (A Proactive Approach) Keeping a mistake from becoming a service defect. How can we fail- safe the three Ts? Task Tangibles Treatment 13

Have we compromised one of the 3 Ts? 14

Three Contrasting Service Designs The production line approach The self-service approach The personal attention approach 15

Characteristics of a Well-Designed Service System 1. Each element of the service system is consistent with the operating focus of the firm. 2. It is user-friendly. 3. It is robust. 4. It is structured so that consistent performance by its people and systems is easily maintained. 17

Characteristics of a Well-Designed Service System (Continued) 5. It provides effective links between the back office and the front office so that nothing falls between the cracks. 6. It manages the evidence of service quality in such a way that customers see the value of the service provided. 7. It is cost-effective. 18

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