1. Chapter 7 Product Design and process Selection – Services
Service Generalizations
Service Strategy
Service-System Design Matrix
Service Blueprinting
Service Fail-safing
Characteristics of a Well-Designed Service Delivery System 2

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)
Most services contain
mix of tangible and intangible attributes.
High-contact services
experienced, whereas
Goods
Effective management of services
Services often take the form of cycles of encounters involving face-to-face, phone, internet, electromechanical, and/or mail interactions. 4

4. Service Businesses
A service business is the management of organizations whose primary business requires interaction with the customer to produce the service 5

5. Service Businesses
Facilities-base
Field-based services 5

6. Internal Services Internal Supplier Internal Customer External6

7. The Customer Centered View
Exhibit 7.1
The Customer Centered View
The Service
Strategy
The
People
Systems
The
Customer 7

8. Service Strategy: Focus and Advantage Performance Priorities
Treatment of the customer
Speed and convenience of service delivery
Price
Variety . 8

9. 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

10. Service Blueprinting or Mapping
Flow chart a shoe shine operation
Estimate time per operation
Use 4 to 6 operations
Use only boxes for now
Spot where problems could go wrong
What would you do?
Why?
Example:

11. Example of Service Map Shoe Polishing Business?
Standard
??????
shoes
execution time
2 minutes 30
secs 11

12. Example of Service Map Shoe Polishing Business?
Standard
Brush
execution time
shoes
2 minutes 30
secs 11

13. Example of Service Map Shoe Polishing Business
Standard
Brush
Apply ?
execution time
shoes
polish
2 minutes 30 30
secs
secs 11

14. Example of Service Map Shoe Polishing Business
Standard
Brush
Apply ?
Buff
execution time
shoes
polish
2 minutes 30 30 45
secs
secs
secs 11

15. Example of Service Map Shoe Polishing Business
Brush
shoes
Apply
polish
Buff
Collect
payment
Standard
execution time
2 minutes 30
secs 45 15
However, what is the problem here? 11

16. Example of Service Map Standard Brush Apply Collect Buff
execution time
shoes
polish
payment
2 minutes 30 30 45 15
secs
secs
secs
secs
Wrong
color wax 11

17. Example of Service Map Total acceptable execution time 5 minutes
Standard
Brush
Apply
Collect
Buff
execution time
shoes
polish
payment
2 minutes 30 30 45 15
secs
secs
secs
secs
Wrong
color wax
Clean
Fail
shoes
point 45
secs
Total acceptable
execution time
5 minutes 11

18. Example of Service Map Including Line of Visibility
Standard
Brush
Apply
Collect
Buff
execution time
shoes
polish
payment
2 minutes 30 30 45 15
secs
secs
secs
secs
Total acceptable
execution time
Wrong
5 minutes
color wax
Clean
Fail
shoes
point
Materials
Seen by
(e.g., polish, cloth)
customer 45
Line of
secs
visibility
Not seen by
customer but
Select and
necessary to
purchase
performance
supplies 11

19. 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

20. Have we compromised one of the 3 Ts?14

21. 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