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Product Design and Process Selection: Services

Product Design and Process Selection: Services. Based on slides for Chase Acquilano and Jacobs, Operations Management, McGraw-Hill. Types of Services. Facilities-based services You go to the service provider Examples?? Field-based services The service provider comes to you Examples??

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Product Design and Process Selection: Services

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  1. Product Design and Process Selection: Services Based on slides for Chase Acquilano and Jacobs, Operations Management, McGraw-Hill

  2. Types of Services • Facilities-based services • You go to the service provider • Examples?? • Field-based services • The service provider comes to you • Examples?? • Internal services • Employees as customers What opportunities exist to transform facilities based into field based?

  3. Service Strategy: Focus and 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 • Examples of companies??

  4. Example: Hotel Services

  5. Example: Hotel Services Departments

  6. Question -- • Based on the two videos – and your own experiences -- what are some of the operational issues that hotel managers face? • What are some suggestions you might have for hotels to facilitate better allocation of resources and more effective problem solving?

  7. High & Low Contact Systems

  8. Contrasting Service Designs • Automated Approach • The production line approach • The self-service approach • The personal attention approach • Group Exercise: Select an example of each; identify operations management issues and ways to improve the service experience.

  9. Characteristics of a Well-Designed Service System 1. Each element of the system is consistent with the operating focus of the firm. 2. Is user-friendly. 3. Is robust 4. Structured so that consistent performance by its people & systems is easily maintained. 5. Provides effective links between back & front office -- nothing falls between the cracks. 6. Manages the evidence of service quality in so that customers see the value of the service provided. 7. Is cost-effective.

  10. Demand and Capacity Management Demand Management Vary prices Vary promotion Change lead times(e.g., backorders) Examples?? Capacity Management Vary staffing Change equipment & processes Redesign the product for faster processing Examples??

  11. Queuing Servicing System Servers Waiting Line Customer Arrivals Exit

  12. Example of Queues: Phone Systems

  13. Suggestions for Managing Queues • Determine the acceptable waiting time • use as upper limit • Distract and entertain • Manage expectations • Segment customers • triage • Use demand management • Keep “idle” resources out of sight • even if they’re working

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