Chapter 7 Product Design and process Selection – Services

1. Chapter 7Product 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. 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. Service Businesses A service business is the management of organizations whose primary business requires interaction with the customer to produce the service

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

6. Internal Supplier Internal Customer External Customer Internal Supplier Internal Services

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

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

9. 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

10. Service Blueprintingor 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 MapShoe Polishing Business ? Standard ?????? shoes execution time 2 minutes 30 secs

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

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

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

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

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

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

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

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

20. Have we compromised one of the 3 Ts?

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