Transcript Slide 1

PCN Analysis Exercise Assignment Log
PCN Analysis Exercises
Assigned
Due Date
Turned In
Chapter 1 AE: Identify service design needs.
Chapter 2 AE: Diagram your service supply chain.
Chapter 3 AE: Create a PCN Diagram.
Chapter 4 AE: Analyze the value proposition.
Chapter 5 AE: Analyze operating characteristics of strategic process
positioning.
Chapter 6 AE 6a: Analyze capacity, utilization, and idleness
Chapter 6 AE 6b: Analyze customer waiting
Chapter 7 AE: Analyze service failure response.
Chapter 8 AE 8a: Analyze job design.
Chapter 8 AE 8a: Analyze job customer training.
Chapter 9 AE: Analyze customer roles.
Chapter 10 AE: Lean Service analysis.
Chapter 11 AE: Analyze deservitization and servitization.
Chapter 12 AE: Explore systematic service innovation.
Chapter 13 AE: Analyze the Service Value Network
PCN Analysis for team 0: Scott Sampson
©2013 Dr. Scott Sampson, BYU
7/7/2015
page 1
Selecting a Target Business Process to Analyze
To complete the assigned exercises, identify a target business process to
analyze, unless one is assigned by the instructor. It is good to select a
process that involves two entities that interact – a firm and a customer.
Examples include:
–
–
–
the process of ordering and serving food at a restaurant
the process of getting your computer repaired
the process of having an eye exam
It is good to use a process from your own company or a company you have
experience with. Do not select an airline process, the illustrative example.
The following pages show an example of completed PCN Analysis
Exercises using an airline as the subject of analysis.
PCN Analysis for team 0: Scott Sampson
©2013 Dr. Scott Sampson, BYU
7/7/2015
page 2
PCN Analysis Exercise Cover Page
•
•
•
•
Assignment: PCN Analysis Exercises for Ch1-Ch13
Course: MBA 619-1 Spring 2013, BYU
Team: 0
Team members:
– Scott Sampson
• Target business process: Airline flight booking and transportation
PCN Analysis for team 0: Scott Sampson
©2013 Dr. Scott Sampson, BYU
7/7/2015
page 3
Chapter 1 Exercise: Identify service design needs
Service Failure example #1:
I was on a United airlines flight from Salt Lake City to San Francisco. The
flight was delayed three hours then canceled. The airline made no gate
announcements about the delay, but required us to make trips to the gate
and inquire about the delay status. When the flight was finally canceled we
had missed all other possible flights that day. The effect was missing an
important meeting in San Francisco the next morning. The airline only
provided meal and lodging vouchers upon our instance, and even that was
somewhat grudgingly.
Improvement opportunities include:
1.
2.
3.
Gate agent employees could have been trained to provide better
communication about delayed flights.
The digital sign at the gate could have provided more accurate flight status
updates.
The airline could have had a procedure for proactively helping stranded
customers instead of requiring us to be upset enough to complain.
PCN Analysis for team 0: Scott Sampson
©2013 Dr. Scott Sampson, BYU
7/7/2015
page 4
Chapter 1 Exercise: Identify service design needs
Service Failure example #2
My family and I were on an Air France flight from Bristol UK to Paris France (CDG),
which connected to a flight to the U.S.. In Bristol the gate agent only gave us
boarding cards for the Bristol-Paris leg, stating that we needed to get the Paris-US
boarding cards in Paris. In Paris we hurried through the CDG terminal to catch our
connecting flight that was soon to depart. When we got near the gate they asked
for our boarding cards and we told them that the Bristol agent said we were to get
them at CDG. The Air France employee said that should have happened before
TSA security, so we had to go back through security (with another scan) to get the
cards, then again back through security to get to the gate. At the gate we were the
last passengers for this flight, but they still decided to do a thorough search of my
7-year-old daughter’s kiddy backpack.
Improvement opportunities include:
1. Better communication of expectations between the Bristol and CDG airports.
2. Clearer indication of where we were to get boarding passes at CDG.
3. Means for producing boarding cards nearer the point where they are needed
(so passengers without cards do not need to go back through security).
PCN Analysis for team 0: Scott Sampson
©2013 Dr. Scott Sampson, BYU
7/7/2015
page 5
Chapter 2 exercise: Diagram your service supply chain.
qualified
self
jet equipment
jet
manufacturer
self and luggage
airline
peanut
packager
peanuts
TSA
self
passenger
transported self and luggage
hungry
self
fed self
airport food
vendors
PCN Analysis for team 0: Scott Sampson
©2013 Dr. Scott Sampson, BYU
7/7/2015
page 6
Chapter 3 AE: Create a PCN Diagram (first page)
PCN Diagram
for process:
Airline passenger booking a ticket on an airline website
Provider’s Process Domain
Independent processing
Surrogate interaction
Customer’s Process Domain
Direct interaction
Direct interaction
Surrogate interaction
Independent processing
visit an airline
website
need air
transportation
enter search
information
no
develop flight
schedule
provide flight
options
acceptable
flight?
yes
select flight
process
payment
enter payment
information
send eticket
print eticket
wait until
flight day
PCN Analysis for team 0: Scott Sampson
©2013 Dr. Scott Sampson, BYU
7/7/2015
page 7
Chapter 3 AE: Create a PCN Diagram (second page)
PCN Diagram
for process:
Airline passenger check-in and transportation process
Provider’s Process Domain
Independent processing
Surrogate interaction
Customer’s Process Domain
Direct interaction
Direct interaction
Surrogate interaction
Independent processing
drive to airport
check identification
find parking
check reservation
receive checked bags
wait in line
get to terminal
tag checked bags
transfer bags to
appropriate gate
go through security
place bags on belt
give boarding pass
land plane
clean and
refuel plane
load bags on plane
fly to destination
unload checked
bags
board plane
wait for boarding
exit plane
walk to bag claim
watch and wait
transport bags to
baggage claim
PCN Analysis for team 0: Scott Sampson
retrieve bags
©2013 Dr. Scott Sampson, BYU
depart airport
7/7/2015
page 8
Ch4: Analyze the value proposition (first page)
PCN Diagram
for process:
Airline passenger booking a ticket on an airline website
Provider’s Process Domain
Independent processing
Surrogate interaction
Customer’s Process Domain
Direct interaction
Direct interaction
Surrogate interaction
Independent processing
visit an airline
website
need air
transportation
enter search
information

no
develop flight
schedule
provide flight
options
acceptable
flight?
yes
select flight
+$
process
payment
enter payment
information
send eticket
print eticket

wait until
flight day
PCN Analysis for team 0: Scott Sampson
©2013 Dr. Scott Sampson, BYU
7/7/2015
page 9
Ch4: Analyze the value proposition (second page)
PCN Diagram
for process:
Airline passenger check-in and transportation process
Provider’s Process Domain
Independent processing
Customer’s Process Domain
Surrogate interaction
Direct interaction
Direct interaction
Surrogate interaction
Independent processing
drive to airport
check identification


check reservation
wait in line
receive checked bags
find parking
get to terminal
-$
-$
transfer bags to
appropriate gate
land plane
clean and
refuel plane
load bags on plane
-$
-$
-$
tag checked bags

place bags on belt
go through security
board plane
transport bags to
baggage claim
PCN Analysis for team 0: Scott Sampson
wait for boarding
exit plane
fly to destination
unload checked
bags


give boarding pass

walk to bag claim

watch and wait

retrieve bags
©2013 Dr. Scott Sampson, BYU
depart airport
7/7/2015
page 10
Ch4. Description of Value Proposition
•
•
Describe key steps for creating value potential. What
resources are involved in creating value potential?
– The steps “Enter search information” and find
“acceptable flight” are important because it can
often be difficult to find acceptable flights.
Acceptable flight includes finding acceptable
locations, dates and times, seats, and price.
Providing easy-to-use search tools (online) is
essential to creating value potential.
– The step “print e-ticket” gives the customer
confidence that they actually do have the
reservation. Even though an e-ticket can be
optional in this day and age, it is a tangible
indicator of what the customer has purchased.
Describe value realization. In what steps is value
realized?
– Value realization for the airline is primarily in
arriving at the airport—the joy of being at the
destination. Unfortunately, this joy is often
magnified by the horrible experience it is waiting
and being on the flight.
– Value could be realized in the “fly to destination”
step if it involved comfort, good food, and/or
quality entertainment.
PCN Analysis for team 0: Scott Sampson
•
For the diagramed process, describe the major cost
drivers for the provider.
– The primary cost driver is "fly to destination"
because it involves an expensive asset, the
plane, and fuel on the plane.
– The other major cost drivers are largely labor, to
check in passengers, check bags, handle bags,
fly planes, and provide some version of food or
drink on flights.
•
For the diagramed process, describe the major
psychological costs to customers.
– Many of the psychological costs involve waiting:
waiting to check in, waiting to get through
security, waiting to board plane, waiting to
retrieve bags.
– Check-in can also provide psychological cost
when passengers are not within required weight
and size limits (for luggage).
– Going through security can likewise provide
psychological costs when passengers are not
fully aware or compliant with TSA regulations.
©2013 Dr. Scott Sampson, BYU
7/7/2015
page 11
Ch5. Enabling Innovation: Online checking and bag tagging
PCN Diagram
for process:
Airline passenger check-in and transportation process
Provider’s Process Domain
Independent processing
Customer’s Process Domain
Surrogate interaction
Direct interaction
Direct interaction
Surrogate interaction
Independent processing
check in on airline
website
check identification
drive to airport
find parking
get to terminal
print boarding pass
and luggage
 tag
check reservation
receive checked bags
-$
tag checked bags
-$
clean and
refuel plane
load bags on plane
-$
-$
transport bags to
baggage claim
PCN Analysis for team 0: Scott Sampson
go through security
place bags on belt
-$


give boarding pass
board plane
wait for boarding
exit plane
fly to destination
unload checked
bags


-$
transfer bags to
appropriate gate
land plane
scan luggage tag
and tape on bag*

walk to bag claim

watch and wait

retrieve bags
©2013 Dr. Scott Sampson, BYU
depart airport
7/7/2015
page 12
Ch5. Relieving Innovation: Provided county airport shuttle
PCN Diagram
for process:
Airline passenger check-in and transportation process
Provider’s Process Domain
Independent processing
Customer’s Process Domain
Surrogate interaction
Direct interaction
drive passenger to airport
Direct interaction
Surrogate interaction
Independent processing
meet shuttle at
county parking lot
drive to airport
check identification
-$ (+$?) 


check reservation
wait in line
receive checked bags
find parking
get to terminal
-$
-$
transfer bags to
appropriate gate
land plane
clean and
refuel plane
load bags on plane
-$
-$
-$
tag checked bags

place bags on belt
go through security
board plane
transport bags to
baggage claim
PCN Analysis for team 0: Scott Sampson
wait for boarding
exit plane
fly to destination
unload checked
bags


give boarding pass

walk to bag claim

watch and wait

retrieve bags
©2013 Dr. Scott Sampson, BYU
depart airport
7/7/2015
page 13
Ch5. Description of Enabling and Relieving Innovations
•
•
•
Enabling Innovation
– Passengers print their own boarding pass
and luggage tag.
Description:
– Passengers have the option of printing their
own boarding pass and luggage tags at
home within 24 hours of their flight.
– The only contact customer has with the
airline before security is allowing a low-wage
employee to tape the luggage tag on the
luggage.
– If the luggage tag printed by the passenger
is unusable, the low-wage employee can
scan the tag or boarding pass and print out
a new one.
Impact on Value Proposition and Operating
Characteristics:
– Increased customization: customers can
print passes whenever they want.
– Reduces economies of scale: customers
might not have knowledge or supplies to
print and attach their own luggage tags.
(Scotch tape probably is not going to work.)
– Improves efficiencies:
• Reduced  cost to customer, who
does not need to wait in line to check
bags (low-wage employee is highly
efficient)
• Reduced -$ cost to firm, replacing
multiple bag checkers with one or two
low-wage employees.
PCN Analysis for team 0: Scott Sampson
•
•
•
Relieving Innovation
– Provide a county-based shuttle to the airport
Description:
– When passenger books their ticket, they are
given the opportunity to buy a slot on a
shuttle-bus that departs from a location in
the passenger’s county or city.
– Passenger still needs to get a ride to the
shuttle location, or drive car and pay for
parking there.
– Shuttles leave at fixed intervals, but
passenger would have a reserved seat.
– Passenger would print out their shuttle
confirmation at time of ticketing.
Impact on Value Proposition and Operating
Characteristics:
– Increased economies of scale: saves gas
and reduces number of vehicles at airport.
– Reduces customization:
• customers can only leave at
scheduled shuttle times.
• customers can only go to/from airport
(cannot stop at Wendy’s on the way)
– Reduced  cost, since customer do not
need to deal with traffic and parking.
– Additional revenue opportunity +$ for airline.
©2013 Dr. Scott Sampson, BYU
7/7/2015
page 14
Ch6. Analyze capacity, utilization, and idleness (first page)
PCN Diagram
for process:
Airline passenger booking a ticket on an airline website
Provider’s Process Domain
Surrogate interaction
capacity step
Independent processing
Customer’s Process Domain
Direct interaction
Direct interaction
Surrogate interaction
Independent processing
visit an airline
website
need air
transportation
enter search
information
no
develop flight
schedule
provide flight
options
acceptable
flight?
yes
select flight
process
payment
enter payment
information
send eticket
print eticket
wait until
flight day
PCN Analysis for team 0: Scott Sampson
©2013 Dr. Scott Sampson, BYU
7/7/2015
page 15
Ch6. Analyze capacity, utilization, and idleness (second page)
PCN Diagram
for process:
Airline passenger check-in and transportation process
Provider’s Process Domain
Independent processing
Surrogate interaction
Customer’s Process Domain
Direct interaction
Direct interaction
Surrogate interaction
Independent processing
drive to airport
check identification
find parking
check reservation
receive checked bags
tag checked bags
transfer bags to
appropriate gate
wait in line
get to terminal
capacity step
go through security
place bags on belt
give boarding pass
land plane
clean and
refuel plane
load bags on plane
fly to destination
unload checked
bags
board plane
wait for boarding
exit plane
walk to bag claim
watch and wait
transport bags to
baggage claim
PCN Analysis for team 0: Scott Sampson
retrieve bags
©2013 Dr. Scott Sampson, BYU
depart airport
7/7/2015
page 16
Ch6. Analyze capacity, utilization, and idleness
•
•
•
•
Step from provider’s Independent
Processing
step: develop flight schedule
step time estimate: 40-100 hours per year
Resource 1: Chief Operating Officer
(COO)
– estimated 10% of COO time
developing flight schedules
– rest of time spent monitoring and
managing the operations
– short-term capacity increase by
outsourcing schedule planning
– long-term capacity increase by hiring
scheduling assistants
Resource 2: Computer system
– estimated 1% of computer system
time developing flight schedules
– rest of time spent tracking data or idle
– short-term capacity increase by
utilizing night hours to do scheduling
– long-term capacity increase capacity
by purchasing additional computers
PCN Analysis for team 0: Scott Sampson
•
•
•
•
Direct Interaction step
step: tag checked bags
step time estimate: 1 minute per customer
Resource 1: Airline employee
– estimated 5% of employee time
tagging checked bags
– rest of time spent checking passenger
records or waiting for passengers
– short-term capacity increase by
having employees from other areas
tag bags
– long-term capacity increase by
requiring customers to tag their own
bags
Resource 2: tag printing machine
– estimate that machine spends 2% of
its time printing tags
– rest of time it is idle
– short-term capacity increase not really
feasible
– long-term capacity increase by buying
additional tag printing machines
©2013 Dr. Scott Sampson, BYU
7/7/2015
page 17
PCN Diagram
for process:
Ch6. Analyze customer waiting
Airline passenger check-in and transportation process
Provider’s Process Domain
Independent processing
Surrogate interaction
Customer’s Process Domain
Direct interaction
Direct interaction
check identification
Surrogate interaction
Independent processing
wait 0 to 30 minutes
due to limited number
of airline employees.
drive to airport
find parking
check reservation
receive checked bags
wait in line
get to terminal
tag checked bags
transfer bags to
appropriate gate
go through security
place bags on belt
give boarding pass
land plane
clean and
refuel plane
load bags on plane
board plane
exit plane
fly to destination
unload checked
bags
transport bags to
baggage claim
PCN Analysis for team 0: Scott Sampson
wait for boarding
walk to bag claim
wait 10 to 20 minutes due delay in
getting bags unloaded and
transported to baggage claim area.
watch and wait
retrieve bags
©2013 Dr. Scott Sampson, BYU
depart airport
7/7/2015
page 18
Ch6. Analyze customer waiting
wait in line to check in
1. expect to wait 0-30 minutes.
2. Waiting occurs because
customers arrive in large
numbers shortly before popular
flight times, with a fixed number
of check-in employees.
3. Psychological costs could be
reduced by:
1. Provide signs showing the
current TSA wait, reducing
anxiety.
2. Check documents as
people come into line, so
that customers will fell they
are in process, and to
reduce uncertainty about
whether waiting in that line
is even necessary.
PCN Analysis for team 0: Scott Sampson
wait at baggage claim
1. expect to wait 10-20 minutes.
2. Waiting occurs because of the
transit time of bags moving
from the plane to the baggage
claim.
3. Psychological costs could be
reduced by:
1. Feature a video screen of
information about
attractions of the city and
surrounding area to keep
people occupied while
waiting (turn screen off
when bags arrive to avoid
distraction).
2. Provide customers with an
ETA update about when the
bags will arrive, so that the
wait will have a known
duration.
©2013 Dr. Scott Sampson, BYU
7/7/2015
page 19
PCN Diagram
for process:
Ch7. Indication of two service failure points.
Airline passenger booking a ticket on an airline website
Provider’s Process Domain
Independent processing
Surrogate interaction
Customer’s Process Domain
Direct interaction
(F1) flight information web server goes down.
Detected by customer when entering flight query.
Direct interaction
Surrogate interaction
Independent processing
visit an airline
website
need air
transportation
enter search
information
no
develop flight
schedule
provide flight
options
acceptable
flight?
yes
select flight
process
payment
enter payment
information
send eticket
print eticket
wait until
flight day
(F2) passenger never receives e-ticket. Detected by
customer either immediately or at flight day.
PCN Analysis for team 0: Scott Sampson
©2013 Dr. Scott Sampson, BYU
7/7/2015
page 20
PCN Diagram
for process:
Ch7. Analyze service failure response (F1).
Airline passenger booking a ticket on an airline website
Provider’s Process Domain
Independent processing
Surrogate interaction
Customer’s Process Domain
Direct interaction
Direct interaction
Surrogate interaction
Independent processing
visit an airline
website
need air
transportation
enter search
information
(F1) server goes down
develop flight
schedule
no
acceptable
flight?
provide flight
options
yes
provide form for
customer to
provide phone
number
airline calls customer
select flight
discuss flight
alternatives and options
process
payment
provide payment
information
send eticket
print eticket
wait until
flight day
PCN Analysis for team 0: Scott Sampson
©2013 Dr. Scott Sampson, BYU
7/7/2015
page 21
PCN Diagram
for process:
Ch7. Analyze service failure response (F2).
Airline passenger booking a ticket on an airline website
Provider’s Process Domain
Independent processing
Surrogate interaction
Customer’s Process Domain
Direct interaction
Direct interaction
Surrogate interaction
Independent processing
visit an airline
website
need air
transportation
enter search
information
no
develop flight
schedule
acceptable
flight?
provide flight
options
yes
select flight
process
payment
enter payment
information
(F2) passenger never receives e-ticket
print eticket
send eticket
customer calls airline
re-send eticket
did
customer get
eticket?
FedEx ticket
PCN Analysis for team 0: Scott Sampson
yes
wait until
flight day
no
©2013 Dr. Scott Sampson, BYU
7/7/2015
page 22
Ch7. Description of service failure responses
•
•
•
•
Failure (F1): Airline web server goes down
– This failure may occur because of technical
problem, system overload.
– We assume that when the reservation system
goes down the router is still able to redirect
requests to another system or web page.
Details:
– When server goes down, customer is
immediately redirected to a form that explains
that there is a problem, and if the customer will
provide a phone number then an agent will call
the customer back about the flight.
– Customer might optionally provide a time
window to be called back.
– If the server comes back up, agents can call
customers and tell them that is the case.
– Customer would not be charged any extra fees
for using an agent for reservations.
Benefits to customer:
– Not needing to call airline and wait on hold.
Benefits to airline:
– Fewer lost customers.
•
•
•
•
PCN Analysis for team 0: Scott Sampson
Failure (F2): e-ticket not received
– This failure may happen with airlines that email
the e-ticket to passengers. Causes might
include:
• bad email address
• e-ticket filtered as spam
• customer does not recognize e-ticket
email message
• customer does not check email account
very often
• and so forth
Details:
– Customer notices that he or she did not receive
the e-ticket, calls airline.
– Airline immediately resends e-ticket and asks
customer if he or she got it.
– If not, paper ticket is mailed via regular mail (if
time), or FedEx (if no time)
– Alternately, customer could be given flight
confirmation identifier over the phone, which can
be used to check the flight status on the airline’s
website.
Benefits to passenger:
– Have assurance that reservation is booked.
Benefits to airline:
– Fewer passengers showing up at airport
unprepared.
©2013 Dr. Scott Sampson, BYU
7/7/2015
page 23
PCN Diagram
for process:
Ch7. Poka yoke to prevent service failure (F2).
Airline passenger booking a ticket on an airline website
Provider’s Process Domain
Independent processing
Surrogate interaction
Customer’s Process Domain
Direct interaction
Direct interaction
Surrogate interaction
Independent processing
visit an airline
website
need air
transportation
enter search
information
no
develop flight
schedule
acceptable
flight?
provide flight
options
yes
select flight
process
payment
enter payment
information
send e-ticket link
click e-ticket link
(F2) passenger never clicks e-ticket link
no
has
customer clicked
link within 5
days?
PCN Analysis for team 0: Scott Sampson
airline calls customer
wait until
flight day
print e-ticket
discuss problem and determine if
alternate ticketing method is needed
©2013 Dr. Scott Sampson, BYU
7/7/2015
page 24
Ch7. Description of poke yoke
•
•
•
•
Failure (F2): e-ticket not received
– This failure may happen with airlines that email
the e-ticket to passengers. Causes might
include:
• bad email address
• e-ticket filtered as spam
• customer does not recognize e-ticket
email message
• customer does not check email account
very often
• and so forth
Poka yoke details:
– To detect this failure (without waiting for
customers to report it), instead of sending the eticket the airline sends a link to the e-ticket. If
the customer has not clicked the e-ticket link
with 5 days we assume a service failure.
– On detected failure, the airline calls the
customer at the number they gave when
ticketing.
– Airline agent asks customer if they are aware of
the problem.
– Agent records in database any information
about cause of the problem (e.g.s above).
– Agent determines an alternate email address, or
if snail-mail ticketing is necessary (perhaps for a
mailing fee).
– Airline tracks common causes of problems and
makes process adjustments accordingly.
Benefits to passenger:
– Less likely to forget about not having e-ticket.
Benefits to airline:
– Able to identify more errors and correct causes.
PCN Analysis for team 0: Scott Sampson
•
•
•
•
Failure (F2): e-ticket not received
– This failure may happen with airlines that email
the e-ticket to passengers. Causes might
include:
• bad email address
• e-ticket filtered as spam
• customer does not recognize e-ticket
email message
• customer does not check email account
very often
• and so forth
Details:
– Customer notices that he or she did not receive
the e-ticket, calls airline.
– Airline immediately resends e-ticket and asks
customer if he or she got it.
– If not, paper ticket is mailed via regular mail (if
time), or FedEx (if no time)
– Alternately, customer could be given flight
confirmation identifier over the phone, which can
be used to check the flight status on the airline’s
website.
Benefits to passenger:
– Have assurance that reservation is booked.
Benefits to airline:
– Fewer passengers showing up at airport
unprepared.
©2013 Dr. Scott Sampson, BYU
7/7/2015
page 25
PCN Diagram
for process:
Ch8a. Job design
Airline passenger check-in and transportation process
Provider’s Process Domain
Independent processing
Surrogate interaction
Customer’s Process Domain
Direct interaction
Divergence about how to handle
bags that are fragile or unusually
packaged.
Direct interaction
Surrogate interaction
Independent processing
drive to airport
check identification
find parking
check reservation
receive checked bags
wait in line
get to terminal
tag checked bags
transfer bags to
appropriate gate
go through security
place bags on belt
give boarding pass
land plane
clean and
refuel plane
load bags on plane
fly to destination
unload checked
bags
board plane
wait for boarding
exit plane
walk to bag claim
watch and wait
transport bags to
baggage claim
PCN Analysis for team 0: Scott Sampson
retrieve bags
©2013 Dr. Scott Sampson, BYU
depart airport
7/7/2015
page 26
Ch8a. Job Design
•
Divergence step: receive checked luggage
– Divergence about how to handle luggage that are fragile or unusually
packaged.
•
Costs of divergence
– Would need to hire employees who know about the luggage handling
process and what it’s limits are.
– Fragile or insufficiently packaged items may be damaged in transit, leading
to customer claims.
•
Increased standard operating procedures
– Provide customers with specific guidelines about acceptable luggage.
– Require customers to sign a release for all luggage of unusual nature.
• This would reduce airline liability, but may upset customers.
PCN Analysis for team 0: Scott Sampson
©2013 Dr. Scott Sampson, BYU
7/7/2015
page 27
PCN Diagram
for process:
Ch8b. Customer training
Airline passenger check-in and transportation process
Provider’s Process Domain
Independent processing
Customer’s Process Domain
Surrogate interaction
Direct interaction
Direct interaction
Surrogate interaction
Independent processing
drive to airport
check identification
attire of
employee
check reservation
receive checked bags
find parking
wait in line
get to terminal
line layout
noise or music
tag checked bags
transfer bags to
appropriate gate
information
about which
line to be in
info about policies
and procedures
go through security
place bags on belt
give boarding pass
land plane
clean and
refuel plane
load bags on plane
board plane
exit plane
fly to destination
unload checked
bags
wait for boarding
info about where bag
claim for this flight is
walk to bag claim
noise, smells,
entertainment,
seating, electrical
outlets, boarding
progress info
watch and wait
transport bags to
baggage claim
PCN Analysis for team 0: Scott Sampson
retrieve bags
©2013 Dr. Scott Sampson, BYU
depart airport
7/7/2015
page 28
Ch8b. Customer training
Description of sensory elements and impact on customer behavior
•
step: wait in line
– behavior: passenger not spending time in wrong
line and line jumping.
– element (sign): information about which line to
be in.
– behavior: passenger having reasonable
expectations about line duration.
– element (space): line layout that allows
passenger to see how line progresses.
– behavior: passengers not being grumpy in line.
– element (ambient condition): provide pleasant
music.
•
step: check in
– behavior: passenger have confidence in
employee
– element (symbols): attire of employee makes
employee look more like a captain than a
baggage handler.
•
step: go through security
– behavior: passenger be prepared for that
specific process (e.g. belt removed, pockets
emptied, shoes off, etc.)
– element (sign): provide information in line about
that airport’s specific policies and procedures.
PCN Analysis for team 0: Scott Sampson
•
step: wait for boarding
– behavior: passengers experience severe
psychological costs during the waiting process
– element (ambient condition): provide a pleasant
noise (other than CNN disaster news), provide a
pleasant smell (like candy), provide some type
of appropriate entertainment (besides CNN).
– element (function): furnish seating areas with
more power outlets, so that waiting passengers
can self-entertain or be productive.
– element (sign): provide passengers with a clear
identification of boarding progress (besides PA
announcements).
•
step: walk to bag claim
– behavior: passenger going to the wrong bag
claim area and reporting missing bags.
– element (sign): provide disembarking
passengers with information about where
baggage claim is for the flight they are just
getting off of.
©2013 Dr. Scott Sampson, BYU
7/7/2015
page 29
Ch9. Managing customer roles
Customer role
How that customer role is exhibited
in the air transportation process
How that customer role could be
facilitated or enhanced
1. component
supplier
passengers supply baggage
sell customers appropriate sized
carry-on bags
2. labor
customers walk to gate
provide airport map on check-in
3. design
engineer
customers develop their own
itinerary
provide online tool that advises
customer about itinerary options
4. production
manager
customers plan their layover
activities
provide customers on flights with
info about arrival airport facilities
5. product
customers themselves are
transported
provide sleep shield for long flights
6. quality
assurance
customers judge quality of
interactions with airline employees
provide flight evaluation form on inflight entertainment center at end of
flight
7. inventory
customers wait in airport terminals
for departing flights
provide electrical outlets and free
wi-fi to help pass the time
8. competitor
customers can drive their own car
instead of taking a short flight
on flight tickets indicate the typical
drive time, emphasizing savings
PCN Analysis for team 0: Scott Sampson
©2013 Dr. Scott Sampson, BYU
7/7/2015
page 30
PCN Diagram
for process:
Provider’s Process Domain
Independent processing
Ch10. Lean Service analysis
(3) Eliminate direct
interaction by (3) Enabling
Airline passenger check-in and transportation process
customer to self-serve.
Surrogate interaction
Customer’s Process Domain
Direct interaction
Direct interaction
Surrogate interaction
Independent processing
check identification at
an eye retina scan
kiosk that then prints
bag tags
drive to airport
wait in line
get to terminal
check identification
(1) Enhance interaction by having agent
tell the customer the weather at the
destination shown on the reservation.
check reservation
find parking
tell weather at destination
receive checked bags
tag checked bags
transfer bags to
appropriate gate
go through security
place bags on belt
give boarding pass
land plane
clean and
refuel plane
load bags on plane
fly to destination
unload checked
bags
board plane
exit plane
walk to bag claim
watch and wait
transport bags to
baggage claim
PCN Analysis for team 0: Scott Sampson
wait for boarding
(4) Extend offering
by providing
frequent flier
customers with a
colored card that
allows them in the
fast line at security.
retrieve bags
©2013 Dr. Scott Sampson, BYU
depart airport
7/7/2015
page 31
PCN Diagram
for process:
Ch11: Deservitization example
Airline passenger check-in and transportation process
for Ryanair (low-cost airline in Europe)
Provider’s Process Domain
Independent processing
Surrogate interaction
Customer’s Process Domain
Direct interaction
Direct interaction
Surrogate interaction
Independent processing
drive to airport
Prior process had customer
handing bag to airline
employee who placed the
bag on the conveyer belt
check identification
wait in line
find parking
check reservation
tag checked bags
get to terminal
take bags to
departure terminal
place bags on belt
load bags on
conveyer belt
land plane
clean and
refuel plane
load bags on plane
fly to destination
unload checked
bags
go through security
board plane
wait for boarding
exit plane
walk to bag claim
watch and wait
transport bags to
baggage claim
PCN Analysis for team 0: Scott Sampson
retrieve bags
©2013 Dr. Scott Sampson, BYU
depart airport
7/7/2015
page 32
Ch11. Analyze deservitization and servitization
•
•
•
Deservitization
Example: Ryanair
Description: Most airlines take
bags from passengers at checkin. Ryanair tags bags at checkin, but (at some airports)
requires the customer to take
their bags to the terminal where
the flight departs from. This
saves Ryanair from having to
route bags to different terminals.
This is an example of service
disintermediation. The customer
can perform that portion of
baggage handling without
relying on the provider.
•
•
•
PCN Analysis for team 0: Scott Sampson
Servitization
Servitization (increasing the
value of interaction) could be
accomplished by training checkin employees about the various
destinations of flights from that
airport. A good way to do this
would be to regularly fly the
employees to those destinations
and put them on tours that
would highlight features of the
destination.
Employees could then provide
travel advice to customers at
check-in, based on the
expressed interests of the
customers.
This would decrease the
efficiency of direct-interaction
check-in, but also increase the
value of that interaction.
©2013 Dr. Scott Sampson, BYU
7/7/2015
page 33
Ch12. Explore systematic service innovation
PCN Diagram
for process:
Airline passenger booking a ticket on an airline website
Provider’s Process Domain
Independent processing
Surrogate interaction
Customer’s Process Domain
Direct interaction
Direct interaction
Surrogate interaction
Independent processing
airline prints a book
of flight information
with a table of
contents and index
airline agent enters
flight preferences
that were emailed
from customer
customer tells flight preferences to
airline agent who enters them in a
flight search system
customer enters
flight preferences on
airline website
customer enters
search information
on flight schedule
software loaded on
customer’s PC
enter search
information
enter search
information
enter search
information
enter search
information
enter search
information
1
2
B
3
4
provide flight
options
provide flight
options
provide flight
options
provide flight
options
provide flight
options
airline prints a book
of flight information
airline system
sends flight options
via website or
email
airline agent calls customer and
provides them with flight options
customer sorts
through flight options
listed on airlines
website
customer sorts
through flight options
listed in airline’s
printed or
downloaded flight
schedule
PCN Analysis for team 0: Scott Sampson
©2013 Dr. Scott Sampson, BYU
7/7/2015
page 34
Ch12. Explore systematic service innovation
•
•
Configuration (1) has the airline’s agent
taking flight information requests over the
phone then emailing the results to the
client.
– Advantage is that it gives the agent
time to search for good flight options
without detaining the customer on the
phone.
– Disadvantage is customers cannot
directly ask questions about the
results.
– Some travel agents currently operate
like this, such as BYU Travel.
Configuration (2) has the airline agent
interacting directly with the customer both
to enter the search information and provide
the flight options, in person or on the
phone.
– Advantage is that the customer can
hone their preferences based on the
advice and recommendations of the
agent.
– Disadvantage is inefficiency – very
labor intensive.
– Most airlines operated this way before
the Internet.
PCN Analysis for team 0: Scott Sampson
•
•
Configuration (3) has the customer entering
information via a website or via email and
an airline agent calling back with results.
– Advantage is the ability of the airline
agent to explain the flight results to the
customer.
– Disadvantage is inefficiency of calling
customers back.
– This is an innovation – not aware of
any airlines that currently operate like
this.
Configuration (4) has the customers
loading airline schedule data on their
personal computers (perhaps in a massive
spreadsheet) and searching for desired
flights.
– Advantage is the customer has high
control over the search process, and
can write their own search algorithms
if desired.
– Disadvantage is the customer will
have to learn how to do this and will
not have up-to-date seat availability
and price information.
– This is an innovation – not aware of
any airlines that currently operate like
this.
©2013 Dr. Scott Sampson, BYU
7/7/2015
page 35
Ch13. Analyze the Service Value Network
Passenger
airport
food
service
providers
tour
operators
Airline
ground
transportation
PCN Analysis for team 0: Scott Sampson
currency
exchange
How processes could be integrated:
•
Airport food service providers could bring a
food cart with pre-packaged food to gate
just before boarding starts, so passengers
can have decent food to eat on the flight.
The food could be non-messy and nonsmelly.
•
Currency exchange services can be
notified of the arrival of international flights
to be prepared to assist with appropriate
currency exchange at arrival gate. For
example, a flight from New York to Europe
might be met with a currency exchange
employee prepared to convert dollars to
euro.
•
Airlines can sell tickets to ground
transportation (trains, subways, busses) on
the flight to be used at the arrival gate,
providing directions of how to find the
transportation at the arrival airport.
•
Airlines could sell tickets to popular tours at
destination cities on the flight, and provide
customers with previews of the tours on inflight multimedia.
©2013 Dr. Scott Sampson, BYU
7/7/2015
page 36