Transcript The Service Delivery System

Chapter 5
The Service Delivery System
Learning Objectives
• Prepare a blueprint for a service operation.
• Describe a service process using the dimensions of
divergence and complexity.
• Classify a service using a taxonomy of service
processes.
• Compare and contrast the generic approaches to
service system design.
• Discuss the use of information technology for employee
and customer empowerment.
Service Blueprinting
(Bank Lending Operation)
Loan application Branch
30min--1hr.
Officer
Pay book
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$ 0 $
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w
w
Line of visibility
Decline
F
Deny
Verify
income
data
Initial
screening
F
Receive
Payment
Notify
customer
Credit
check
1 day
Accept
2 days
3 days
F
Bank
accounts
Issue
check
Confirm
Print
payment
book
Delinquent
F
Verify
payer
Credit
bureau
Employer
Final
payment
Branch
records
Accounting
F
Data base
records
F
Fail point
W
Customer wait
Employee decision
F
Close
account
Strategic Positioning
Through Process Structure
• Degree of Complexity: Measured by the number
of steps in the service blueprint. For example a
clinic is less complex than a general hospital.
• Degree of Divergence: Amount of discretion
permitted the server to customize the service.
For example the activities of an attorney
contrasted with those of a paralegal.
Structural Alternatives
for a Restaurant
LOWER COMPLEXITY/DIVERGENCE
CURRENT PROCESS
No Reservations
Self-seating. Menu on Blackboard
Eliminate
Customer Fills Out Form
TAKE RESERVATION
SEAT GUESTS, GIVE MENUS
SERVE WATER AND BREAD
TAKE ORDERS
PREPARE ORDERS
Pre-prepared: No Choice
Salad (4 choices)
Limit to Four Choices
Entree (15 choices)
Sundae Bar: Self-service
Dessert (6 choices)
Coffee, Tea, Milk only
Serve Salad & Entree Together:
Bill and Beverage Together
Cash only: Pay when Leaving
Beverage (6 choices)
SERVE ORDERS
COLLECT PAYMENT
HIGHER COMPLEXITY/DIVERGENCE
Specific Table Selection
Recite Menu: Describe Entrees & Specials
Assortment of Hot Breads and Hors D’oeuvres
At table. Taken Personally by Maltre d’
Individually Prepared at table
Expand to 20 Choices: Add Flaming Dishes;
Bone Fish at Table; Prepare Sauces at Table
Expand to 12 Choices
Add Exotic Coffees; Sherbet between
Courses; Hand Grind Pepper
Choice of Payment. Including House Accounts:
Serve Mints
Structural Positioning of Healthcare
Services
HIGH COMPLEXITY
* Hospitals Services
* General Practitioner
* Forensic-Testing Lab
* Diagnostic services only
* Specialist: Treatment only
LOW DIVERGENCE
HIGH DIVERGENCE
* Outpatient Clinic
* Retailer of Orthopedic Supplies
* X-Ray Lab
* Medical Counseling
LOW COMPLEXITY
Taxonomy of Service Processes
Low Divergence
(Standardized Service)
High Divergence
(Customized Service)
Processing of
Goods
Information People
Goods
No customer contact
Dry
Cleaning
Check
processing
Auto repair Computer
Tailor
programmin
g, building
design
Indirect customer
contact
Direct
Customer
contact
No
interaction
(sefservice)
Internet
purchase
Buying
form
vending
machine
ATM
transaction
Customer- Food
Class
service
service in a lectures
worker
restaurant
interaction
Information People
Air traffic
control
Operating Bagging of Documentin Using a
an
groceries
g medical
health
elevator
history
club
Mass
Landscapin Counseling
transporta g service
tion
systems
Haircut
Taxi
service
Production-line Approach to Service
Design
• Limit Discretion of Personnel
• Division of Labor
• Substitute Technology for People
• Standardize the Service
Customer Participation
• Encourage Co-production by Customer
Free air miles for Internet ticketing
• Promote Demand Smoothing
Half-price drinks before 6:00pm
Information Empowerment
• Employees
Relational Databases
• Customers
Internet Web Site
Customer Contact View of Services
• Degree of Customer Contact Influences
Potential Efficiency of Service
• Separate High- and Low-Contact Operations
• Consider Sales Opportunity and Production
Efficiency Tradeoff
100 Yen Sushi House Blueprint
Customer
Activities
Enter
Seat Themselves
F
Make Paste
Make Selection
Eat
Stack Plates
Pay
Leave
Provider
Activities
Welcome Customers
Serve Accessories
Prepare Selections
Make Tea
F
Fill Tea
F
Count Plates
Thank Customer
Remove Accessories
F
F
Review Demand
Cook with Attn. to Flavor
Remove Uneaten Sushi
Get from Inventory
Stock Inventory
Line of Visibility
F
Tell Friends
Wash Plates, etc.
Provide High Quality Ingredients
F
100 Yen Sushi House
Service Package
• Supporting Facility
• Facilitating Goods
• Explicit Service
• Implicit Service
100 Yen Sushi House Layout
Dishwashing Counter in Back
CONVERSATION AREA
Miso and Tea Station
CONVEYOR
BELT
CONVERSATION AREA
TAKE-OUT
POSITION
ENTRANCE
= CHEF
100 Yen Sushi House Questions
• What features differentiate 100 Yen Sushi House
and how do they create a competitive
advantage?
• How has the 100 Yen Sushi House incorporated
the just-in-time system into its operations?
• Suggest other services that could adopt the 100
Yen Sushi House service delivery concept.