Transcript Production and Operations Management: Manufacturing and

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
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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.
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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.

3
Service Businesses
A service business is the management of
organizations whose primary business
requires interaction with the customer to
produce the service
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Service Businesses

Facilities-base

Field-based services
–
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Internal Services
Internal Supplier
Internal
Customer
External
Customer
Internal Supplier
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Exhibit 7.1
The Customer Centered View
The Service
Strategy
The
Customer
The
Systems
The
People
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Service Strategy: Focus and Advantage
Performance Priorities

Treatment of the customer

Speed and convenience of service delivery

Price

Variety

.

.
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Exhibit 6.6
Service-System Design Matrix
Degree of customer/server contact
High
Buffered
core (none)
Permeable
system (some)
Reactive
system (much)
Low
Face-to-face
total
customization
Face-to-face
loose specs
Sales
Opportunity
Face-to-face
tight specs
Internet &
on-site
Mail contact technology
Low
Production
Efficiency
Phone
Contact
High
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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:
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Example of Service Map
Shoe Polishing Business
Standard
execution time
2 minutes
??????
shoes
?
30
secs
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Example of Service Map
Shoe Polishing Business
Standard
execution time
2 minutes
Brush
shoes
?
30
secs
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Example of Service Map
Shoe Polishing Business
Standard
execution time
2 minutes
Brush
shoes
30
secs
Apply
polish
?
30
secs
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Example of Service Map
Shoe Polishing Business
Standard
execution time
2 minutes
Brush
shoes
30
secs
Apply
polish
30
secs
Buff
?
45
secs
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Example of Service Map
Shoe Polishing Business
Standard
execution time
2 minutes
Brush
shoes
30
secs
Apply
polish
30
secs
Buff
45
secs
Collect
payment
15
secs
However, what is the problem here?
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Example of Service Map
Standard
execution time
2 minutes
Brush
shoes
30
secs
Apply
polish
30
secs
Buff
45
secs
Collect
payment
15
secs
Wrong
color wax
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Example of Service Map
Standard
execution time
2 minutes
Brush
shoes
30
secs
Clean
shoes
Apply
polish
Buff
30
secs
Fail
point
45
secs
Collect
payment
15
secs
Wrong
color wax
45
secs
Total acceptable
execution time
5 minutes
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Example of Service Map
Including Line of Visibility
Standard
execution time
2 minutes
Brush
shoes
30
secs
Total acceptable
execution time
5 minutes
Seen by
customer
Line of
visibility
Not seen by
customer but
necessary to
performance
Clean
shoes
45
secs
Apply
polish
30
secs
Fail
point
Buff
45
secs
Collect
payment
15
secs
Wrong
color wax
Materials
(e.g., polish, cloth)
Select and
purchase
supplies
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Service Fail-safing
Poka-Yokes (A Proactive Approach)

Keeping a
mistake from
becoming a
service defect.
Task
Treatment

Tangibles
How can we failsafe the three
Ts?
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Have we compromised one of the 3 Ts?
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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
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