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1 Chapter 7 Product Design and process Selection – Services Service Generalizations Service Strategy Service-System Design Matrix Service Blueprinting.

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Presentation on theme: "1 Chapter 7 Product Design and process Selection – Services Service Generalizations Service Strategy Service-System Design Matrix Service Blueprinting."— Presentation transcript:

1 1 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

2 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 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 4 Service Businesses A service business is the management of organizations whose primary business requires interaction with the customer to produce the service

5 5 Service Businesses Facilities-base Field-based services –

6 6 Internal Services Internal Supplier Internal Customer External Customer

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

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

9 9 Service-System Design Matrix Exhibit 6.6 Mail contact Face-to-face loose specs Face-to-face tight specs Phone Contact Face-to-face total customization Buffered core (none) Permeable system (some) Reactive system (much) High Low High Low Degree of customer/server contact Internet & on-site technology Sales Opportunity Production Efficiency

10 10 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:

11 11 Example of Service Map Shoe Polishing Business ?????? shoes Standard execution time 2 minutes 30 secs ?

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

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

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

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

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

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

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

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

20 20 Have we compromised one of the 3 Ts?

21 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


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