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Copyright 2009 John Wiley & Sons, Inc. Beni Asllani University of Tennessee at Chattanooga Service Design Operations Management - 6 th Edition Chapter.

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Presentation on theme: "Copyright 2009 John Wiley & Sons, Inc. Beni Asllani University of Tennessee at Chattanooga Service Design Operations Management - 6 th Edition Chapter."— Presentation transcript:

1 Copyright 2009 John Wiley & Sons, Inc. Beni Asllani University of Tennessee at Chattanooga Service Design Operations Management - 6 th Edition Chapter 5 Roberta Russell & Bernard W. Taylor, III

2 Copyright 2009 John Wiley & Sons, Inc.5-2 Lecture Outline Service Economy Characteristics of Services Service Design Process Tools for Service Design Waiting Line Analysis for Service Improvement

3 Copyright 2009 John Wiley & Sons, Inc.5-3 Service Economy Source: U.S. Bureau of Labor Statistics, IBM Almaden Research Center

4 Copyright 2009 John Wiley & Sons, Inc.5-4

5 Copyright 2009 John Wiley & Sons, Inc.5-5 Characteristics of Services Services Services acts, deeds, or performances acts, deeds, or performances Goods Goods tangible objects tangible objects Facilitating services Facilitating services accompany almost all purchases of goods accompany almost all purchases of goods Facilitating goods Facilitating goods accompany almost all service purchases accompany almost all service purchases

6 Copyright 2009 John Wiley & Sons, Inc.5-6 Continuum from Goods to Services Source: Adapted from Earl W. Sasser, R.P. Olsen, and D. Daryl Wyckoff, Management of Service Operations (Boston: Allyn Bacon, 1978), p.11.

7 Copyright 2009 John Wiley & Sons, Inc.5-7 Characteristics of Services (cont.) Services are intangible Services are intangible Service output is variable Service output is variable Services have higher customer contact Services have higher customer contact Services are perishable Services are perishable Service inseparable from delivery Service inseparable from delivery Services tend to be decentralized and dispersed Services tend to be decentralized and dispersed Services are consumed more often than products Services are consumed more often than products Services can be easily emulated Services can be easily emulated

8 Copyright 2009 John Wiley & Sons, Inc.5-8 Service Design Process

9 Copyright 2009 John Wiley & Sons, Inc.5-9 Service concept purpose of a service; it defines target market and customer experience Service package mixture of physical items, sensual benefits, and psychological benefits Service specifications performance specifications design specifications delivery specifications Service Design Process (cont.)

10 Copyright 2009 John Wiley & Sons, Inc.5-10 Service Process Matrix

11 Copyright 2009 John Wiley & Sons, Inc.5-11 Design Decision High-Contact ServiceLow-Contact Service High v. Low Contact Services Facility location Convenient to customer Near labor or transportation source Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Compensative Advantage (New York:McGraw-Hill, 2001), p. 210 Facility layout Must look presentable, accommodate customer needs, and facilitate interaction with customer Designed for efficiency

12 Copyright 2009 John Wiley & Sons, Inc.5-12 Design Decision High-Contact ServiceLow-Contact Service Quality control More variable since customer is involved in process; customer expectations and perceptions of quality may differ; customer present when defects occur Measured against established standards; testing and rework possible to correct defects Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Compensative Advantage (New York:McGraw-Hill, 2001), p. 210 Capacity Excess capacity required to handle peaks in demand Planned for average demand High v. Low Contact Services (cont.)

13 Copyright 2009 John Wiley & Sons, Inc.5-13 Design Decision High-Contact ServiceLow-Contact Service Worker skills Must be able to interact well with customers and use judgment in decision making Technical skills Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Compensative Advantage (New York:McGraw-Hill, 2001), p. 210 Scheduling Must accommodate customer schedule Customer concerned only with completion date High v. Low Contact Services (cont.)

14 Copyright 2009 John Wiley & Sons, Inc.5-14 Design Decision High-Contact ServiceLow-Contact Service High v. Low Contact Services (cont.) Service process Mostly front-room activities; service may change during delivery in response to customer Mostly back- room activities; planned and executed with minimal interference Source: Adapted from R. Chase, N. Aquilano, and R. Jacobs, Operations Management for Compensative Advantage (New York:McGraw-Hill, 2001), p. 210 Service package Varies with customer; includes environment as well as actual service Fixed, less extensive

15 Copyright 2009 John Wiley & Sons, Inc.5-15 Tools for Service Design Service blueprinting Service blueprinting line of influence line of influence line of interaction line of interaction line of visibility line of visibility line of support line of support Front-office/Back- office activities Front-office/Back- office activities Servicescapes Servicescapes space and function space and function ambient conditions ambient conditions signs, symbols, and artifacts signs, symbols, and artifacts Quantitative techniques Quantitative techniques

16 Copyright 2009 John Wiley & Sons, Inc.5-16 Service Blueprinting

17 Copyright 2009 John Wiley & Sons, Inc.5-17 Service Blueprinting (Cont)

18 Copyright 2009 John Wiley & Sons, Inc.5-18 Elements of Waiting Line Analysis Operating characteristics Operating characteristics average values for characteristics that describe performance of waiting line system av