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Dr. Scott E. Sampson James M. Passey Professor of Service Operations Management Brigham Young University ©2014 Provo, Utah, USA A basic introduction to.

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Presentation on theme: "Dr. Scott E. Sampson James M. Passey Professor of Service Operations Management Brigham Young University ©2014 Provo, Utah, USA A basic introduction to."— Presentation transcript:

1 Dr. Scott E. Sampson James M. Passey Professor of Service Operations Management Brigham Young University ©2014 Provo, Utah, USA A basic introduction to PCN Analysis with the Malawi’s Pizza Catering case Basic introduction to PCN Analysis 1 For educational use only. Images used according to section 107 of US copyright code.

2 Dr. Scott E. Sampson Your MISSION: document a service operation identify sources of value identify process problems inefficiencies and other costs potential service failures flaws in the customer experience explore possible process improvements identify opportunities for innovation Basic introduction to PCN Analysis 2 POSSIBLE

3 Dr. Scott E. Sampson Steps of basic PCN Analysis 1. Identify system entities and roles 2. Document key processes 3. Assess value propositions 4. Generate strategic improvement alternatives Basic introduction to PCN Analysis 3

4 Dr. Scott E. Sampson Steps of basic PCN Analysis 1. Identify system entities and roles 2. Document key processes 3. Assess value propositions 4. Generate strategic improvement alternatives Basic introduction to PCN Analysis 4

5 Dr. Scott E. Sampson 1. Identify entities and roles Principle Individual Event planner Caterer Venue host Event attendees Basic introduction to PCN Analysis 5

6 Dr. Scott E. Sampson Steps of basic PCN Analysis 1. Identify system entities and roles 2. Document key processes 3. Assess value propositions 4. Generate strategic improvement alternatives Basic introduction to PCN Analysis 6

7 Dr. Scott E. Sampson Elements of a PCN Diagram Process Entity Process Domain Process Regions Basic introduction to PCN Analysis 7

8 Dr. Scott E. Sampson Process Entity Basic introduction to PCN Analysis 8

9 Dr. Scott E. Sampson Process Entity Principle Individual Event planner Caterer Venue host Event attendees Basic introduction to PCN Analysis 9

10 Dr. Scott E. Sampson Process Entity Entity Entity’s Process Domain Basic introduction to PCN Analysis 10 An entity’s Process Domain includes all processes that are directly performed, directed, controlled by the entity.

11 Dr. Scott E. Sampson Process Domain Pizza Restaurant Restaurant’s Process Domain Basic introduction to PCN Analysis 11

12 Dr. Scott E. Sampson Process Pizza Restaurant Restaurant’s Process Domain forecast supply needs order supplies online identify ingredients receive supplies cook pizza maintain supplies serve pizza preheat ovens take order negotiate supply contract develop recipes Basic introduction to PCN Analysis 12

13 Dr. Scott E. Sampson Process Pizza Restaurant Restaurant’s Process Domain forecast supply needs order supplies online identify ingredients receive supplies cook pizza maintain supplies serve pizza preheat ovens take order negotiate supply contract develop recipes Basic introduction to PCN Analysis 13

14 Dr. Scott E. Sampson Three regions of a Process Domain Pizza Restaurant Restaurant’s Process Domain Direct interaction (e.g. with supplier) Surrogate interaction (e.g. acting on supplier resources) Independent processing (entity acting on entity’s owned/controlled resources) Surrogate interaction (e.g. acting on customer resources) Direct interaction (e.g. with customer) forecast supply needs order supplies online identify ingredients receive supplies cook pizza maintain supplies serve pizza preheat ovens take order negotiate supply contract develop recipes Basic introduction to PCN Analysis 14

15 Dr. Scott E. Sampson Three regions of a Process Domain Pizza Restaurant Restaurant’s Process Domain Direct interaction Surrogate interaction Independent processingSurrogate interaction Direct interaction degree of process control forecast supply needs order supplies online identify ingredients receive supplies cook pizza maintain supplies serve pizza preheat ovens take order negotiate supply contract develop recipes Basic introduction to PCN Analysis 15

16 Dr. Scott E. Sampson Three regions of a Process Domain 1. Direct Interaction Entity person acting in conjunction with another entity person. People with people. 2. Surrogate Interaction Entity person acting on/with resource(s) of another entity. People with things (belongings, information). 3. Independent Processing Entity acting only on/with entity’s own resources. Basic introduction to PCN Analysis 16

17 Dr. Scott E. Sampson Pizza Consumer Consumer’s Process Domain Direct interaction Surrogate interaction Independent processingSurrogate interaction Direct interaction PCN Diagram Pizza Restaurant Restaurant’s Process Domain Direct interaction Surrogate interaction Independent processingSurrogate interaction Direct interaction Restaurant Supplier Supplier’s Process Domain Direct interaction Surrogate interaction Independent processingSurrogate interaction Direct interaction forecast supply needs order supplies online identify ingredients receive supplies cook pizza maintain supplies serve pizza preheat ovens create order negotiate supply contract develop recipes develop appetite eat pizza return home wait to be seated seat customer review menu present check prepare check pay check eat leftovers wait for pizza fill order Basic introduction to PCN Analysis 17

18 Dr. Scott E. Sampson Case: Malawi’s Pizza Catering Creating a PCN Diagram based on information from the case. Basic introduction to PCN Analysis 18

19 Dr. Scott E. Sampson Provider’s Process DomainCustomer’s Process Domain Independent processing Surrogate interactionDirect interaction Surrogate interactionIndependent processing Pizza catering planning process Basic introduction to PCN Analysis 19

20 Dr. Scott E. Sampson Provider’s Process DomainCustomer’s Process Domain Independent processing Surrogate interactionDirect interaction Surrogate interactionIndependent processing Pizza catering planning process Basic introduction to PCN Analysis 20 explore alternatives need cateringcall Malawi’s provide event information check schedule date available ? arrange meeting ask event date, type, # attend discuss menu options and taste testcalculate quantity determine price price acceptable ? book catering engagement wait discuss price yes no explore other alternatives no record in catering book

21 Dr. Scott E. Sampson Provider’s Process DomainCustomer’s Process Domain Independent processing Surrogate interactionDirect interaction Surrogate interactionIndependent processing Food preparation and delivery process Basic introduction to PCN Analysis 21 clear parking space? yes no assemble pizzas par cook pizzas load food and supplies on trailer maintain mobile oven drive to venue park trailer discuss alternative parking locations unload trailer A determine parking plan

22 Dr. Scott E. Sampson Provider’s Process DomainCustomer’s Process Domain Independent processing Surrogate interactionDirect interaction Surrogate interactionIndependent processing Food preparation and delivery process Basic introduction to PCN Analysis 22 location of serving area obvious? yes no setup portable kitchen setup serving area discuss serving location heat pizzas take pizzas to serving area wait for event start monitor pizza consumption A eat pizza

23 Dr. Scott E. Sampson Provider’s Process DomainCustomer’s Process Domain Independent processing Surrogate interactionDirect interaction Surrogate interactionIndependent processing Cleanup and payment process Basic introduction to PCN Analysis 23 clean up portable kitchen load trailer prepare final invoice return to store unload trailer clean up serving and eating tables determine actual number of pizzas consumed present invoiceprovide payment

24 Dr. Scott E. Sampson Steps of basic PCN Analysis 1. Identify system entities and roles 2. Document key processes 3. Assess value propositions 4. Generate strategic improvement alternatives Basic introduction to PCN Analysis 24

25 Dr. Scott E. Sampson Provider’s Process DomainCustomer’s Process Domain Independent processing Surrogate interactionDirect interaction Surrogate interactionIndependent processing Pizza catering planning process Basic introduction to PCN Analysis 25 explore alternatives need cateringcall Malawi’s provide event information check schedule date available ? arrange meeting ask event date, type, # attend discuss menu options and taste testcalculate quantity determine price price acceptable ? book catering engagement wait discuss price yes no explore other alternatives no record in catering book -$ costs?  +$ value? -$ 

26 Dr. Scott E. Sampson Provider’s Process DomainCustomer’s Process Domain Independent processing Surrogate interactionDirect interaction Surrogate interactionIndependent processing Food preparation and delivery process Basic introduction to PCN Analysis 26 -$ costs?  +$ value? -$ clear parking space? assemble pizzas par cook pizzas load food and supplies on trailer maintain mobile oven drive to venue park trailer discuss alternative parking locations unload trailer A determine parking plan yes no

27 Dr. Scott E. Sampson Provider’s Process DomainCustomer’s Process Domain Independent processing Surrogate interactionDirect interaction Surrogate interactionIndependent processing Food preparation and delivery process Basic introduction to PCN Analysis 27 location of serving area obvious? yes no setup portable kitchen setup serving area discuss serving location heat pizzas take pizzas to serving area wait for event start monitor pizza consumption A eat pizza -$ costs?  +$ value? -$

28 Dr. Scott E. Sampson Provider’s Process DomainCustomer’s Process Domain Independent processing Surrogate interactionDirect interaction Surrogate interactionIndependent processing Cleanup and payment process Basic introduction to PCN Analysis 28 clean up portable kitchen load trailer prepare final invoice return to store unload trailer determine actual number of pizzas consumed present invoiceprovide payment clean up serving and eating tables -$ costs?  +$ value? +$ 

29 Dr. Scott E. Sampson Steps of basic PCN Analysis 1. Identify system entities and roles 2. Document key processes 3. Assess value propositions 4. Generate strategic improvement alternatives Basic introduction to PCN Analysis 29  Improved economies of scale?  Improved customization?  Improved efficiency?  Improved scalability?  Improved consistency?  Improved quality?  Improved value?

30 Dr. Scott E. Sampson Provider’s Process DomainCustomer’s Process Domain Independent processing Surrogate interactionDirect interaction Surrogate interactionIndependent processing Food preparation and delivery process Basic introduction to PCN Analysis 30 assemble pizzas clear parking space? yes no par cook pizzas load food and supplies on trailer maintain mobile oven drive to venue park trailer discuss alternative parking locations unload trailer A determine parking plan

31 Dr. Scott E. Sampson Your MISSION: Basic introduction to PCN Analysis 31

32 Dr. Scott E. Sampson Your MISSION: 1. Identify system entities and roles 2. Document key processes 3. Assess value propositions 4. Generate strategic improvement alternatives Basic introduction to PCN Analysis 32  Improved economies of scale?  Improved customization?  Improved efficiency?  Improved scalability?  Improved consistency?  Improved quality?  Improved value? Summary sheet at


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