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

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.

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

Service Businesses A service business is the management of organizations whose primary business requires interaction with the customer to produce the service 5

Service Businesses Facilities-base Field-based services 5

Internal Services Internal Supplier Internal Customer External 6

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

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

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

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:

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

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

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

Example of Service Map Shoe Polishing Business Standard Brush Apply ? Buff execution time shoes polish 2 minutes 30 30 45 secs secs secs 11

Example of Service Map Shoe Polishing Business Brush shoes Apply polish Buff Collect payment Standard execution time 2 minutes 30 secs 45 15 However, what is the problem here? 11

Example of Service Map Standard Brush Apply Collect Buff execution time shoes polish payment 2 minutes 30 30 45 15 secs secs secs secs Wrong color wax 11

Example of Service Map Total acceptable execution time 5 minutes Standard Brush Apply Collect Buff execution time shoes polish payment 2 minutes 30 30 45 15 secs secs secs secs Wrong color wax Clean Fail shoes point 45 secs Total acceptable execution time 5 minutes 11

Example of Service Map Including Line of Visibility Standard Brush Apply Collect Buff execution time shoes polish payment 2 minutes 30 30 45 15 secs secs secs secs Total acceptable execution time Wrong 5 minutes color wax Clean Fail shoes point Materials Seen by (e.g., polish, cloth) customer 45 Line of secs visibility Not seen by customer but Select and necessary to purchase performance supplies 11

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 Tangibles Treatment 13

Have we compromised one of the 3 Ts? 14

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 18