Main Section
- The Nature of Services
- An Operational Classification of Services
- Designing Service Organizations
- Structuring the Service Encounter: Service-System Design Matrix
- Service Blueprinting and Fail-Safing
- Three Contrasting Service Designs
- Applying Behavioral Science to Service Encounters
- New Service Development Process
- Service Guarantees as Design Drivers
Services are different from manufacturing, with the key service difference being the interaction of the customer in the delivery process. Service design is no longer considered to be an art form as logical approaches to better design and management of service systems are emerging.
In a facilities-based service, the customer must go to the service facility. In contrast, in a field-based service, the production and consumption of the service takes place in the customer's environment. Internal services refer to services required to support the activities of the larger organization. There is a blurring of manufacturing and service firms since the manufacturer product always has a certain percentage of service content. Services are also seen as the next source of competitive advantage for firms.
The Nature of Services - Seven Generalizations
Chase et al (11th Edition)
1. Everyone is an expert on services.
It means many more people understand how services are delivered and have an opinion how they should be delivered.
2. Services are idiosyncratic.
People want services done differently at different times and places.
3. Quality of work alone is not quality of service.
Time spent is also a parameter.
4. Most services have tangible and intangible attributes.
5. High contact services are experienced.
6. Effective management of services requires understanding of marketing aspects, operations aspects as well as aspects of service personnel involved.
7. Services often take different forms of encounters involving face-to-face, telephone, electromechanical, and mail interactions.
In services we also consider the amount of customer contact or the physical presence of the customer in the system. Service systems range from those with a high degree of customer contact to those with a low degree of customer contact.
In a facilities-based service, the customer must go to the service facility. In contrast, in a field-based service, the production and consumption of the service takes place in the customer's environment. Internal services refer to services required to support the activities of the larger organization. There is a blurring of manufacturing and service firms since the manufacturer product always has a certain percentage of service content. Services are also seen as the next source of competitive advantage for firms.
The Nature of Services - Seven Generalizations
Chase et al (11th Edition)
1. Everyone is an expert on services.
It means many more people understand how services are delivered and have an opinion how they should be delivered.
2. Services are idiosyncratic.
People want services done differently at different times and places.
3. Quality of work alone is not quality of service.
Time spent is also a parameter.
4. Most services have tangible and intangible attributes.
5. High contact services are experienced.
6. Effective management of services requires understanding of marketing aspects, operations aspects as well as aspects of service personnel involved.
7. Services often take different forms of encounters involving face-to-face, telephone, electromechanical, and mail interactions.
- An Operational Classification of Services
The item that operationally distinguishes one service system from another in its operation function, is the extent of customer contact in the creation of the service.
In services we also consider the amount of customer contact or the physical presence of the customer in the system. Service systems range from those with a high degree of customer contact to those with a low degree of customer contact.
- Designing Service Organizations
Service strategy begins by selecting the performance priorities.
1. Treatment of the customer in terms of friendliness and helpfulness.
2. Speed and convenience of service.
3. Price of service
4. Variety of services offered by the organization
5. Quality of the tangible goods that are used to provide the service including the service facility and interaction spaces.
6. Skills of service personnel
- Structuring the Service Encounter: Service-System Design Matrix
Service encounters can be configured in a number of different ways.
The service-system design matrix includes six common alternatives. Flowcharting, like in manufacturing process design, is the standard tool for service process design. The flowchart, or service blueprint, emphasizes the importance of design.
- Service Blueprinting and Fail-Safing
Poka-yoke systems applied to services prevent mistakes from becoming service defects.
- Three Contrasting Service Designs
Approaches to services include the production line approach, the self-service approach, and the personal attention approach.
Production Line Approach
Illustration: Macdonald Item Preparation Process
Self-service approach
Illustration: Babk ATM
Website interaction by customers - Amazom
Personal attention approach.
Illustration: Nordstrom Department Stores - Service Design
Ritz-Carlton Hotel Company - Service Design
- Service Guarantees as Design Drivers
Service guarantees are not only a marketing tool for services but, from an operations perspective, these guarantees can be used as an improvement incentive and can focus the firm's delivery system on things it must do well to satisfy the customer.
Waiting Lines
Understanding waiting lines or queues and learning how to manage them is one of the most important areas in operations management. Queuing theory is used in both manufacturing and service organizations to understand queues and to arrive at solutions to eliminate or minimize them.
The waiting line system consists of six major components: the source population, the way customers arrive at the service facility, the physical waiting line itself, the way customers are selected from the line, the characteristics of the service facility, and the condition of the customer exiting the system.
Arrivals at a service system may be drawn from a finite or limited customer pool or from a population that is large enough in relation to the service system so that changes do not significantly affect the system probabilities.
Another determinant of waiting line formation is the arrival characteristics of the queue members. The arrivals are far more controllable than normally recognized. Coupons, discounts, sales, and other methods can control demands on a system.
Queue lines can vary in length, in the number of lines used, and in the queue discipline or rules used for determining the order of service to customers. First come, first serviced is the most common priority rule. The service facility itself, with its particular flow and configuration can influence the queue. Computer spreadsheets are used to arrive at answers to waiting line problems. Computer simulations can also be used to arrive at solutions of more complex or dependent waiting line situations. Waiting line problems present challenges to management to attempt to eliminate them.
Waiting Lines
Understanding waiting lines or queues and learning how to manage them is one of the most important areas in operations management. Queuing theory is used in both manufacturing and service organizations to understand queues and to arrive at solutions to eliminate or minimize them.
The waiting line system consists of six major components: the source population, the way customers arrive at the service facility, the physical waiting line itself, the way customers are selected from the line, the characteristics of the service facility, and the condition of the customer exiting the system.
Arrivals at a service system may be drawn from a finite or limited customer pool or from a population that is large enough in relation to the service system so that changes do not significantly affect the system probabilities.
Another determinant of waiting line formation is the arrival characteristics of the queue members. The arrivals are far more controllable than normally recognized. Coupons, discounts, sales, and other methods can control demands on a system.
Queue lines can vary in length, in the number of lines used, and in the queue discipline or rules used for determining the order of service to customers. First come, first serviced is the most common priority rule. The service facility itself, with its particular flow and configuration can influence the queue. Computer spreadsheets are used to arrive at answers to waiting line problems. Computer simulations can also be used to arrive at solutions of more complex or dependent waiting line situations. Waiting line problems present challenges to management to attempt to eliminate them.
Service Blueprinting - The Process
https://nraomtr.blogspot.com/2023/07/service-blueprinting-process.html
Chapter outline
The Nature of Services
Service Businesses and Internal Services
Facilities-Based Services Defined
Field-Based Services Defined
A Customer-Centered View of Service Management
An Operational Classification of Services
High and Low Degree of Customer Contact Defined
Designing Service Organizations
Service Strategy: Focus and Advantage
Structuring the Service Encounter: Service-System Design Matrix
Strategic Uses of the Matrix
Service Blueprinting and Fail-Safing
Service Blueprint Defined
Poka-Yokes Defined
Three Contrasting Service Designs
The Production-Line Approach
The Self-Service Approach
The Personal-Attention Approach
Applying Behavioral Science to Service Encounters
New Service Development Process
Service Guarantees as Design Drivers
Service Guarantee Defined
Conclusion
Case: Pizza U.S.A.: An Exercise in Translating Customer Requirements into Process Design Requirements.
Case: Contact Centers Should Take a Lesson From Local Businesses
Outline of the technical notes on Waiting lines
Queues Defined
Economics of the Waiting Line Problem
Cost-Effectiveness Balance
The Practical View of Waiting Lines
The Queuing System
Queuing System Defined
Customer Arrivals
Arrival Rate Defined
Exponential Distribution Defined
Poisson Distribution Defined
Distribution of Arrivals
The Queuing System: Factors
Service Rate Defined
Exit
Waiting Line Models
Approximating Customer Waiting Time
Computer Simulation of Waiting Lines
Conclusion
MBA Core Management Knowledge - One Year Revision Schedule
Sources
http://highered.mcgraw-hill.com/sites/0072983906/student_view0/technical_note7/
Summaries of all Chapters of Operation Management
Chapter outline
The Nature of Services
Service Businesses and Internal Services
Facilities-Based Services Defined
Field-Based Services Defined
A Customer-Centered View of Service Management
An Operational Classification of Services
High and Low Degree of Customer Contact Defined
Designing Service Organizations
Service Strategy: Focus and Advantage
Structuring the Service Encounter: Service-System Design Matrix
Strategic Uses of the Matrix
Service Blueprinting and Fail-Safing
Service Blueprint Defined
Poka-Yokes Defined
Three Contrasting Service Designs
The Production-Line Approach
The Self-Service Approach
The Personal-Attention Approach
Applying Behavioral Science to Service Encounters
New Service Development Process
Service Guarantees as Design Drivers
Service Guarantee Defined
Conclusion
Case: Pizza U.S.A.: An Exercise in Translating Customer Requirements into Process Design Requirements.
Case: Contact Centers Should Take a Lesson From Local Businesses
Outline of the technical notes on Waiting lines
Queues Defined
Economics of the Waiting Line Problem
Cost-Effectiveness Balance
The Practical View of Waiting Lines
The Queuing System
Queuing System Defined
Customer Arrivals
Arrival Rate Defined
Exponential Distribution Defined
Poisson Distribution Defined
Distribution of Arrivals
The Queuing System: Factors
Service Rate Defined
Exit
Waiting Line Models
Approximating Customer Waiting Time
Computer Simulation of Waiting Lines
Conclusion
MBA Core Management Knowledge - One Year Revision Schedule
Sources
http://highered.mcgraw-hill.com/sites/0072983906/student_view0/technical_note7/
Summaries of all Chapters of Operation Management
Journal of Operations Management
Volume 25, Issue 2, March 2007, Pages 364-374
The emergence of service operations management as an academic discipline
Janelle Heineke, Mark M. Davis
https://doi.org/10.1016/j.jom.2006.11.003
Abstract
The service sector surpassed 50% of the U.S. economy in the 1950s. There emerged a growing demand for business schools to develop both research agendas and courses in service operations. Beginning at the Harvard Business School in the early 1970s, courses in service operations have evolved. This article traces the evolution of service operations from its early years as an academic discipline in business schools to the present, identifying “pioneers” in service operations who truly blazed a previously unmarked trail that many have since followed.
By 2000, services comprised almost 80% of U.S. employment. This rapid growth was caused by several factors including changing population lifestyles, deregulation, and new and improved infrastructure including the widespread availability of new technologies.
Operations management for services
Ud. 1.10.,23.9.2024, 30.7.2023
Pub. 7.12.2014
