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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

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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.

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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.

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Service Businesses

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

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Service Businesses

Facilities-base

Field-based services

–

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Internal Services

Internal Supplier

Internal Supplier

InternalCustomer

ExternalCustomer

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The Customer Centered View

Exhibit 7.1Exhibit 7.1

TheCustomer

The ServiceStrategy

ThePeople

TheSystems

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Service Strategy: Focus and AdvantagePerformance Priorities

Treatment of the customer

Speed and convenience of service delivery

Price

Variety

.

.

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Service-System Design MatrixExhibit 6.6Exhibit 6.6

Mail contact

Face-to-faceloose specs

Face-to-facetight specs

PhoneContact

Face-to-facetotal

customization

Buffered core (none)

Permeable system (some)

Reactivesystem (much)

High

LowHigh

Low

Degree of customer/server contact

Internet & on-site

technology

SalesOpportunity

ProductionEfficiency

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Service Blueprintingor 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:

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Example of Service MapShoe Polishing Business

??????shoes

Standardexecution time

2 minutes30

secs

?

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Example of Service MapShoe Polishing Business

Brushshoes

Standardexecution time

2 minutes30

secs

?

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Example of Service MapShoe Polishing Business

Brushshoes

Applypolish

Standardexecution time

2 minutes30

secs

30secs

?

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Example of Service MapShoe Polishing Business

Brushshoes

Applypolish

BuffStandard

execution time2 minutes

30secs

30secs

45secs

?

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Example of Service MapShoe Polishing Business

Brushshoes

Applypolish

BuffCollect

payment

Standardexecution time

2 minutes30

secs

30secs

45secs

15secs

However, what is the problem here?

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Example of Service Map

Brushshoes

Applypolish

BuffCollect

payment

Standardexecution time

2 minutes30

secs

30secs

45secs

15secs

Wrongcolor wax

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Example of Service Map

Brushshoes

Applypolish

Failpoint

BuffCollect

payment

Cleanshoes

Standardexecution time

2 minutes

Total acceptableexecution time

5 minutes5 minutes

30secs

30secs

45secs

15secs

Wrongcolor wax

45secs

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Example of Service MapIncluding Line of Visibility

Brushshoes

Applypolish

Failpoint

BuffCollect

payment

Cleanshoes Materials

(e.g., polish, cloth)

Select andpurchasesupplies

Standardexecution time

2 minutes

Total acceptableexecution time

5 minutes

30secs

30secs

45secs

15secs

Wrongcolor wax

Seen bycustomer 45

secsLine ofvisibility

Not seen bycustomer butnecessary toperformance

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Service Fail-safingPoka-Yokes (A Proactive Approach)

Keeping a mistake from becoming a service defect.

How can we fail-safe the three Ts?

Task

TangiblesTreatment

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Have we compromised one of the 3 Ts?

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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