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CH 5 Service Processes

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Bhavi Agrawal
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31 views

CH 5 Service Processes

Uploaded by

Bhavi Agrawal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Service Processes

8-2

OBJECTIVES
• Service Strategy: Focus & Advantage
• Service-System Design Matrix
• Service Blueprinting
• Service Fail-safing
• Characteristics of a Well-Designed Service
Delivery System
8-3

Service Businesses

A service business is the management of


organizations whose primary business
requires interaction with the customer to
produce the service

• Facilities-based services: Where the customer must go


to the service facility
• Field-based services: Where the production and
consumption of the service takes place in the
customer’s environment
8-4

The Customer Centered View

AAphilosophical
philosophicalviewviewthat
that
suggests The Service
suggeststhe
theorganization
organization Strategy
exists
existsto
toserve
servethe
the
customer,
customer,andandthe
the
systems
systemsandandthe
the
employees
employeesexist
existto
to
facilitate
facilitatethe
theprocess
processof
of The
service.
service. Customer

The The
Systems People
8-5

Service-System Design Matrix

Exhibit
Exhibit7.6
7.6
Degree of customer/server contact
Buffered Permeable Reactive
High core (none) system (some) system (much) Low
Face-to-face
total
customization
Face-to-face
Sales loose specs Production
Face-to-face
Opportunity Efficiency
tight specs
Phone
Internet & Contact
on-site
Mail contacttechnology

Low High
8-6

Characteristics of Workers, Operations, and Innovations Relative to the


Degree of Customer/Service Contact
8-7

Example of Service Blueprinting

Standard Brush Apply Collect


execution time Buff
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
secs

Line of Not seen by


visibility customer but Select and
necessary to purchase
performance supplies
8-8

Service Fail-safing
Poka-Yokes (A Proactive Approach)

• Keeping a mistake
from becoming a
service defect Task

• How can we fail-safe


the three Ts? Treatment Tangibles
8-9

Three Contrasting Service Designs

• The production line approach (ex.


McDonald’s)

• The self-service approach (ex. automatic


teller machines)

• The personal attention approach (ex.


Ritz-Carlton Hotel Company)
8-10

Managing Customer Introduced Variation

•Arrival variability

•Request variability

•Capability variability

•Effort variability

•Subjective preference variability


8-11

Accommodation Strategies

• Classic accommodation
• Low cost accommodation
• Classic reduction
• Uncompromised reduction
8-12

Characteristics of a Well-Designed Service System

1. Each element of the service system is


consistent with the operating focus of
the firm

2. It is user-friendly

3. It is robust

4. It is structured so that consistent


performance by its people and systems
is easily maintained
8-13

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
8-14

Applying Behavioral Science to Service Encounters

1. The front-end and back-end of the encounter


are not created equal
2. Segment the pleasure, combine the pain
3. Let the customer control the process
4. Pay attention to norms and rituals
5. People are easier to blame than systems
6. Let the punishment fit the crime in service
recovery
8-15

Service Guarantees as Design Drivers

• Recent research suggests:


• Any guarantee is better than no guarantee
• Involve the customer as well as employees in the
design
• Avoid complexity or legalistic language
• Do not quibble or wriggle when a customer invokes
a guarantee
• Make it clear that you are happy for customers to
invoke the guarantee

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