om 6 service process

8/3/2019 OM 6 Service Process

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Operations Management

Session 7/8

Service Process Selection And Design

Service Triangle

Nature of services

SPM- Service Positioning Matrix

Queues and Waiting Line

An operational classification of services Applying Behavioral Science To Service Encounter Design and

Management

Designing service organization

Service Blueprinting and Fail-Safing

Service outsourcing-BPO



Service Process Selection and Design

y The best service companies have a service strategy for each stage of their operations which they knowbetter than anyone else.



The Service Triangle

Customer

ServiceStrategy

EmployeeSupportSystem

The role of Operations is service system i.e. procedures, equipments, facilities.



The nature of services7 Generalizations.

Every knows about the best service creation process.

Services are idiosyncratic: What works in one service can be disastrous in other.

Quality of work is not quality of service. As good work may take a lot of time tofinish so no good service actually.

Most services are a package of tangible and intangible.

A service is to be experienced or have goods to be consumed.

Effective service management requires marketing, personnel, and operationsunderstanding.

Mostly service have encounters in terms of face to face, by phone, mails interactionsetc.



An operational classification of services

y Two groups of service organizations are based on customertype (individuals / Organizations) and service type(Finance, Health, Education, Data Centre, IT LAN/WAN, Applications Support)

y Involvement of customer makes the difference between theservice organizations and to production systems.

y High degree of customer contact and Low degree of customer contact service system may exits which wouldeffect the service process design.



Customers presence do impact the Process Design decisionRefer: Chase Page 302

Design Decision High Contact System Low Contact System

Facility Location

Facility Layout

Product Design

Process Design

Scheduling

ProductionPlanning

Worker skills

Quality control

Time standards

Wage payment

Capacity Planning



Appl ying BehavioralScience To Service EncounterDesign and Management

Here the first impression and end impression may defer during the encounter. Start greatbut end so-so. Or Start so-so but end great.

Example ending the encounter with a gift, improving on ground duty and baggagecollection by some air line where as some may be good in cabin services but not that goodduring baggage collection services.

1. Different front end and back end encounter

Like in hospital instead of next visit prolong the stay and steps in order to avoid next visit.

Have two 90 Sec. rides in Disneyland rather than one 3 min. ride.

2. Segment the pleasure in more steps and combine the pain in one step.

To include customer perceptions ( Delight, Satisfaction, Dissatisfaction, Irritation,

Anger) as well as the service processes to address the Service Encounters.

1. Flow of service experience: What's happening?2. Flow of time: How long it seems to take?3. Judging encounter performance: What you thought later after the encounter?

We have 6 different design approaches from above perceptions-



Applying Behavioral Science To Service Encounter Design and Management

Here the first impression and end impression may defer during the encounter. Start greatbut end so-so. Or Start so-so but end great.

Example ending the encounter with a gift, improving on ground duty and baggage collectionby some air line where as some may be good in cabin services but not that good duringbaggage collection services.

3. Let the customer control the process

Professionals need to follow the norms as they are less likely being ascertained by theclients.

Example: Consulting firms, Election duty officers.

4. Pay attention to norms and regulations

A flight missed for being late then the front or the gate man gets the wrath of customer.

Dont be too bad to him use appropriate words saying you just missed it SIR.

5. People are easier to blame than systems

How to make up the error during an encounter.

Compensation, apology, quick rework.

Sometime if the customer is rude even though the correct approach, an apology is moreappropriate then displeasing or a free work again.

6. Let the punishment fit the crime in service recovery



Designing service organizations

Why a different strategy for service-

Due to distinct characteristics of services. It is notinventorizable.

So what capacity we should aim in service delivery?

Service operations does not have legal protections likepatents and copy right.

We cannot apply DFM in service design as process itself isthe product in service.



Designing Service Organizations,4 major elements?

Identify the market.

1. Who is target segment of customer?

Have a service concept.

2. How do we differentiate our services?

A service strategy.

3. What is service package.

Actual processes, staff and facility.

4. What is service delivery system.



Designing service organizationsService strategy points.

Operating focus and performance priorities.

1. Treatment of the customer.

2. Speed and convenience of service delivery.

3. Price of the service.

4. Variety of the services.

5. Unique skills in service offering. Surgeon, instrumentplayer, drama artists.

6. Quality to service and the tangible goods associated.



Service Blue printing and fail-safing

Service Blueprint is a flow chart in service point of view.

A line of visibility (-----) on the f low chart distinguishes thecustomer contact area front end and no customer contactarea back-end.

Fail-saifing is nothing but applying poka-yoka concept of LEAN manufacturing, i.e. avoiding msitakes and achievingerror free service for customers as well as for service worker.

Fail-safing can be a warning or 3Ts (Task correction,Treatment to customer and tangible as compensation)



Fail-Safing an automotive service operation

y Refer exhibit 7.8 of Chase.

y Use of line visibility there in the flow diagram

y Different poka-yoke approaches for situation of a

failure to recover.



Service Outsourcing

y With the help of technology the service likefinance and accounts, legal, database supportservices are being outsourced from expensive

countries to economical countries in Asia. BPOsector is the outcome of this.

y Indias income from BPO Sector is expected to be$......... By 2010.

om 6 service process

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