TAILIEUCHUNG - Lecture Introduction to operations management - Chapter 5: Service process design

In this chapter we will discuss: Defining service, service-product bundle, service matrix, customer contact, service recovery and guarantees, globalization of services, employees and service. | Chapter 5, Service Process Design INTRODUCTION to Operations Management 5e, Schroeder Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter Outline Defining Service Service-Product Bundle Service Matrix Customer Contact Service Recovery and Guarantees Globalization of Services Employees and Service The Shift to Services Services in Europe “The Service Sector accounts for about 70 percent of the European economy.” Source: Wall Street Journal, 4 March 2005, p. A13 Defining Service Key Concepts Intangibility of the offering Simultaneous production and consumption No finished goods inventory Front office vs. back office Difficulty in defining and measuring quality and productivity Other differences between manufacturing and service (See Table ) Service-Product Bundles Tangible service (explicit service)—what the seller does for you. Psychological benefits (implicit service)—how you feel about it. Physical goods (facilitating goods)—what you can carry away. Comparison of Goods and Services (Figure ) 100% 75% 50% 25% 0% 100% 75% 50% 25% Self-service groceries Automobile Installed carpeting Fast-food restaurant Gourmet restaurant Auto maintenance Haircut Consulting services Goods Services SERVICE MATRIX (Figure ) Standard with options, using Moderately repeatable Sequence. Co-routed Stock brokerage Provider Routed ATM Standardized with highly repeatable process sequence. Highly customized with unique process sequence. Customer Routed Estate planning Many process pathways, jumbled flows, complex work with many exceptions Moderate number of process pathways. Flexible flows with some dominant paths, moderate work complexity. Limited number of process pathways. Line flows, low complexity work. Operations Service System/Process Design Customer Wants and Needs in the Service Package Customer Contact Definition of “contact”—interaction between service provider and the customer. Customer Contact Matrix (see Fig. ) Low .

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