SERVICE MANAGEMENT

SERVICE MANAGEMENT
Lesson 5:
Generating and Evaluating Design Concepts
Generating and Evaluating Design
Concepts
Defining
design
attributes
Specifying
design
performance
standards
Generating
and
evaluating
design
concepts
Developing
design
details
Implementing
the design
Measuring
performance
Assessing
satisfaction
Improving
performance
Service Management - Genap 2013-2014
Outline
Functional Analysis
Defining and Documenting Processes
Concept Generation
Evaluating and Selecting Concept
Using the Pugh Method
From Specification to Concept
SelectionStage 3 Activities
Functional Analysis
Functional Analysis
Functional Analysis is a method for identifying the
activities that must be completed in order to deliver
the service
FAST (Functional Analysis System Technique) is a
useful tool for visually representing the activities
and the relationship between them
FAST Diagram
FAST diagram represents sequence of functions needed to deliver
service
The function are represented by the boxes arranged in a horizontal tree
stucture
The root of the tree is at the extreme right of the diagram and is a high-level
description of the service
Service functions identified from columns of QFD matrix
FAST diagram represents these functions in a logical sequence that displays
their interactions
Detail is successively added as we expand the tree leftwards through
the diagram
Why function is performed is depicted by boxes to the right of each function
How function is performed is depicted by boxes to the left of each function
FAST diagram can be represented at various levels of detail
FAST Diagram for Service Edge
Restaurant First Level
FAST Diagram for Service Edge
Restaurant Second Level
FAST Diagram
Once the diagram is complete, the team reviews the
entire chart to check for inconsistencies or gaps
If some activities are identified that are not covered by the
design attributes, room 2 of HoQ should be revisited
Some attributes are defined to broadly in the QFD matrix
FAST diagram too detailed
Some attributes have been omitted from the HoQ
Watch out for situations where the functions do not cover all
attributes
The functions in the FAST diagram have been defined too broadly
more detail should be added to the diagram if required
Defining and Documenting Processes
Process Definition
Define processes from function
Processes created by assembling the functions in the
FAST diagram into the temporal sequence in which
the activities are performed
Each process should be a collection of activities that
can logically designed or managed as a single
entity
Processes should connect to customers at either or at
both ends
Process definition should proceed from less detail to
more detail
Process definition
Once all processes have been defined, the design team must ensure
that all the functions of the FAST diagram have been assigned to
processes, and that no gaps exist in the process definitions
If gaps exist, the team must return to the diagram to investigate the
functions between which gaps are present and must define any
additional functions that may be missing
For each process, the team must clearly define the process
boundaries, specify the inputs and outputs at the boundaries, and
establish procedures for the transfer of information at the process
interfaces
The sequence of process functions must be visually displayed in a
process flow chart
Operational and Customer Service
Activities
Operational and Customer Service
Activities
Processes consist of two types activities: the operational
activities and the customer service activities
Operational activities reflect the steps needed to
deliver the service to the customer
Customer service activities reflect the personal
interactions between the customer and the service
provider during the course of service delivery
The quality of both activities together influences the
quality of the design the design team should
therefore pay careful attention to the design of both
sets of activities
Operational activities:
taking a restaurant customers order
The tasks that are needed to collect the order
information from customers, note this information
and transmit it to the kitchen for the preparation of
the meal
The quality of these activities is measured by
attributes such as promptness and accuracy with
which they are performed
Customer service activities:
taking a restaurant customers order
Focus on the attitude of the waiter when the order is
taken, the waiters professionalism and knowledge of
the items on the menu, how comfortable the customer
feel while interacting with the waiter, and so on
The quality of these activities is measured by attributes
such as the friendliness, responsiveness, and patience of
the waiter when taking the order
These attributes are characteristics of people, not
processes, but through careful design, procedures can
be developed that deliver a reliable level of
performance on these attributes as well
Defining processes for the Service
Edge restaurant
Processes for restaurant service
Process Name Begins Ends
Greeting and seating Customer arrives Customer is seated
Menu delivery Customer is seated Customer receive menu
Order-taking Customer receives menu Customer orders meal
Meal delivery Customer orders meal Customer receives meal
Meal service Customer is seated Customer leaves table
Billing Customer requests bill Customer receives bill
Payment collection Customer receives bill Customer pays
Bill Settlement Customer pays Bill is settled
Leavetaking Customer leaves table Customer Departs
Problem Resolution Customer has problem Problem is resolved
Processes for restaurant service
Each succeeding process begins where the
preceding process ends, leaving no gaps in the
process definition
Each process begins and ends with the customer
Each process consists of both service operations and
customers service activities even it is not explicitly
shown
The attributes of both types of activities should be
included in the process design
Process flow-charting
Process Documentation: flow chart
Processes should be documented through textual
descriptions or process flow charts
Processes flow charts indicate how the process
functions are connected to each other
High-level flow charts depict interaction between
processes
Flow charts can be expanded to any desired level
of detail
Blueprinting convention can be used to illustrate
process-customer interactions
Flow Chart of Processes for
Restaurant Service
Details of the Meal Service and
Problem Resolution Process
Service blueprinting
Service blueprinting
A process analysis methodology developed by G. Lynn
Shostack the need to apply a non-subjective quantifiable
framework to design service process
To systematize the description, documentation, and analysis
of service processes
The blueprint structures the process activities on either side
of a customer Line of visibility
Above visible to customer
Below backroom activities that are necessary to complete the
service operation but that customer does not see
The blueprint makes it possible to easily identify the critical
process points where customer service can be affected
Process blueprint for Meal Delivery
Processes
Concept Generation
Generating design concept
Concepts are high-level views of the service design
solution for the process
Concept generation is a facilitated, imaginative service-
level activities whose objective is to develop innovative
design solutions for the service features, facilities, and
processes
Initial set of concepts are generated by group brainstorming
Final set of concepts are selected by individual
brainstorming
Brainstorming a technique by which a group attempts to
find a solution for a specific problem by amassing all the
ideas spontaneously contributed by its members
Method for generating ideas
A design solution used for one application is directly transferred to
another
Transference
The modification of an existing solution to adapt it to the current
problem
A combination of several solutions may also be considered
Enhancement
Solution to analogous problem in other industries are used to
generate concepts
Analogy
Reducing the number of solution
The team performs an initial evaluation of the
concepts and rejects those that are irrelevant or far-
fetched
The remaining concepts are analyzed further to
assess whether they can be consolidated, combined,
or enhanced to create a set of feasible options
A second elimination follows, reducing the number
of concepts to ten or less
These remaining concepts should be analyzed in
greater detail
Reducing the number of solution:
individual brainstorming
To ensure that the concept is really capable of
producing a design that meets the service requirements
The concept should be compared against:
A summary of the market segmentation studies listing
characteristics of targeted customer
Verbatim statement of the five most important needs
The five most important design attribute
The three most critical features
System view flow diagram of the major processes to be
designed
Evaluating and Selecting Concepts
Description of the Pugh Method
Concept Evaluation Using The Pugh
Method
Describe and understand concepts
List concept as a evalution matrix columns
List criteria as matrix rows
Select cost, performance, and other nonfinancial evaluation
criteria
Select baseline concept
The least and the most attractive concept should be avoided
The concept that is better than average, but not the best, is
a good first choice
Create a concept that performs as well as the best
competitor on each criterion
Method
Evaluate concepts against baseline
Compare concepts to baseline on better (+), worse (-),
same (S) scale
Total the +, -, and S ratings for each concept
Identify opportunities to remove negatives
Identify opportunities to accentuate positives
Discuss results and generate superior concepts
Method
Created improved concepts
Remove weak concepts from the matrix
Rerun matrix with new concepts and a new baseline
Repeat as often as necessary until a superior
concept is found
Continue evaluation until no more improvements are
possible
Select concept for detailed design
PUGH Method
Concept Selection Legend
C
o
n
c
e
p
t
1
C
o
n
c
e
p
t
2
C
o
n
c
e
p
t
3
C
o
n
c
e
p
t
4
C
o
n
c
e
p
t
5
Better (+)
Same ( S)
Worse (-)
Performance Criterion 1 + S S +
Performance Criterion 2 S + S +
Performance Criterion 3 S + - S
Performance Criterion 4 + S - S
Performance Criterion 5 - + + +
Cost 1 S - S +
Cost 2 S S + +
Sum Of Positives 2 3 2 5
Sum Of Negatives 1 1 2 0
Sum Of Sames 4 3 3 2
Using the Pugh Method to Evaluate
Restaurant Concepts
Evaluate restaurant concepts
Each concept addresses one or both of the service
objectives:
Provide quick, accurate service
Deliver responsive, individualized service
Each concept reflects different ways in which
technology, staffing, restaurant layout, food
preparation methods, and training
Each concept affects one or more of the service
processes
Description Restaurant Concept
Concept 1customer database
To provide high quality customer service by developing
a database for recording customer information
Offer personal service to each customer
Concept 2dedicated waiter
To blend personalized attention with prompt service
One waiter is assigned to an average of only two
tables
Provide personal service quickly and efficiently
Concept 3customer interaction training
Requires the restaurant employees to undergo special
training to have better appreciation of customer unstated
emotional expectations of how they should be treated
Reduced the distance between the employees and guests
Assist the employees in providing genuinely friendly and
professional service
Concept 4food expertise
To make each waiter an expert on the food served in the
restaurant
Waiters are also encouraged to inquire about the dietary
or taste preferences of their guests and to suggest menu
variations that better satisfy these preferences
Concept 5waiter-operated POS (Point of Sale)
Systems
Consists of a terminal at the waiter station into which the
customer orders can be entered
The system can deliver meals to any desired degree of
promptness by adjusting the scheduling algorithm
Concept 6frozen ingredients
controls the food preparation time by using as many frozen
ingredients as possible
Concept 7customer-operated POS Systems
Operated by customer
Summary of Concepts For Restaurant
Services
Concept
Number Concept Service Objective Affected
1 Customer database Personal Attention
2 Dedicated waiter Personal Attention
3 Customer interaction training Personal Attention
4 Food expertise Personal Attention
5 Waiter-operated POS Quick Service
6 Frozen ingredients Quick Service
7 Customer-operated POS Quick Service
Concept evaluation First run
Concept Selection Legend
Better +
Same S
Worse -
Concept
1
Concept
2
Concept
3
Concept
4
Concept
5
Concept
6
Concept
7
Importance
Ratings
Degree of friendliness S S + S S - 12
Degree of responsiveness + + S S S - 11
Promptness of meal delivery - - - S S S 10
Degree of patience S + S S S + 9
Promptness of menu delivery S + S S S + 9
Promptness of order taking S + S - S + 9
Degree of knowledge + S S + S + 7
Problem resolution
effectiveness
+ S S S S - 6
Implementation Cost - S S S - - 9
Operating Cost S + + + S S 9
Sum Of Positives 3 5 2 2 0 4
Sum Of Negatives 2 1 1 1 1 4
Sum Of Sames 5 4 7 7 9 2
Weighted sum of positives 24 47 21 16 0 34
Weighted sum of negatives 19 10 10 9 9 38
Creating new concept
Concept A (customer database with training) Concept 1
and 3
The customer database improves the responsiveness of service
Employees are trained to improve their interaction with customers
Concept B (dedicated waiter with training) Concept 2, 3,
and 4
The dedicated waiters improved service responsiveness and
trained to be friendly and professional and to improve their
knowledge of the menu
Concept C (customer-operated POS with waiter support)
Add a personal attention to Concept 7
Concept D (not an enhancement) Concept 1 and 6
Restricting menu items curtails the flexibility
Concept Evaluation second run
Concept 2 Concept A Concept B Concept C
Importance
Ratings
Degree of friendliness
+ + S 12
Degree of responsiveness
S S S 11
Promptness of meal delivery
S S + 10
Degree of patience
- S S 9
Promptness of menu delivery
- S S 9
Promptness of order taking
- S S 9
Degree of knowledge
+ + + 7
Problem resolution effectiveness
+ S S 6
Implementation Cost
- - - 9
Operating Cost
S S S 9
Sum Of Positives
3 2 2
Sum Of Negatives
4 1 1
Sum Of Sames
3 7 7

SERVICE MANAGEMENT

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