Service Process Selection and Design

Sarah Nadeem Mohammed Ali javaid Anum Altaf Ali Abbasi Ayesha Farzand

Nature of Services
Everyone is an expert on services Services are idiosyncratic Quality of work is not quality of service Mix of tangible and intangible attributes Services are experienced while goods are consumed Requires an understanding of marketing and operations Cycles of encounters

Classification
Service Businesses Requires interaction with the customer to produce the service. Facilities-based:-Customer must go to the service facility Field-based:-Production and consumption of the service take place in the customers environment. Internal Services Services required to support the activities of the larger organization.

Customer Centred view of Service Management

The customer is the focal point of all decisions and actions of the service organization.

Operational classification of services

Customer Contact The physical presence of the customer in the system Creation of Service The work process involved in providing the service itself Extent of contact Percentage of time the customer has to be in the system relative to the time it takes to perform the customer service

High degree of customer contact are more difficult to control and to rationalize than those with a low degree of customer contact

Designing Service organizations

We cannot inventory services and should meet demand as it arises. Capacity is a dominant issue
Target market

Service delivery system

Major Elements

Service Concept

Service Strategy

PSO vrs RSO

Professional service organizations:Certification is necessary Routine Service Organization Can change their service offerings overnight

Service Strategy:Focus and Advantage

Treatment of the customer in terms of friendliness and helpfulness. Speed and convenience of service delievery Price of the service Variety of services Quality Unique skills

Service System Design Matrix

Strategic uses of the matrix

Enabling systematic integration of operations and marketing strategy Which combination of service delievery the firm is in fact providing Permitting comparison with how other firms deliever specific services Indicating life sycle changes that might be in order as the firm grows

Service Blueprint Emphasizes the importance of process design.Allows a distinction to be made between high customer contact aspects of the service and those activities that the customer doesnot see Poka-Yokes Procedures that block the inevitable mistake from becoming a service defect

SERVICE DESIGNS
Production Line approach Pioneered by McDonalds. Treats the delievery of fast food as a manufacturing process rather than as a service The orientation is towards the efficient production of results not on the attendance of others

Self Service approach Service process can be enhanced by having the customer take a greater role in the production of the service. Personal Attention approach Relies on developing a relationship between the individual salesperson and the customer.

Seven Characteristics of a well designed service system

Consistent with the operating focus of the firm User Friendly Robust Structured Effective links Management of service quality Cost effective

Behavioral Science to Service encounters

The front end and the back end of the encounter are not created equal Segment the pleasure,combine the pain Let the customer control the process Pay attention to norms and rituals People are easier to blame than systems Let the punishment fit the crime in service recovery