ch5 the service delivery system

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    Chapter 5

    The Service Delivery System

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    Learning Objectives Prepare a blueprint for a service operation.

    Describe a service process using the dimensions of

    divergence and complexity. Classify a service using a taxonomy of service

    processes.

    Compare and contrast the generic approaches toservice system design.

    Discuss the use of information technology for employee

    and customer empowerment.

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    Service Blueprinting

    (Bank Lending Operation)Loan application Branch Officer Pay book30min--1hr.

    Line of visibility

    Deny

    1 day 2 days 3 days

    Fail point Customer wait Employee decision

    ===========

    ===== $ 0 $ ==== =====

    ReceivePayment

    FinalpaymentDecline Notify

    customerIssuecheck

    Confirm

    Creditcheck

    AcceptPrint

    paymentbook

    DelinquentClose

    account

    Verifyincome

    dataInitial

    screening

    VerifypayerEmployer Credit

    bureau Branchrecords

    Bankaccounts

    Accounting

    Data baserecords

    FW

    ww

    F

    F

    F

    F

    F

    F

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    Strategic Positioning

    Through Process Structure Degree of Complexity: Measured by the number

    of steps in the service blueprint. For example a

    clinic is less complex than a general hospital. Degree of Divergence: Amount of discretion

    permitted the server to customize the service.

    For example the activities of an attorneycontrasted with those of a paralegal.

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    Structural Alternatives

    for a RestaurantNo Reservations

    Self-seating. Menu on Blackboard

    Eliminate

    Customer Fills Out Form

    Pre-prepared: No Choice

    Limit to Four Choices

    Sundae Bar: Self-service

    Coffee, Tea, Milk only

    Serve Salad & Entree Together:Bill and Beverage Together

    Cash only: Pay when Leaving

    TAKE RESERVATION

    SEAT GUESTS, GIVE MENUS

    SERVE WATER AND BREAD

    TAKE ORDERS

    PREPARE ORDERS

    Salad (4 choices)

    Entree (15 choices)

    Dessert (6 choices)

    Beverage (6 choices)

    SERVE ORDERS

    COLLECT PAYMENT

    Specific Table Selection

    Recite Menu: Describe Entrees & Specials

    Assortment of Hot Breads and Hors Doeuvres

    At table. Taken Personally by Maltre d

    Individually Prepared at table

    Expand to 20 Choices: Add Flaming Dishes;

    Bone Fish at Table; Prepare Sauces at Table

    Expand to 12 Choices

    Add Exotic Coffees; Sherbet between

    Courses; Hand Grind Pepper

    Choice of Payment. Including House Accounts:

    Serve Mints

    LOWER COMPLEXITY/DIVERGENCE CURRENT PROCESS HIGHER COMPLEXITY/DIVERGENCE

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    Structural Positioning of Healthcare

    ServicesHIGH COMPLEXITY

    * Hospitals Services

    * General Practitioner

    * Forensic-Testing Lab

    * Diagnostic services only

    * Specialist: Treatment only

    LOW DIVERGENCE HIGH DIVERGENCE

    * Outpatient Clinic

    * Retailer of Orthopedic Supplies

    * X-Ray Lab * Medical Counseling

    LOW COMPLEXITY

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    Low Divergence(Standardized Service)

    High Divergence(Customized Service)

    Processing of Goods Information People Goods Information People

    No customer contact DryCleaning

    Checkprocessing

    Auto repairTailor

    Computerprogrammin

    g, buildingdesign

    Indirect customercontact

    Internetpurchase

    Air trafficcontrol

    No

    interaction(sef-service)

    Buying

    formvendingmachine

    ATM

    transaction

    Operating

    anelevator

    Bagging of

    groceries

    Documentin

    g medicalhistory

    Using a

    healthclubDirect

    Customercontact

    Customer-serviceworker

    interaction

    Foodservice in arestaurant

    Classlectures

    Masstransportation

    systems

    Landscaping service

    Counseling HaircutTaxiservice

    Taxonomy of Service Processes

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    Production-line Approach to Service

    Design Limit Discretion of Personnel

    Division of Labor

    Substitute Technology for People

    Standardize the Service

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    Customer Participation Encourage Co-production by Customer

    Free air miles for Internet ticketing

    Promote Demand SmoothingHalf-price drinks before 6:00pm

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    Information Empowerment Employees

    Relational Databases

    Customers

    Internet Web Site

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    Customer Contact View of Services Degree of Customer Contact Influences

    Potential Efficiency of Service

    Separate High- and Low-Contact Operations

    Consider Sales Opportunity and ProductionEfficiency Tradeoff

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    100 Yen Sushi House BlueprintCustomer Provider

    Activities Activities

    Enter Welcome Customers

    Seat Themselves Serve Accessories

    Make Paste

    Make Selection Prepare Selections Review Demand

    Make Tea Cook with Attn. to Flavor

    Eat Fill Tea Remove Uneaten Sushi

    Stack Plates Get from Inventory

    Pay Count Plates

    Leave Thank Customer Stock Inventory

    Remove Accessories

    Line of Visibility

    Tell Friends Wash Plates, etc.Provide High Quality Ingredients

    F

    F

    F

    F

    F

    F

    F

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    100 Yen Sushi House

    Service Package Supporting Facility

    Facilitating Goods

    Explicit Service

    Implicit Service

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    100 Yen Sushi House Layout

    Miso and Tea Station

    CONVERSATION AREA

    CONVERSATIONAREA

    Dishwashing Counter in Back

    ENTRANCE

    CONVEYOR

    BELT

    TAKE-OUT

    POSITION

    = CHEF

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    100 Yen Sushi House Questions What features differentiate 100 Yen Sushi House

    and how do they create a competitive

    advantage? How has the 100 Yen Sushi House incorporated

    the just-in-time system into its operations?

    Suggest other services that could adopt the 100Yen Sushi House service delivery concept.