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Chapter 8 Product Design and process Selection – Services

Chapter 8 Product Design and process Selection – Services. Service Generalizations Service Strategy: Focus & Advantage Service-System Design Matrix Service Blueprinting Service Fail-safing Characteristics of a Well-Designed Service Delivery System. Service Generalizations.

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Chapter 8 Product Design and process Selection – Services

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  1. Chapter 8Product Design and process Selection – Services • Service Generalizations • Service Strategy: Focus & Advantage • Service-System Design Matrix • Service Blueprinting • Service Fail-safing • Characteristics of a Well-Designed Service Delivery System

  2. Service Generalizations 1. Everyone is an expert on services. 2. Services are idiosyncratic. 3. Quality of work is not quality of service. 4. Most services contain a mix of tangible and intangible attributes.

  3. Service Generalizations (Continued) 5. High-contact services are experienced, whereas goods are consumed. 6. Effective management of services requires an understanding of marketing and personnel, as well as operations. 7. Services often take the form of cycles of encounters involving face-to-face, phone, internet, electromechanical, and/or mail interactions.

  4. Service Businesses • Facilities-based services - customer goes to the facility • Field-based services - facility goes to the customer

  5. Internal Supplier Internal Customer External Customer Internal Supplier Internal Services

  6. The Service Strategy The Customer The Systems The People The Service Triangle

  7. Service Strategy: Focus and AdvantagePerformance Priorities

  8. Face-to-face total customization Face-to-face loose specs Face-to-face tight specs Phone Contact Internet & on-site technology Mail contact Service-System Design Matrix Degree of customer/server contact Buffered Permeable Reactive High core (none) system (some) system (much) Low Sales Opportunity Production Efficiency Low High

  9. Example of Service Blueprinting

  10. Task Treatment Tangibles Service Fail-safingPoka-Yokes (A Proactive Approach) • Keeping a mistake from becoming a service defect. • How can we fail-safe the three Ts?

  11. Have we compromised one of the 3 Ts?

  12. Three Contrasting Service Designs • The production line approach • The self-service approach • The personal attention approach

  13. Characteristics of a Well-Designed Service System 1. Each element of the service system is consistent with the operating focus of the firm. 2. It is 3. It is 4. It is structured so that consistent performance by its people and systems is easily maintained.

  14. Characteristics of a Well-Designed Service System (Continued) 5. It provides effective links between the back office and the front office so that nothing falls between the cracks. 6. It manages the evidence of service quality in such a way that customers see the value of the service provided. 7. It is cost-effective.

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