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To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved.
Service Design Definitions
Service
Something that is done to, or for, a
customer
Service delivery system
The facilities, processes, and skills needed
to provide a service
Product bundle
The combination of goods and services
provided to a customer
Service Design
Internal Supplier
Internal
Customer
External
Customer
Internal Supplier
Service Demand Variability
Demand variability creates waiting lines and idle
service resources
Service design perspectives:
Cost and efficiency perspective
Customer perspective
Attempts to achieve high efficiency may
depersonalize service and change customers
perception of quality
Customer participation makes quality and demand
variability hard to manage
Differences Between Product and
Service Design (1 of 2)
Conceptualize
Identify service package components
Determine performance specifications
Translate performance specifications into
design specifications
Translate design specifications into delivery
specifications
Three Contrasting Service Designs
The production line approach (ex. McDonalds)
Performance Specifications
Customer Customer
requirements expectations
Delivery Specifications
Service
Service Systems
Low High
Design for High-and-Low Contact
Services (1 of 2)
DESIGN DECISION HIGH-CONTACT SERVICE LOW-CONTACT SERVICE
Facility location Convenient to customer Near labor or
transportation
Service blueprinting
A method used in service design to describe
and analyze a proposed service
A useful tool for conceptualizing a service
delivery system
Major Steps in Service
Blueprinting
1. Establish boundaries
2. Identify sequence of customer interaction
3. Prepare a flowchart
4. Develop time estimates
5. Identify potential failure points
6. Determine which factors can influence
profitability
Example of Service Blueprinting
Standard Brush Apply Collect
execution time Buff
shoes polish payment
2 minutes
30 30 45 15
secs secs secs secs
Total acceptable
execution time
Wrong
5 minutes
color wax
Clean Fail
shoes point Materials
Seen by
(e.g., polish, cloth)
customer 45
secs
W W
Line of visibility
Receive Final
payment payment
Notify
Decline
customer
Issue
Confirm
Deny
check F
F
Verify Print
Credit Close
income Accept payment Delinquent
check account
data book
Bank
F
Accounting
accounts
Data base
records
2. It is user-friendly
FedEx
3. It is robust and easy to
sustain
7. It is cost-effective
1. Variable requirements
2. Difficult to describe
3. High customer contact
4. Service customer encounter
Guidelines for Successful Service
Design
1. Define the service package
2. Focus on customers perspective
3. Consider image of the service package
4. Recognize that designers perspective is different
from the customers perspecticve
5. Make sure that managers are involved
6. Define quality for tangible and intangibles
7. Make sure that recruitment, training and rewards are
consistent with service expectations
8. Establish procedures to handle exceptions
9. Establish systems to monitor service