Product Design and Process Selection: Services

1
Product Design and Process Selection Services

Based on slides for Chase Acquilano and Jacobs,
Operations Management, McGraw-Hill
2
Types of Services

• Facilities-based services
• You go to the service provider
• Examples??
• Field-based services
• The service provider comes to you
• Examples??
• Internal services
• Employees as customers

What opportunities exist to transform facilities
based into field based?
3
Service Strategy Focus and Performance Priorities

• Treatment of the customer
• Speed and convenience of service delivery
• Price
• Variety
• Quality of the tangible goods
• Unique skills that constitute the service
  offering
• Examples of companies??

4
Example Hotel Services
5
Example Hotel Services Departments
6
Question --

• Based on the two videos and your own
  experiences -- what are some of the operational
  issues that hotel managers face?
• What are some suggestions you might have for
  hotels to facilitate better allocation of
  resources and more effective problem solving?

7
High Low Contact Systems
8
Contrasting Service Designs

• Automated Approach
• The production line approach
• The self-service approach
• The personal attention approach
• Group Exercise Select an example of each
  identify operations management issues and ways to
  improve the service experience.

9
Characteristics of a Well-Designed Service System

• 1. Each element of the system is consistent with
  the operating focus of the firm.
• 2. Is user-friendly.
• 3. Is robust
• 4. Structured so that consistent performance by
  its people systems is easily maintained.

• 5. Provides effective links between back front
  office -- nothing falls between the cracks.
• 6. Manages the evidence of service quality in so
  that customers see the value of the service
  provided.
• 7. Is cost-effective.

10
Demand and Capacity Management

• Demand Management
• Vary prices
• Vary promotion
• Change lead times(e.g., backorders)
• Examples??

• Capacity Management
• Vary staffing
• Change equipment processes
• Redesign the product for faster processing
• Examples??

11
Queuing
12
Example of Queues Phone Systems
13
Suggestions for Managing Queues

• Determine the acceptable waiting time
• use as upper limit
• Distract and entertain
• Manage expectations
• Segment customers
• triage
• Use demand management
• Keep idle resources out of sight
• even if theyre working