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1MTSU
Designing Quality ServicesDesigning Quality Services
2MTSU
The Nature of ServicesThe Nature of Services
• Services are unique
• Quality of work is not quality of service
• Service package contains a mix of tangible and intangible attributes
more
3MTSU
The Nature of ServicesThe Nature of Services
• High-contact services are experienced
• Effective management requires an understanding of marketing and personnel, as well as operations
• Services often take the form of cycles of encounters
more
4MTSU
Nature (continued)Nature (continued)
• Quality often difficult to measure and, therefore, to control
• Performance measures such as productivity are difficult to measure
• Everyone is an expert
5MTSU
Differences BetweenDifferences BetweenServices and ProductsServices and Products
• Products are generally tangible; services are generally intangible
• Services are created and consumed at the same time
• Services cannot be inventoried
6MTSU
Differences BetweenDifferences BetweenServices and ProductsServices and Products
• Services are highly visible to consumers and must be designed with that in mind
• Some services have low barriers to entry and exit
• Location is often important to service design
7MTSU
Classification of ServicesClassification of Services
• Low Degree of Customer Contact– more like a manufacturing system
• High Degree of Customer Contact– more difficult to control– more difficult to rationalize– customer can affect the time of
demand, the exact nature of the service, and the quality of service
8MTSU
Service-System Design Service-System Design MatrixMatrix
Low
LowHigh
High
Sales
Opportunity
Production
Efficiency
Mailcontact
On-siteTechnology
Phonecontact
Face-to-faceTight spec
Face-to-faceLoose spec
Face-to-facetotal
customization
Buffered
core (none)
Permeable
System (some)
Reactive
System (much)
Degree of customer/service contact
9MTSU
Designing and DevelopingNew Services
Designing and DevelopingNew Services
• The degree of standardization of a service
• The degree of customer contact in delivering the service
• The mix of physical goods and intangible services
10MTSU
Design GuidelinesDesign Guidelines
• Have a single, unifying theme, such as convenience or speed. This will help personnel to work together rather than at cross-purposes.
• Make sure the system has the capability to handle any expected variability in service requirements.
11MTSU
Design GuidelinesDesign Guidelines
• Include design features and checks to ensure that service will be reliable and will provide consistently high quality.
• Design the system to be user-friendly. This is especially true for self-service systems.
12MTSU
Service BlueprintingService Blueprinting
• Establish boundaries for the process and decide on the level of detail that will be needed
• Identify the steps involved and describe them. If this is an existing process, get input from those who do it.
• Prepare a flowchart of major process steps
more
13MTSU
Service BlueprintingService Blueprinting
• Identify potential failure points. Incorporate features that minimize the chances of failures
• Establish a timeframe for service execution, and an estimate of variability in processing time requirements– Time is a primary determinant of cost– Variability can also impact time, so an estimate
of that is also important• more
14MTSU
Blueprinting (continued)Blueprinting (continued)
• Analyze profitability– Determine which factors can influence
profitability, positively and negatively– Determine how sensitive profitability is to
these factors
15MTSU
Trends in Service DesignTrends in Service Design
• Increased emphasis on customer satisfaction and increased pressures to be competitive
• Increased emphasis on reducing the time needed to introduce a new service
• Increased emphasis on reducing the time needed to produce a new service
more
16MTSU
Trends (continued)Trends (continued)
• Greater attention to the capabilities of the organization to deliver the service
• Greater attention to environmental concerns
• Increased emphasis on designing services that are “user friendly”
17MTSU
The Role of OperationsThe Role of Operations
• Responsible for service systems– procedures– equipment– facilities
• Responsible for managing the work force
18MTSU
Designing Service Organizations
Designing Service Organizations
• Capacity is a dominant issue since services cannot be inventoried
• Identify the target market• Determine the service focus or
competitive advantage• Develop the service package• Design the delivery system
19MTSU
Factors To ConsiderFactors To Consider
• The process and the service must be developed simultaneously
• A service operation lacks legal protection
• The service package constitutes the major output of the development process
20MTSU
Factors To ConsiderFactors To Consider
• Service package often determined by the training individuals receive
• Service offerings can be changed overnight
21MTSU
Process Design in ServicesProcess Design in Services
• Quasi manufacturing - production of goods takes place along a production line with almost no customer interaction
• Customer-as-participant - high degree of customer involvement in the process of generating the service
• Customer-as-product - service is provided through personal attention to the customer
22MTSU
Service Quality Service Quality DimensionsDimensions
• Tangibles• Reliability• Responsiveness• Assurance• Empathy
SERVQUAL survey tests expectations and perceptions >> Gap for these 5
dimensions.
23MTSU
Service Quality Service Quality DimensionsDimensions
• Availability• Professionalism• Timeliness• Completeness• Pleasantness
24MTSU
Unified Theory for Services Unified Theory for Services ManagementManagement
Proposition 1: The Unified Services Theory – With services the customer provides significant inputs into the production process.
25MTSU
Unified Theory for Services Unified Theory for Services ManagementManagement
Proposition 2: The Unreliable Supplier Dilemma – With services the customer-suppliers often provide unreliable inputs.
26MTSU
Unified Theory for Services Unified Theory for Services ManagementManagement
Proposition 3: Capricious Labor – With services the customer-labor may ignore, avoid, or reject technologies or process improvements which are intended to increase quality and productivity. As a result, customer buy-in to process changes must be carefully addressed.
27MTSU
Unified Theory for Services Unified Theory for Services ManagementManagement
Proposition 4: Everyone Presumes to be An Expert – With services the customer often provides product specifications (what to make) and process design (how to make it), often with the invitation of the service provider.
28MTSU
Designing Quality Designing Quality PresentationsPresentations
• Your assignment is to provide a quality presentation (in your TQM class?). Identify sub-processes of the presentation (and presentation preparation process) and flow chart. Include fail points. How can you improve this process?
29MTSU
Quality Services – New Quality Services – New AreasAreas
• Government• Health care• Education
30MTSU
Designing Quality ServicesDesigning Quality Services
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