Service Process, Service Design: Case of Pizza USA

By –Pranjal Srivastava

Jaishree ChaniSupriya Singh

Soumyakanti Banerjee

What is a service ?

An act or performance created by one party to another.

Economic activities that create values and provide benefits to customers or end users.

Characteristics of a Service

Intangibility Perishability Inseparability Heterogeneity Ownership Simultaneity Quality

Measurement Nature Of Demand

Service Businesses

A service business is the management of organizations whose primary business requires interaction with the customer to produce the service.

Facilities Based Services: Where the customer must go for the service facility.

Field Based Services: Services are produced and consumed in the customer’s environment.

Service Design

Every service has a service package, which is a bundle of goods and services produced.

Bundle consists of: Supporting Facility Facilitating Goods Information Explicit Services Implicit Services

Degree of Customer Contact

Physical presence of the customer in the system and the percentage of time the customer spent relative to the total time taken to produce a service.

Low Degree of Customer Contact: Systems are structured and pre-defined.

High Degree of Customer Contact: Customer affects the time of demand, nature of service and also the quality.

Service – System Design Matrix

Mail contact

Face-to-faceloose specs

Face-to-facetight specs

PhoneContact

Face-to-facetotal

customization

Buffered core (none)

Permeable system (some)

Reactivesystem (much)

High

LowHigh

Low

Degree of customer/server contact

Internet & on-site

technology

Enables systematic integration of operations

and marketing strategy. Hence, trade offs become more clear.

Clarifies the exact combination of service delivery that firm is providing.

Allows comparison with other firms delivering specific services. Helps to identify firm’s competitive advantage.

Indicates evolutionary or life cycle changes that might be in order as the firms grows.

Strategic Use of Matrix

The front end and the back end of the encounter

are not created equal.

Segment the pleasure; combine the pain.

Let the customer control the process.

Pay attention to norms and rituals.

People are easier to blame than systems.

Let the punishment fit the crime in service recovery.

Applying Behavioural Sciences to Service

Encounters

The Production Line Approach

The Self Service Approach

The Personal Attention Approach

Three Contrasting Service Designs

The flow chart of a service process,

emphasizing what is visible and what is not visible to the customer.

Line of Visibility is the differentiating factor between the high and low degree of customer contacts.

Poka-Yokes, are the procedures that prevent mistakes from becoming defects. These are mainly found in manufacturing but also can be used in service processes.

Service BluePrinting

Each element of the service system is consistent with the operating focus of the firm.

It is user – friendly. It is robust. It is structured so that consistent performance

by its people and systems is easily maintained.

It provides effective links between the back office and the front office so that nothing falls between the cracks.

It is cost effective. It manages the evidence of service quality in

such a way that customers see the value of the service provided.

Characteristics of a Well – Designed Service System

Currently offers sit-down and take-out service.

Customers suggest that they would buy more Pizzas from Pizza USA, if it offered a delivery service.

Need to identify the key attributes as a Customer and as the manager at Pizza USA.

Case: Pizza USA

Pizza should be hot – Special bags and

storing boxes at bikes. Minimum delivery time – Delivery

personnel should be provided with appropriate knowledge of routes, and a part of the assembling should be readymade.

Delivery in all areas – So more outlets should be made available to cater to a large no.of.people.

Condition of the delivered Pizza – Proper boxes and cases of exact size should be made available.

Suggestions

Order Accuracy – Efficient use of IT systems in

order to reduce mistakes. Change in Money – Delivery guy should be

sent with the possible denominations of Payments.

Suggestions