product design and process selection: services
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Product Design and Process Selection: Services. Based on slides for Chase Acquilano and Jacobs, Operations Management, McGraw-Hill. Types of Services. Facilities-based services You go to the service provider Examples?? Field-based services The service provider comes to you Examples?? - PowerPoint PPT PresentationTRANSCRIPT
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Product Design and Process Selection: Services
Based on slides for Chase Acquilano and Jacobs, Operations Management, McGraw-Hill
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Types of ServicesFacilities-based services
You go to the service providerExamples??
Field-based services The service provider comes to youExamples??
Internal servicesEmployees as customersWhat opportunities exist to transform facilities based into field based?
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Service Strategy: Focus and Performance Priorities
Treatment of the customerSpeed and convenience of service
deliveryPriceVarietyQuality of the tangible goods Unique skills that constitute the service
offeringExamples of companies??
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Example: Hotel Services
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Example: Hotel Services Departments
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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?
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High & Low Contact SystemsDesign Decision High Contact Low Contact
Facility location Near customer Near resourcesFacility layout Accommodate customer Focus on effi ciencyProduct design Environment & product Fewer attributesProcess design Production aff ects customer Customer rarely involvedScheduling Accommodate customer Focus on completion dateProduction Planning Cannot smooth production Can smooth and backlogWorker skills I nteracts with public Technical skills onlyQuality Control Variable - eye of the beholder Measurable & fi xedTime standards I nherently loose TightWage payment Time-based Output-basedCapacity planning Match peak demand Average demand
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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.
None High
High Automated
Production Line
Self Service
Low Personal Attention
High Low
Low High
Low High
Low High
Customer Contact
Sales Opportunity
Scheduling Complexity
Labor Skill
Efficiency
Volume
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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.
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Demand and Capacity Management
Demand Management
Vary pricesVary promotionChange lead times
(e.g., backorders)Examples??
Capacity Management
Vary staffingChange equipment
& processesRedesign the product
for faster processingExamples??
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CustomerArrivals
Servers
Waiting Line
Servicing System
Exit
Queuing
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Example of Queues: Phone Systems
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Suggestions for Managing Queues
Determine the acceptable waiting timeuse as upper limit
Distract and entertainManage expectations Segment customers
triageUse demand management Keep “idle” resources out of sight
even if they’re working