www.lrjj.cn focus on service process chapter 5. chapter objectives 1.discuss the stages of...
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Focus on Service Process
Chapter 5
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Chapter Objectives
1. Discuss the stages of operational competitiveness.2. Appreciate the relationship between operations and
marketing connected to developing service delivery systems.3. Consider the challenges associated with applying peak
efficiency models to service organizations and recommend strategies that overcome some of these difficulties.
4. Explain the art of service blueprinting as it relates to the design of service delivery systems
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Stages of Operational Competitiveness
1. Available for Service
2. Journeyman
3. Distinctive Competencies Achieved
4. World Class Service Delivery
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• Stage 1: Available for Service– operations are a “necessary evil”– operations are “reactive”– the primary mission is to avoid mistakes– technological investment, training, and personnel
costs are minimized
Four Stages of Operational Competitiveness
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• Stage 2: Journeyman– prompted by the arrival of competition– operations become outward-looking– investment in technology is linked to long-term
costs savings– processes are developed, implemented, and
monitored– operations still viewed as a secondary function
Four Stages of Operational Competitiveness
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• Stage 3: Distinctive Competencies Achieved– the firm has mastered the core service– understands complexity of making changes– operations are now viewed equal with other
departments– view of technology changes from “cost savings”
to “enhancing the customers experience”
Four Stages of Operational Competitiveness
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• Stage 4: World Class Service Delivery– company’s name is synonymous with service
excellence– become a fast learner and innovator
–technology provides a means to accomplish tasks that the competition cannot duplicate
Four Stages of Operational Competitiveness
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Marketing and Operations: Balance is Critical
Marketing
Effectiveness
Operational Efficie
ncy
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Marketing and Operations: Balance is Critical
Customer
Needs & Wants
Operational
Capabilities
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Operations Efficiency Models of Manufacturing
• Thompson’s Perfect-World Model• The Focused-Factory Concept• The Plant within a Plant Concept
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Thompson’s Perfect-World Model
To operate efficiently, a firm must be able to operate “as if the market will absorb the single kind of product at a continuous rate and as if the inputs flowed continuously at a steady rate and with specified quality”
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The Focused-Factory Concept
• An operation that concentrates on performing one particular task in one particular part of the plant
• Used for promoting experience and effectiveness through repetition and concentration on one task necessary for success
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The Plant within a Plant Concept
– An operation that breaks up large, unfocused plants into smaller units buffered from one another so that they can each be focused separately
– Organizations buffer environmental influences by surrounding their technical core with input and output components
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The Plant within a Plant Concept
(Nissan Aguascalientes Mexico, 2014)
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Operation Efficiency Models
• Can they work for service operations?
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Applying Efficiency Models to Services
Servuction Model:
Customer Experience
Other Customer
Organizations and Systems
(Invisible)
Servicescape
Contact Personnel/
Service Providers
• What model describes the service customer experience?
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Applying Efficiency Models to Services
• Servuction system is an operations nightmare– impossible to use inventories– problems with separating production from the
customer– system is directly linked to the market– massive problems in capacity planning and utilization
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Possible Solutions to Service Operation Problems
1. Isolate the technical core2. Production-lining the whole system3. Creating flexible capacity4. Increasing customer participation5. Moving the time of demand
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Possible Solutions to Service Operation Problems
1. Isolate the technical core
– Different management philosophies should be adopted for each unit of operation
– technical core should be subjected to production-line approaches
– high contact areas should sacrifice efficiency in the interest of the consumer
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Possible Solutions to Service Operation Problems
Class Exercise - Jigsaw:
In groups learn about the following strategies of overcoming problems in service operations:2. Production-lining the whole system3. Creating flexible capacity4. Increasing customer participation5. Moving the time of demandExplain your findings in new groups.
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Which approach do they use?
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Which approach do they use?
Sleepbox Hotel Tverskaya, 2013
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Which approach do they use?
(Ground Café, n.d.)
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Service Blueprinting
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Service Blueprint Definition
Service Blueprint is a picture or a map analyzing the process, people and systems involved in the delivery of a service.– Useful tool for service design– Helps the communication between operations
and marketing and highlights potential problems on paper before they occur
– Used to identify innovation opportunities and ways of improving the service quality
(Steijger, 2008)
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Steps of Creating an Operations Service Blueprint
1. Identify direction in which processes flow2. Identify the time it takes to move from one
process to the next3. Identify the costs involved with each process
step4. Identify the amount of inventory build-up at
each step5. Identify the bottlenecks in the system
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Components of an Operations Service Blueprint
Bottlenecks – points in the system at which customers wait the longest periods of time.
Fail points - points in the system at which the potential for malfunction is high and at which a failure would be visible to the customer and regarded as significant.
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Blueprint for Cafeteria-Style Restaurant
p. 130
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Service Blueprinting Components
•All tangibles that customers come in contact with that influence customer perception of qualityPhysical Evidence
•All steps that customers take or experience as part of service processCustomer Actions
•The contact employee actions that involve face-to-face interactions with customers
Contact Employee (on-stage)
•Contact employee actions other than face-to-face, call/email/preparation and other activities
Contact Employee (back-stage)
•Activities included into service process but performed by individuals other than contact employeesSupport Processes
(Gremler, 2011)
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Service Blueprinting Video
• (Alex Masters Project, n.d.)
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Constructing Service Blueprint for Marketing
1. Identify the service to be blueprinted.2. Identify the customer segment that received the
service.3. Map the service from the customer’s point of view.4. Draw the line of interaction.5. Draw the line of visibility.6. Map the service from customer’s point dividing it into
visible and invisible activities.7. Draw the line of internal interaction.8. Link customer and contact person activities to support
functions. Indicate possible bottlenecks and fail points.9. Add the physical evidence.
(Gremler, 2011)
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Line of interaction
Line of visibility
(Gremler, 2011)
Line of internal interaction
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Constructing Service Blueprint
For next class: bring different colors of post-it notes, scissors and thick strings/threads.
Task: following the steps of the service blueprinting for marketing create the service blueprint of the LRJJ Culture Day customer’s experience.
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References• Alex Masters Project. Retrieved from
http://alexmastersproject.wordpress.com/service-blueprint/• Gremler, D.D. (2011). Service blueprinting: Designing service from the
customer’s point of view. Retrieved from http://www.phonakpro.com/content/dam/phonak/gc_us/Documents/PracticeDevelopment/2011/Phonak_Service_Blueprint_Slides_20111021.pdf
• Ground Café. Retrieved from http://www.qmsu.org/ground/• Nissan Aguascalientes, Mexico. Yates Construction. (2014). Retrieved from
http://www.wgyates.com/nissan-automotive-manufacturing-plant-2/#.U4MDNXKSxqU
• Sleepbox Hotel Tverskaya by Arch Group. (2013). Retrieved from http://www.dezeen.com/2013/02/08/sleepbox-hotel-tverskaya-by-arch-group/
• Steijger, M. (2008). How to use service blueprinting to achieve competitive advantage. Retrieved from http://www.silvercrestconsulting.com/gui/pdf/1237375126.pdf