Description
This is a PPT explaining about service perspective of operations management.
OPERATIONS MANAGEMENT
Services
Service –
Services are economic activities that produce time, place, form or psychological utilities
A deed, a performance, an effort (Berry)
Time : a maid servant saves time (Skill based)
Place : departmental stores or grocery shops provide commodities at one place (Location based) Form : data base in usable form (Information based)
Psychological : restaurant or movie (Content based)
Characteristics of Service –
Intangibility Inseparability : (a) inseparability of provision and consumption and (b) inseparability of customer and supplier Perishability : can not be stored Variability : provided by humans to humans (mostly), variation is inevitable, also due to difference in perception by different customers
Service Process Matrix –
(Schemenner, 1986)
Degree of Interaction and Customization Low High
Service Factory
Service Shop
Hospitals Auto Repair Shops Other repair services
Degree of Labour Intensity
Airlines
Low
Trucking Hotel Resorts and Recreation
Mass Services
Retailing
Professional Services
Physicians Lawyers Accountant Architects
High
Wholesaling Schools Retail aspects of commercial banking
Process Structure in Services –
High Contact Low Contact
Dimensions
Physical presence What is Processed Contact Intensity Personal attention Method of delivery (Refer Figure 4.2 – page 123)
Nature of Demand relative to Supply –
(Christopher H Lovelock, 1983)
Extent of Demand Fluctuations over Time Wide Extent to which Supply is constrained Narrow
Peak Demand can usually be met without major delay
Electricity Telephone Hospital
Insurance
Legal Services
Banking Laundry and Dry Cleaning
Peak Demand regularly exceeds Capacity
Tax preparation Passenger Transportation Hotels and Motels
Fast Food Restaurant Movie Theatre Gas Station
What is Processed?
(Christopher H Lovelock)
Actions Tangible Intangible
People Processing
Passenger transportation Heart transplantation Immunisation
Mental Stimulus Processing
Entertainment Education Art exhibit Music concert
Customer Inputs
Physical therapy
Possession Processing
Repair & maintenance
Information Processing
Internet services Banking Financial services Insurance Software development
Assets
Dry cleaning Housecleaning Landscaping Package delivery
Nature of the Service Act –
(Christopher H Lovelock, 1983)
Direct Recipient of the Services People Things
Nature of the Service acts
Service Directed at People?s Bodies
Tangible Actions
Healthcare Passenger transportation Beauty Salon
Service Directed at Goods and other Physical Possessions
Freight transportation
Repair and maintenance
Laundry and dry cleaning
Service directed at People?s Mind
Service directed at intangible assets
Banking Legal services Accounting Insurance
Intangible Actions
Education Broadcasting Information Services Theatres
Customization and Judgement in Service Delivery –
(Christopher H Lovelock, 1983)
Extent to which Customer Contact Personnel Exercise Judgement in meeting individual Customer Needs Extent to which Service Characteristics are Customised High Low
Education (large classes)
High
Surgery Taxi Service
Preventive Health Programmes Family Restaurant
Telephone Services
Low
Hotel Services Retail Banking Cafeteria
Public Transportation
Movie Theatre
Institutional Food Services
Method of Service Delivery –
(Christopher H Lovelock, 1983)
Availability of Service Outlets Single Site Nature of interaction between Customer and Service Organization Multiple Sites
Customer travels to Service Firm
Theatre Barber Shop Pest Control Service Taxi
Bus Service Fast Food Chain
Service Provider travels to Customer
Mail Delivery Emergency Repair
Transactions is at arm?s length
Credit Card Company
National TV Network
Local TV Station
Telephone Company
Relationship with Customers –
(Christopher H Lovelock, 1983)
Type of Relationship between Service Organization and its Customers „Membership? Relationship Nature of the Service Delivery No Formal Relationship
Insurance
Continuous Delivery of Service
Radio Station
Telephone Subscription Electric Utility
Police Protection
Lighthouse Public Highways
Banking
Toll Highway
Discrete Transactions
Long Distance Phone Calls Theatre Series Tickets Airline Frequent Flyer
Pay Phone
Movie Theatre
Public Transportation Restaurant
Service System
The Service System –
Customer Needs Service Organisation – mission, strategies and policies Environment
Marketing System
Operations System
Human Resources
Design of service package & delivery system
Service delivery system
Front Room : Service Providers Processes Equipments Back Room : Personnel Processes Equipments
Customer and / or customer assets
Enhanced customers and / or customer assets
Service Encounter –
Service is delivered through process(es)
“Any episode in which the customer comes into contact with any aspect of the organisation and gets an impression of the quality of its services”
Service encounter involves customers, service employees, other customers, service delivery system and physical evidence Also known as „moments of truth?
Service Encounter Perspectives –
Social encounter : may be like a social interaction, follow the social rules and some informal interactions
Economic exchange : exchange of resources between customer and the service provider e.g. labour, skill, technology, etc.
Production process : to satisfy some needs of the customers. Service provider provides resources to convert into customer satisfaction Contract : customer hires the services of the service provider and to provide service on his/her behalf Partial employment : customer participates like an employer, this is beneficial to both
Elements of Service Encounter –
Customer : most important and the ultimate objective
Service Provider : expects courtesy from the customer, must have knowledge and training to perform the task
The delivery system : consists of equipment, supplies, processes, procedure, etc. Delivery system design is the core service. The Physical Evidence : deals with all tangible aspects of the service
Influence of other customers in Service Encounter –
Interaction with other customers such as co-passengers in
train or in a airline It is important –
•
• •
To select the right (target) customer
Establish rules of behaviours from the customers Facilitate positive customer – customer interaction
Service Performance Measurement
Service Productivity Measurement Issues
? Difficult to measure : one service from a set or bunch of services ? Measure with accuracy & defining the output : no physical evidence hence what to measure and how to measure (carry out relative measurement e.g. measurement on inputs rather than pure outputs – no. of patients days in a hospital rather time taken to cure or get tested) ? Accounting for customer?s involvement : difficult to separate his/her part, may depend on number of customer served e.g. airline passengers, may go down in case demand reduces and lead to idle time ? Customisation and customer dependence : how does the customer receive and think about the service
Service Layout
Layout –
Objectives of good layout – a. b. c. d. Minimise the movement of people, materials, paper (non-value adding) Improved utilisation of space Flexibility of rearrangement or modification as per need Physical arrangement for employees to be effective
e.
Convenience to customers, customer friendly ambience
Layout –
Inputs/factors to layout –
a. b. Objective of the company – diversification, cost, expansion, etc. People/services – nature and number – single or multiple service, degree of customer contact, degree of customisation, etc. Quantity demanded – high volume or low volume Routing – process, equipments, materials, information, and customer participation in the process Space and services – space available and required, location Timing – flexibility or change over needed Security – of people and belongings Aesthetics Community and environment
c. d. e. f. g. h. i.
Layout –
Servicescapes or physical environment –
Influences customer and employee behaviour
The complexity of servicescape depends on whether –
a. Self service (customer only)
b. Interpersonal services (customer and employee both)
c. Remote service (employee only)
Servicescape Framework –
Environmental Dimensions Holistic Environment Moderators
Cognitive
Belief
Internal Responses
Emotional Physiological
Mood Attitude Pain Comfort Movement Physical fit
Behaviour
Approach
Affiliation Exploration Stay longer Commitment Carry out Plan Avoid
Ambient Conditions Temperature Air Quality Noise Odour, etc.
Categorization
Symbolic meaning
Employee Response Moderators Perceived Servicescape Customer Response Moderators
Space/function Layout Equipment Furnishing, etc.
Employee Response
Customer Response
Social Interaction between and among customers and employees
Signs, symbols & artifacts Signage, Personal artifacts Styles of décor, etc. Cognitive
Belief
Approach
Affiliation
Emotional Physiological
Mood Pain Comfort Movement
Exploration Stay longer Commitment Carry out Plan
Categorization Attitude Symbolic meaning
Physical fit
Avoid
Issues on Office Layout
Proximity to peers and supervisors, need based Privacy - antithesis of proximity ! Approaches – Traditional Layout : rigid and more private
Office Landscaping : semiprivate, portable partition and semi permanent
Activity Setting : multiple work areas like process type, mix of proximity and privacy Telecommuting or Electronic Cottage (SOHO)
SESSION ENDS
doc_456177830.ppt
This is a PPT explaining about service perspective of operations management.
OPERATIONS MANAGEMENT
Services
Service –
Services are economic activities that produce time, place, form or psychological utilities
A deed, a performance, an effort (Berry)
Time : a maid servant saves time (Skill based)
Place : departmental stores or grocery shops provide commodities at one place (Location based) Form : data base in usable form (Information based)
Psychological : restaurant or movie (Content based)
Characteristics of Service –
Intangibility Inseparability : (a) inseparability of provision and consumption and (b) inseparability of customer and supplier Perishability : can not be stored Variability : provided by humans to humans (mostly), variation is inevitable, also due to difference in perception by different customers
Service Process Matrix –
(Schemenner, 1986)
Degree of Interaction and Customization Low High
Service Factory
Service Shop
Hospitals Auto Repair Shops Other repair services
Degree of Labour Intensity
Airlines
Low
Trucking Hotel Resorts and Recreation
Mass Services
Retailing
Professional Services
Physicians Lawyers Accountant Architects
High
Wholesaling Schools Retail aspects of commercial banking
Process Structure in Services –
High Contact Low Contact
Dimensions
Physical presence What is Processed Contact Intensity Personal attention Method of delivery (Refer Figure 4.2 – page 123)
Nature of Demand relative to Supply –
(Christopher H Lovelock, 1983)
Extent of Demand Fluctuations over Time Wide Extent to which Supply is constrained Narrow
Peak Demand can usually be met without major delay
Electricity Telephone Hospital
Insurance
Legal Services
Banking Laundry and Dry Cleaning
Peak Demand regularly exceeds Capacity
Tax preparation Passenger Transportation Hotels and Motels
Fast Food Restaurant Movie Theatre Gas Station
What is Processed?
(Christopher H Lovelock)
Actions Tangible Intangible
People Processing
Passenger transportation Heart transplantation Immunisation
Mental Stimulus Processing
Entertainment Education Art exhibit Music concert
Customer Inputs
Physical therapy
Possession Processing
Repair & maintenance
Information Processing
Internet services Banking Financial services Insurance Software development
Assets
Dry cleaning Housecleaning Landscaping Package delivery
Nature of the Service Act –
(Christopher H Lovelock, 1983)
Direct Recipient of the Services People Things
Nature of the Service acts
Service Directed at People?s Bodies
Tangible Actions
Healthcare Passenger transportation Beauty Salon
Service Directed at Goods and other Physical Possessions
Freight transportation
Repair and maintenance
Laundry and dry cleaning
Service directed at People?s Mind
Service directed at intangible assets
Banking Legal services Accounting Insurance
Intangible Actions
Education Broadcasting Information Services Theatres
Customization and Judgement in Service Delivery –
(Christopher H Lovelock, 1983)
Extent to which Customer Contact Personnel Exercise Judgement in meeting individual Customer Needs Extent to which Service Characteristics are Customised High Low
Education (large classes)
High
Surgery Taxi Service
Preventive Health Programmes Family Restaurant
Telephone Services
Low
Hotel Services Retail Banking Cafeteria
Public Transportation
Movie Theatre
Institutional Food Services
Method of Service Delivery –
(Christopher H Lovelock, 1983)
Availability of Service Outlets Single Site Nature of interaction between Customer and Service Organization Multiple Sites
Customer travels to Service Firm
Theatre Barber Shop Pest Control Service Taxi
Bus Service Fast Food Chain
Service Provider travels to Customer
Mail Delivery Emergency Repair
Transactions is at arm?s length
Credit Card Company
National TV Network
Local TV Station
Telephone Company
Relationship with Customers –
(Christopher H Lovelock, 1983)
Type of Relationship between Service Organization and its Customers „Membership? Relationship Nature of the Service Delivery No Formal Relationship
Insurance
Continuous Delivery of Service
Radio Station
Telephone Subscription Electric Utility
Police Protection
Lighthouse Public Highways
Banking
Toll Highway
Discrete Transactions
Long Distance Phone Calls Theatre Series Tickets Airline Frequent Flyer
Pay Phone
Movie Theatre
Public Transportation Restaurant
Service System
The Service System –
Customer Needs Service Organisation – mission, strategies and policies Environment
Marketing System
Operations System
Human Resources
Design of service package & delivery system
Service delivery system
Front Room : Service Providers Processes Equipments Back Room : Personnel Processes Equipments
Customer and / or customer assets
Enhanced customers and / or customer assets
Service Encounter –
Service is delivered through process(es)
“Any episode in which the customer comes into contact with any aspect of the organisation and gets an impression of the quality of its services”
Service encounter involves customers, service employees, other customers, service delivery system and physical evidence Also known as „moments of truth?
Service Encounter Perspectives –
Social encounter : may be like a social interaction, follow the social rules and some informal interactions
Economic exchange : exchange of resources between customer and the service provider e.g. labour, skill, technology, etc.
Production process : to satisfy some needs of the customers. Service provider provides resources to convert into customer satisfaction Contract : customer hires the services of the service provider and to provide service on his/her behalf Partial employment : customer participates like an employer, this is beneficial to both
Elements of Service Encounter –
Customer : most important and the ultimate objective
Service Provider : expects courtesy from the customer, must have knowledge and training to perform the task
The delivery system : consists of equipment, supplies, processes, procedure, etc. Delivery system design is the core service. The Physical Evidence : deals with all tangible aspects of the service
Influence of other customers in Service Encounter –
Interaction with other customers such as co-passengers in
train or in a airline It is important –
•
• •
To select the right (target) customer
Establish rules of behaviours from the customers Facilitate positive customer – customer interaction
Service Performance Measurement
Service Productivity Measurement Issues
? Difficult to measure : one service from a set or bunch of services ? Measure with accuracy & defining the output : no physical evidence hence what to measure and how to measure (carry out relative measurement e.g. measurement on inputs rather than pure outputs – no. of patients days in a hospital rather time taken to cure or get tested) ? Accounting for customer?s involvement : difficult to separate his/her part, may depend on number of customer served e.g. airline passengers, may go down in case demand reduces and lead to idle time ? Customisation and customer dependence : how does the customer receive and think about the service
Service Layout
Layout –
Objectives of good layout – a. b. c. d. Minimise the movement of people, materials, paper (non-value adding) Improved utilisation of space Flexibility of rearrangement or modification as per need Physical arrangement for employees to be effective
e.
Convenience to customers, customer friendly ambience
Layout –
Inputs/factors to layout –
a. b. Objective of the company – diversification, cost, expansion, etc. People/services – nature and number – single or multiple service, degree of customer contact, degree of customisation, etc. Quantity demanded – high volume or low volume Routing – process, equipments, materials, information, and customer participation in the process Space and services – space available and required, location Timing – flexibility or change over needed Security – of people and belongings Aesthetics Community and environment
c. d. e. f. g. h. i.
Layout –
Servicescapes or physical environment –
Influences customer and employee behaviour
The complexity of servicescape depends on whether –
a. Self service (customer only)
b. Interpersonal services (customer and employee both)
c. Remote service (employee only)
Servicescape Framework –
Environmental Dimensions Holistic Environment Moderators
Cognitive
Belief
Internal Responses
Emotional Physiological
Mood Attitude Pain Comfort Movement Physical fit
Behaviour
Approach
Affiliation Exploration Stay longer Commitment Carry out Plan Avoid
Ambient Conditions Temperature Air Quality Noise Odour, etc.
Categorization
Symbolic meaning
Employee Response Moderators Perceived Servicescape Customer Response Moderators
Space/function Layout Equipment Furnishing, etc.
Employee Response
Customer Response
Social Interaction between and among customers and employees
Signs, symbols & artifacts Signage, Personal artifacts Styles of décor, etc. Cognitive
Belief
Approach
Affiliation
Emotional Physiological
Mood Pain Comfort Movement
Exploration Stay longer Commitment Carry out Plan
Categorization Attitude Symbolic meaning
Physical fit
Avoid
Issues on Office Layout
Proximity to peers and supervisors, need based Privacy - antithesis of proximity ! Approaches – Traditional Layout : rigid and more private
Office Landscaping : semiprivate, portable partition and semi permanent
Activity Setting : multiple work areas like process type, mix of proximity and privacy Telecommuting or Electronic Cottage (SOHO)
SESSION ENDS
doc_456177830.ppt