Lecture Operations and supply chain management: The Core (3/e) – Chapter 7: Service processes

After reading the material in this chapter, you should be able to: Describe the characteristics of service processes and how they differ from manufacturing processes, classify service processes, explain service blueprinting, understand waiting line (queuing) analysis,...

Service Processes

Learning Objectives

 Describe the characteristics of service

processes and how they differ from

manufacturing processes.

 Classify service processes.

 Explain service blueprinting.

 Understand waiting line (queuing)

analysis.

 Model some common waiting line

situations and estimate server utilization,

Operational Classification of

Services

Service Organization Design

 Services cannot be stored in inventory

 In services, capacity becomes the dominant

issue

 Waiting line models provide a powerful

mathematical tool for analyzing many common service situations

Virtual Services – The New Role of the Customer

customers to interact with one another in an open

environment

 eBay

 Second Life

interact with one another in a server-moderated

environment such as product discussion groups

 YouTube

 WikiPedia

Service Blueprinting

 The standard tool for service process design is

the flowchart

 A unique feature of the service blueprint is the

distinction made between the high customer

contact aspects of the service and those activities that the customer does not see

 Fail-safing involves using the service blueprint to identify opportunities for failure and then

establishing procedures to prevent mistakes from becoming defects (poka-yokes)

mistake from becoming a service defect (“avoid

mistakes”)

 Poka-yokes are common in factories

 Warning methods (e.g steps that lead to mistakes trigger a reminder)

 Physical or visual contact methods (e.g parts can only fit together in the correct way)

 The Three T’s

1 Task to be done

Waiting Line Problems

(Queues)

 A central problem in many service settings is the management of waiting time

customer satisfaction and throughput

 When people waiting are employees, it is easy

to value their time

 When people waiting are customers, it is more difficult to value their time

Practical View of Waiting Lines

Managing Queues

Queuing System Analysis

 The source population – who are your customers?

 Exponential

 Poisson

 Constant

 Arrival patterns (steady or seasonal)

 Size or arrival rates (individuals or groups)

 Degree of patience (will they wait?)

Exponential

Queuing System Factors

How do you decide which customer to serve next?

how much does it vary?

 Single channel, single phase

 Single channel, multiphase

 Multichannel, single phase

 Multichannel, multiphase

 Mixed

Service Time Distribution

 Constant

individual customers (automatic car wash)

 Variable

Exiting the Queuing System

 Customers who have been served have two possible futures

patients rarely return for a repeat operation)

prone to breakdowns may require new service

immediately after leaving the service center)

Computer Simulation of Waiting

Lines