In this chapter we will discuss: Defining service, service-product bundle, service matrix, customer contact, service recovery and guarantees, globalization of services, employees and service.
Trang 1INTRODUCTION
to Operations Management
5e, Schroeder
Trang 2Chapter Outline
Defining Service
ServiceProduct Bundle
Service Matrix
Customer Contact
Service Recovery and Guarantees
Globalization of Services
Employees and Service
Trang 3The Shift
to Services
Trang 4Services in Europe
“The Service Sector accounts for about
70 percent of the European economy.”
Source: Wall Street Journal, 4 March 2005, p. A13
Trang 5Defining Service
Key Concepts
Intangibility of the offering
Simultaneous production and consumption
No finished goods inventory
Front office vs. back office
Difficulty in defining and measuring quality
and productivity
Other differences between manufacturing and
Trang 6Service-Product Bundles
Tangible service (explicit service)—what
the seller does for you
Psychological benefits (implicit service)—
how you feel about it
Physical goods (facilitating goods)—what
you can carry away
Trang 7Comparison of Goods and Services (Figure 5.1)
100% 75% 50% 25% 0% 25% 50% 75% 100%
Selfservice groceries
Automobile Installed carpeting
Fastfood restaurant
Gourmet restaurant
Auto maintenance
Haircut Consulting services
Trang 85.2)
Standard with options, using Moderately repeatable Sequence.
Co-routed
•Stock brokerage
Provider Routed
•ATM
Standardized with highly repeatable process sequence.
Highly customized with unique process sequence.
Customer Routed
•Estate planning
Many process
pathways,
jumbled
flows,
complex work
with many
exceptions
Moderate number of
process pathways
Flexible flows with
some dominant paths,
moderate work
complexity.
Limited number of
process pathways
Line flows, low
complexity work.
Customer Wants and Needs in the Service Package
Trang 9Customer Contact
Definition of “contact”—interaction
between service provider and the customer.
Trang 10Customer Contact Matrix
(see Fig 5.3)
Low customer contact
High customer contact
Trang 11Customer Contact Inefficiency
of the amount of customer contact
Why? Customer must be managed
– Customer determines the time in service system
– Customer determines the sequence of service
– Customer influences what happens during the
service and may require support services such as
food and bathrooms
Trang 12Customer Contact Variability
Types of Variability induced by customers in
service delivery:
arrival – when they arrive to consume a service
request – what they ask for in the bundle
capability – ability of customers to participate
effort – willingness of customers to participate
subjective preference – preferences of customers in
how service is carried out
Trang 13Customer Contact Directness
– Direct customer contact
– Customer has control of process
– Out of sight of customer
– Provider has control of process
Goal: move nonvalueadded activities to
back office—why?
Trang 14Related Concepts
Service Recovery
– What you do to compensate the customer for bad
service.
– Fly in your soup: new bowl of soup plus free dessert
Service Guarantee
– Analogous to a guarantee for a product
– Requires specific criteria and responses
– Pizza delivery: 30 minutes or it is free!
Trang 15Technology in Services
Contrasting Views:
Productionline approach to service
– Standardization
– Automation
Employees are the center of service delivery
– Technology to support frontline employees
– Value investments in employees
– Place importance on recruiting frontline employees
Trang 16Outsourcing & Offshoring of
Services
Outsourcing: having an organization outside your own firm perform service activities such as
workforce recruiting, payroll management,
accounting services, and call center functions
Offshoring: the export of these service activities
to other countries
Trang 17Employees and Service Links in the service-profit chain
(See Figure 5.4)
Internal service quality, leads to…
Employee satisfaction, leads to…
Employee retention & productivity, lead to…
External service value, leads to…
Customer satisfaction, leads to…
Customer loyalty, leads to…
Revenue growth & profitability (the goal)
Trang 18Summary
Defining Service
ServiceProduct Bundle
Service Matrix
Customer Contact
Service Recovery and Guarantees
Globalization of Services
Employees and Service
Trang 19End of Chapter Five