nullnullOverviewOverviewDefining "service"?
Service-Product Mix
Service Guarantees
Service Cycle
Customer Contact
Service Matrix
Employees and Service
Strategy: Focus & Advantage
Service Blue printing
Fail-safe Methods
a Well-Designed Service Delivery System
True or false?True or false?Everyone is an expert on services???
Services are idiosyncratic?
Quality of work is not quality of service?
Most services contain a mix of tangible and intangible attributes?
High-contact services are experienced, goods are consumed?
Managing services marketing, personnel and operations know-how?
Services involve cycles of transactions involving face-to-face encounters, information exchange, social and mechanical interaction?
Service – defined byService – defined byTangible and intangible elements
Most services include elements of products
The customer is involved in delivery
Simultaneous production and consumption
Problems in defining and measuring
quantity & quality
productivity
Demand variances (peaks-troughs) are significant
Other manufacturing-service differences?
Service Design Issues?
Product, information and service processingProduct, information and service processingWhere is the service in?
Fertilizers, furniture, vehicles, personal computers, food, pharmaceuticals
Information services?
accountants, lawyers, call centres, insurance offices
Health and pleasure services?
Beauty , hospitals, health farms, physiotherapists, restaurants.Product Service MixProduct Service Mix100%75%50%25%0%100%75%50%25%GoodsServicesPlace and approachPlace and approachPlace/virtual/remote
Facilities-based
Field-based
Internal (client-server)
Approaches
production line
self-service
personal attention
High and Low contact Service Design QuestionsService Design QuestionsWho is our customer?
How do we differentiate our service?
What is our service package & operating focus
What are the processes, staff, facilities?
Can we protect the service?
Aspects of service package - defined by prior staff training
Speed of change of service offeringsService MatrixService MatrixInteraction & CustomisationLowHighLowHighEasyJet
DHL/FedEx
Motel
Golf courseRetailing
Wholesaler
Driving school
Retail bankSolicitor
Doctor
Personal trainer
Accountant
ArchitectHospital?
Internet banking
Repair servicesLabour intensityBanking - High/Low contactBanking - High/Low contactLowHighFacility location
Facility layout
Product design
Process design
Scheduling
Capacity planning
Staff skills
Quality control
Time standards
Wages
Capacity planningNear customer
According to expectation?
Ambiance, user friendly?
Intimate stages
?
Full? Lost customer
?
?
?
Time-based pay?
Capacity=peak demand?
?
?
?
?
?
Technical skills only?
Measurable, fixed
Forms = surrogates - tight times
Output-based pay?
?Heroes and villainsHeroes and villainsFurious
litigationComplainantDissatisfiedSatisfiedDelightedVillainsHeroesRecovery planningClub
Class
memberWhat is
ServQual?Operating FocusOperating FocusCustomer treatment - friendliness, help
Speed and convenience of delivery
Price and payment
Variety of services (singular or one-stop shop)
Quality of tangibles e.g. the pie, the insurance
Unique skills - flambe, hair cut, rooferStaff, Operations, Innovation and ContactStaff, Operations, Innovation and ContactService Design, Quality and Intangibles Service Design, Quality and Intangibles Quality (measured by deliverer or customer) depends on
Tangibles and intangibles in the package.
Controls to improve utilisation & reduce costs. These may
simplify & routinise to reduce consumer choice. A, B & C - take-or-leave-menus.
But "I do not want a standard package".
"Fine - but pay more. Even then we may not be able to control quality". Service Design IssuesService Design IssuesA. Engineer for efficiency and utilisation
Routinisation
Table d'hote packages
Impersonal vs. contact
Move from point of contact to back-office
Automate e.g. ATMs, tele-sales & call-centres, tracking systems
B. Design from a customer service perspective (content + quality of interaction/experience)
enrich the experience
balance perceived quality with costs of service
customer-orientation: research & specify relationships
what is a TQM approach to service design?
specify service objectives and bench-mark against rivals
A & B - not mutually exclusive.
Service design and strategy Service design and strategy Specify
the tangible service elements/steps
customer participation
waiting (cannot stock a service)
the intangible aspects
how efficiencies must be secured
quality assurance measures
Move front shop ==> back shop
take the customer out of the process
use the customer as labour
increase staff flexibility to balance capacity & demand
"Service managers face problems that may be insignificant to production managers who have much to learn from the service ethic".
Engineering Strategies for ServicesEngineering Strategies for ServicesFront shop/Back room service design may seek to minimise customer participation
"front shop" for face-to-face elements.
select activities to move to "back-room" and apply conventional production principles
no customer access to back-room?
Internet banking
On-line help deskThe Holiday to Aghios NikoliosThe Holiday to Aghios NikoliosThe Brochure - vetting every entry
travel and transfer arrangement
hotel & apartment
check resort/villa environment before brochure publishing: disco, steps to climb etc.
Representatives
visit daily + available for clients
ability to act - fielding the problem (no prejudice)
narrow margins - one refund Ë flood.
minor complaints but clients are trapped.
be irritated or pay extra to fly home
The flight homeFail-safe Services - Poka-Yoke methodsFail-safe Services - Poka-Yoke methodsAvoid mistakes becoming service defects
Apply fail-safe methods to 3T?
Physical and visual warningsWas task done correctly?What was attitude
and responsiveness
of staff?What tangibles or environmental features were missing??Air Travel Service ElementsAir Travel Service ElementsLeave
AirportCollect
BagsArrives at
airportRequest flight
informationMake
reservationCheck inProceed to gate
& security checkBoard
aircraftIn-flight
serviceLeave
aircraftPoke Yoke Exercise:
Filling in the missing detailsGaffs - Mea Culpa?Gaffs - Mea Culpa?Waitress chewing gum
Nurse did not wash hands
Wine is corked
Food is cold
Booked into wrong hotel
Passenger forgets passport
Passenger late for check-in
50 minutes between placing order and service to table
Lost record card at clinic
etcStrategy: Focus & Advantage - Performance PrioritiesStrategy: Focus & Advantage - Performance PrioritiesProduct/service innovation
Cost leadership
Treatment of the customer
Speed and convenience of service delivery
Pricing and pricing structure
Variety - pick and mix, uniqueness, modularisation
The quality of the tangible goods
Awareness and valuation of the intangibles
Unique skills that constitute the service offeringServQual and BenchmarkingInternal Client-server RelationshipsInternal Client-server RelationshipsInternal ServerInternal ServerInternal client
and serverExternal
clientDelight the customerCustomers as staff Customers as staff self-service - flexibility in coping with demand.
separate front shop/back-room - enabled by technology.
Shelf filling vs. wand goods into trolleys.
Automatic self-service banking
bank card payment at the petrol pump
remove the need for service attendants.
self-services
open longer
less waiting time
cost reductions for the service provider
lower prices
some customers
miss the help and advice.
become excluded - socially neglected
Where else can they to go? Customer Contact and staffingCustomer Contact and staffingLess skilled staff?
More training required.
Loyalty & competence as key quality elements?
What do we mean by “customer contact”?
Signs of inefficiency in customer contact?
Differentiate high - low contact services
Quality and failure costs. The service level must be delivered. Identify the levels and components that customers value
Cost the components and evaluate
contribution of quality?
how much customers will pay?Services and staff flexibilityServices and staff flexibilityExcess capacity or rely on PTs to balance capacity - demand?
More PTs ==> increase in workforce size.
unfamiliar with products & systems, less skilled.
Labour turnover and reliability - Vicious circle.
Few hours, move on quickly - why train?
Need quality staff but investment not justified
So we live with unskilled, uncommitted staff.
Remedies?
multi-skilling and rewards
back-room staff move to front shop at peak time
skeleton crew at the back
Success depends on sensitivity of backroom tasks
Guarantees and service-level agreementsGuarantees and service-level agreementsPromise of service satisfaction underpinned by actions
Monitoring and controlling
quantified standards
subjective standards - meaningful to customer
99% reliability
Pay-out/penalties on failure
Unconditional - no small print
Easy to understand and to communicate
Straightforward to invokeFlight overbooked
Train late
ISP downtimeWell-Designed Service SystemWell-Designed Service SystemEach element -consistent with operating focus
user-friendly
robust
designed for consistent performance by staff & systems
Seamless links between back & front office.
evidence of service quality is visible - customers "see" the value provided. Credible?
cost-effective.Principles - Lyth and Johnston (1988)Principles - Lyth and Johnston (1988)balance service efficiency with requisite quality.
Focus on
intangibles within service package
the customer viewpoint
critical role of customer contact staff & how they are supported.
performance monitoring
internal consistency within the service system L & J: Nine Service Design PrinciplesL & J: Nine Service Design Principles1. define service concept clearly & in detail.
2. evaluate image concept
good service labelled poor if image out of line with customer expectations
trace back to service presentation
3. study the customer view (be a customer)
manage expectations & perceptions during & after
break out of designer & operator "bounded rationality & familiarity".
4. Top management commitment to service quality
Mission + clear objectives.
Quality: inextricably linked to staff-customer contact.
MbyExample: top mgt. lip-service undermines credibility
5. Define functional & technical quality standards
tangibles - as for physical products.
intangibles & subjective elements
key ingredients in package e.g. cleaning, waiting, manner/appearance, skills
share understandings, recruit, train & reward for delivery expectation.
ServQualL & J: Nine Service Design PrinciplesL & J: Nine Service Design Principles6. examine existing procedures and systems
"re-design" to support front-end providers.
service the servers via back-room procedures & support
7. develop standard procedures to control
bankers (routinise), semi-controllables & unpredictables
routines may not fit random events
if safety critical - allocate resources
emphasise training for the unexpected, communicate & empower
8. systems must support the good service objectives.
treat customer service staff as internal customers.
9. implement standards & performance monitoring
Or drift, loose energy & deteriorate.
inspection activities are essential
action to restore and revitalise where needed.
Inspection/feedback: SPC, surveys, panels, "mystery" shoppers