Buspro infosheet4

1. Ch. 4 Product & Service Design SCM 352 Operations Mgt Dr. Ron Lembke

2. How are Services Different? Everyone is an expert on services What works well for one service provider doesnt necessarily carry over to another Quality of work is not quality of service Service package consists of tangible and intangible components Services are experienced, goods are consumed Mgmt of service involves mktg, personnel Service encounters mail, phone, F2F

3. Degree of Customer Contact More customer contact, harder to standardize and control Customer influences: Time of demand Exact nature of service Quality (or perceived quality) of service

4. 3 Approaches Which is Best? Production Line Self-Service Personal attention

5. What do People Want? Amount of friendliness and helpfulness Speed and convenience of delivery Price of the service Variety of services Quality of tangible goods involved Unique skills required to provide service Level of customization

6. Service-System Design Matrix Degree of customer/server contact High Buffered core (none) Permeable system (some) Reactive system (much) Low Face-to-face total customization Face-to-face loose specs Sales Opportunity Face-to-face tight specs Internet & on-site Mail contact technology Low Production Efficiency Phone Contact High

7. Impact of Life Cycle iTunes CDs DVD Audio Cassettes Records MiniDisc DAT 8-Tracks Introduction Growth Maturity Decline

8. Impact of Life Cycle Records DAT Introduction Growth Maturity Decline

9. Applying Behavioral Science The end is more important to the lasting impression (Colonoscopy) Segment pleasure, but combine pain Let the customer control the process Follow norms & rituals Compensation for failures: fix bad product, apologize for bad service

10. Restaurant Tipping Normal Experiment Introduce self(Sun brunch) 15% 23% Smiling (alone in bar) 20% 48% Waitress 28% 33% Waiter (upscale lunch) 21% 18% staffing wait positions is among the most important tasks restaurant managers perform.

11. Modular Components Take advantage of modules: parts or products previously prepared Restaurants: prepared ingredients, assembled to order Suppliers can develop new, interesting products to use more quickly, cheaply Variety is gained by different combinations of same components

12. Mass Customization Highly customized Integrate design, processes, supply network Supply components cheaply to production points Fast, responsive production, quick delivery Higher weight, lower value

13. Fail-Safing poka-yokes Japanese for avoid mistakes Not possible to do things the wrong way Indented trays for surgeons ATMs beep so you dont forget your card Pagers at restaurants for when table ready Airplane bathroom locks turn on lights Height bars at amusement parks

14. Blueprinting Fancy word for making a flow chart line of visibility separates what customers can see from what they cant Flow chart back office and front office activities separately.

15. Review on Flow Chart Mapping Symbols Start or finishing point Step or activity in the process Decision point (typically requires a yes or no) Input or output (typically data or materials) Document created Delay Inspection Move activity Typical, but others may be used as appropriate 2008 Pearson Prentice Hall --- Introduction to pter 3, Slide 20 Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN: 0131791036

16. Our Flow Chart Example Dealer Faxes Order Paper Order Created 4% of orders lost Order Sits In Fax In Box 0 to 4 hours 2 hours on average Order Sits In Clerks In Box Internal Mail Delivers Fax 0.5 to 1.5 hours 1 hour on average 1% of orders lost 0 to 2 hours 1 hour on average Clerk Processes Order 5 minutes 10 to 45 minutes 20 minutes on average Dealer Receives Order Transport Firm Delivers Order 1 to 3 hours 2 hours on average No history of lost, damaged, or incorrect deliveries Inspector Checks Order Worker Picks Order 2 minutes 0.5% of orders incorrect 2008 Pearson Prentice Hall --- Introduction to pter 3, Slide 21 Operations and Supply Chain Management, 2/e --- Bozarth and Handfield, ISBN: 0131791036 YES Is Item In Stock? NO Clerk Notifies Dealer and Passes Order On to Plant

17. Group Group yourselves into three (3) Design a service and create a flow chart describing the flow of the service you will introduce. (Use proper flowchart symbols) Submit this on Jan. 16, 2013 (short bondpaper)

Buspro infosheet4

Business

supply chain

customer contact

service

services

quality

impact

handfield

pter 3