Service Process, Service Design: Case of Pizza USA By – Pranjal Srivastava Jaishree Chani Supriya Singh Soumyakanti Banerjee
Dec 20, 2015
Service Process, Service Design: Case of Pizza USA
By –Pranjal Srivastava
Jaishree ChaniSupriya Singh
Soumyakanti Banerjee
What is a service ?
An act or performance created by one party to another.
Economic activities that create values and provide benefits to customers or end users.
Characteristics of a Service
Intangibility Perishability Inseparability Heterogeneity Ownership Simultaneity Quality
Measurement Nature Of Demand
Service Businesses
A service business is the management of organizations whose primary business requires interaction with the customer to produce the service.
Facilities Based Services: Where the customer must go for the service facility.
Field Based Services: Services are produced and consumed in the customer’s environment.
Service Design
Every service has a service package, which is a bundle of goods and services produced.
Bundle consists of: Supporting Facility Facilitating Goods Information Explicit Services Implicit Services
Degree of Customer Contact
Physical presence of the customer in the system and the percentage of time the customer spent relative to the total time taken to produce a service.
Low Degree of Customer Contact: Systems are structured and pre-defined.
High Degree of Customer Contact: Customer affects the time of demand, nature of service and also the quality.
Service – System Design Matrix
Mail contact
Face-to-faceloose specs
Face-to-facetight specs
PhoneContact
Face-to-facetotal
customization
Buffered core (none)
Permeable system (some)
Reactivesystem (much)
High
LowHigh
Low
Degree of customer/server contact
Internet & on-site
technology
Enables systematic integration of operations
and marketing strategy. Hence, trade offs become more clear.
Clarifies the exact combination of service delivery that firm is providing.
Allows comparison with other firms delivering specific services. Helps to identify firm’s competitive advantage.
Indicates evolutionary or life cycle changes that might be in order as the firms grows.
Strategic Use of Matrix
The front end and the back end of the encounter
are not created equal.
Segment the pleasure; combine the pain.
Let the customer control the process.
Pay attention to norms and rituals.
People are easier to blame than systems.
Let the punishment fit the crime in service recovery.
Applying Behavioural Sciences to Service
Encounters
The Production Line Approach
The Self Service Approach
The Personal Attention Approach
Three Contrasting Service Designs
The flow chart of a service process,
emphasizing what is visible and what is not visible to the customer.
Line of Visibility is the differentiating factor between the high and low degree of customer contacts.
Poka-Yokes, are the procedures that prevent mistakes from becoming defects. These are mainly found in manufacturing but also can be used in service processes.
Service BluePrinting
Each element of the service system is consistent with the operating focus of the firm.
It is user – friendly. It is robust. It is structured so that consistent performance
by its people and systems is easily maintained.
It provides effective links between the back office and the front office so that nothing falls between the cracks.
It is cost effective. It manages the evidence of service quality in
such a way that customers see the value of the service provided.
Characteristics of a Well – Designed Service System
Currently offers sit-down and take-out service.
Customers suggest that they would buy more Pizzas from Pizza USA, if it offered a delivery service.
Need to identify the key attributes as a Customer and as the manager at Pizza USA.
Case: Pizza USA
Pizza should be hot – Special bags and
storing boxes at bikes. Minimum delivery time – Delivery
personnel should be provided with appropriate knowledge of routes, and a part of the assembling should be readymade.
Delivery in all areas – So more outlets should be made available to cater to a large no.of.people.
Condition of the delivered Pizza – Proper boxes and cases of exact size should be made available.
Suggestions
Order Accuracy – Efficient use of IT systems in
order to reduce mistakes. Change in Money – Delivery guy should be
sent with the possible denominations of Payments.
Suggestions