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)