1MTSU

Designing Quality ServicesDesigning Quality Services

2MTSU

The Nature of ServicesThe Nature of Services

• Services are unique

• Quality of work is not quality of service

• Service package contains a mix of tangible and intangible attributes

more

3MTSU

The Nature of ServicesThe Nature of Services

• High-contact services are experienced

• Effective management requires an understanding of marketing and personnel, as well as operations

• Services often take the form of cycles of encounters

more

4MTSU

Nature (continued)Nature (continued)

• Quality often difficult to measure and, therefore, to control

• Performance measures such as productivity are difficult to measure

• Everyone is an expert

5MTSU

Differences BetweenDifferences BetweenServices and ProductsServices and Products

• Products are generally tangible; services are generally intangible

• Services are created and consumed at the same time

• Services cannot be inventoried

6MTSU

Differences BetweenDifferences BetweenServices and ProductsServices and Products

• Services are highly visible to consumers and must be designed with that in mind

• Some services have low barriers to entry and exit

• Location is often important to service design

7MTSU

Classification of ServicesClassification of Services

• Low Degree of Customer Contact– more like a manufacturing system

• High Degree of Customer Contact– more difficult to control– more difficult to rationalize– customer can affect the time of

demand, the exact nature of the service, and the quality of service

8MTSU

Service-System Design Service-System Design MatrixMatrix

Low

LowHigh

High

Sales

Opportunity

Production

Efficiency

Mailcontact

On-siteTechnology

Phonecontact

Face-to-faceTight spec

Face-to-faceLoose spec

Face-to-facetotal

customization

Buffered

core (none)

Permeable

System (some)

Reactive

System (much)

Degree of customer/service contact

9MTSU

Designing and DevelopingNew Services

Designing and DevelopingNew Services

• The degree of standardization of a service

• The degree of customer contact in delivering the service

• The mix of physical goods and intangible services

10MTSU

Design GuidelinesDesign Guidelines

• Have a single, unifying theme, such as convenience or speed. This will help personnel to work together rather than at cross-purposes.

• Make sure the system has the capability to handle any expected variability in service requirements.

11MTSU

Design GuidelinesDesign Guidelines

• Include design features and checks to ensure that service will be reliable and will provide consistently high quality.

• Design the system to be user-friendly. This is especially true for self-service systems.

12MTSU

Service BlueprintingService Blueprinting

• Establish boundaries for the process and decide on the level of detail that will be needed

• Identify the steps involved and describe them. If this is an existing process, get input from those who do it.

• Prepare a flowchart of major process steps

more

13MTSU

Service BlueprintingService Blueprinting

• Identify potential failure points. Incorporate features that minimize the chances of failures

• Establish a timeframe for service execution, and an estimate of variability in processing time requirements– Time is a primary determinant of cost– Variability can also impact time, so an estimate

of that is also important• more

14MTSU

Blueprinting (continued)Blueprinting (continued)

• Analyze profitability– Determine which factors can influence

profitability, positively and negatively– Determine how sensitive profitability is to

these factors

15MTSU

Trends in Service DesignTrends in Service Design

• Increased emphasis on customer satisfaction and increased pressures to be competitive

• Increased emphasis on reducing the time needed to introduce a new service

• Increased emphasis on reducing the time needed to produce a new service

more

16MTSU

Trends (continued)Trends (continued)

• Greater attention to the capabilities of the organization to deliver the service

• Greater attention to environmental concerns

• Increased emphasis on designing services that are “user friendly”

17MTSU

The Role of OperationsThe Role of Operations

• Responsible for service systems– procedures– equipment– facilities

• Responsible for managing the work force

18MTSU

Designing Service Organizations

Designing Service Organizations

• Capacity is a dominant issue since services cannot be inventoried

• Identify the target market• Determine the service focus or

competitive advantage• Develop the service package• Design the delivery system

19MTSU

Factors To ConsiderFactors To Consider

• The process and the service must be developed simultaneously

• A service operation lacks legal protection

• The service package constitutes the major output of the development process

20MTSU

Factors To ConsiderFactors To Consider

• Service package often determined by the training individuals receive

• Service offerings can be changed overnight

21MTSU

Process Design in ServicesProcess Design in Services

• Quasi manufacturing - production of goods takes place along a production line with almost no customer interaction

• Customer-as-participant - high degree of customer involvement in the process of generating the service

• Customer-as-product - service is provided through personal attention to the customer

22MTSU

Service Quality Service Quality DimensionsDimensions

• Tangibles• Reliability• Responsiveness• Assurance• Empathy

SERVQUAL survey tests expectations and perceptions >> Gap for these 5

dimensions.

23MTSU

Service Quality Service Quality DimensionsDimensions

• Availability• Professionalism• Timeliness• Completeness• Pleasantness

24MTSU

Unified Theory for Services Unified Theory for Services ManagementManagement

Proposition 1: The Unified Services Theory – With services the customer provides significant inputs into the production process.

25MTSU

Unified Theory for Services Unified Theory for Services ManagementManagement

Proposition 2: The Unreliable Supplier Dilemma – With services the customer-suppliers often provide unreliable inputs.

26MTSU

Unified Theory for Services Unified Theory for Services ManagementManagement

Proposition 3: Capricious Labor – With services the customer-labor may ignore, avoid, or reject technologies or process improvements which are intended to increase quality and productivity. As a result, customer buy-in to process changes must be carefully addressed.

27MTSU

Unified Theory for Services Unified Theory for Services ManagementManagement

Proposition 4: Everyone Presumes to be An Expert – With services the customer often provides product specifications (what to make) and process design (how to make it), often with the invitation of the service provider.

28MTSU

Designing Quality Designing Quality PresentationsPresentations

• Your assignment is to provide a quality presentation (in your TQM class?). Identify sub-processes of the presentation (and presentation preparation process) and flow chart. Include fail points. How can you improve this process?

29MTSU

Quality Services – New Quality Services – New AreasAreas

• Government• Health care• Education

30MTSU

Designing Quality ServicesDesigning Quality Services