MGT - CH. 7

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Services

Cannot be stored, time dependent

What is a consequence of the virtualization of services?

Customer interaction with other customers

Technological innovations _______________ worker requirements

De-emphasize

Production efficiency ____________ as customer has more contact with the system

Decreases

Classifying services differs from classifying manufacturing processes in that one must account for the

Degree of customer contact

Which restaurant operation should definitely be below the "line of visibility" in a service blueprint?

Dishwashing

Line of visibility

Divides service blueprint into activities that are seem by customer and those that are not

True or False? - A service system with a high degree of customer contact is less difficult to control than a low degree of customer contact service system

False

True or False? - Customer balking occurs when a customer gets into a line and waits a while, then walks away

False

True or False? - When the service rate equals the arrival rate, the service system is perfectly balanced

False

Poka-yoke roughly translates as

Avoid mistakes

Polka Yokes

Procedures that prevent mistakes from becoming defects

Service blueprint

A flowchart of all activities and processes required to fulfill a service

Example of: Face to face tight specs

Fast food

Is service capacity fixed or variable?

Fixed

Pure virtual customer contact

Free form, interaction in an open enviornment

The ____________ the customer contact, the ____________ the sales opportunity

Greater, greater

Example of: Face to face loose specs

Haircut, restaurant

What are examples of the virtualization of services

Knowledge database, decision support systems

Zone of nonservice

Mean arrival rate > mean service rate - many customers never served

Mixed virtual and actual

Moderated, must manage technology and police encounters

What is the trade off with capacity challenges?

Must balance the added cost of providing more rapid service against inherent cost of waiting

Reactive System

Penetrable and reactive to customer/server

Permeable Core

Penetrable via phone

Buffered Core

Physically separated from the customer/server

As the degree of customer/server contact goes up

Sales opportunity increases

Ways to improve waiting experience

Segment customers Train servers to be friendly Inform customers what to expect Divert customers attention Encourage coming during slack periods

Critical zone

Service quality declines - mean service rate = mean arrival rate

Example of: Face to face total customization

Spa, attorney services

Zone of service

Sufficient capacity to provide quality service - mean service rate > mean arrival rate

Controllability

The degree to which customers are able to affect the system

Degree of customer contact & sales opportunity

The more contact the customer has with the system the greater the likelihood of increased sales

Degree of customer contact & efficiency

The more contact the customer has with the system the less efficient the system is

Degree of customer contact & controllability

The more contact the customer has with the system the more it can be tailor to there needs, this in turn decreases efficiency

Degree of customer contact & training and skills of personel

The more contact the customer has with the system the work requirements increase in complexity

What is the purpose of a service blueprint?

To identify possible mistakes


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