SCMT 364- Service Processes

Creation of the service

the work process involved in providing the service itself

Because little or no inventory is carried in a service operation, it is easy to separate the operations management functions from marketing in services.

False- Too much capacity generates excessive costs and insufficient capacity leads to lost customers. When this happens, seek assistance from marketing.

An important aspect of service products is that they cannot be inventoried.

True

One characteristic of a well-designed service system is that it is cost-effective.

True

5 types of customer-introduced variability

1) Capability 2) Arrival 3) Request 4) Effort 5) Subjective Preference

3 approaches to delivering on-site service

1) Production-line 2) Self-Service 3) Personal Attention

5 features of a service package

1) Supporting facility 2) Facilitating goods 3) Information 4) Explicit services 5) Implicit services

7 characteristics of a well designed service system

1) consistent with operating focus 2) user-friendly 3) robust 4) consistent performance is easily maintained 5) links "back office" and "front office" 6) manages evidence of quality so customers can see value 7) cost-effective

Low vs High customer contact

Efficiency decreases with more customer contact

Service package

bundle of goods and services provided in some environment

the customer

the focal point of all decisions and actions

Extent of contact

the percentage of time the customer must be in the system relative to the service time

Customer Contact

the physical presence of the customer in the system (higher contact= more difficult to control)

How is service design different from product design?

the process and the product must be developed simultaneously (the process is the product)

Standard approach to accommodating customer-introduced variability

treat it as a trade-off between cost and quality (may overlook some ways to accommodate)