Service Process Design: - Three Basic Components

Amity Business School
Service Process Design

Three basic components:
Physical facilities, processes and procedures Employee behavior Employee professional judgment
Key Service Dimensions

Customer contact and interaction
Labor intensity
Customization
2
Key Idea
Service process designers must concentrate on doing things right the first time, minimizing process complexities, and making the process immune to inadvertent human errors, particularly during customer interactions.
Process Control
Control the activity of ensuring conformance to requirements and taking corrective action when necessary to correct problems and maintain stable performance
Key Idea
Process control is important for two reasons. First, process control methods are the basis for effective daily management of processes. Second, long-term improvements cannot be made to a process unless the process is first brought under control.
Components of Control Systems

Any control system has three components:
1. a standard or goal, 2. a means of measuring accomplishment, and 3. comparison of actual results with the standard, along with feedback to form the basis for corrective action.
Key Idea
In manufacturing, control is usually applied to incoming materials, key processes, and final products and services.
Effective Control Systems

documented procedures for all key processes; a clear understanding of the appropriate equipment and working environment; methods for monitoring and controlling critical quality characteristics; approval processes for equipment; criteria for workmanship, such as written standards, samples, or illustrations; and maintenance activities.
After Action Review

1. 2. 3. 4. What was supposed to happen? What actually happened? Why was there a difference? What can we learn?
Importance of Process Improvement

Customer loyalty is driven by delivered value. Delivered value is created by business processes. Sustained success in competitive markets requires a business to continuously improve delivered value. To continuously improve value creation ability, a business must continuously improve its value creation processes.
Key Idea
Improvement should be a proactive task of management and be viewed as an opportunity, not simply as a reaction to problems and competitive threats.
Kaizen
Kaizen a Japanese word that means gradual and orderly continuous improvement Focus on small, gradual, and frequent improvements over the long term with minimum financial investment, and participation by everyone in the organization.
Flexibility
Flexibility the ability to adapt quickly and effectively to changing requirements.
rapid changeover from one product to another, rapid response to changing demands, the ability to produce a wide range of customized services.
Cycle Time
Cycle time the time it takes to accomplish one cycle of a process Reductions in cycle time serve two purposes
First, they speed up work processes so that customer response is improved. Second, reductions in cycle time can only be accomplished by streamlining and simplifying processes to eliminate nonvalue-added steps such as rework.
Breakthrough Improvement
Discontinuous change resulting from innovative and creative thinking, motivated by stretch goals, and facilitated by benchmarking and reengineering
Key Idea
Stretch goals force an organization to think in a radically different way, and to encourage major improvements as well as incremental ones.
Benchmarking
Benchmarking the search of industry best practices that lead to superior performance. Best practices approaches that produce exceptional results, are usually innovative in terms of the use of technology or human resources, and are recognized by customers or industry experts.
Types of Benchmarking
Competitive benchmarking - studying products, processes, or business performance of competitors in the same industry to compare pricing, technical quality, features, and other quality or performance characteristics of products and services. Process benchmarking focus on key work processes Strategic benchmarking focus on how companies compete and strategies that lead to competitive advantage
Reengineering
Reengineering the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed.
Key Idea
Reengineering involves asking basic questions about business processes: Why do we do it? and Why is it done this way?

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Amity Business School