Beruflich Dokumente
Kultur Dokumente
Learning Objectives
After reading this lesson you will be able to understand
Process of service design
Documents for services
Flexible manufacturing systems
As all of us are aware, in the previous class we have discussed the design
and development of manufactured products. The product-development
process discussed there also applies to the design and development of new
services; however, there are several important differences.
In planning manufactured products, a great deal of attention must be paid to
technical specifications such as size, weight, and engineering specifications.
For physical characteristics, standard may be determined and the
conformance to these standards can be monitored for quality assurance. The
quality of services, on the other hand, depends on the skill and training of
personnel who produce the services. It is more difficult to set standards on
performance, and consistent quality is more difficult to ensure.
For example, all meals on an airline may be of the same quality, but service
may vary considerably with different flight crews.
Another important difference between manufactured products and services
is that manufactured products can be stored for future use, whereas services
must be made available to the customer on demand. This difference is
another important consideration for quality assurance. That is, major quality
considerations must be planned and designed into the service just as it
should be with manufactured products; however, finished goods may be
inspected prior to being released from the factory. For services, this cannot
be done.
The general design principles and procedures, such as simplicity, CE, and
prototyping, apply to designing service products as well as goods. However,
there are additional considerations of special importance when designing
service products. These are:
1. To what extent will the customer be involved in the process? For
example, will a retail operation be primarily self-service (Big Bazar)?
Will a financial institution allow customers to execute their own
transactions using automatic teller machines or telephones (Citibank)?
Normally, greater customer involvement is incorporated into the
product either to reduce costs or to provide grater convenience to the
customer by, for instance, eliminating the need to wait for a
salesperson.
2. How quickly will service be provided? Human queueing systems are
an important aspect of product quality for services. The intended
speed of service will affect staffing, job design, scheduling, and
facility layout.
3. How standardized or customized will the service be? For example,
freight rail service is usually highly standardized: trains are scheduled
to run between specific locations, and if customers want to ship or
receive materials, they must be ready at those times.
4. What variety of services will be offered? If a fast-food restaurant
will provide only carry-out service, there is no need for seating space
in the facility or extra service personnel to clean the tables.
5. What geographical area will be served? American Express
Corporation, which sells its products based on quick worldwide
replacement of lost or stolen traveler’s checks and credit cards. This
product characteristic requires a large international network of
American Express offices and agents with a telecommunications
system linking them.
Example 4.13
Customers who use drive-up teller stations rather than walk-in banks may
require different customer relations techniques. The distance and machinery
between you and the customer raises communication barriers.
Communication tips to improve customer relations at a drive –up window
are:
Be especially discrete when talking to the customer through the
microphone
Provide written instructions for customers who must fill out forms you
provide
Mark lines to be completed or attach a note with instructions
Always say “please” and “thank you” when speaking through the
microphone
Establish eye contact with the customer if the distance allows it
If a transaction requires that the customer park the car and come into
the lobby, apologize for the inconvenience
3
Adapted from Principles of Operations Management (B. Render and J.
Heizer) Prentice Hall
Dear students, you now understand the basic difference between product and
service design.
I would now request you all to pay due attention to the concept of Flexible
Manufacturing System (FMS).
Disadvantages of FMS
These are:-
1. Limited ability to adapt to changes in product
2. Substantial preplanning and capital
3. Tooling and fixture requirements
POM in practice –
Simulation in service design for Burger King
Burger King is one of the largest fast-food restaurant chains., having
approximately 3000 restaurants across the United States and in other nations.
At corporate head quarters in Miami, new products, system, and procedures
are developed; however, franchises must be persuaded to adopt them on a
cost/benefit basis.
That is, the Corporation must demonstrate that new products or systems will
provide an adequate return on investment.
Many changes have occurred over the years since Burger King was
founded in 1954, which necessitated new design of their service facilities.
For instance, as the take-out business increased, Burger King was the
first system to introduce the drive-through service lane. The “Have IT You
Way” concept introduced in 1973 required a change in the kitchen
operations from mass production of similar items to food preparation based
upon individual customer specifications.
In addition “specialty sandwiches”, which were introduced in 1978
required new equipment and procedures. As these changes were
implemented, the original kitchen and work designs required redesign in
order to maintain effective levels of customer service.
One example where such a redesign was necessary involved the drive-
through system. Figure 4.3 illustrates the activities performed by customers
and employees in the original drive-through system. Customers enter the
system, wait in line to place an order, order at an outside menu board, wait
in line again, pay for the order at the pick-up window, and finally leave.
One employee was used to take the order, assemble it, bag it, and
collect the money. Burger King had established a standard transaction time
of 30 seconds. However, an analysis of a number of restaurants showed that
times were averaging 45 seconds. During peak periods, cars could not even
join the end of the line and sales were lost. If the transaction time were 45
seconds, then 80 cars per hour could be handled.
With an average check of $2.44 per order, drive-through sales were
limited to a maximum of $195 per hour. If the time could be shortened to 30
seconds, maximum sales could rise to $292 per hour.
This represented an annual increase in sales of more than $35,000 per
restaurant. The operations research group at corporate headquarters worked
with several franchises and devised new work procedures to decrease the
transaction time.
The work procedures in Figure 4.3 were separated into distinct tasks.
In the new system, one employee does nothing but take orders. A runner /
bagger assembles the order, and a third employee acts as a cashier and hands
the order to the customer.
This seemingly minor modification has significantly increased the
productivity and sales in the Burger King chain.
Enter
Wait in line
Drive orders at
Outside menu board Cashier takes order
Receive order
Customer system Transmit to kitchen via CRT