Service Process, Service

Design: Case of Pizza USA

By
Pranjal Srivastava
Jaishree Chani
Supriya Singh
Soumyakanti Banerjee

What is a service ?

An act or
performance created
by one party to
another.
Economic activities
that create values
and provide benefits
to customers or end
users.

Characteristics of a
Service

Intangibility
Perishability
Inseparability
Heterogeneity
Ownership
Simultaneity
Quality
Measurement
Nature Of Demand

Service Businesses

A service business is
the management of
organizations whose
primary business
requires interaction
with the customer to
produce the service.

Facilities Based
Services: Where
the customer must
go for the service
facility.
Field Based
Services: Services
are produced and
consumed in the
customers
environment.

Service Design

Every service has a

service package,
which is a bundle of
goods and services
produced.
Bundle consists of:
Supporting Facility
Facilitating Goods
Information
Explicit Services
Implicit Services

Degree of Customer
Contact

Physical presence of
the customer in the
system and the
percentage of time the
customer spent relative
to the total time taken
to produce a service.
Low Degree of
Customer Contact:
Systems are structured
and pre-defined.

High Degree of
Customer Contact:
Customer affects the
time of demand,
nature of service and
also the quality.

Service System Design

Matrix

Degree of customer/server contact

High

Buffered
core (none)

Permeable
system (some)

Reactive
system (much)

Face-to-face
loose specs

Internet &
on-site
Mail contact technology

Low

Phone
Contact

Low

Face-to-face
total
customization

Face-to-face
tight specs

High

Strategic Use of Matrix

Enables systematic integration of operations

and marketing strategy. Hence, trade offs
become more clear.
Clarifies the exact combination of service
delivery that firm is providing.
Allows comparison with other firms delivering
specific services. Helps to identify firms
competitive advantage.
Indicates evolutionary or life cycle changes
that might be in order as the firms grows.

Applying Behavioural
Sciences to Service
Encounters

The front end and the back end of the encounter

are not created equal.
Segment the pleasure; combine the pain.
Let the customer control the process.
Pay attention to norms and rituals.
People are easier to blame than systems.
Let the punishment fit the crime in service recovery.

Three Contrasting Service

Designs

The Production Line Approach

The Self Service Approach
The Personal Attention Approach

Service BluePrinting

The flow chart of a service process,

emphasizing what is visible and what is
not visible to the customer.
Line of Visibility is the differentiating factor
between the high and low degree of
customer contacts.
Poka-Yokes, are the procedures that
prevent mistakes from becoming defects.
These are mainly found in manufacturing
but also can be used in service processes.

Characteristics of a Well
Designed Service System

Each element of the service system is

consistent with the operating focus of the firm.
It is user friendly.
It is robust.
It is structured so that consistent performance
by its people and systems is easily
maintained.
It provides effective links between the back
office and the front office so that nothing falls
between the cracks.
It is cost effective.
It manages the evidence of service quality in
such a way that customers see the value of

Case: Pizza USA

Currently offers sit-down and take-out service.

Customers suggest that they would buy more
Pizzas from Pizza USA, if it offered a delivery
service.
Need to identify the key attributes as a
Customer and as the manager at Pizza USA.

Suggestions

Pizza should be hot Special bags and

storing boxes at bikes.
Minimum delivery time Delivery
personnel should be provided with
appropriate knowledge of routes, and a
part of the assembling should be
readymade.
Delivery in all areas So more outlets
should be made available to cater to a
large no.of.people.
Condition of the delivered Pizza Proper

Suggestions

Order Accuracy Efficient use of IT systems in

order to reduce mistakes.
Change in Money Delivery guy should be
sent with the possible denominations of
Payments.