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Kultur Dokumente
in Service Organizations
What is a Service
Organization?
The answer to this question is surprisingly
ambiguous.
Some have tried to define service employment as
non-farming and non-manufacturing employment;
others have also excluded government employment.
This approach includes operations such as hotels,
restaurants, repairs, amusements, health, education,
real estate, wholesale and retail trade, transportation,
and professional services like law, engineering,
architecture, finance and advertising.
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What is a Service
Organization?
Some public utilities companies have service in their
name, yet in many ways power generation is more
manufacturing than service.
As technology advances, more and more labor will
be driven out of manufactured products.
Labor will shift to services.
Even now, some high technology companies have
overhead rates that are six to ten times the direct
labor component, mainly because of the substantial
indirect labor in these companies.
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What is a Service
Organization?
Service operations management affects more
than just service companies per se.
Furthermore, the service sector will continue
to grow.
Difference between
Manufacturing
and
Service
Manufacturing organizations are those that produce
physical .
Service organizations produce non-physical outputs,
such as medical, educational, or transportation services
provided for customers.
Services also include the sale of merchandise. Although
merchandise is a physical good, the service company
does not manufacture it but merely sells it as a service to
the customer. Retail stores such as SM and Robinsons
are service organizations.
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Difference in
Manufacturing and Service
Services differ from manufactured products in
two ways:
Difference in
Manufacturing and Service
Despite the differences between manufacturing
and service firms, they face similar operational
problems
Characteristic of a Service
Organization
The service provided is often something that the
consumer cannot touch or feel.
The service is often created and delivered on the
spot, in many cases with significant involvement of
the customers in the service process.
Because of the visibility of the service process in
many instances and the intangibility of many
services, operations management and marketing
are more interdependent than in manufacturing.
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Characteristic of a Service
Organization
Frequently, the consumption of a service is
nearly simultaneous with its production.
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Taguchi method
Pareto charts
Process charts
Cause-and-effects diagrams
Statistical process control.
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Phase 2 Document
Process
Now that the company knows what it is and where it
wants to go, the next step in the quality journey is to
determine how it presently does its business.
It must know how it presently does things and be able to
measure its ability to be consistent in meeting customer
requirements.
Customers remember a company's name under two
conditions: When the company provides extremely poor
products or service, or when the company provides
surprisingly good products or service.
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Phase 2 Document
Process
In order to provide surprisingly good products or service
(output), companies must look at what is involved in
delivering that output. It is the business processes that
deliver the output.
Companies must focus on the process in order to keep
customers coming back and staying loyal to the product
or service.
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Phase 2 Document
Process
Companies must start focusing on the processes
that control the customer interfaces, rather than
the organizational structure.
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Phase 2 - Document
Process
Organizational Focus
Process Focus
Process 2- Document
Process
Organization Focus
Process Focus
Process 2 Document
Process
Companies that focus on delivering surprisingly
good output and building their reputations will be
more successful than companies that just focus
on the bottom line as the bottom line will not
bring customers back.
The only way to determine how to consistently
deliver this type of output is by focusing on
processes within your company/business.
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Process 2 Document
Process
Every product/service (output) is the result of a process.
A process can be defined as any activity or group of activities
that takes an input, adds value to it, and provides an output to
an internal or external customer.
The key elements of a process are: inputs, activities, outputs,
customers, resources (materials, pesos and person/processing
time), and cycle time (how long does it take). SIPOC
6 Ms: man, machines, materials, methods, measurement,
Mother Nature (environment)
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Process 2 Document
Process
A company must first document the current state
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Process 3-Establish
Measurements
The next step in the quality journey is to set
standards and measures for each process,
product, and service.
The focus must be on improving the customer's
perception of the company, its products and
services.
To do this the company must measure customer
satisfaction.
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Process 3- Establish
Measurements
Companies need to determine precisely where they
stand in their customer's eyes by engaging in ongoing
information-gathering activities to measure customer
satisfaction.
Listening to customer complaints, identifying and
measuring critical processes that are responsible for
generating poor service or products, and implementing
corrective action are integral in developing a quality
management philosophy.
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Process 3- Establish
Measurements
What Gets Measured, Gets Managed and Never
Assume You Know What The Customer Wants
Companies need to: know on an ongoing basis what
their customers are thinking, analyze their own
structures and processes to ensure that they do not
hinder or interfere with customer satisfaction, and,
implement measures to monitor the effectiveness of all
critical processes that impact customer satisfaction.
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Process 3- Establish
Measurements
The focus should be on indicators of
performance and customer service standards
that measure the quality of service to the
customers. Standards must be realistic.
Standards are not set in stone, they must be
adjusted to reflect changes in customer
requirements, processes, technology, or
competitive offerings.
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Process 3 Establish
Measurements
Find out why the key
customers (the ones that
account for a large portion of
the company's sales) keep
coming back instead of going
to the competition.
Find out how good the entire
company must be - not just
your products or services.
Use surveys, interviews, point
of sale/service and follow-up
calls.
Process 3- Establish
Measurements
Determine which processes are
critical to the delivery of products
or services to the customers or
the ones that affect the criteria
that the customer uses to
evaluate
the
company's
performance.
Develop measurements that
strike a balance between cost,
quality and cycle time. Quality of
the process must receive priority
ahead of cost and delivery.
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Process 3 Establish
Measurements
Pareto Charts
Fishbone or Cause and
Effect (Ishikawa)
diagrams
Histograms
Scatter Diagrams
Run (Trend) Charts
Control Charts
Check Sheets
Stratification
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Process 4 Control
Process using
Measurements
If the measures are not reliable and are not valid, they
are not believable and will not be used.
Measuring individuals instead of groups/teams or
projects
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Process 5-Implement
Continuous Improvement
The company continues doing what it has been doing;
that is mapping its processes, establishing standards and
measures and then controlling the processes based on
the measurement data
The company starts expanding what is has been doing to
all aspects of its business.
The company needs to continue its focus on customer
requirements and improving value to customers and
improvement of the overall company performance and
capabilities.
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Process 5- Implement
Continuous Improvement
But the company must also start learning from
others and assessing its progress
Using benchmarking or comparing the company
to World Class quality standards (e.g., the
Malcolm Baldrige National Quality Award, the
JCIA Standards, etc.) are ways to assess the
improvement progress.
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End
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