Designing Service Processes
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1 CHAPTER 8 Designing Service Processes Presented by : T.I. Kuncoroaji- 郝明叔 (D ) Muhammad Rasyid Abdillah (D ) Rizqa Anita (D )
2 Overview of Chapter 8 OUTLINE 1. Service Process 2. Developing a Service Blueprint 3. Service Process Redesign 4. Customer Participation in Service Process 5. Self-Service Technologies
3 1. Service Process
4 LO.1 Know the difference between a service experience and a service process SERVICE IN DIFFERENT PERSPECTIVE Services are Experiences Services are Processes
5 2. Developing a Service Blueprint
6 LO.2 Tell the difference between flowcharting and blueprinting DESIGNING AND DOCUMENTING SERVICE PROCESSES 1. Is the first step to designing or analyzing any process 2. Flowcharting and Blueprinting are two key tools for : a. describe and / or redesigning an existing process b. designing the new ones
7 FLOWCHART! Technique for displaying the nature and sequence of the different steps in delivery service to customers! Offers way to understand total customer service experience! Shows how nature of customer involvement with service organizations varies by type of service: è People processing è Possession processing è Mental Stimulus processing è Information processing
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10 BLUEPRINTING Developing a Blueprint! Identify key activities in creating and delivering service! Define big picture before drilling down to obtain a higher level of detail Advantages of Blueprinting! Distinguish between frontstage and backstage! Clarify interactions between customers and staff, and support by backstage activities and systems! Identify potential fail points; take preventive measures; prepare contingency! Pinpoint stages in the process where customer commonly have to wait
11 LO.3 Develop a blueprint for a service process with all the typical design element in place F = Fall Points W = Risk of Excessive Wait PK = Poka-Yokes (fail-safe methods )
12 Key Components of a Service Blueprint
13 Blueprinting The Restaurant Experience: A Three-Act Performance! Act 1: Introductory Scenes! Act 2: Delivery of Core Product è Potential fail points: Menu information complete? Menu intelligible? Everything on the menu actually available? è Mistakes in transmitting information a common cause of quality failure e.g. bad handwriting; poor verbal communication è Customers may not only evaluate quality of food and drink, but how promptly it is served, serving staff attitudes, or style of service! Act 3: The Drama Concludes è Remaining actions should move quickly and smoothly, with no surprises at the end è Customer expectations: accurate, intelligible and prompt bill, payment handled politely, guests are thanked for their patronage
14 LO.4 Understand how to use fail-proofing to design fail points out of service processes Improving Reliability of Processes by Failure Proofing! Identify fail points! Analysis of reasons for failure often reveals opportunities for failure proofing to reduce/eliminate future risk of errors! Need fail-safe methods (poka-yokes) for both employees and customers! Have poka-yokes to ensure service staff do things correctly, as requested, or at the right speed! Customer poka-yokes focus on preparing the customer for: è The encounter è Understanding and anticipating their roles è Selecting the correct service or transaction
15 LO.5 Know how to set the standards & performance target for costumer service processes
16 LO.6 Appreciate the importance of costumer perceptions and emotions in service process design. Consumer perception and emotion in service process design : 1. START STRONG 2. BUILD AN IMPROVING TREND 3. CREATING A PEAK 4. GET BAD EXPERIENCES OVER WITH EARLY 5. SEGMENT PLEASURE, COMBINE PAIN 6. FINISH STRONG 7. EMOTIONPRINTS
17 3. Service Process Redesign
18 LO.7 Explain the necessity for service process redesign SERVICE PROCESS REDESIGN, Why?! Revitalizes process that has become outdated! Changes in external environment make existing practices obsolete and require redesign of underlying processes è Creation of brand-new processes to stay relevant! Rusting occurs internally è Natural deterioration of internal processes; creeping bureaucracy; evolution of spurious, unofficial standards è Symptoms: - Extensive information exchange - Data that is not useful - High ratio of checking or control activities to value-adding activities - Increased exception processing - Customer complaints about inconvenient and unnecessary procedures
19 LO.8 Understand how service process redesign can help improve both service & productivity. Redesign Process! Service Process Redesign Effort aim to : è Reduce number of service failures è Reduce cycling time from customer initiation on a service process to its completion è Enhanced productivity è Increased customer satisfaction! Service Process redesign : è Examining the service blue print with key stake holders è Eliminating of non-value adding step è Reducing Bottleneck and balancing proses capacity è Shifting to self-service
20 4. Customer Participation in Service Process
21 LO.9 Understand the level of customer participation in services processes Level of Customer Participation in Service Process è Low Employees and systems do all the work - Often involves standardized service è Moderate Customer helps firm create and deliver service - Provide needed information and instructions - Make some personal effort; share physical possessions è High Customer works actively with provider to co-produce the service - Service cannot be created without customer s active participation - Customer can jeopardize quality of service outcome (e.g. weight loss, marriage counseling)
22 LO.10 Be familiar with the concept of service customers as co-creators and the implication of this perspective COSTUMER PARTICIPATION : Actions and resources supplied by customers during service production and/or delivery Includes mental, physical, and even emotional inputs Customers can influence productivity and quality of service processes and outputs\ Customers not only bring expectations and needs, they also need to have relevant service production competencies Customers also need to be recruited as they are CO- CREATORS. Firms need to get those with the skills to do the tasks For the relationship to last, both parties need to cooperate with each other
23 Reducing Service Failures Caused by Customers 1. Systematically collect information on the most common failure points 2. Identify their root causes 3. Create Strategies to prevent the failures that have been identified. a. Redesign the Customer Involvement in the process b. Use technology c. Manage Customer Behavior d. Encourage Customer Citizenship e. Improve the Servicescape
24 5. Self-Service Technologies (SSTs)
25 LO.11 Understand the factors that lead customers to accept or reject new selfservice technologies (SSTs)! Ultimate form of customer involvement è Customers undertake specific activities using facilities or systems provided by service supplier è Customer s time and effort replace those of employees - e.g. Internet-based services, ATMs, self-service gasoline pumps! Information-based services can easily be offered using SSTs è Used in both supplementary services and delivery of core product - e.g. ebay no human auctioneer needed between sellers and buyers! Many companies seek to encourage customers to serve themselves using Internet-based self-service è Challenge: getting customers to try this technology
26 Psychological Factors Related to the use of SSTs! SSTs advantages è Time savings è Cost savings è Flexibility è Convenience of location è Greater control over service delivery è High perceived level of customization! SSTs disadvantages è Anxiety and stress experienced by customers who are uncomfortable with using them è Some see service encounters as social experiences and prefer to deal with people
27 What Aspects Of SSTs Please Or Annoy Customers?! People love SSTs when è SST machines are conveniently located and accessible 24/7 often as close as nearest computer! è Obtaining detailed information and completing transactions can be done faster than through face-to-face or telephone contact è People in awe of what technology can do for them when it works well! People hate SSTs when è SSTs fail system is down, PIN numbers not accepted, etc è Poorly designed technologies that make service processes difficult to understand and use è they mess up - forgetting passwords; failing to provide information as requested; simply hitting wrong buttons
28 Putting SSTs to Test by Asking a Few Simple Questions 1. Does the SST work reliably? Firms must ensure that SSTs are dependable and userfriendly 2. Is the SST better than interpersonal alternatives? Customers will stick to conventional methods if SST doesn t create benefits for them 3. If it fails, what systems are in place to recover? Always provide systems, structures, and technologies that will enable prompt service recovery when things go wrong
29 LO.12 Know how to manage customer s reluctance to change their behavior in service processes, including the adoption of SSTs Managing Customer s Reluctance to Change 1. Develop Customer Trust 2. Undestand customer s habits abd expectation 3. Per-test new procedures and equipment 4. Publicize the benefits 5. Teach customers to use innovations and promote trial 6. Monitoring performance and continue to seek improvements
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