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Chapter 5 - Service design. This chapter includes contents: Service economy, characteristics of services, service design process, tools for service design, waiting line analysis for service improvement.
OPERATIONS MANAGEMENT: Creating Value Along the Supply Chain, Canadian Edition Robert S Russell, Bernard W Taylor III, Ignacio Castillo, Navneet Vidyarthi CHAPTER Service Design 5-1 Learning Objectives Relate numerous statistics that demonstrate the predominance of services in the Canadian and the global economy Define services and their characteristics such that they are distinguishable from manufacturing Explain the key aspects of the service design process and describe how they are affected by varying degrees of customer/service provider contact Describe several tools used for service design including blueprinting and servicescapes Use waiting line analysis to improve service 5-2 Lecture Outline Service Economy Characteristics of Services Service Design Process Tools for Service Design Waiting Line Analysis for Service Improvement 5-3 Service Economy 5-4 Percent of GDP by Industry Sector for Canada 5-5 Characteristics of Services Services acts, deeds, or performances Goods tangible objects Facilitating services accompany almost all purchases of goods Facilitating goods accompany almost all service purchases 5-6 Continuum From Goods to Services Source: Adapted from Earl W Sasser, R.P Olsen, and D Daryl Wyckoff, Management of Service Operations (Boston: Allyn Bacon, 1978), p.11 5-7 Characteristics of Services Service are inseparable from delivery Services tend to be decentralized and dispersed Services are consumed more often than products Services can be easily emulated Services are intangible Service output is variable Services have higher customer contact Services are perishable 5-8 Service Design Process 5-9 Service Design Process Service concept purpose of a service; it defines target market and customer experience Service package mixture of physical items, sensual benefits, and psychological benefits Service specifications performance specifications design specifications delivery specifications 5-10 Service Improvement Analysis Waiting time (8 min.) is too long • hire assistant for cashier? • increased service rate • hire another cashier? • reduced arrival rate Is improved service worth the cost? 5-33 Excel Single-Server Solution 5-34 Advanced Single-Server Models Constant service times • occur most often when automated equipment or machinery performs service Finite queue lengths • occur when there is a physical limitation to length of waiting line Finite calling population • number of “customers” that can arrive is limited 5-35 Advanced Single-Server Models 5-36 Advanced Single-Server Model 5-37 Basic Multiple-Server Model Single waiting line and service facility with several independent servers in parallel Same assumptions as single-server model sμ > λ • s = number of servers • servers must be able to serve customers faster than they arrive 5-38 Basic Multiple-Server Model probability that there are no customers in system P0 = n=s–1 ∑ n=0 n! ( ) + ( )( ) λ n μ s! λ s μ sμ sμ - λ probability of n customers in system Pn = { () () λ n P0, s!sn – s μ n! λ n P0, μ for n > s for n ≤ s 5-39 Basic Multiple-Server Model probability that customer must wait Pw = L= W= s! () λ μ s sμ sμ – λ λμ (λ/μ)s (s – 1)! (sμ – λ)2 L λ P0 P0 + Lq = L – λ μ Wq = W – λ μ μ = Lq λ λ ρ= sμ 5-40 Basic Multiple-Server Model Example Three-server system 5-41 Basic Multiple-Server Model Example 5-42 Basic Multiple-Server Model Example 5-43 Basic Multiple-Server Model Example To cut waiting time, add another service rep Four-server System 5-44 Multiple-Server Waiting Line in Excel 5-45 Multiple-Server Waiting Line in Excel 5-46 COPYRIGHT Copyright © 2014 John Wiley & Sons Canada, Ltd All rights reserved Reproduction or translation of this work beyond that permitted by Access Copyright (The Canadian Copyright Licensing Agency) is unlawful Requests for further information should be addressed to the Permissions Department, John Wiley & Sons Canada, Ltd The purchaser may make back-up copies for his or her own use only and not for distribution or resale The author and the publisher assume no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information contained herein 5-47 ... specifications 5- 1 0 Service Process Matrix 5- 1 1 High vs Low Contact Services 5- 1 2 High vs Low Contact Services 5- 1 3 High vs Low Contact Services 5- 1 4 High vs Low Contact Services 5- 1 5 Tools for... service 5- 2 Lecture Outline Service Economy Characteristics of Services Service Design Process Tools for Service Design Waiting Line Analysis for Service Improvement 5- 3 Service Economy 5- 4 Percent... demonstrate the predominance of services in the Canadian and the global economy Define services and their characteristics such that they are distinguishable from manufacturing Explain the key