CHAPTER 8 Flashcards
:From the _____________, services are experiences, such as calling a customer contact center or visiting a library/
customer’s perspective
:From the ____________, services are processes that have to be designed and managed to create the desired customer experience.
organization’s perspective
describe the method and sequence in which service operating systems word and specify how they link together to create the value proposition promised to customers.
PROCESSES
are likely to annoy customers because they often result in slow, frustrating, and poor-quality service delivery.
BADLY DESIGNED PROCESSES
They also make it difficult for front-line employees to do their jobs well, resulting in low productivity, and increasing the risk of service failures.
BADLY DESIGNED PROCESSES
The first step in designing or analyzing any process is
documenting or describing it.
:Two key tools that are used for documenting and redesigning existing service processes and designing new ones:
FLOWCHARTING, BLUEPRINTING
is a technique for displaying the nature and sequence of the different steps involved when a customer “flows” through the service process.
Flowcharting
the sequence of encounters that customers have with a service organization, we can gain valuable insights into the nature of an existing service.
Flowcharting
describes an existing process, often in a fairly simple form.
:FLOWCHART:
is a more complex form of flowcharting and specifies in detail how a service process is constructed including what is visible to the customer and all that goes on in back-office.
Blueprinting
:It is the key tool in service designing.
Blueprinting
map customers, employee, and service system interactions. They show the full customer journey from service initiation to final delivery of the desired benefit, which can include many steps and service employees from different departments.
:Service Blueprints
show the key customer actions,how customers and employees from different departments interact the frontstage actions by those service employees, and how these are supported by back-stage activities and systems.
Blueprint
,how customers and employees from different departments interact
line of interaction
DEVELOPING BLUEPRINT
- Identify key activities involved in creating and delivering the service.
- Distinguish between front stage and backstage
3.Chart activities in sequence
- Show how interactions between customers and employees are supported by backstage activities and systems.
- Establish service standards for each step.
- Identify potential fail points.
- Focus initially on “Big Picture” (Later, can drill down for more detail in specific areas)
DEVELOPING A SERVICE BLUEPRINT
Typical service blueprints have the following design characteristics:
Front stage activities, physical evidence of front-stage activities, line of visibility, back-stage activities, support processes and supplies, fail points, indentifying customer waits, service standard nd target
: These maps are the overall customer experience, the desired inputs and outputs, and the sequence in which the delivery of the output should take place.
Front-stage activities:
This is what the customer can see and use to assess service quality.
Physical evidence of front-stage activities
clearly separates what customer experience and can see front-stage, and back-stage processes customers can’t see.
Line of visibility
these must be performed to support a particular front-stage step.
Back-stage activities
Where support processes are typically provided by the information system, and supplies are needed for both front and back stage steps.
Support processes and supplies
are where there is a risk of things going wrong and affecting service quality.
Fail points
should be designed out of process (e.g., via the use of poka-yokes), and firms should have backup plans for failures that are not preventable.
Fail points
These can either be designed out of the process, or if that is not always possible, firms can implement strategies to make waits less unpleasant for customers.
Identifying customer waits
Should be established for each activity to reflect customer expectations. They include specific times set for the completion of each task and the acceptable wait between each customer activity.
Service standards and target
DEVELOPING A SERVICE PROCESS
Most service processes can be divided into three main steps:
- pre process stage, 2. in-process stage, 3. post-process stage
is where the preliminaries occur, such as making a reservation, parking the car, getting seated, and being presented with the menu.
PRE-PROCESS STAGE
where the main purpose of the service encounter is accomplished, such as enjoying the food and drinks in a restaurant.
IN-PROCESS STAGE:
Is where the activities necessary for the closing of the encounter happens, such as getting the check and paying for dinner.
POST-PROCESS STAGE:
identifying fail points (TANDAAN)
Running a restaurant is a complex business and much can go wrong.
:A good blueprint should draw attention to the points in service delivery where the things are particularly at risk of going wrong.
:From a customer’s perspective, the most serious fail points, marked in our blueprint by an F in a circle, are those that will result in the failure to access or enjoy the core product. They involve things such as the reservation.
:Since service delivery takes place over time, there is the possibility of delays between specific actions, requiring the customers to wait. Common locations for such waits are identified on the blueprint by
:Excessive waits will annoy customers. In practice, every step in the process both front-stage and back-stage, has some potential failures and delays.
who coined the acronym OTSU (‘opportunity to screw up’) ?
DAVID MAISTER
stresses the importance of thinking through all the things that might go wrong in the delivery of a particular service.
OTSU (‘opportunity to screw up’)
It’s only by identifying all the possible ________ associated with a particular progress that service managers can put together a delivery system that is designed to avoid such problems.
OTSUs
SETTING SERVICE STANDARDS (TANDAAN)
:Designed high standards for each step to satisfy and delight.
:Time parameters, correct performance, prescriptions for style and demeanor.
:First impressions affect customer’s evaluations of quality during later stages of service delivery.
:Customer perceptions of service experiences tend to be cumulative.
:Fow low-contact service, a single failure committed to the front stage is relatively more serious than a high-contact service.
often reveals opportunities for failure proofing to reduce/eliminate the risk of errors.
ANALYSIS OF REASONS FOR FAILURE
ERRORS OF ANALYSIS OF REASONS FOR FAILURE INCLUDES:
- TREATMENT ERRORS
- TANGIBLE ERRORS
human failures during contact with customers.
TREATMENT ERRORS:
failures in physical elements of service
:Need for fail-safe methods for both employees and customers
TANGIBLE ERRORS:
Include measures to prevent omission of tasks or performance of tasks in the wrong order, incorrectly and too slowly. Also doing work that wasn’t requested in the first place.
FAIL-SAFE PROCEDURE:
One of the most useful Total Quality Management (TQM) methods in manufacturing is the application of ____________ to prevent errors in the manufacturing processes.
poka-yokes or fail-safe methods
The term poka-yokes is derived from the japanese words
poka(inadvertent errors) and yokeru(to prevent).
roughly means “avoid unexpected surprises” or “avoid blunders” in Japanese
poka-yokes
In English, a poka-yoke is sometimes referred to
“mistake-proof” or “foolproof”.
is a safeguard that prevents a process from proceeding to the next step until the proper conditions have been met.
poka-yokes
ensure that service employees do things correctly, as asked, in the right order and at the right speed.
poka-yokes
introduced this concept to fail-safe service processes.
RICHARD CHASE AND DOUGLAS STEWARD:
why redesign?
:Revitalize the process that has become outdated.
:Changes in the external environment make existing practices obsolete and require redesign of underlying processing.
:Rusting occurs internally.
:Opportunity exists to achieve a quantum leap in productivity and service quality
key measurement
- Reduce cycle failures
2, Reduce cycle time
- Enhance productivity
- Increase customer satisfaction
PROCESS REDESIGN: APPROACHES
how to improve the process
-Elimination of non-value adding steps
-Reducing bottlenecks and balancing process capacity. -Shifting to self-service.
refers to the actions and resources supplied by customers during service production, including mental, physical, and even emotional inputs.
:CUSTOMER PARTICIPATION
Levels of Customer Participation
- low participation level, 2. moderate participation level, 3. high participation level
employees and systems do all the work. Service products tend to be standardized.
Low Participation Level:
customers’ inputs are required to assist the firm in creating and delivering the service, and in providing a degree of customization.
Moderate Participation Level
:In situations where customers come to the service factory, all that is needed is the customer’s physical presence e.g visiting a movie theater or taking a bus.
Low Participation Level:
:These inputs may include the provision of information, personal effort, or even physical possessions e.g when getting their hair washed and cut, customers must let the stylist know what they want and cooperate during the different steps in the process.
Moderate Participation Level
customers work actively with the provider to co-produce the service.
High Participation Level
Service cannot be created without the customer’s active participation e.g marriage counseling and educational services.
High Participation Level
is the ultimate form of customer involvement in service production.
:SELF-SERVICE
customer directly uses the system and facilities available and avail the services thereby.
:SELF-SERVICE
are also part of self-service to divert customers from direct contact of the customers.
internet-based services
CUSTOMER CO-PRODUCTION USING SSTs
(TANDAAN)
:Productivity gains and cost savings result when customers take over work previously performed by employees.
:Lower prices, reflecting lower costs, induce customers to use SSTs
:Research shows that customers tend to take credit for successful outcomes, but not blame them for unsuccessful ones.
:Critically understand how consumers decide between using the SST option versus relying on a human provider.
:SST’s present both advantages and disadvantages
ADVANTAGES AND DISADVANTAGES OF CUSTOMER CO- PRODUCTION USING STS
:ADVANTAGES: Time and cost savings, flexibility, the convenience of location, greater control over service delivery, and a higher perceived level of customization,
:DISADVANTAGES: Anxiety and stress experienced by customers who are uncomfortable with using them.
A customer who behaves in a thoughtless or abusive fashion, causing problems for the firm itself, employees, or other customers.
JAYCUSTOMER
Why do jaycustomer matter?
Can disrupt processes
:Affect service quality
:May spoil the experience of other customers.
TYPES OF JAYCUSTOMER
- THE THIEF, 2. THE RULE BREAKER, 3. THE DEADBEAT, 4. THE BELLIGERENT, 5. THE FAMILY FEUDERS, 6. THE VANDAL
The rule breaker depends upon which type of rule has been brokenb
:If legally supported one then can be punished.
:If health and safety is related then needs to be educated.
:If social, then you need to be guided and warned.
seeks to avoid paying for service/manipulates. :Finding out various ways how people can steal – prosecuting them. But a severe check should not overlook the genuine ones.
THE THIEF
:Finding out various ways how people can steal – prosecuting them. But a severe check should not overlook the genuine ones.
THE THIEF
Ignores rules of social behavior and/or procedures for safe, efficient use of service.
THE RULE BREAKER
Fails to pay bills on time
THE DEADBEAT:
Angrily abuses service personnel (and sometimes other customers) physically and/or emotionally.
THE BELLIGERENT:
a subcategory of belligerents who get into arguments with other customers, mostly their own family members, and spoil the scene around.
THE FAMILY FEUDERS
consciously damages physical facilities, furnishings, and equipment.
THE VANDAL
