supply chain- BA Level 2400 words

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Ch4_Delivering_Services_L6.ppt

Alex Hill and Terry Hill

Learning objectives

  • Recognise the TECHNICAL and BUSINESS requirements to be met when delivering services
  • Understand the CHARACTERISTICS of service operations
  • Identify the CATEGORIES of service and TYPES of service delivery system
  • Explain how to DESIGN service delivery systems
  • Understand how IT impacts service delivery

Lecture outline

  • INTRODUCTION
  • Factors affecting SERVICE DELIVERY design
  • DESIGNING the service delivery system
  • Critical REFLECTIONS
  • SUMMARY

Factors affecting service delivery system design

SERVICE COMPLEXITY

THE

MARKET

NUMBER OF STEPS

Single

Multiple

TECHNICAL requirements

The service itself

BUSINESS requirements

Volumes

Order-winners & qualifiers

Case studies:

  • Great Nuclear Fizzle
  • Lloyds Bank
  • McDonald’s
  • Prêt a Manger

Film clips:

  • Breakfast at Tiffany’s
  • Five Easy Pieces
> KEY IDEA
As services differ, so will the DESIGNS of their delivery systems

Case studies:

  • Great Nuclear Fizzle
  • Lloyds Bank
  • McDonald’s
  • Prêt a Manger

Film clips:

  • Breakfast at Tiffany’s
  • Five Easy Pieces

Characteristics of service operations

Factors affecting service delivery system design

MIX of services and products

INTANGIBLE nature

SIMULTANEOUS provision and consumption

TIME-DEPENDENT capacity

CUSTOMERS can help deliver the service

Need to MANAGE CUSTOMERS

No PATENTS

Case studies:

  • Great Nuclear Fizzle
  • Lloyds Bank
  • McDonald’s
  • Prêt a Manger

Film clips:

  • Breakfast at Tiffany’s
  • Five Easy Pieces
> KEY IDEA
Services are PROVIDED and CONSUMED at the same time. They CANNOT be stored

Case studies:

  • Great Nuclear Fizzle
  • Lloyds Bank
  • McDonald’s
  • Prêt a Manger

Film clips:

  • Breakfast at Tiffany’s
  • Five Easy Pieces

Understanding how services differ

Factors affecting service delivery system design

KEY DIFFERENCES

Level of TECHNOLOGY used

NATURE of service being delivered

Complexity of service

What is being processed

TYPE of service being delivered

Professional, Service shop or Mass service

BUSINESS requirements

Volumes

Order-winners and qualifiers

Understanding how services differ

Factors affecting service delivery system design

Understanding how services differ

Factors affecting service delivery system design

Understanding how services differ

Factors affecting service delivery system design

> KEY IDEA
The delivery system processes CUSTOMERS, CUSTOMER SURROGATES, PRODUCTS, INFORMATION or some COMBINATION of these

Designing the service delivery system

Overall design

Understand MARKET volumes, order-winners and qualifiers

Identify the service ENCOUNTER and EXPERIENCE to be delivered

Understand how to RETAIN customers

Designing the service delivery system

Overall design

Designing the service delivery system

Overall design

Designing the service delivery system

CUSTOMER INTERFACE

Service delivery

BACK OFFICE activities

FRONT OFFICE activities

Designing the service delivery system

Service delivery

Line of

visibility

FRONT OFFICE

No CUSTOMER CONTACT

Easier SCHEDULING

Higher processing VOLUMES

BACK OFFICE

FACILITIES represent organisation

Easier to manage QUEUE lengths

Involve CUSTOMERS in delivery

Wider STAFF ROLES

Designing the service delivery system

CUSTOMER INTERFACE

Service delivery

BACK OFFICE activities

FRONT OFFICE activities

Number of STEPS

Single vs Multiple

TYPE of delivery system

Non-repeat vs Repeat

Low volume vs high volume

DELIVERY SYSTEM

Designing the service delivery system

Service delivery

Designing the service delivery system

Other factors

ENHANCING services

Use of IT in service delivery

CUSTOMER participation in service delivery

Designing the service delivery system

Other factors

  • Service DELIVERY SYSTEMS must be:
  • ALIGNED to its market ORDER-WINNERS and QUALIFIERS
  • REFLECT its internal BUSINESS requirements
  • INCORPORATE IT and other DEVELOPMENT opportunities
  • Customers become MORE PROFITABLE the longer you RETAIN them

Critical reflections

Critical reflections

Critical reflections

Critical reflections

Summary

  • Services have distinctive CHARACTERISTICS
  • Intangible and perishable
  • Service delivery systems must SUPPORT
  • Technical and business requirements
  • TECHNICAL requirements
  • The service specification
  • BUSINESS requirements
  • Volumes and market order-winners and qualifiers