supply chain- BA Level 2400 words
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