Operations Management Paper

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o illustrate how goods and services are designed in an integrated fash- ion, we will study LensCrafters-a well-known provider of eyeglasses produced "in about an hour." Wb use the framework for goods and service design shown in Exhibit 5.1.

Steps 1 and 2-StrategicMission, Market Analysis, and Competitive Priorities

LensCrafters (www.lenscrafters.com) is an optical chain of about 850 special service shops with on-site eyeglass production capabilities in the United Stares, Canada, and Puerto Rico. All resources necessary to create and deiiver o'one-stop-shopping" and eyeglasses "in about ar hour" are *ruilable in eacr\ s*ore.

LensCrafters' mission statement is focused on be- ing the best by

. creating cusromers for iife by delivering legendary custofil€r service,

. developing and energizing associates and leaders in the worldis best work place,

. crafiag perfect-qualiry eyew€ar in about an hau6 and r delivering superior overall value to meet each

cmtomerb individual needs.21

Step 3-Customer Benefit Package Design and Confi guration

Our perception of the LensCrafters customer benefit package is the integrated set ofgoods and services de- pieted ia Ex.hibit 5"11. The primarygood {eyewear) aad the primary service (accurate eye exam and one-hour service) are of equal irnportance. Peripheral goods and

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Exhibit 6.11 One Example View of LensCrafters' Customer Benefit Packoge

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services encircle the primary ones to create *a total Lenscrafters' experience."

Steps 4a and b-Manufactured Good Design and Process Selection

The manufacturing process is integrated into the service facility to provide rapid order response, yet not sacrifice quaiiry. In this industry, it is unusual for customers to watch their eyeglasses being made and this "service expe- rience" is viewed as adding value. The equipment used in the labs is the most technoiogically advanced equipment inthe indusuy.The eyewear is manufacturedto specifica- tions in a clean, modern, and professionally run facility.

Other issues that Lenserafters would need to con- sider in designing its manufacturing trirocesses are the following:

e How are eyeglass lenses and frames orderedi fue these materials ordered by individual stores Dr consolidated by regio:r/distriet? How ean the high qualify of eyewear be ensured? \Phat new materials are available?

. Vhat jrems sloirld be stored ar rhe regionldisrricr warehouse and stores? ![hat type of purchesing and inventory control systems should be used? How should supplier per{ormance be evaluated?

. !(hat eyewear-making eguipment should k used? 'What

is the latest technology? Which equipment is most {Iexible? Should the equipment be purchased or Ieased? How should it be maintained and by whom?

r Y/hat is the most efficient production procedure to make rhe goods and meer rime schedulesl lX4rere should qua[ry be checked in the manufacturing process?

I26 oM4 patt 2: D"\!gning cp"tati^s sysr€m!

itep 4c-Service-Delivery System Design

lhe service-delivery system, as evidenced by the location

rnd layout, servicescape, service processes, job designs, :echnology, and organizarional srrucrure, is combined inro

rn integrated service-delivery system. LensCrafters' stores

rre locarcd in high-traffic areas such as shopping centers

rad malls within 5 to 10 miles o{the target market'

A typical store layout is shown in Exhibit 6.12. Ihe servicescape is designed to conYey an impression of quality and professionalism. The store is spacious,

open, clean, carpeted, with professional merchandise display areas, modern furniture in the retail area' and

modern equipment in the laboratory technicians in white lab eoats, shiny machines in the lab, and bright lights throughout. The store display cases, eye examina-

tion areas, and fitting stations are in the high-contact

area where {ustomer$ and service providers inter- act frequently. Optometry degrees, certifications, and

licenses hanging on the wall provide ph1'sical evidence

of ernployees' abitities. A greeter directs each customer to the appropriate ser-

vice area as he or she enters the store. The low contad area

of a LensCrafters store---the oprical Iaboratory-is sepa- rated from the retail area by large glass panels. The optical

laboratory becomes a ooshowroom- where the customert

perception of the total delivery process is established. The store is a service factory. The. rypical service pro-

cessbegins when a customer makes an appointmentwith

an optician and continues until rhe eyeglasses are received

and paid for Between these two events, the qustomer fiavels to the store, parks, receives a greeting from store

employees, obtains an eye examination, selects fiames,

is measured {or proper eyeglasses and frame fit, watches

the eyeglasses being made in the laboratory, and receives

a final fitting to make sure all is well. Information flow

in the forms of prescriptions, bills, and receipts comple-

ments the physical flows of people and eyewear.

Exhibii 6.1? A SchematicView a{ a Typical LensCrafters' Store Layaut

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AM4 chaoter 5: Gcad3 aad Service Design i 27

Step 4d:Service Entounter {'sslgrt

Each job at LensCrafters-sales associate' lab techni-

."", ""a

doctor of optornetrX-re31ires. both techni-

,*l ,til, and service *"t"gt*tt't skills' Associates are i,,r.ti t."irr.A, friend{n and-knowledgeable.

a bout their

ffi.il bi teehniciaas cr€ cerdfied in *11wnrk msks ,r,d nroa.ares' Many associates

are cross-trained'

At the service-encsunttr level' key issues that man-

agers need to consider include the {olloudng:

. 'Wharhumall resource rnanagement processes and systems will ensure hiring the rigtrt pecple'

ttaining

iir.* prop"th and motivating them to prciride excellent service? What recognitions

and rewards

should be Provided?

o How are associates trained to handle service upsets

aud seffice recoverY?

e Whar standards should be set for grooming and

appearance?

. ]ilflhat behavioral standards, such as t{:Ele of voice' pi.;;;i**"nerisms, and the words that associates

use in customer rnteractions' shoutd be seti

. F{ow thollld enrployeeperformance be measured and evaluarcd?

r '\l(Ihat can be done to make the one-hour wait a positive experience for customers?

LensCrafters reinforces its customer bene$t p*ck-

.g" *i; a comprehensive 30-day unconditional service g-,rrrrnr.. design defined as follows:

You buy a pair of glasses at lcnsCrafters and then

foo th*\t"Maybe red's not my color'' -Or' you

l"**i"", lngoo should I have gotten the anti-

,"-n"rrir. coating?" Or after wearing them for a

*rtl[ ,"" re*li"i, o'These really arent going to be

co*{,ort-able eaorlSh to:Erear every day"' 'Whatever your reason, if you don't completely

love your eyeglasses or prescription sunglasses' you

can exchaage or rerurn tlem {or a full refund at

LensCrafters-no excuses, no explanations' That\

*t * oo, 30-Day Unconditional Guarantee is ali about-giving you peace of mind with

every pair' --

So lo*-Jo.t it work? Simple' Just return you, .y"glrsses-in their original condition-to

i""rCttft*s witfiin 30 days' We'll exchaage them

f.r^- ".* t"rr or refund your money'.Why do

we

Jo lil g*.rose LensCrafteis stands behind each and

;;;;;; o{ out glasses' And we rvant to make sure you simPlY love them'

What does "Unconditional" really mean? The

:O days nedns on rhe date you acmally receive

yow eYeglasses' You can retufn or exchange your

new eyewear

as tnary dmes as needed within thc 30-day time

pericd' However, the 30 days does not start over

with each r€turn or exchange'" - If you exchange your purcha t'..!.o: ^

pair at a

lowu price'ure'll refund the price difference'

tf yo, exchange your purchat: fo:.1 pafu at a

higher price, you'}I only pay the price ditterence'

I{ your eyeglasses ger broken' you can use our

L -Year RePlacement Discount'2z

Steos 5 and 6-ftnarHlntltdnctiorr/ Deployment and Evaluation

Although tile compacy h*s bmn araund {or some dme'

,r'""a"-rf..aly faces challenges in replicating its design

.;".*, in nevr locxions' Oria mntinuing basis' as rech-

iolo; andptocedures change, LeasCra{ters will have to

;".bt pr*rrr., to introduce changes into all existing locations to maintain operational consistencyand

achieve

ii, *o..gi. objectives' For exanrple' how roight it r€act as

;;;r;t sueh asliilalmart enter the,optical industry? i, yoo see, LensCra{ters' manufitturing and ser-

vice design depends on a variety cf opratiaas maoage-

*.".."i.prs, all of which are integrated and support a rather complex customer benefit

package'