Total Quality Managemen

Presentation Topic: Service

Design by:
Presented
Arslan Bhatti L1S08MBAM2037
Gulshan Iqbal L1S08MBAM0170
Sana Tariq L1S08MBAM2169
Ali Ammar Asif L1S08MBAM2036
Adil Humayun L1S08MBAM0014

Section: A
SERVICE DESIGN
DEFINITION

Ø Service Design is the activity of

planning and organizing people,
infrastructure, communication
and material components of a
service, in order to improve its
quality, the interaction between
service provider and customers
and the customer's experience.
DISTINCTIVE CHARACTERISTICS
OF SERVICES
Ø Customer participation
Ø Simultaneity
Ø Perishability
Ø Intangibility
Ø Heterogeneity
CUSTOMER PARTICIPATION
Ø The customer is more involved in
the delivery of services than
products
Ø Providing services means that the
service provider must pay
attention to the service facilities
Ø Customers can play an integral
role in the delivery of the
service
Ø
SIMULTANEITY
Ø Services are consumed
simultaneously (as they are
provided)
Ø There is no inventory
Ø Services operate as an open
system
Ø
PERISHABILITY
Ø A service is a perishable
commodity (can’t be saved)
Ø The full utilization of service
capacity is a management
concern
Ø Demand for services is often
cyclical
Ø
INTANGIBILITY
Ø Services are not tangible things
Ø Difficult to patent
Ø Customer relies on reputation since
there is no product to touch or try
out
HØ E T E R O G E N E IT Y
ØT h e rea re va ria tio n s o f se rvice b e tw e e n
cu sto m e rs
ØD ire ct cu sto m e r- e m p lo ye e co n ta ct
Ø Further characteristics of the
service design are as
follows:
Ø
•Services tend to be decentralized and
dispersed
•
•Services are consumed more often than
products
•
•Services can be easily imitated or easily
copied
DESIGN SCHEME IN
SERVICES
Ø Three schemes for producing and
delivering services
Ø
• Quasi-Manufacturing
• Customer-as-Participant
• Customer-as-Product
DESIGN SCHEME IN
SERVICES
Ø Quasi-Manufacturing
• Physical goods are dominant over
intangible service
• Production of goods takes place
along a production line
• Operations can be highly
automated
• Almost no customer interaction
• Little regard for customer
relations
• Example: bank’s checking
encoding operation
DESIGN SCHEME IN
SERVICES
Ø Customer-as-Participant
• Physical goods may be a
significant part of the service
• Services may be either
standardized or custom
• High degree of customer
involvement in the process
• Examples: ATM, self-service gas
station
Ø
DESIGN SCHEME IN
SERVICES
Ø Customer-as-Product
• Through personal attention to the
customer
• Customized service on the
customer
• High degree of customer contact
• There is a perception of high
quality
• Customer becomes the central
focus of the process design
• Examples: medical clinic, hair
salon
SERVICE DESIGN
PROCESS
 SERVICE DESIGN PROCESS
(CONT.)
Ø Service concept
• The service concept defines the target customer and the
desired customer experience;
• It also defines how our service is different from others and
how it will compete in the marketplace.
•
Ø Service package
• A service package is created to meet the customer need.
• The package consists of a mixture of physical item,
sensual benefits and psychological benefits, for a
restaurant the physical items consist of the facility,
food, drink, tableware, napkins and other touchable
commodities, the sensual benefits include the taste
and aroma of the food and the sound of the people.
Psychological benefits are rest and relaxation, comfort,
status, and a sense of well being.
SERVICE DESIGN PROCESS
(CONT.)
Ø Performance Specifications
• Service specifications are developed for performance,
design and delivery.
• Performance specifications outline expectations and
requirements for general and specific customer.
Ø

Ø Design Specifications
• The specifications typically consist of activities to be
performed, skill requirement and guideline for
service providers and cost and time estimates.
Facility design, location and layout, as well as
equipment need, are also included.
SERVICE DESIGN PROCESS
(CONT.)
Ø Delivery Specifications
• Delivery specifications outline the steps required in
the work process, including the work schedule,
deliverables, and the location at which the work
is to be performed.
Ø
TOOLS FOR SERVICE
DESIGN
Ø Servicescapes
Ø Service blueprinting
Ø Quantitative Techniques
Ø Front-office/Back-office activities
•
SERVICESCAPES
Ø Servicescape is a concept that was
developed by Booms and Bitner to
emphasize the impact of the physical
environment in which a service process
takes place. Booms and Bitner defined a
servicescape as "the environment in which
the service is assembled and in which the
seller and customer interact, combined
with tangible commodities that facilitate
performance or communication of the
service" (Booms and Bitner, 1981, p. 36).
Ø It includes facilities exterior (landscape,
exterior design, signage, parking,
surrounding environment) and facilities
interior (interior design & decor,
SERVICE BLUEPRINT
Ø A diagram of the service process
showing activities, flows,
physical evidence, and lines of
visibility and interaction
Ø
EXAMPLE
FRONT-OFFICE/BACK-OFFICE
ACTIVITIES
Ø In manufacturing firms, the focus of activities
is on the back office, i.e. producing
products efficiently. Whereas, in service
firms, the focus is on the front office,
interacting with the customers.
Ø
ØInteractions in the front office influence the
customer perception of the service and
Q U thus
A N Tare
IT Acritical
T IV Eto a successful design.
T E C H N IQ U E S
Waiting Line Analysis : A n a lysis o f th e tim e
taken in a queue when there is no productive
activity is taken place.
DESIGNING A SERVICE
SYSTEM
Ø Involves:
• Selecting a location
• Designing the layout of the
facility
• Developing procedures and job
definitions
• Developing measures to ensure
quality
• Deciding how involved the
customer will be in the service
delivery
DESIGNING A SERVICE
SYSTEM
Ø The “design” process is never
finished
Ø
Ø Modifications or innovation in the
service delivery system should
be introduced as needed.
Ø
SYSTEM ELEMENTS
Ø Delivery system
Ø Facility design
Ø Location
Ø Capacity planning
Ø
SERVICE QUALITY
Ø For services, the assessment of
quality is made during the
service delivery process.
Ø
Ø Customer satisfaction can be
measured as the difference
between the customer’s service
expectation and the service
actually received.
Ø
GAPS IN SERVICE QUALITY
Ø Measuring the gap between
expected service and perceived
service is a routine customer
feedback process practiced by
many companies
Ø
SERVICE QUALITY GAP
MODEL
Ø Gap 1 is the distance between what customers
expect and what managers think they expect
Ø
Ø Gap 2 is between management perception and the
actual specification of the customer experience
Ø
Ø Gap 3 is from the experience specification to the
delivery of the experience
Ø
Ø Gap 4 is the gap between the delivery of the
customer experience and what is communicated
to customers
Ø
Ø Gap 5 is the gap between a customer's perception
of the experience and the customer's expectation
of the service
•

• Each gap in the customer experience can

be closed through diligent attention from