Process configurations - services, Operation Management

Assignment Help:

Process Configurations - Services

Schmenner's service - process matrix was introduced, categorising service operations by the degree of labour intensity and the degree of customisation/ customer interaction. Building on Schmenner's ideas, Silvestro et al (1999) have devised a service- process model (see figure) which parallels the Hayes and Wheelwright product-process matrix. Three of Schmenner's categories (professional services, service shops and mass services) are mapped against volume and customisation/contact time/discretion. Customisation refers to the degree to which the service may be tailored to a particular customer's requirements; discretion concerns the extent to which the service provider may decide how to perform the operation. As with the product-process matrix, these basic service types naturally lie on a diagonal. The implications are that a service which positions itself above the diagonal is likely to be uncompetitive, because a greater degree of customisation and contact time is being provided than is appropriate, whilst a service positioned below the diagonal will, likewise, be uncompetitive because the service offerings are over-standardised and inflexible.

At the professional services end of the spectrum the operations are, typically, lengthy and conducted by highly-skilled, highly-paid personnel; the customer participates in the service process, often determining the specification of the service (customisation) during its course. Often, long-term relationships are established between individual staff members and customers, giving the opportunity to 'lock' the customer to the service provider. Because such professionals are consulted for what they know, rather than what they do, there is generally little scope for replacing labour by equipment. At the other end of the spectrum, mass services are characterised by highly-standardised short-duration services delivered by staff who, typically, will have limited skills and are lowly paid. Although the customer may be presented with a range of choices, these are always pre-determined and standardised; there is little scope for customisation. Because of the standardisation and high volume, specialised equipment is often used to replace labour.

The combination of low variety, standardisation and the customer's participation in the process, presents a particular challenge to the service process designer; to ensure that the customer does not feel that he/she is being 'processed', it is important that the service encounter and its surroundings are designed to be as 'warm' as possible.


Related Discussions:- Process configurations - services

Characteristics of batch production, Characteristics of Batch Production ...

Characteristics of Batch Production Short Runs: Batch production is characterized by short production runs and frequent changes in set ups. Investment : Needs high in

Explain health care reform bill decision making essay, Health Care Reform B...

Health Care Reform Bill Decision Making Essay Review websites for critical decision making in relation to the Health Care Bill of 2010. What do you believe the decision making p

Calculate the old and new ratios for energy, Angies Bakeries is wooried abo...

Angies Bakeries is wooried about increased costs. The company invested an additional $3000 to make the baker's oven more energy efficient. The ovens are supposed to be 15% more ene

Compute what will be the value, Can you show me step by step how to solve t...

Can you show me step by step how to solve the following problem? Payments of $20,000 at 6% interest Compounding quarterly What will be the value in 12 years?

Explain boundary-less organization, What are the challenges of working acro...

What are the challenges of working across boundaries and how can human resources prepare employees to thrive in a boundary-less organization

Explain the decision tree layout for the expando company, What is the Decis...

What is the Decision Tree layout for the Expando Company

Explain what is the reorder point, Joe Henry's machine shop uses 2500 brack...

Joe Henry's machine shop uses 2500 brackets during the course of a year. these brackets are purchased from a supplier 90 miles away. The following information is known about the br

Explain development impacted shangri la hotel strategy, Assess how employee...

Assess how employee training and development impacted Shangri La Hotel strategy to delight customer each and every time.

Plant layout, A plant layout should be designed in such a manner that ...

A plant layout should be designed in such a manner that it will provide safety and security of employees at all costs. Optimum plant layout calls for high operating e

Explain what are some types of software that can help, What are some types ...

What are some types of software that can help us protect employee information? How does this software interact with our current HR technology? Explain from a conceptual stand

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd