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

Explain what is the net income for this firm, Lifeline, Inc., has sales of ...

Lifeline, Inc., has sales of $585,000, costs of $273,000, depreciation expense of $71,000, interest expense of $38,000, and a tax rate of 35 percent. What is the net income for thi

What kind of financial ratio might provide insight, Mary Ann has always lov...

Mary Ann has always loved to cook and is interested in starting a catering business. Being aware of the failure rate of new businesses, she is considering buying an existing cateri

Explain messages are transmitted from low speed terminals, Messages are tra...

Messages are transmitted from low speed terminals and arrive at a message concentrator at a Poisson rate of 600/hr. They are held in a buffer until a hi-speed trunk line is free to

Describe how laws tie into business ethics, Discuss how laws tie into busin...

Discuss how laws tie into business ethics. Support your ideas with research and specific examples of laws discussed in your text.

Evaluation of the process design, Evaluation of the Process Design On...

Evaluation of the Process Design One of the objectives in designing the process flow is to ensure that goods and services are produced at minimum cost. A major problem confro

Explain what is your best choice using emv criterion, Dalton and Carla run ...

Dalton and Carla run a small bicycle shop called "D n C"Bicycles. They must order bicycles for the coming season. Orders for the bicycle must be placed in quantities of twenty(20).

Scheduling - production control, Scheduling Meaning and Definition ...

Scheduling Meaning and Definition Scheduling is the next technique of production control. In production control scheduling  means  the  arrangement of different operatio

Describe good strategic partner for the company, the e-Activity, identify o...

the e-Activity, identify one firm that you think would make a good strategic partner for the company you researched. Provide specific examples of why you think this firm would be a

Explain reporting biases can occur, The use of surveys of experts to estima...

The use of surveys of experts to estimate long-run production costs may be undermined by the fact that- Reporting biases can occur It is dependent on the judgments of individ

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