TECHNICAL NOTE 6 FACILITY LAYOUT
CHAPTER 7 SERVICE PROCESS SELECTION AND DESIGN
Review and Discussion Questions
1. Who is the “customer” in a jail? A cemetery? A summer camp for children?
From the standpoint of society as a whole, the customer is the outside community. However, when we say in a jail, then we are talking about the prisoners. The customer in a cemetery is generally the family or friends of the “loved one.” For a summer camp for children, the ostensible customers are the children. However, special efforts are usually made to serve the best food and provide the best amenities on parents’ visit day.
2. How have price and variety competition changed McDonald’s basic formula for success?
McDonald’s originally emphasized quick delivery of a limited menu. In response to competition, McDonald’s has continuously expanded its menu. Some evidence suggests that service, including quick delivery, has suffered as a result.
3. Could a service firm use production line approach or self-serve design and still keep a high customer focus (personal attention)? Explain and support your answer with examples.
Yes, this is possible. In many instances, the customer actually desires more technology and feels that the service will not have as high a quality without it. For example, dental care with its mechanized X-ray techniques requires far less customer time and less exposure to radiation. The self-service design can also support customer needs, for example the ATM provides customer access to funds at a variety of locations and 24 hours a day.
4. Why should a manager of a bank home office be evaluated differently than a manager of a bank branch?
Since a bank home office typifies low contact quasimanufacturing, while a bank branch typifies medium contact mixed service, the problems faced by management differ considerably.
5. Identify the high-contact and low-contact operations of the following services:
a. A dental office.
Dental office high contact includes waiting rooms, receptionists, dentist(s), hygienist(s), x-ray, etc., while labs would be low contact.
b. An airline.
Airline high contact includes reservations desk, loading concourse, plane with crew and attendants, etc. Low contact includes maintenance, baggage handling, tower operations, etc.
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c. An accounting office.
In an accounting office, high contact includes reception and CPAs, while low contact includes records, computer, library, etc.
d. An automobile agency
Automobile agency high contact includes showroom and offices. Low contact includes maintenance, preparation, records-files, etc.
6. Are there any service businesses that won’t be affected by knowledge outsourcing?
Service businesses that require face-to-face contact are least likely to be affected by knowledge outsourcing. However, as technology improves even medical diagnosis and treatment might take place at home where the patient would hook their selves up to the right monitoring system the could be fed directly to a doctor anywhere in the world.
7. Relative to the behavioral science discussion, what practical advice do you have for a hotel manager to enhance the ending of a guest's stay in the hotel?
How about putting a couple of Starbuck's coffee coupons in the envelope along with the bill that is slipped under the door in the early morning of check-out day? For guests staying several days, arrange to have the manager say a personal good bye.
8. List some occupations or sporting events where the ending is a dominant element in evaluating success.
Attorney's closing argument at trial; the professor's final lecture in the course; the comedian saving his best joke for last, the magician saving best trick for last; the "dismount" in all gymnastic exercises; the entry into the water in diving competitions.
9. Behavioral scientists suggest that we remember events as snap shots, not movies. How would you apply this to designing a service?
What this means is that not all parts of the service are of equal impact in one's memory, and therefore place your resources on those areas that give you the most bang for the "memory buck." That is, think about which snap shots you want to clearly "frame" in the customer's memory-- these might be thought of as the sweet spots of the service. You might even want to create them. For example, a Lexus dealership in Los Angeles hands out a long stemmed rose when a customer comes to the service counter to pay for car servicing. While the general car servicing process involves mainly inconvenience, the "movie" experience was dominated by a positive snap shot of receiving a rose. Another example: At Splash Mountain at Disneyland, photographers regularly take pictures of people coming to the end of their ride.
These become the keepsakes long after the details of the day are forgotten.
10. Some suggest that customer expectation is the key to service success. Give an example from your own experience to support or refute this assertion.
Most responses will probably support rather than refute this assertion.
Service Process Design and Selection
11. Where would you place a drive-in church, a campus food vending machine, and a bar’s automatic mixed drink machine on the service-system design matrix?
Referring to the exhibit, the most logical placement would appear to be on-site technology.
12. Can a manufacturer have a service guarantee in addition to a product guarantee?
Certainly, with some makes of automobiles, a rental car is guaranteed if the product fails.
Many products are sold with warranties promising free and prompt service
13. Suppose you were the manager of a restaurant and you were told honestly that a couple eating dinner had just seen a mouse. What would you say to them? How would you recover from this service crisis?
The only thing you can do is to try to overcompensate for the event. Make dinner free.
Promise to contract with an exterminator. Offer them another free dinner after a “cooling off” period. The Tylenol response is a good model to following in this situation.
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Problems
Type of Problem
Problem
Service-system design matrix
3-T’s of service
System
Design Difficulty New Problem
Modified Problem
Check Figure in Appendix
A
1 Yes Easy
2 Yes Easy
3 Yes Moderate
4 Yes Difficult
5 Yes Easy
1.
Buffered Core
(none) Reactive system
(much) Permeable system
(some)
Degree of customer/service contact
Low High
High Low
Sales Opportunity
Production efficiency Cosmetics
Apparel
Stationery
Phone order
Mail order
(catalog) Customer service
(complaints)
Service Process Design and Selection
2.
Buffered Core
(none) Reactive system
(much) Permeable system
(some)
Degree of customer/service contact
Low High
High Low
Sales Opportunity
Production efficiency Physician/Patient
Nurse/Patient Diagnostic test
(X-Rays)
Admissions
Billing
Lab tests
Medical records
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3. Here is a form that the students could use.
Task:
Treatment
Tangible Features:
(environment, layout, and appearance)
Rating: (1) poor (3) average (5) excellent
The following is what a completed form might look like.
Task:
Treatment
Tangible Features:
(environment, layout, and appearance)
Rating: (1) poor (3) average (5) excellent
Buy a shirt Checkout
No salesperson available
Layout was efficient, appearance was excellent
Professional, efficient, but not extremely friendly
Layout was logical, time in line was average
1 3
5 3
Service Process Design and Selection
4.
a. The important aspects of the service package are rapid delivery of a uniform, high-quality mix of prepared foods in an environment of obvious cleanliness, order, and cheerful courtesy.
b. Most of the skills needed by employees are easily obtained through training. Probably one of the most important aspects is the employee’s attitude. They should be willing to provide efficient service with cheerful courtesy.
c. Customer demand can be altered through promotions, such as discount for off-peak period. Also, extra services could be offered during off-peak periods to encourage customers. These could include having an employee walk through the facility offering free refills on drinks
d. An example of a service blueprint for McDonald’s.
Customer enters and places order
Order is taken Special orders are
requested Orders are
assembled Order given to
customer Customer
receives order Customer eats or departs
Cook receives
order to cook food Cook prepares
foodSpecial Food transferred
improperly taken Fail point: special order not requested
e. The customer/provider interface could be changed to include more technology by having the customer place the order himself on a display screen (this would also be more self-service). Many fast food restaurants have the customers get their on drinks.
f. One measure currently used is the average time to receive your order. Many times this is visible to the customer on the cash register. Other measures could include cleanliness of grounds, interior, restrooms, and counter; friendliness of employees, and sales.
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5. What are the differences between high and low customer contact service (CCS) businesses, in general, for the dimensions listed below? {Example - Facility Layout: in a high CCS, the facility would be designed to enhance the feelings and comfort of the customer while in a low CCS, the facility would be designed for efficient processing.}
Low CCS Businesses High CCS Businesses