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 role of an organizational leader, What is the role of a...

What is the role of an organizational leader ans what significant impact should they have on a Organization in the past, present and future of a company?

Policies that contribute and relate main business objectives, How can a fir...

How can a firm's security policies contribute and relate to the six main business objectives? Give examples.

Explain justify a strategic information system, Why might it be difficult t...

Why might it be difficult to justify a strategic information system?

What are complexities and risks involved with supply chains, Given the comp...

Given the complexities and risks involved with supply chains, might it make sense for a business organization to vertically integrate and be its own supply chain? Why or why not?

Explain risks to a broad generic business strategy, What are some drawbacks...

What are some drawbacks and risks to a broad generic business strategy? To a focused strategy?

Explain what is the time between orders, Hottenstein, Griffith, and Hult, a...

Hottenstein, Griffith, and Hult, attorneys at law, do a great deal of printing. The firm uses a single type of printer with annual demand for print cartridges of 480 per year. The

Explain briefly how a leader can recognize regressive cycle, Describe brief...

Describe briefly how a leader can recognize a regressive cycle and what should the leader's response be?

Describe customer service level for an inventory system, Discuss customer s...

Discuss customer service level for an inventory system within the context of quality management

Explain what type of strategy will you use to meet demand, Dell Computers i...

Dell Computers is known for revolutionizing the personal computer market using mass customization. This company can turn out a huge volume of computers while still having a variety

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