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

Decisions making and profit maximization, Question 1. It is often said...

Question 1. It is often said that profit maximization is the sole objective of business conduct. Do you agree with this view? Justify your answer using at least one example /

Inventory management, The injection molding department of a company uses an...

The injection molding department of a company uses an average of 30 gallons of special lubricant a day. The supply of the lubricant is replenished when the amount on hand is 170 ga

Explain what output rate will be achieved, An assembly line with 30 activit...

An assembly line with 30 activities is to be balanced. The total amount of time to complete all 30 activities is 42 minutes. The longest activity takes 2.4 minutes and the shortest

Corporate strategies- operation strategy, Corporate Strategies- Operation S...

Corporate Strategies- Operation Strategy Often it is not obvious to participants that an organisation has a corporate strategy. Consider this illustration. A visitor to a Poly

Explain the bargaining unit as technical workers, Jack is a 2nd level manag...

Jack is a 2nd level manager at Johnson Controls. His department includes 2 supervisors, 5 night shift security guards, 5 technical workers, 10 janitorial staff, and 25 manufacturin

How supply chain change works, An online retailer of a single product has f...

An online retailer of a single product has four major markets in the four "corners" (North-East, South-East, North-West and South-West) of a country. Assume that daily demand in ea

Process based layout, Process Based Layout In this layout machines and...

Process Based Layout In this layout machines and services are grouped on a functional basis operation of the same type are performed in the same area. For example all welding

What is risk of entry by competitors, This is what i know about Porters Mod...

This is what i know about Porters Model. It is the systematic analysis of forces in the industry environment using the Porter framework is a prowerful tool that helps managers to t

Explain rules of the irs and department of labor, Rules of the IRS and depa...

Rules of the IRS and department of labor determine which workers quailfy as indenpendent contractor?

Explain disadvantages from the healthcare organizations, Determine two adva...

Determine two advantages and two disadvantages from the healthcare organizations perspective for requiring a Certificate4 of Need (CON). Identify 3 states that require a Certificat

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