Lecture Operations and supply chain management: The Core (3/e) – Chapter 7: Service processes
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Service Processes
Chapter 07
McGrawHill/Irwin
Copyright © 2013 by The McGrawHill Companies, Inc. All rights reserved.
Learning Objectives
Describe the characteristics of service
processes and how they differ from
manufacturing processes.
Classify service processes.
Explain service blueprinting.
Understand waiting line (queuing)
analysis.
Model some common waiting line
situations and estimate server utilization,
the length of a waiting line, and average
customer wait time.
72
Operational Classification of
Services
73
Service Organization Design
Services cannot be stored in inventory
In services, capacity becomes the dominant
issue
Too much capacity leads to excessive costs
Insufficient capacity leads to lost customers
Waiting line models provide a powerful
mathematical tool for analyzing many common
service situations
74
Virtual Services – The New Role of
the Customer
Pure virtual customer contact - companies enable
customers to interact with one another in an open
environment
eBay
Second Life
Mixed virtual and actual customer contact - customers
interact with one another in a server-moderated
environment such as product discussion groups
YouTube
WikiPedia
75
Service Blueprinting
The standard tool for service process design is
the flowchart
A unique feature of the service blueprint is the
distinction made between the high customer
contact aspects of the service and those activities
that the customer does not see
Called a service blueprint
Made with a “line of visibility” on the flowchart
Fail-safing involves using the service blueprint to
identify opportunities for failure and then
establishing procedures to prevent mistakes from
becoming defects (poka-yokes)
76
Poka-Yokes
Poka-yokes - procedures that block the inevitable
mistake from becoming a service defect (“avoid
mistakes”)
Poka-yokes are common in factories
Many applications of poka-yokes to services
Warning methods (e.g. steps that lead to mistakes trigger a
reminder)
Physical or visual contact methods (e.g. parts can only fit
together in the correct way)
The Three T’s
1.
2.
3.
Task to be done
Treatment accorded to the customer
Tangible features of the service facility
77
Waiting Line Problems
(Queues)
A central problem in many service settings is
the management of waiting time
Reducing waiting time costs money, but raises
customer satisfaction and throughput
When people waiting are employees, it is easy
to value their time
When people waiting are customers, it is more
difficult to value their time
Lost sales is one value (often a low estimate)
78
Practical View of Waiting Lines
79
Managing Queues
710
Queuing System Analysis
The source population – who are your customers?
Population size – finite or infinite?
Customer arrival rates
Exponential
Poisson
Constant
Customer arrival characteristics
Arrival patterns (steady or seasonal)
Size or arrival rates (individuals or groups)
Degree of patience (will they wait?)
Service rate distribution
Exponential
Excel: Queuing Calc
711
Queuing System Factors
Length – how much waiting room is available?
Number of lines – how many servers are working?
Queue discipline – how do new arrivals enter the line?
How do you decide which customer to serve next?
Service time distribution – what is the service rate and
how much does it vary?
Line structure – what does the process look like?
Single channel, single phase
Single channel, multiphase
Multichannel, single phase
Multichannel, multiphase
Mixed
712
Service Time Distribution
Constant
Service is automated and not customized to
individual customers (automatic car wash)
Variable
Service is provided by humans
Can be customized to individual customers
Described using exponential distribution
713
Exiting the Queuing System
Customers who have been served have two
possible futures
Low probability of reservice (appendectomy
patients rarely return for a repeat operation)
High probability of reservice (a machine that is
prone to breakdowns may require new service
immediately after leaving the service center)
714
Computer Simulation of Waiting
Lines
715
