© AMD Publishing/Terry Hill 2005
T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X
Chapter 5
DESIGNING SERVICEDELIVERY SYSTEMS
Terry Hill
© AMD Publishing/Terry Hill 2005
T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X
OVERVIEW
DIMENSIONS that affect appropriate delivery systemDISTINCTIVE CHARACTERISTICS of service operationsFACTORS involved in service deliveryService delivery system DESIGNService PROFILINGREFLECTIONS
© AMD Publishing/Terry Hill 2005
T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X
DISTINCTIVE CHARACTERISTICSOF SERVICE OPERATIONS
Service/product MIXINTANGIBLE nature of servicesSIMULTANEOUS provision/consumptionTIME DEPENDENT capacityCustomers as PARTICIPANTSCUSTOMER managementPEOPLE skillsEffective services are REPRODUCIBLESITE selectionNO PATENTS on services
© AMD Publishing/Terry Hill 2005
T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X
Exhibit 5.3 from page 147
FACTORS INVOLVED IN SERVICE DELIVERY
(Categories of service) p 147
© AMD Publishing/Terry Hill 2005
T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X
SERVICE DELIVERY SYSTEM DESIGN
The MARKET provides the external context for the service delivery systemThe service ENCOUNTER and EXPERIENCE are the essence of the delivery systemCustomer RETENTION is one of the key aims of the service delivery system
(Overall)
SOME KEY POINTS
© AMD Publishing/Terry Hill 2005
T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X
BACK OFFICE or FRONT OFFICE
PHASE 1
SERVICE DELIVERY SYSTEM DESIGN
(Detailed)
© AMD Publishing/Terry Hill 2005
T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X
BACK OFFICE or FRONT OFFICE
The DELIVERY SYSTEM
PHASE 2
PHASE 1
SERVICE DELIVERY SYSTEM DESIGN
(Detailed)
© AMD Publishing/Terry Hill 2005
T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X
SERVICE DELIVERY SYSTEM DESIGN
(Phase 1 - Back office or front office)
No customer contactEasier schedulingHigher processing volumes
BACK OFFICE
FRONT OFFICE
Facilities represent organisationManage queue lengthsEase of customer useWider staff roles
Line of
visibility
© AMD Publishing/Terry Hill 2005
T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X
SERVICE DELIVERY SYSTEM DESIGN
(Phase 2 - The delivery system) p 154
Exhibits 5.10 from page 154
© AMD Publishing/Terry Hill 2005
T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X
SERVICE DELIVERY SYSTEM DESIGN
Information technology e.g. ATMs and teleworking
E-commerce e.g. travel booking, call centres
and grocery shoppingAlternative approaches e.g. eye microsurgery
(IT-based and other designs)
© AMD Publishing/Terry Hill 2005
T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X
Exhibits 5.13 from page 161
SERVICE DELIVERY SYSTEM DESIGN
(Alternative approach - eye microsurgery) p 161
© AMD Publishing/Terry Hill 2005
T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X
SERVICE DELIVERY SYSTEM DESIGN
(Other issues in system design)
ENHANCING servicesLevel of customer PARTICIPATIONMaximising use of SKILLED staffLevel of server DISCRETION
© AMD Publishing/Terry Hill 2005
T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X
SERVICE DELIVERY SYSTEM DESIGN
Profiling - p 169
Exhibits 5.10 from page 154
© AMD Publishing/Terry Hill 2005
T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X
SERVICE PROFILING p 170
© AMD Publishing/Terry Hill 2005
T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X
SERVICE PROFILING
Exhibits 5.21 from page 169
© AMD Publishing/Terry Hill 2005
T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X
REFLECTIONS
© AMD Publishing/Terry Hill 2005
T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X
© AMD Publishing/Terry Hill 2005
T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X
Exhibit 5.23 from page 171
REFLECTIONS
© AMD Publishing/Terry Hill 2005
T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X
DIMENSIONS AFFECTINGAPPROPRIATE DELIVERY SYSTEMS
Service COMPLEXITY
The TECHNICAL dimension of what the service comprisesThe BUSINESS dimension in terms of volume and the market order-winners and qualifiers to be supported
THE MARKET
© AMD Publishing/Terry Hill 2005
T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X
The technology/people MIXThe NATURE of the servicesCATEGORIES of servicesCOMPLEXITY of the serviceVOLUMESMARKET order-winners and qualifiers
FACTORS INVOLVED IN SERVICE DELIVERY
© AMD Publishing/Terry Hill 2005
T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X
FACTORS INVOLVED IN SERVICE DELIVERY
(The technology/people mix)
© AMD Publishing/Terry Hill 2005
T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X
Exhibit 5.2 from page 147
FACTORS INVOLVED IN SERVICE DELIVERY
(The nature of the service being processed)
© AMD Publishing/Terry Hill 2005
T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X
OVERALL
SERVICE DELIVERY SYSTEM DESIGN
© AMD Publishing/Terry Hill 2005
T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X
DETAILED
OVERALL
SERVICE DELIVERY SYSTEM DESIGN
© AMD Publishing/Terry Hill 2005
T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X
IT-based and OTHER designs
DETAILED
OVERALL
SERVICE DELIVERY SYSTEM DESIGN
© AMD Publishing/Terry Hill 2005
T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X
SERVICE DELIVERY SYSTEM DESIGN
(Overall)
© AMD Publishing/Terry Hill 2005
T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X
Exhibits 5.5 and 5.6 from page 149
SERVICE DELIVERY SYSTEM DESIGN
(The importance of customer retention)
© AMD Publishing/Terry Hill 2005
T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X
Exhibits 5.7 and 5.8 from page 150
SERVICE DELIVERY SYSTEM DESIGN
(The importance of customer retention)
© AMD Publishing/Terry Hill 2005
T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X
SERVICE DELIVERY SYSTEM DESIGN
(Phase 1 - Back office or front office)
© AMD Publishing/Terry Hill 2005
T. Hill, Operations Management 2e. Palgrave Macmillan ISBN: 1403934665/ 140399112X
Exhibits 5.18 from page 164
SERVICE DELIVERY SYSTEM DESIGN
(Other issues in system design)