Tuesday, January 29, 2019

American Services Culture: Learning Objectives for Week 3: Ch. 5 (SMO: SIT) (Pp. 115) The thread has no unread message.Thread expanded. created by BHFSC & CCAPA WorkGroup (you)

Bonjour Bonjour!

Billboard Model: Rachel Lynne, S. (2016)

Los Angeles, CA, U.S.A.

+1 (213) 716 8398

r.sakhi@fastice.us

My pleasure to meet you all once again, and my wishes are with all your projects that they are

accomplished to the best of our abilities as well sustain temperance, professionalism, and

the audacity to go onward with class or style.

This week 3 discussion board talks about the following OBJECTIVES & TOPICS:

3.1: Services is something provided to people in different sectors of any industry utilized to support the econmy of the American society. 3.1 Process is a way of life for all individuals compartmentalized into society to ease the burden and grant relief for the suffering, the terminally ill, the rich who pay too many taxes, the hard working who rarely relax, and the poor whom are 145% below the United States federal poverty levels deserving of assistance to meet basic needs, and equal rights to enjoy the privileges granted to most within those compartments serving various levels of challenges for different groups of populations. This structure was built and is an application system applied to every aspect of the American social structure to organize the People, and to satisfy the People while sustaining a balanced lawful environment to the best of our abilities (Walker, 2017) /(UOP, 2019)/(Sakhi, R. L., 01/2019). Managing anything requires endurance, training, education, skills, and love of People in order to practice serving those who follow you. In leadership positions many people have the right and share the privilege of experiencing leadership opportunities such as parenting skills, fast food chain supervision of employee teams, law firm & certified professional accountants, wives and head of households including supervisors of pets. When keeping focus on this week's topics and competencies we have the opportunity to combine these definitions to remind ourselves how the process of service management is created, sustained, improved, and adapts accordingly to any environment artificial or natural in habitat.

According to Fitzsimmons (2013) "Our welfare and the welfare of our economy now are based on services" (Fitzsimmons, Fitzsimmons, & Bordoloi, 2013). The American services culture is based on food services, communication, and emergency with an emphasis on manufacturing and agriculture in food or goods (F,F,B, 2013).

" Service Operations Management is established firmly as a field of study that embraces all service industries" (F, F, & B, 2013).

Understanding Services

1 The Service Economy

Our textbook is authored by three accomplished people:
Mona Fitzsimmons: Journalism of Michigan/Healthcare & Wildlife/Red Cross Volunteer/Geology Graduate/University leveled teaching
James Fitzsimmons: PhD UCLA/Research of ER Ambulatory Location/BSE Engineering University of Texas @ Austin/University leveled professorship
Sanjeev Bordoloi: Graduate PhD University of Texas @ Austin/Research interests in theory constraints, lean management, process analysis and design/Engineering & Business/Minnesota/Operations Management research/teaching with renowned excellency

All three authors of our textbook share some things in common such as:

Society, Process, Environmental Awareness, and Teaching
Service operations is defined as a discipline by the DSI (Design Services Institute) in Boston, MA since 1987
Management aspects of service operations engages in the embracing of all industries providing services in an economy (Pp. vii).

Source: Fitzsimmons, Fitzsimmons, and Bordoloi (2013).

2 Service Strategy

Competitive Service Strategies²

There are three generic competitive strategies: overall cost leadership, differentiation, and focus. Each strategy will be described in turn, with examples of how service firms use them to outperform their competition.

Overall Cost Leadership

An overall cost leadership strategy requires efficient-scale facilities, tight cost and overhead control, and often innovative technology as well. Having a low-cost position provides a defense against competition, because less efficient competitors will suffer first from competitive pressures. Implementing a low-cost strategy usually requires high capital investment in state-of-the-art equipment, aggressive pricing, and start-up losses to build market share. A cost leadership strategy sometimes can revolutionize an industry, as illustrated by the success of McDonald's, Walmart, and Federal Express. Moreover, service firms have been able to achieve low-cost leadership using a variety of approaches.

Seeking Out Low-Cost Customers

Some customers cost less to serve than others, and they can be targeted by the service provider. For example, United Services Automobile Association (USAA) occupies a preeminent position among automobile insurers because it serves only military personnel and their families. This group also entails lower cost because its members, who are relatively nomadic, are accustomed to and willing to do business by telephone, mail, or online. Consequently, USAA is able to eliminate any need for the extensive sales force employed by traditional insurers. Another example of this strategy is provided by low-cost retailers such as Sam's Wholesale Club and Costco, which target customers who are willing to buy in quantity, do without frills, and serve themselves.

Standardizing a Custom Service

Typically, income tax preparation is considered to be a customized service. H&R Block, however, has been successful in serving customers nationwide when only routine tax preparation is required. Also, storefront legal services and family health care centers are attractive means of delivering routine professional services at low cost. The key word here is routine. However, product substitution is always a danger (e.g., Turbo Tax).

Reducing the Personal Element in Service Delivery

The potentially high-risk strategy of reducing the personal element in service delivery can be accepted by customers if increased convenience results. For example, convenient access to ATMs has weaned customers from personal interaction with live tellers and, consequently, has reduced transaction costs for banks.

Reducing Network Costs

Unusual start-up costs are encountered by service firms that require a network to knit together providers and customers. Electric utilities, which have substantial fixed costs in transmission lines, provide the most obvious example. Federal Express conceived a unique approach to reducing network costs by using a hub-and-spoke network. By locating a hub in Memphis with state-of-the-art sorting technology, the overnight air-package carrier was able to serve the United States with no direct routes between the cities that it served. Each time a new city is added to the network, Federal Express only needs to add one more route to and from the hub instead of adding routes between all the cities served. Page 34The efficiency of the hub-and-spoke network strategy has not been lost on passenger airline operators, either.

Taking Service Operations Offline

Many services, such as haircutting and passenger transportation, are inherently "online," because they can only be performed with the customer present. For services in which the customer need not be present, the service transaction can be "decoupled," with some content performed "offline." For example, a shoe repair service could locate dispersed kiosks for customer drop-off/pick-up, thus consolidating orders for delivery to an off-site repair factory, which even could be located offshore. Performing services offline represents significant cost savings because of economies of scale from consolidation, low-cost facility location (e.g., American Airlines has one of its 800-number reservations centers located in the Caribbean), and absence of the customer in the system. In short, the decoupled service operation is run like a factory.

Differentiation

The essence of the differentiation strategy lies in creating a service that is perceived as being unique. Approaches to differentiation can take many forms: brand image (e.g., McDonald's golden arches), technology (e.g., Sprint's fiber-optic network), features (e.g., American Express's complete travel services), customer service (e.g., Nordstrom's reputation among department stores), dealer network (e.g., Century 21's nationwide real estate presence), and other dimensions. A differentiation strategy does not ignore costs, but its primary thrust lies in creating customer loyalty. As illustrated here, differentiation to enhance the service often is achieved at some cost that the targeted customer is willing to pay.

Making the Intangible Tangible

By their very nature, services often are intangible and leave the customer with no physical reminder of the purchase. Recognizing the need to remind customers of their stay, many hotels now provide complimentary toiletry items with the hotel name prominently affixed. The Hartford Steam Boiler Inspection and Insurance Company (now part of Munich Re) writes insurance on industrial power plants, but this company has enhanced its service to include regular inspections and recommendations to managers for avoiding potential problems.

Customizing the Standard Product

Providing a customized touch may endear a firm to its customers at very little cost. A hotel operator who is able to address a guest by name can make an impression that translates into repeat business. Hair salons have added many personalizing features (e.g., personal stylist, juice bar, relaxed surroundings, mood music) to differentiate themselves from barbershops. Burger King's efforts to promote a made-to-order policy is an attempt to differentiate itself from McDonald's classic make-to-stock approach to fast-food service.

Reducing Perceived Risk

Lack of information about the purchase of a service creates a sense of risk-taking for many customers. Lacking knowledge or self-confidence about services such as auto repair, customers will seek out providers who take the extra time to explain the work to be done, present a clean and organized facility, and guarantee their work (e.g., Village Volvo). Customers often see the "peace of mind" that is engendered when this trusting relationship develops as being worth the extra expense.

Giving Attention to Personnel Training

Investment in personnel development and training that results in enhanced service quality is a competitive advantage that is difficult to replicate. Firms that lead their industries are known among competitors for the quality of their training programs. In some cases, Page 35these firms have established collegelike training centers (e.g., McDonald's Hamburger University in Oak Brook, Illinois, near Chicago).

Controlling Quality

Delivering a consistent level of service quality at multiple sites with a labor-intensive system is a significant challenge. Firms have approached this problem in a variety of ways, including personnel training, explicit procedures, technology, limits on the scope of the service, direct supervision, and peer pressure, among others. For example, to ensure consistency, the Magic Pan chain of restaurants designed a foolproof machine to produce its famous crêpes. The question of service quality is further complicated by the potential gap between customer expectations and experiences. Influencing customer quality expectations thus becomes an issue, which is explored in Chapter 6, Service Quality.

Focus

The focus strategy is built around the idea of servicing a particular target market very well by addressing customers' specific needs. The market segment could be a particular buyer group (e.g., USAA and the military community), service (e.g., Shouldice Hospital and patients with inguinal hernias, Motel 6 and budget travelers, Federal Express and people who need guaranteed overnight package delivery), or geographic region (e.g., community college or neighborhood restaurant). The focus strategy rests on the premise that the firm can serve its narrow target market more effectively and/or efficiently than other firms trying to serve a broad market. As a result, the firm achieves competitive advantage in its market segment by meeting specific customer needs and/or by lower costs through specialization. Thus, the focus strategy is the application of differentiation and/or overall cost leadership to a particular market segment rather than the entire market.

Davidow and Uttal argue how important customer selection is to achieving a successful focus strategy.³ They relate how one bank in Palo Alto, California, targets wealthy individuals and discourages others by policies such as closing an account after two checks have bounced. Davidow and Uttal's three-step approach to focus includes segmenting the market to design core services, classifying customers according to the value they place on service, and setting expectations slightly below perceived performance.

Strategic Analysis

Strategic analysis begins with a stated objective, such as "should we enter an industry with a new service offering?" Two popular planning tools include (1) Porter's five forces analysis of the target industry structure and (2) SWOT analysis to assess the organization's strengths, weaknesses, opportunities, and threats in a market.

Porter's Five Forces Analysis⁴

The five forces model is used at the industry level (e.g., airlines) to determine the competitive intensity and, therefore, attractiveness of a market. The five forces affect the ability of a firm to attract customers and make a profit. Figure 2.1 shows a model of the five forces with example issues to consider in each case.

Consider Netflix as an example firm entering the video rental industry. Our discussion begins with the center block (Competitive Rivalry within Industry) upon which the external forces act.

Competitive Rivalry within Industry. Often this factor is the major determinant of industry competitiveness. Rivals might be aggressive price competitors or they might use nonprice strategies such as innovation, branding, or superior quality. Industry capacity relative to total customer demand is an important indicator of whether a new entrant will find customers. An exception was Southwest Airlines, which entered the Texas market offering low-cost fares and frequent departures that tapped a latent demand of business commuters who usually traveled by car. When Netflix entered the Page 36market offering DVDs exclusively by mail, its only rivals were rental stores such as Blockbuster.

FIGURE 2.1 Porter's Five Forces Model

3.2: Examine measures of cost control (measuring devices utilized to measure the success of cost control budgeting):

3.3 Evaluate methods of service training:

"Supporting Facility and Process Flows" (Pp. 115) I have reviewed the objectives from our text and the following is the result:

PART TWO Source: Pp. xi (Fitzsimmons, Fitzsimmons, & Bordoloi, 2013).

Designing the Service Enterprise

3 New Service Development

4 The Service Encounter

5 Supporting Facility and Process Flows

6 Service Quality

7 Process Improvement

Supplement: Data Envelopment Analysis (DEA)

8 Service Facility Location

Chapter 5

Chapter 4 Case Studies and Discussion Topics Itinerary

Source: Judith Martin, "Complaint-Handling Requires a Deft 'Switcheroo,'" Associated Press as printed in Austin American Statesman, November 1, 1992, p. E14.

TABLE 4.5 Satisfaction Duality (Pp. 105)

FIGURE 4.4 Relationship between Customer and Employee Perceptions of Customer Service

Source: Service Management: Operations, Strategy, Information Technology, Ch. 5 (Pp. 115), Fitzsimmons, Fitzsimmon, & Bordoloi (2013).

TABLE 4.4 Examples of Unethical Behaviors in Customer-Contact Settings

Source: Adapted from Charles H. Schwepker, Jr. and Michael D. Hartline, "Managing the Ethical Climate of Customer-Contact Service Employees," Journal of Service Research 7, no. 4 (May 2005), p. 378.

FIGURE 4.1 Role of Technology in the Service Encounter

Source: With permission from Craig M. Froehle and Aleda V. Roth, "New Measurement Scales for Evaluating Perceptions of the Technology-Mediated Customer Service Experience," Journal of Operations Management 22, no. 1 (February 2004), p. 3.

TABLE 4.1 Evolution of Self-Service

Source: Reprinted with permission from James A. Fitzsimmons, "Is the Future of Services Self-service?" Managing Service Quality 13, no. 6 (2003), p. 444.

Source: https://phoenix.vitalsource.com/books/1260090507/epubcfi/6/34[;vnd.vst.idref=body017]!/4/2/2[page115]@0:0

REFERENCES

Fitzsimmons, James A.

Service management : operations, strategy, information technology / James A. Fitzsimmons, Mona J.

Fitzsimmons, Sanjeev Bordoloi.--8th ed.

p. cm.--(The McGraw-Hill/Irwin series operations and decision sciences)

ISBN 978-0-07-802407-8 (alk. paper)--ISBN 0-07-802407-2 1. Service industries--Management.

I. Fitzsimmons, Mona J. II. Bordoloi, Sanjeev. III. Fitzsimmons, Mona J. IV. Bordoloi, Sanjeev. V. Title.

HD9980.5.F549 2014

658--dc23 www.mhhe.com

Words: 2482

How to create calculations, flow charts, and analysis process charts (Fitzsimmons, Fitzsimmons, The thread has no unread message.Thread expanded. created by BHFSC & CCAPA WorkGroup (you)

Bonjour Bonjour!

Here in this post I display major points for discussion gathered from the readings for Week 3.

I am truly exhausted, however it was a great experience and I have the audacity here to

infuse so much copied information. Oh well, although we are only supposed to utilize 1 to 5

sentences of borrowed information per citation reference with a fulfilling amount of in--text citations

utilizing paraphrasing as emphasis on years of publications, names of publications, and author surnames

with first and middle initial this APA, 6th Edition can become a tad bit tricky. It was fun and exciting, and

reading has never been more satisfying. My head hurts and it's now bed time for me.

There is a wealth of irresistable information here I want you to checkout:

"Supporting Facility and Process Flows" (Pp. 115) I have reviewed the objectives from our text and the following is the result:

Describe the impact of the "servicescape" on the behavior of customers and employees.

Identify and discuss the three environmental dimensions of servicescapes.

Environmental Dimensions of Servicescapes

The dimensions of the physical environment surroundings include all of the objective factors that can be controlled by the firm to enhance employee and customer actions and Page 119perceptions of the service. Although these dimensions will be discussed independently, it is important to realize that people respond to their environment holistically; that is, the total combined effect on all our senses defines our perception of the servicescape.

Ambient Conditions

The background of our environment, such as temperature, lighting, noise, music, and scent, affects all five of our senses. Music tempo, for example, can affect a customer's pace of shopping, length of stay, and amount of money spent. Consider a convenience store that played "elevator music" successfully to drive away teenagers who were loitering and discouraging paying customers from entering the store. A cookie shop in a busy mall can leave its doors open to invite customers with the fragrance of freshly baked cookies. All of these factors, including color of surroundings, also influence employee performance and job satisfaction.

Spatial Layout and Functionality

The arrangement of furnishings and equipment and the relationships among them create a visual and functional landscape for delivery of the service. This landscape can communicate order and efficiency (e.g., formal garden) or chaos and uncertainty for both employees and customers. For self-service activities, the functionality or ease of use of equipment is important to allow customers to perform unattended activities. Fast-food restaurants purposely design the facility to communicate visually the appropriate activities of diners. Menus are posted over the cash registers, self-serve drink machines are positioned between the counter and the tables, and waste containers are located near exits.

Signs, Symbols, and Artifacts

Many items in the physical environment serve as explicit or implicit signals that communicate acceptable norms of behavior. Explicit signs such as "no smoking" communicate rules of behavior, whereas "recycle bins" encourage responsible acts. The quality of the floor covering, artwork, and furnishings can create an overall aesthetic impression for the visitor and a pleasant workplace for the employee. Professional services can use interior decorating to communicate competence and enhance their professional image with the client. Restaurants communicate full service and high prices with signs such as pictures of famous diners, symbols such as tablecloths, and artifacts such as antiques or pottery. Studies of faculty offices indicate that desk placement, selection of wall pictures or posters, and tidiness of the office influence students' beliefs about the person who occupies the office.

Our discussion of servicescapes suggests that the physical environment may assume a variety of strategic roles in support of the service concept. First, the servicescape provides a visual metaphor for an organization's offering. The environmental dimensions of the servicescape create a package, similar to the packaging of a product that conveys an image suggesting relative quality, potential usage, and target market segment. For example, consider a comparison of Home Depot and Lowe's. A visit to Home Depot with its orange colors, bare floors, industrial lighting, and generally cluttered look conveys a masculine image of the construction industry. However, Lowe's with soft blues, tidy aisles, and attractively displayed merchandise projects a more female friendly image for the home improvement customer.

Second, the servicescape can facilitate customer orientation by incorporating "wayfinding" techniques that people use to navigate from place to place. Wayfinding, as used in architectural design, includes signage and other graphic communications (e.g., colorcoded subway lines), clues inherent in a building's physical space (e.g., carpet and plantings), logical flow planning, audible assistance, and provision for special-needs users. Appropriate attention to wayfinding can reduce customer anxiety and improve the overall service experience. When Google maps are embedded in retail websites, wayfinding becomes a visual exercise rather than written directions that sometimes are hard to follow. In the virtual world, wayfinding facilitates navigation around a website and minimizes the number of keystrokes needed to reach a search topic.

Page 120The American Institute for Graphic Arts (AIGA), the professional association for design, together with the U.S. Department of Transportation has produced a set of passenger/pedestrian symbols designed and used internationally at the crossroads of modern life (i.e., airports, train stations, Olympic Games). The complete set of 50 symbols can be found at http://www.aiga.org/content.cfm/symbol-signs.

Third, the servicescape also can encourage social interaction among customers. For example, the layout of a waiting room that has chairs grouped together around tables encourages social interaction and makes time pass more pleasantly.

Finally, the physical environment can serve as a subtle method to focus employee behavior. The design of the Mid-Columbia Medical Center in Columbia River, Oregon, for example, gave much attention to the employee entrance. A special employee-only entrance was designed as an atrium that could grace a five star hotel. Employees were greeted with a breakfast buffet in an environment of overstuffed chairs, potted plants, paintings, and inspiring music. The design was a deliberate attempt to foster a good mood for the day's work and encourage employees to leave personal cares and troubles at the door (Pp. 119)

Identify the six critical design features of a service supporting facility.

Clearly, good design and layout enhance the service, from attracting customers to making them feel more comfortable to ensuring their safety (e.g., adequate lighting, fire exits, proper location of dangerous equipment). Facility design also has an impact on the implicit service component of the service package--in particular, on criteria like privacy and security, atmosphere, and sense of well-being.

Several factors influence design: (1) the nature and objectives of the service organization, (2) land availability and space requirements, (3) flexibility, (4) security, (5) aesthetic factors, and (6) the community and environment (Pp. 120)

Draw a swim lane flowchart, process flow diagram, and a Gantt chart of a service process.

Swim Lane Flowchart:

"Swim lane flowcharts diagram organizational activities that cross functional lines (i.e., the swim lanes) highlighting the handoffs between lanes. The hardest task in developing a flowchart is getting everyone to agree on what the process looks like. However, the final diagram is useful for training, helping to coordinate activities between functions, and facilitating creative ideas for improvement" (Pp. 124)

FIGURE 5.3 Swim Lane Flowchart of Graduate School Admissions

The following standard symbols are used in flowcharting and illustrated in Figure 5.3:

Process Flow Diagram:

Example 5.1 illustrates a simplified process flow for a mortgage service.

Example 5.1 Mortgage Service (Pp. 125)

FIGURE 5.4 Process Flow Diagram of Mortgage Service (Pp. 125).

Gantt Chart of a Flow Process:

Gantt Chart

An activity-based schedule of the mortgage service process provides another visual representation for understanding and analysis. In Figure 5.5, we follow the progress of three applications through time. We see that "property survey" is an unusual activity because application 1 is immediately followed by application 2 and then by application 3 in unbroken procession. Because the "property survey" activity is never idle it is referred to as the bottleneck (an activity that constrains output) and its CT of 90 minutes defines the system output of one mortgage application completed every 90 minutes. Also, it can be observed that "credit report" and "title search" could be combined into one activity taking a total time of 75 minutes (45 min. + 30 min.) at no loss of system productivity because together these activities still have 15 minutes of idle time per each 90 minute cycle. The Gantt chart has many uses and will be seen again in Chapter 16, Managing Service Projects" (Pp. 125)

FIGURE 5.5 Gantt Chart of Mortgage Service

Process Analysis

Types of Processes

Students of manufacturing long ago found it useful to categorize processes in order to derive general management principles that would apply across industries sharing the same process. For example, all manufacturing assembly operations be they automobiles or personal computers share characteristics of a "flow" process. Using the traditional manufacturing process types listed in Table 5.1, we show that services also can be categorized by process type to identify management challenges. For example, any service that has a "batch" process shares the challenge of managing a perishable asset (unused capacity) such as an empty seat on an airplane, an unused hotel room, or an empty cabin on a cruise ship. After identifying the type of process, we then diagram the operations in a flowchart as the first step in process analysis.

Flowcharting

The ability to diagram a process, identify the bottleneck operation, and determine the system capacity are fundamental skills in managing service operations and making improvements. An acknowledged axiom is, "If you can't draw it, then you don't really understand it."

Our discussion begins with Figure 5.3, an example of a swim lane flowchart of a typical graduate school admissions process. Swim lane flowcharts diagram organizational activities that cross functional lines (i.e., the swim lanes) highlighting the handoffs between lanes. The hardest task in developing a flowchart is getting everyone to agree on what the process looks like. However, the final diagram is useful for training, helping to coordinate activities between functions, and facilitating creative ideas for improvement. For example, from an applicant's viewpoint, how could the process be improved? Perhaps an online inquiry system would allow the applicant to follow the process and thus reduce the need for the admissions clerk to "contact applicant" when a folder is incomplete.

Calculate performance metrics such as throughput time and direct labor utilization.

Identify the bottleneck operation in a product layout, and regroup activities to create new jobs that will increase the overall service capacity.
Use operations sequence analysis to determine the relative locations of departments in a process layout that minimize total flow-distance.

Example 5.2 Automobile Driver's License Office

The state automobile driver's license office is under pressure to increase its productivity to accommodate 120 applicants per hour with the addition of only one clerk to its present staff. The license renewal process currently is designed as a service line, with customers being processed in the fixed sequence listed in Table 5.2. Activity 1 (i.e., review application for correctness) must be performed first, and activity 6 (i.e., issue temporary license) must be the last step and, by state policy, be handled by a uniformed officer. Activity 5 (i.e., photograph applicant) requires an expensive digital camera and color printer.

The process flow diagram for the current arrangement, as shown in Figure 5.6a, identifies the bottleneck activity (i.e., the activity with the slowest flow rate per hour) as activity 3 Page 128(i.e., check for violations and restrictions), which limits the current capacity to 60 applicants per hour. By focusing only on the bottleneck, one might think that assigning an additional clerk to perform activity 3 would double the flow through the bottleneck and achieve the goal of 120 applicants per hour. However, the flow for this system would be limited to 90 applicants per hour, because the bottleneck would shift to activity

(Pp. 128)

TABLE 5.2 License Renewal Process Times

Key Terms and Definitions

Bottleneck the activity in a product layout that takes the most time to perform and thus defines the maximum flow rate for the entire process. p. 125

Capacity a measure of output per unit of time when fully busy. p. 126

Capacity utilization a measure of how much output is actually achieved relative to the process capacity when fully busy. p. 126

CRAFT (Computerized Relative Allocation of Facilities Technique) a computer program that uses the departmental exchange logic of operations sequence analysis to solve the relative location problem of process layouts. p. 131

Cycle time the average time between completions of successive units. p. 125

Direct labor utilization a measure of the percentage of time that workers are actually contributing value to the service. p. 127

Flow process layout a standardized service performed in a fixed sequence of steps (e.g., cafeteria). p. 127

Job shop process layout a service permitting customization because customers determine their own sequence of activities (e.g., an amusement park). p. 127

Operations sequence analysis a procedure to improve the flow distance in a process layout by arranging the relative location of departments. p. 130

Rush order flow time the time it takes to go through the system from beginning to end without any wait time in queue. p. 126

Servicescape the physical environment of a service facility that influences the behavior and perceptions of the service for both the customers and the workers. p. 116

Throughput time the time it takes to get completely through a process from time of arrival to time of exit. p. 126

Total direct labor content the sum of all the operations times. p. 126

(Pp. 133) Service Management: Operations, Strategy, Information Technology (Fitzsimmons, Fitzsimmons, & Bordoloi, 2013).

PART TWO Source: Pp. xi (Fitzsimmons, Fitzsimmons, & Bordoloi, 2013).

Designing the Service Enterprise

3 New Service Development

4 The Service Encounter

5 Supporting Facility and Process Flows

6 Service Quality

7 Process Improvement

Supplement: Data Envelopment Analysis (DEA)

8 Service Facility Location

Chapter 5

Chapter 4 Case Studies and Discussion Topics Itinerary

Source: Judith Martin, "Complaint-Handling Requires a Deft 'Switcheroo,'" Associated Press as printed in Austin American Statesman, November 1, 1992, p. E14

THE CUSTOMER FOCUS: (Pp. 103)

"Expectations and Attitudes

Service customers are motivated to look for a service much as they would for a product; similarly, their expectations govern their shopping attitudes. Gregory Stone developed a now-famous topology in which shopping-goods customers were classified into four groups.¹⁰ The definitions that follow have been modified for the service customer:

The economizing customer. This customer wants to maximize the value obtained for his or her expenditures of time, effort, and money. He or she is a demanding and sometimes fickle customer who looks for value that will test the competitive strength of the service firm in the market. Loss of these customers serves as an early warning of potential competitive threats.
The ethical customer. This customer feels a moral obligation to patronize socially responsible firms. Service firms that have developed a reputation for community service can create such a loyal customer base; for example, the Ronald McDonald House program for the families of hospitalized children has helped the image of McDonald's in just this way.
The personalizing customer. This customer wants interpersonal gratification, such as recognition and conversation, from the service experience. Greeting customers on a first-name basis always has been a staple of the neighborhood family restaurant, but Page 103computerized customer files can generate a similar personalized experience when used skillfully by frontline personnel in many other businesses.
The convenience customer. This customer has no interest in shopping for the service; convenience is the secret to attracting him or her. Convenience customers often are willing to pay extra for personalized or hassle-free service; for example, supermarkets that provide home delivery may appeal to these customers.

The attitude of customers regarding their need to control the service encounter was the subject of a study investigating customers' decision-making processes when they were confronted with the choice between a self-service option and the traditional full-service approach.¹¹ Customers who were interviewed appeared to be using the following dimensions in their selection: (1) amount of time involved, (2) customer's control of the situation, (3) efficiency of the process, (4) amount of human contact involved, (5) risk involved, (6) amount of effort involved, and (7) customer's need to depend on others" (Fitzsimmons, Fitzsimmons, & Bordoloi, 2013).

Key Terms and Definitions

Abstract questioning an open-ended question used to screen potential employees by revealing a candidate's ability to adapt and use interpersonal skills. p. 99

Coproduction viewing the customer as a productive resource in the service delivery process, which requires roles to play (e.g., busing his or her lunch table) and scripts to follow (e.g., using an ATM). p. 103

Culture the shared beliefs and values of an organization that guide employee decision-making and behavior in the firm. p. 96

Empowerment providing contact personnel with the training and information to make decisions for the firm without close supervision. p. 97

Service encounter triad a triangle depicting the balance of goals among the service organization, the contact personnel, and the customer. p. 94

Situational vignette a service encounter situation that can test a candidate's ability to "think on her or his feet" and to use good judgment. p. 99

Learning Objectives

After completing this chapter, you should be able to:

Use the service encounter triad to describe a service firm's delivery process.
Describe the five roles of technology in the service encounter.
Differentiate four organizational control systems for employee empowerment.
Describe the classification of customers into four groups based on their attitudes and expectations.
Prepare abstract questions and write situational vignettes to screen service recruits.
Describe how the creation of an ethical climate leads to job satisfaction and service quality.
Discuss the role of scripts in customer coproduction.
Describe how the elements of the service profit chain lead to revenue growth and profitability.

Source: https://phoenix.vitalsource.com/books/1260090507/epubcfi/6/34[;vnd.vst.idref=body017]!/4/2/2[page115]@0:0

REFERENCES

Fitzsimmons, James A.

Service management : operations, strategy, information technology / James A. Fitzsimmons, Mona J.

Fitzsimmons, Sanjeev Bordoloi.--8th ed.

p. cm.--(The McGraw-Hill/Irwin series operations and decision sciences)

ISBN 978-0-07-802407-8 (alk. paper)--ISBN 0-07-802407-2 1. Service industries--Management.

I. Fitzsimmons, Mona J. II. Bordoloi, Sanjeev. III. Fitzsimmons, Mona J. IV. Bordoloi, Sanjeev. V. Title.

HD9980.5.F549 2014

658--dc23 www.mhhe.com

Tuesday, January 29, 2019

American Services Culture: Learning Objectives for Week 3: Ch. 5 (SMO: SIT) (Pp. 115) The thread has no unread message.Thread expanded. created by BHFSC & CCAPA WorkGroup (you)

Bonjour Bonjour!