Chapter 5 - Service design. This chapter includes contents: Service economy, characteristics of services, service design process, tools for service design, waiting line analysis for service improvement. | Robert S. Russell, Bernard W. Taylor III, Ignacio Castillo, Navneet Vidyarthi CHAPTER 5 Service Design OPERATIONS MANAGEMENT: Creating Value Along the Supply Chain, Canadian Edition 1 Learning Objectives Relate numerous statistics that demonstrate the predominance of services in the Canadian and the global economy. Define services and their characteristics such that they are distinguishable from manufacturing. Explain the key aspects of the service design process and describe how they are affected by varying degrees of customer/service provider contact. Describe several tools used for service design including blueprinting and servicescapes. Use waiting line analysis to improve service. 2 Lecture Outline Service Economy Characteristics of Services Service Design Process Tools for Service Design Waiting Line Analysis for Service Improvement 3 Service Economy 4 Percent of GDP by Industry Sector for Canada 5 Characteristics of Services Services acts, deeds, or performances Goods tangible | Robert S. Russell, Bernard W. Taylor III, Ignacio Castillo, Navneet Vidyarthi CHAPTER 5 Service Design OPERATIONS MANAGEMENT: Creating Value Along the Supply Chain, Canadian Edition 1 Learning Objectives Relate numerous statistics that demonstrate the predominance of services in the Canadian and the global economy. Define services and their characteristics such that they are distinguishable from manufacturing. Explain the key aspects of the service design process and describe how they are affected by varying degrees of customer/service provider contact. Describe several tools used for service design including blueprinting and servicescapes. Use waiting line analysis to improve service. 2 Lecture Outline Service Economy Characteristics of Services Service Design Process Tools for Service Design Waiting Line Analysis for Service Improvement 3 Service Economy 4 Percent of GDP by Industry Sector for Canada 5 Characteristics of Services Services acts, deeds, or performances Goods tangible objects Facilitating services accompany almost all purchases of goods Facilitating goods accompany almost all service purchases 6 Continuum From Goods to Services Source: Adapted from Earl W. Sasser, . Olsen, and D. Daryl Wyckoff, Management of Service Operations (Boston: Allyn Bacon, 1978), . 7 Characteristics of Services Service are inseparable from delivery Services tend to be decentralized and dispersed Services are consumed more often than products Services can be easily emulated Services are intangible Service output is variable Services have higher customer contact Services are perishable 8 Service Design Process 9 Service Design Process Service concept purpose of a service; it defines target market and customer experience Service package mixture of physical items, sensual benefits, and psychological benefits Service specifications performance specifications design specifications delivery specifications 10 Service Process Matrix 11 High vs. Low Contact Services 12 High .