Lecture Operations and supply chain management: The Core (3/e) – Chapter 7: Service processes

After reading the material in this chapter, you should be able to: Describe the characteristics of service processes and how they differ from manufacturing processes, classify service processes, explain service blueprinting, understand waiting line (queuing) analysis, . | Service Processes Chapter 07 McGraw Hill Irwin Copyright 2013 by The McGraw Hill 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. 7 2 Operational Classification of Services 7 3 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 7 4 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 7 5 Service Blueprinting The standard tool for service process design is the flowchart Called a service blueprint 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 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 7 6 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 . steps that lead to mistakes trigger a reminder Physical or visual contact methods . parts can .

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