Evaluation Service process Consumer participant Consumer-provider interface Consumer Consumer arrivals (input) departures Criteria (output) Measure ment Control Monitor Consumer demand Service operations manager Service personnel Alter demand • Production function: Monitor and control process Empowerment Training Perceived needs Schedule supply • Marketing function: Interact with consumers Control demand Location Attitudes Modify as necessary Define standard Service package Supporting facility Facilitating goods Communicate by advertising Basis of selection Information Explicit services Implicit services Source: Bordoloi, S., Fitzsimmons, J., & Fitzsimmons, M. (2019). Service Management: Operations, Strategy, Information Technology, 9e. Figure 1.9: Open Systems View of Services
Evaluation Service process Consumer participant Consumer-provider interface Consumer Consumer arrivals (input) departures Criteria (output) Measure ment Control Monitor Consumer demand Service operations manager Service personnel Alter demand • Production function: Monitor and control process Empowerment Training Perceived needs Schedule supply • Marketing function: Interact with consumers Control demand Location Attitudes Modify as necessary Define standard Service package Supporting facility Facilitating goods Communicate by advertising Basis of selection Information Explicit services Implicit services Source: Bordoloi, S., Fitzsimmons, J., & Fitzsimmons, M. (2019). Service Management: Operations, Strategy, Information Technology, 9e. Figure 1.9: Open Systems View of Services
Evaluation Service process Consumer participant Consumer-provider interface Consumer Consumer arrivals (input) departures Criteria (output) Measure ment Control Monitor Consumer demand Service operations manager Service personnel Alter demand • Production function: Monitor and control process Empowerment Training Perceived needs Schedule supply • Marketing function: Interact with consumers Control demand Location Attitudes Modify as necessary Define standard Service package Supporting facility Facilitating goods Communicate by advertising Basis of selection Information Explicit services Implicit services Source: Bordoloi, S., Fitzsimmons, J., & Fitzsimmons, M. (2019). Service Management: Operations, Strategy, Information Technology, 9e. Figure 1.9: Open Systems View of Services
As Figure 1.9 shows, the customer is viewed as an input that is transformed by the service process into an output with some degree of satisfaction. The role of the service operations manager includes the functions of both production and marketing in an open system with the customer as a participant. The traditional manufacturing separation of the production and marketing functions, with finished-goods inventory as the interface, is neither possible nor appropriate in services. Marketing performs two important functions in daily-service operations: (1) educating the consumer to play a role as an active participant in the service process and (2) “smoothing” demand to match service capacity. This marketing activity must be coordinated with scheduling staff levels and with both controlling and evaluating the delivery process. By necessity, the operations and marketing functions are integrated for service organizations. For services, the process is the product. The presence of the customer in the service process negates the closed-system perspective that is taken in manufacturing. Techniques to control operations in an isolated factory producing a tangible good are inadequate for services. No longer is the process machine-paced and the output easily measured for compliance with specifications. Instead, customers arrive with different demands on the service; thus, multiple measures of performance are necessary. Service employees interact directly with the customer, with little opportunity for management intervention. This requires extensive training and empowerment of employees to act appropriately in the absence of direct supervision. Further, customer impressions of service quality are based on the total service experience, not just on the explicit service that is performed. A concern for employee attitudes and training becomes a necessity to ensure that the implicit service is also appreciated by the customer. When viewed from the customer’s perspective, the entire service process raises concerns ranging from the aesthetic design of the facility to pleasant diversions in waiting areas. An open-system concept of services also allows one to view the customer as a coproducer. Permitting the customer to participate actively in the service process (e.g., providing a salad bar at a restaurant) can increase productivity, which in turn can create a competitive edge
Transcribed Image Text:Service process
Consumer participant
Consumer-provider
interface
Consumer
Evaluation
Consumer arrivals
(input)
departures
Criteria
(output)
Measure ment
Control
Monitor
Consumer demand
Service personnet
Service operations manager
• Production function:
Monitor and control process
• Marketing function:
Interact with consumers
Empowerment
Training
Attitudes
Alter
Schedule
Perceived needs
Location
demand
supply
Control demand
Modify as necessary
Define standard
Service package
Supporting facility
Facilitating goods
Basis of
Communicate
by advertising
Information
selection
Explicit services
Implicit services
Source: Bordoloi, S., Fitzsimmons, J., & Fitzsimmons, M. (2019). Service Management: Operations, Strategy, Information Technology, 9e.
Figure 1.9:
Open Systems View of Services
Identification and sourcing products or services to deliver to the marketplace and to promote them. These functions include product management, selling, pricing, marketing information, distribution, promotion, and financing.
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