Service Operations Management. Module Objectives. Understand the importance of and need for a service focus within the value-driven operations management system Develop and implement service delivery system designs that maximize customers’ perceptions of service value
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Service value can be defined as a function of customers’ perceptions of what they receive in a service encounter relative to what they give or lose in the encounter.
Value = Total Cost
Total cost includes the price that is paid for the service, in addition to, other customer acquisition costs (monetary and nonmonetary).
Preparing for the service by such actions as seeking referrals, researching competitors, and arriving early.
Building a relationship with the service provider through such actions as smiling, offering words of kindness, getting to know providers, "trying to build loyalty", and asking for servers by name.
Providing and seeking information to clarify service expectations and seek status.
Providing negative performance feedback and involving oneself in problem diagnosis and resolution.Nonmonetary Acquisition Costs
Service design ranges from the creation of new service business to the addition, adaptation, or modification of new service elements within an existing business.
A service value proposition is a succinct statement of the service provided and its expected value to customers.
Deferred payments--let you borrow aggressively while matching costs to revenues
Aligned with the manufacturer--finance your network with the company who best understands your business-Cisco Systems-and tailors its financing products to conform to the unique service provider business model
Full financial product suite--Cisco is investing in your success as a business, and forging a long term relationship with you as both a technology and financial partner, with other financing programs you can use later as your business grows
One-stop shopping--with one place to go for best-of-class technology solutions and financing, it's easier and faster to get your network built and business started
Limited Discretionary Action of Personnel
Levitt’s prototypic service example, McDonald’s, is able to promise customers a consistent service package by automating most parts of the production process and clearly defining employees’ tasks.
Division of Labor.
Cooks, take-out-window cashiers, and front-line cashiers focus on specialized tasks.
Substitution of Technology for People
Lights and buzzers pace hamburger production just as the moving assembly line sets the pace of mass production of automobiles.
Many travelers frequent McDonald's because they know exactly what to expect.Production-Line Approach
Gap 1: Failure to understand what our customers expect
Gap 2: Inability to translate expectations into service design specifications
Gap 3: Inability to deliver the service per the design specifications
Gap 4: Communicated expectations that do not match service delivery capabilities
Gap 5: Dissatisfaction due to unmet expectations