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Leo Sanchez

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Towards A Classification of Service Processes LEO SANCHEZ Objective Developing an understanding of management issues in service organizations across industry ... – PowerPoint PPT presentation

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Title: Leo Sanchez


1
Towards A Classification of Service Processes
  • Leo Sanchez

2
Objective
  • Developing an understanding of management issues
    in service organizations across industry
    boundaries through an integrated service typology.

3
Traditional Perspective
  • Manufacturing Process Types
  • Six Service Dimensions
  • Project
  • Jobbing
  • Batch
  • Line
  • Continuous process operations
  • Equipment/People Focus
  • Length of Customer contact time
  • Extent of Customization
  • Extent to which customer contact personnel
    exercise judgment in meeting individual needs
  • Source of Value Added(Front office/Back office)
  • Product/Process Focus

4
Application of Service Classifications
  • A research team funded by the Chartered Institute
    of Management Accountants analyzed and put
    together 11 in depth case studies on large, for
    profit UK service organizations.
  • Objective
  • Find clusters of features, which may lead to an
    integrated typology
  • Aim
  • Develop and Understand
  • -Competitive service strategies
  • -Nature of Service Processes
  • -Tasks and challenges encountered by service
    man managers

5
Methodology
  • 1. Rank organizations by the volume of customers
    processed by a typical unit per day
  • 2. Rank organization by service dimension
  • Contact time was easily measured, but other
    dimensions were ranked according to a Delphi
    Technique

6
Results
  • A pattern emerges as the number of customers
    processed by a typical unit per day increases,
    the general trend
  • Focus moves from people to an equipment
    orientation
  • Length of contact time moves from high to low
  • Degree of customization moves from high to low
  • Level of employee discretion moves from high to
    low
  • Value added moves from front office to back
    office (Focus moves from a process to product
    orientation.)
  • Customer processing is an appropriate measure of
    volume
  • There are three service types
  • 1. Professional services
  • 2. Service Shop
  • 3. Mass Services

7
Three Types of Service
  • 1. Professional Services Organizations with
    relatively few transactions, highly customized,
    process oriented, with relatively long contact ,
    with most value added in the front office, where
    considerable judgment is applied in meeting
    customer needs
  • 2. Mass Services Organizations where there are
    many customer transactions, involving limited
    contact time and little customization. The
    offering is predominantly product oriented with
    most value being added in the back office and
    little judgment applied by the front office
    staff.
  • 3. Service Shops A categorization which falls
    between professional and mass services with the
    levels of the classification dimensions falling
    between the other two extremes.
  • Service Factory Service oriented manufacturing
    company

8
Implications
  • Service strategy, control, and performance
    measurement differ significantly between the
    three types of services (professional, service
    shop, and mass services)
  • Service organizations are unique, but can be
    classified into one of three types of services
  • A unified framework for the service organization
    can be developed and improve
  • Competitive service strategies
  • Issues in service organizations
  • Improve overall service organization.
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