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Service Blueprint

The document discusses the differences between production and service processes. Production is organized as continuous, line, batch, or job shop processes with the goal of efficiency and low waste. Service requires customer contact and participation, making it an open system. The concepts of front office and back office are introduced, with front office requiring customer presence and back office not. Decoupling, or separating front and back office work, can improve efficiency but risks lower service quality, flexibility, delivery speed, and customer satisfaction due to communication gaps. Firms pursue different levels of decoupling depending on their strategic focus on cost leadership versus service. Service blueprinting is introduced as a tool to map the service process and identify failure points.

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Rajiv Ranjan
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174 views29 pages

Service Blueprint

The document discusses the differences between production and service processes. Production is organized as continuous, line, batch, or job shop processes with the goal of efficiency and low waste. Service requires customer contact and participation, making it an open system. The concepts of front office and back office are introduced, with front office requiring customer presence and back office not. Decoupling, or separating front and back office work, can improve efficiency but risks lower service quality, flexibility, delivery speed, and customer satisfaction due to communication gaps. Firms pursue different levels of decoupling depending on their strategic focus on cost leadership versus service. Service blueprinting is introduced as a tool to map the service process and identify failure points.

Uploaded by

Rajiv Ranjan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Front office/Back office Service Blueprint

Front Office/ Back office Service Blueprint; Queuing

Comparison with Production Processes


Production processes are organized as: Continuous Line Batch Job shop

The premise in production


Flow of materials Efficiency High utilization of resources Low wastages Avoiding customer contact

The premise in service


To provide experience to customer To generate customer satisfaction To increase customer contact

Production as a Closed System


In traditional Manufacturing system Production and marketing systems are separated. Customer is kept outside. It is a closed system Nuisance of customer presence is reduced The system can therefore work for high efficiency, productivity, capacity utilization Results in low cost

How do we compensate customer service?


Conformance to specifications Service stations Warranties Buffers for both internal and external customers Inventory controls

Service is an open System


In service, customer is integrated with production of service, as there is - Simultaneous consumption and production - -customer is a participant - High level of interaction with customer exists - Customer is an important input for transformation

Implications
No traditional concepts of closed system can be applicable. Efficiency suffers. Productivity goes down A service manager has to manage both production and customer Service requires customer contact and that is a great opportunity to business ( as in direct selling)

Front office, Back office


Back office: that does not require the presence of the customer Front office: that requires the presence of the customer There is a thin line emerging between the two The concept is based on the Customer contact Model: High contact and low contact elements should be separated

Decoupling
Work that does not require customer contact is decoupled from the front office jobs Means demarcation with separate job descriptions with different employees for back office It means removal of those employees from physical sites at back office that deal with customers

Reasons for decoupling


1. Efficiency: To improve efficiency when high customer contact jobs are taken away. Specialization, repeat operations, economies of scale improve efficiency Flow: To create buffer between low customer contact and high customer contact areas for a smooth flow. Worker Skills: A firm requires differing skills for low contact and high contact.PR and interpersonal attributes for high-contact and technical, analytical for low-contact. Quality: Consistent quality comes through specialized skills and increase of experience in backoffice

2.

3.

4.

Conflict between decoupling and Service Concept


1. Decoupling and Cost: Costs reduction is the basic result However, costs can increase because of increased Idleness of specialized employees. Staffing is based on peak requirements, which further increases idleness Estimates of workloads are difficult.

2. Decoupling and Quality Decoupling increases conformance quality, but dependability and accuracy suffers because of communication gap between front office and back office Involvement of employees to generate customer satisfaction suffers Non-standard customer requests do not receive attention

3. Decoupling and Delivery Decupling increases task speed (FW Taylor) but decreases process speed Decoupling depends on high contact workers to collect information and pass on to back office. Delivery depends on back office, but credit goes to the front office creating dissatisfaction of back office

4. Decoupling and Flexibility Flexibility suffers because tendency to standardize to reduce costs Decoupled employees are not in contact with customers, hence demand flexibility is unknown There is a communication failure. High contact accepts demand without knowing if back office can deliver or not.

Decoupling
Low SERVICE (flexibility, Qlty, delivery,speed,) Emphasis COST Emphasis High Service High Focused Professionals ( doctors, lawyers)

CheapCost leadership Convenience ( banks) (Kioskstrategy)

Linking Decoupling and Firm Strategy


High decoupling, Cost Emphasis: Cost Leader Pursue scale of economies Aggressive technological innovation to substitute labour High contact personnel share some back office functions to avoid idleness Service is broad based as perceived by customers. Hence commissions as incentives to high contact service employees does not work. Examples: Banks, Call centers, discount houses

Low Decoupling, Cost Emphasis,


Cheap Convenience Small service units, limited product lines, low cost and high customer convenience Employees require cross training in high contact units to fill in high idleness, Compensation on salaries for versatility of skills

High decoupling, Service emphasis:


High Professionals Primary aim is to support the Front office and provide customer service and not achieve low cost Tasks are segregated as personality and abilities of employees Employees are specialists and paid for task performance

Low decoupling, Service Emphasis:


High Service Personalized service at premium price Relationship orientation with customers Maximized flexibility and responsiveness Back offices are decoupled only where overwhelming advantages are provided by technology( scales of economy) High contact firms, a broad complex product line Knowledgeable workers, dedicated to customers

Manageme Cost nt Practice leader Decoupling level High

Cheap Conv. Low

Focused High Service Profess. High Low

Competitive Low cost Locational Experts Adv. convenien in back ce. office Reason for Scale of Cost Quality decoupling economy competitiv control eness Decoupled All back Limited Regional office back office back office

Personalized service Centralize if cost prohibitive Expensive capital goods

Managemen t Practice Strategic focus

Cost leader

Cheap Conv.

Focused Profess.

High Service

Min. cost Quality and min cost

Maintain Maximize Flex., service Flexibility . Service time

Productline
Training

Narrow

Very narrow Broad

Very Broad

Narrow

Very narrow Narrow but focus on entire process

Broad with specialization across all functions

Service Blueprinting (Lynn Shostack-1984)


Used to mapping the service process, identifying all the points where customer is in contact with the service provider, which in turn informs us points where things can go wrong Three important elements: 1. Line of visibility- seen by the customers 2. Line of internal interaction 3. Failure points-where things can go wrong

Service blueprint- 4 Key steps


1. Identify activities involved in delivering the service and present these in a diagrammatic form. The level of detail will depend on the complexity and nature of service 2. Identify the failure points. These are stages where things can go wrong. The actions necessary to correct these must be determined and systems and procedures developed to reduce the likelihood of them occurring in the first instance

3. Set standards against which the performance of the various steps might be measured. (Often this is the time taken) 4. Analyze the profitability of the service delivered, in terms of the number of customers served during a period of time.

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