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11 Apr 2012
Operations Management
Chapter 5: Service Design
Characteristics of Services
Services: Acts, deeds, or performances
Goods: Tangile objects
1) Services are intangible
2) Service output is variable
3) Services have higher customer contact
4) Services are perishable
5) The service and the service delivery are inseparable
6) Services tend to be decentralized and geographically dispersed
7) Services are consumed more often than products
8) Services can be easily emulated
The Service Design Process
Service concept: The purpose of a service; it defines the target market and the customer
Service package: The mixture of physical items, sensual benefits, and psychological benefits
Performance specifications: Outline specifications and requirements
Design specifications: Desbribe the service in enough detail to be replicated
Delivery specifications: Speedy schedules, deliverables, location
Service blueprinting: A specialized flow chart used for service processes
Servicescapes: The design of the physical environment (including signs, symbols, and artifacts)
in which a service takes place
- Providing quick service is an important aspect of quality customer service
Elements of Waiting Line Analysis
Operating characteristics: Average values for characteristics that describe the performance of a
waiting line system
Queue: A single waiting line
- A waiting line system consists of arrivals, servers, and waiting line structure
Calling population: The source of customers; infinite or finite
Arrival rate: The frequency at which customers arrive at a waiting line; most frequently described
by a Poisson distribution
*Arrival rate is less than service rate
Service time: The time required to serve a customers most frequently described by the negative
exponential distribution
Queue discipline: The order in which customers are served; most commonly first come, first
Infinite queue: Can be of any length
Most common queue structure
No upper limit
Finite queue: The length is limited
Basic Waiting Line Structures
Channels: The number of parallel servers for servicing customers
Phases: The number of servers in sequence a customer must go through
- A steady state is a constant, average calue for performance characteristics that the system will
attain after a long time
- As the level of service improves, the cost of service increases
- Better service typically requires more servers
Waiting Line Models
The Basic Single-Server Model
Assume the following:
Poisson arrival date
Exponential service times
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