Service Design: Understanding the Service Economy and Service Design Process, Study notes of Production and Operations Management

Download Service Design: Understanding the Service Economy and Service Design Process and more Study notes Production and Operations Management in PDF only on Docsity! Service Design Chapter 5 1Chapter 5: Service Design Objectives  To consider the impact of the services on jobs and the economy  To appreciate and articulate the differences between services and products Chapter 5: Service Design 2  To learn tools for envisioning and designing quality services  To develop skills in mapping out service processes and suggesting improvements  To be able to model waiting lines and evaluate their performance for service improvement. Outline  The Service Economy  Characteristics of Services  Service Design Process  Tools for Service Design 3  Waiting Line Analysis Chapter 5: Service Design The Service Economy 4Chapter 5: Service Design Services vs. Goods  Services - acts, performances or relationships that  Goods 5 - Tangible objects that  Facilitating services - Accompany purchase of goods  Facilitating goods - Accompany service purchases Chapter 5: Service Design Goods to Services Continuum 6Chapter 5: Service Design Characteristics of Services ● Intangible ● Variable output ● Decentralized and dispersed 7 ●Higher customer contact ●Perishable ●Easier to emulate Chapter 5: Service Design Service Design Process 8Chapter 5: Service Design Basic Single-Server Model Simplest, most basic waiting line structure • Assumptions: - Poisson arrival rate - Exponential service times • Data: - λ = mean arrival rate - μ = mean service rate n = number of 17 - First-come, first-served queue discipline - Infinite queue length - Infinite calling population - customers in line Chapter 5: Service Design Basic Single-Server Queuing Formulas ● probability that no customers are in queuing system ● average number of customers in queuing system 18 ● average number of customers in waiting line ● probability of n customers in queuing system Chapter 5: Service Design Basic Single-Server Queuing Formulas ● Average time customer spends in queuing system ● Probability that server is busy and a customer has to wait (utilization rate) 19 ● Probability that server is idle and customer can be served ● Average time customer spends waiting in line Chapter 5: Service Design Basic Single-Server Model Example The Hokie ticket office sells tickets for athletic games and fine arts performances. It has one sales window where one employee enters ticket sales into the computer to complete the check-out process. (This combination of computer and operator is the server in this system and the customers who line up at the window to buy tickets form the waiting line.) It is known from past semesters that customers arrive at a rate of 18 per hour according to a Poisson di t ib ti d th t i ti ti ll di t ib t d ith 20 s r u on an a serv ce mes are exponen a y s r u e w a mean rate of 24 customers per hour. The ticket manager wants to determine the operating characteristics for this waiting line system. Chapter 5: Service Design Basic Single-Server Model Example 21Chapter 5: Service Design Service Improvement Analysis • Is waiting time (7.5 minutes) too long? • New strategies 22Chapter 5: Service Design