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Process Strategy - Service

This document discusses process strategy and decisions in operations management. It covers several key points: 1) Process strategy specifies how processes will be managed to achieve competitive priorities. Process improvements are considered when there is a gap between capabilities and priorities or when competitive factors change. 2) Successful process decisions fit the situation, work together, and don't undermine each other. Processes are focused on individually but their cumulative effects impact customer satisfaction and advantage. 3) Major process decisions include structure, customer involvement, resource flexibility, capital intensity, and strategy for change. Process design must also be effective. This provides a high-level overview of the key topics and concepts regarding process strategy and decisions discussed in the document

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Ajit Das
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32 views

Process Strategy - Service

This document discusses process strategy and decisions in operations management. It covers several key points: 1) Process strategy specifies how processes will be managed to achieve competitive priorities. Process improvements are considered when there is a gap between capabilities and priorities or when competitive factors change. 2) Successful process decisions fit the situation, work together, and don't undermine each other. Processes are focused on individually but their cumulative effects impact customer satisfaction and advantage. 3) Major process decisions include structure, customer involvement, resource flexibility, capital intensity, and strategy for change. Process design must also be effective. This provides a high-level overview of the key topics and concepts regarding process strategy and decisions discussed in the document

Uploaded by

Ajit Das
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Operations Management

HRM-306

Chapter-04
 Process Strategy:

Process strategy which specifies the pattern of decision


made in managing processes so that they will achieve
their competitive priorities.
 When a company made process improvement decision:

• A Gap between competitive priorities and competitive capabilities.


• A new or substantially modified service or product is being offered.
• Quality must be improved
• Competitive priorities have changed.
• Demand for a service or product is changing
• Current performance is inadequate
• The cost or availability of inputs has changed
• Competitor are gaining by using a new process
• New technology are available
• Someone has a better idea.
 Principles of Process Decision:
Three principles concerning process decision are as below:
1. Successful process decision is to make choose that fit the situation and
make sense together. They should not work for cross- purpose. One
process optimize the expenses of other process. A more effective
process is one that match key process characteristics and has a close
strategic fit.
2. It focus on individual process. They build block that create the firms
whole value chain. The cumulative effect of the process should have an
impact on customer satisfaction and competitive advantage in huge.
3. Management pay interface when process value chain perform internally
or by outside supplier. To deal with interface there need cross function
coordination.
 Major Process Decisions:
Process
Structure

Customer Resource
involvement flexibility

Capital intensity

Strategy for
change

Effective
process
design
 Customer contract:
The extent to which the customer is present, is actively involved, and
receive personal attention during the service process.

What are the dimension of Customer Contract:


1. Physically presence
2. What is being process
3. Contract intensity
4. Personal attention
5. Method of delivery
 Customer contract Matrix
Less customer contract and customization

Service Package
Process (1) (2) (3)
High interaction with Some interaction with Low interaction with
characteristics
Less complexity, less divergence, and more line flows

customers, highly customized customer, standard service customer, standardized service


service with some options

(1)
Flexible flows, complex work
with many expectations
Front office
(2)
Flexible flows with some
dominant paths, moderate job Hybrid office
complexity with some
exceptions
(3)Line flows, routine work,
easily understood by Back office
employees
 Service Process Structuring in the financial service industry:

.
Front office Hybrid office Back office
Sale of financial services to Creation of quarterly performance Production of monthly client
municipalities report fund balance report

• Research customer finance • Data obtain electronically • Data obtain electronically


• Work with customer to • Report calculated using • Report run using
understand customer needs standardized process standardized process
• Make customized presentation • Report reviewed using • Result checked for
to customer addressing specific standardized diagnostic systems “reasonableness” using
customer needs • Manager provide written well-established policies.
• Involve specialized staff analysis and recommendations • Hard copy and electronic
offering variety of services in response to individual files forward to analysis
• Continuing relationship with employee performance • Process repeated monthly
customer, reaction to changing • Manager meets with employee with little variatopn.
customer needs. to discuss performance
THANKS EVERYONE

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