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Unit 4 PPT

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33 views22 pages

Unit 4 PPT

unit 3

Uploaded by

Shrajal Gupta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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DR SHRAJAL GUPTA

Services Process
Improvement
 Continuous improvement (CI) is often referred to as kaizen.

 Kaizen is a Japanese word translated as ‘making things better’.

 All improvement processes, whether ‘continuous’ or ‘step-change’, focus on two key


elements: What adds value for customers and the organisation, and

 How to mobilise service employees to contribute to the improvement process

 Not just interested in customer satisfaction – improvements in resource utilisation


are also valuable in terms of reduced cost and/or increased profitability.
Organizations
should pay
attention to
value

How can managers use


‘value’ to drive continuous
improvement?
Used to understand
continuous
improvement better.

 A useful first step in understanding value is to deconstruct it. Value can be


deconstructed into cost-based value and features-based value.
Approaches to continuous
improvement
• Continuous incremental and radical change strategies
• Continuous improvement ( kaizen ) is an evolutionary approach to
operational change and is synonymous with the concept of total quality
management. Radical change, in contrast, is a revolutionary approach
concerned not with amending processes but totally reinventing them.
• Five of the most common approaches to change, including both continuous
and radical, are total quality management, Six Sigma, business process re-
engineering, lean thinking and benchmarking.
Total quality management
 Total quality management (TQM) is one of the
best-known approaches to continuous
improvement and has had a major impact on
organisations by putting the customer at the
heart of quality decisions and improvements.

 The three cornerstones of TQM concern


people, processes and culture
Six Sigma
 In essence, Six Sigma is focused on reducing
variance in processes. The Six Sigma target is 3.4
DPMO (defects per million opportunities).

 Ex.: a call centre with 6,000 customer transactions


per day. With what seems like a low problem rate
of 1 per cent, you will be upsetting 60 customers a
day. At the Six Sigma rate, in theory, you would
upset just over one customer a year.
Business process re-
engineering
 BPR is about the fundamental rethinking and radical redesign of business processes
to achieve dramatic performance improvements.

 The main principles of BPR involve the following:

• A cross-functional approach.

• Out-of-the-box thinking.

• Simplification
Benchmarking
Lean thinking
 Lean thinking, or lean operations (or even lean Six Sigma!), has become another
‘banner’ under which a cluster of improvement activities can take place.

 The essence of lean thinking is to clarify what adds value for the customer and/or
organisation and to strip out all other activities. The objective is to ensure that the
customer, or the task being carried out on behalf of the customer, flows through the
system as quickly as possible, without non-productive waits, thus reducing cost and
improving customer satisfaction.
Lean
thinking
Experience Innovation
Paradigm
 Service experiences are dynamic in nature and consequently require continuous
adaptation, change, and improvement of the setting in which they take place.
Experience Innovation
Paradigm
 The concept of the EIP in services emphasizes the shift from a traditional service focus to
creating unique value through experience environments.

 This approach is supported by a network of companies and consumer communities


collaborating to co-create personalized experiences for individual customers.

 It’s a strategic move towards service ecosystems, where the context and culture of use are as
important as the product itself.
Experience
Innovation
Paradigm
New
Services
Develop
ment
Improving Service Delivery
Propositions
Segment and customize Standardize and simplify
 One strategy is to segment customers based  Another strategy is to standardize
on their preferences, needs, value, or and simplify the service delivery

behavior, and customize the service delivery process to reduce variability,

process accordingly. complexity, and errors.


 This can help to improve efficiency,
 This can help to create more personalized
quality, and consistency of the
and relevant service experiences, increase
service, reduce costs and waste, and
customer satisfaction and loyalty, and
enhance customer confidence and
differentiate the service from competitors.
trust.
 For example, a hotel can segment its
 For example, a restaurant can
customers based on their purpose of travel,
standardize its menu, recipes, and
such as business or leisure, and offer portion sizes, and simplify its
Integrate and automate Empower and engage

 A third strategy is integrating and  A fourth strategy is to empower and


automating the service delivery engage the service employees and
process to leverage technology, customers in the service delivery
data, and systems. This can help process. This can help to foster a
optimize resource use, enhance service culture, motivate and reward
speed and convenience, and create performance, and encourage
value-added features or services. feedback and co-creation.
 For example, a bank can integrate  For example, a salon can empower
its online, mobile, and branch its stylists to make decisions and
channels, and alerts. suggestions, and engage its
customers in choosing their styles,
Monitor and improve

 A fifth strategy is to monitor and improve the service delivery


process by measuring and analyzing key indicators, such as
customer satisfaction, service quality, efficiency, productivity,
and profitability.
 This can help to identify gaps, problems, or opportunities, and
implement changes or improvements accordingly.
 For example, a courier company can monitor its delivery time,
accuracy, and cost, and improve its routing, scheduling, or
tracking systems.
To enhance their offerings. Here are some key strategies:
1. Redefine the Interaction Structure:
1.Sometimes services become more valuable when shared with others
or coordinated closely among multiple providers.
2.Consider innovative ways to structure interactions to maximize
value for clients.
2. Expand the Service Boundary:
1.If a segment of clients uses complementary services but faces
difficulty accessing them, integrate those services into your offering.
2.Broaden the scope of what you provide to meet comprehensive
client needs.
3. Optimize Task Allocation:
1.Ensure that employees’ expertise aligns with their assigned tasks.
2.Reevaluate who delivers the service to enhance efficiency and
effectiveness.
4. Client-Centric Delivery Locations:
1.Define delivery locations based on client needs, not provider
Service Growth and
Globalization
Service Growth and Globalization

The force toward global integration


refers to factors such as the
presence of economies of scale or
opportunities to exploit globally
certain assets or competitive
advantages.

The force toward local responsiveness reflects


the need for service customization to adapt to
local needs or culture, including host
government control.
Bartlett and Ghoshal
Legal Aspects of Expectation-
Delivery Gaps

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