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Surname: Chapanda
First names: Kudakwashe Gracious
Registration No: R0645087
Level: 4.2 (PDP)
Programme: Business Management
BM403 Assignment
Question: Design the process for a service business of
your choice. Give explanatory
Target customers - ladies who want their hair to be done fast and professionally.
Service concept - high quality and fast service provided in a smart place with highly
qualified and experienced service providers
Facility location – the facility will be located at the city center where there is easy access
for customers from all suburbs.
Time cost is 40% of the price on normal conditions. This is because time is the most
important resource if the saloon is to make more profits. The ability of the workers to
complete the tasks in short time means that more customers will be served. If more time
is taken on a customer then less customers will be served and therefore less profit. Other
operating costs include rentals, equipment, wages, chemicals and other costs. These are
lower than the cost of time per customer because they are apportioned to all the
customers served on a particular period. Time costs are variable costs which increase or
decrease depending on the direction of time.
Applying
chemical
15mins
Reapplying
chemical 15mins
Shampooing
10mins
Failure
Setting
10mins
Servicing Efficient
the dryers machines
Cleaning Smart
the place saloon
There is one potential failure point that is after shampooing, a customer may find out that
the hair is not properly done and ask for a redo. This will add costs to the organization
since more chemicals and time are to be taken. The cost of chemical will be doubled and
become $9.00 and time will be increased to 1 hour 35 minutes and the cost will be $8.17.
Adding these costs together with the other costs the organization will make a loss of
$5.17.
The vertical line is the line of visibility, to its left are the activities that the customer do
not see but important to the delivery of the service. The first activity is servicing of the
dryers. This is done during the absence of the customers and what the customers will able
to see is the efficient dryers. The second activity is training of the employees so that they
can provide best services. The place need to be smart so as to lure customers so a clean
place should be part of the delivery of the service. Finally there should be the supplies of
materials used in providing the service such as chemicals and so on.
This business requires high conduct service with the customer and the time for the service
is influenced by both the customer and the service provider. However the customer’s
influence is very slight. The service provider’s speed and accuracy greatly affect the time
it takes for a service to be completed.