Professional Documents
Culture Documents
DIMPLE UDANI
physical possession services due to wide swings in demand Goal is to utilize staff, equipment, and facilities as productively as possible
What Should be the Core and Supplementary Elements of Our Service Product? (PRODUCT ELEMENTS) What Price Should We Charge? (PRICE AND OTHER USER OUTLAYS) Options for Delivery? (PLACE, CYBERSPACE & TIME, PHYSICAL EVIDENCE) How to Communicate? (PROMOTION & EDUCATION, PHYSICAL EVIDENCE) How Can We Balance PRODUCTIVITY AND QUALITY?
H OW SHOULD WE M ATCH DEMAND AND PRODUCTIVE CAPACITY? What Are Appropriate R oles for People and T echnology? (PEOPLE) How Can Our Firm Achieve Service Leadership?
buildings, physical space, machines, brawn, brains?) What are demand levels for our service and do they exceed capacity at any time? What explains variations in demand? What strategies can we employ to match demand and capacity? How should we design waiting lines and reservations systems?
ability to meet demand at a given time service quality declines as more customers are serviced
Optimum capacity
Point beyond which
Excess capacity
approaches
Maximum Available Capacity Optimum Capacity (Demand and Supply Well Balanced)
Excess capacity
TIME CYCLE 2
information
Labor used for physical or mental work Public/private infrastructure
standees) room)
Vary seated space per customer (e.g., elbow room, leg Extend/cut hours of service
Schedule downtime during periods of low demand Use part-time employees Rent or share extra facilities and equipment Ask customers to share Invite customers to perform self-service Cross-train employees
month
year other
payments/refunds pay days school hours/holidays seasonal climate changes public/religious holidays natural cycles (e.g., coastal tides)
Natural disasters
market segments select this service Keep good records of transactions to analyze demand patterns
Sophisticated software can help to track
control (for example: weather) Detailed market analysis may reveal that one segments demand cycle is concealed within a broader, random pattern
patterns by day or by season (e.g., business travelers vs. tourists) Some users have little choice in timing of demand, others are flexible (e.g. commuters vs. shoppers) Some demand is undesirable and should be discouraged (e.g., inappropriate calls to emergency services)
alternative times
Increase demand
promotional incentives Vary product features to increase desirability More convenient delivery times and places
Use price and other costs to manage demand Change product elements
Th
Tl
Bl
Bh
Th Tl
Quantity of rooms demanded at each price by travelers in each segment in each season
waiting in lineequivalent to over a week per year! Almost nobody likes to wait It's boring, time-wasting, and sometimes physically uncomfortable
exceeds capacity of system to process them at a specific point in the process Queues are basically a symptom of unresolved capacity management problems Not all queues take form of a physical waiting line in a single location
Parallel lines to multiple servers Designated lines to designated servers Single line to multiple servers (snake)
28 29 25 26 27 32 23 21 20 24
30 31
emergencies
Duration of service transaction
Number of items to transact Complexity of task
Importance of customer
Frequent users/high volume
Benefits of Reservations
Controls and smoothes demand Pre-sells service Informs and educates customers in advance of arrival Saves customers from having to wait in line for service
Week 7
(Low Season) Out of commission for renovation Loyalty Program Members Transient guests
Week 36
(High Season) Loyalty Program Members
50%
Weekend package
Transient guests
W/E package
Time Nights: M
Tu
marketing variables Demand forecasts by segment under specified conditions Segment-by-segment data Fixed and variable cost data, profitability of incremental sales Meaningful location-by-location demand variations Customer attitudes toward queuing Customer opinions of quality at different levels of capacity utilization
THANK YOU
DIMPLE UDANI