SLIDE 3 - THE SERVICE SYSTEM DESIGN MATRIX

The service system design matrix is a useful tool for understanding the diff
elements of a service system. It establishes relationship bet the key factors
of service and how these factors relate to service production and delivery

Ang objective nito is to provide effective links between back office (mga
managers and heads of planning ng industry) and front offices (those who
literally provide services like crew sa Jollibee) so that nothing falls
between the cracks. Meaning, kapag maayos nailatag yung sistema in these
two offices, hindi papalya yung execution or in carrying out effectively the
business. Ultimately, objective rin nito ay makita ng customer yung high
degree ng service quality so that the said business or industry will have
higher sales or production dahil sa word of mouth ng mga satisfied
previous customers with personal experience on the industry involved.
Furthermore, the services should be cost-effective, user friendly and
robust enough to build strong foundation of customer service and
operations.

The service design matrix consists of: (These I found on the net)
1. Degree of contact which involves the building relationship between the
service provider and the customer
2. Opportunity for sales - the greater the amount of contact, the greater the
sales opportunity
3. Production efficiency - services that require a large amount of
customization and customer input have lower efficiency

Pero syempre, in designing the service system, the service industry will
face major design issues. Some of these are:

1. Scheduling of capacity because of uncertainty in demand, there may be

possible inability to maintain it.
2. Dealing with uncertainty in demand may resort to the use of waiting
lines, flexibility of service providers and forecasting demand of customers.
Lahat to para paghandaan yung biglang buhos ng customers.

EXHIBIT 5.1 (I’ll send you clearer copy of the chart. I found it on
Google. Bigay mo sa prof mo mamsh, sabihin mo, bakit ikaw
may nagawa ka sa malabo nyang handout! Hahaha)

The system design matrix illustrates the effectivity of an SSD matrix as to

the sales opportunity of a service industry. Here, in cases where the service
design would resort to low degree of service contact, for example, kagaya
ng nasa illustration, mail contact and on-site technology, kung saan non at
all ang physical contact or face to face recognition, mababa ang sales
opportunity. Meaning, hindi masyadong effective para sa isang service
industry ang ganitong mode ng service system design.

Moving along, kapag meron nang kahit papaanong degree pf customer

contact, like via phone conversations (for example, BPO industries offering
and selling products and services, like insurance policies in USA, by way of
calling home numbers and one by one offering or assisting the customers
in availing their product) or face to face (tight control) mode, there is a
medium chance of striking sales kasi you are able to explain, introduce and
show case yung product or service na inooffer mo. Lalo na kung appealing
yung way mo of showcasing the service..

The last one, loose specs and total customization. Here, there is 100%
degree of customer contact, like in restaurants where customers personally
experience yung customer service nung establishment or industry. The
more they sense good and organized customer service, which results to
high sales opportunity and production effectivity, the more na maga avail
sila ng service nun at possible referral pa sa iba. :)

SLIDE 4 - ECONOMICS OF THE WAITING LINE PROBLEM

A waiting line system is when a person or object spends time waiting ina
aline for an activity or transaction to happen. A company should have a
goal of creating the optimal waiting experience to minimize cost or
increase sales, while pleasing customers.

Everytime the customer experiences low level of service in a waiting line,

asahan mo, that dissatisfied customer e hindi na babalik sa store. Kapag
high level of service ang prinovide mo, it is more likely for that customer to
return because of satisfied experience. Pero ang economics part dito, the
company should make it a point that the cost na maoobtain nila should be
in line with customer expectations.

For example, kapag nag dine in ka sa restaurant, 30 minutes na wala pa

rin yung food mo. Paulit ulit yung waiter nagso sorry kasi ang tagal pero
niluluto na raw. After some time, dumating sayo, malamig na. Syempre
dissatisfied ka. Pero the catch here is, the company should be able to ease
out the dissatisfaction with the customer by, for example, sa bill may
nakaipit na gift certificate for Php1000 discount on next dine in.

Moreover, there are three measurements used to determine the economics

of a waiting line:

1. Population - the usual bagsak ng customers in a day

2. Wait time - gaano ba kahaba o katagal ang service time nyo
3. System utilization rate - anong amount of time ba usually busy mga
servers

The best scenario is to have a customer move through through the service
line with minimum interruption to the transaction. When an interruption
or wait does occur it should be to optimize the experience.