Process Management – 7th P

⚪ Process management assures service availability

and consistent quality
⚪ Without sound process management, balancing
service demand and supply would be extremely
difficult
⚪ Operations management is the interactive
experience that would deliver the service benefits
Issues in Process Management
Area of operation Explanation

Process Planning Operation specification to achieve

and Control service output in terms of quantity,
quality, delivery and cost

Operations Detailed specification of each sub

Planning system

Facilities Design Design, layout, location, material

handling and maintenance

Scheduling Detailing the timing at which service

operation should be completed
Issues in Process Management
Area of operation Explanation

Inventory Planning Planning and controlling the inventory

and Control of people and capacity

Quality Control Maintaining quality standards

Operations Control Information flows and insuring that

operations are undertaken as per
schedule
Forecasting and Anticipating demands and forecasting
Long-term Planning capabilities that need to be inducted
Developing a Blueprint

1. Identify key activities in creating and delivering service

2. Define “big picture” before “drilling down” to obtain a higher level of
detail
3. Distinguish between “front stage” and “backstage”
4. Clarify interactions between customers and staff, and support by
backstage activities and systems
5. Identify potential fail points; take preventive measures; prepare
contingency
6. Develop standards for execution of each activity— times for task
completion, maximum wait times, and scripts to guide interactions
between employees and customers
Key Components of a Service Blueprint

1. Define standards for front-stage activities

2. Specify physical evidence
3. Identify principal customer actions
4. Line of interaction (customers and front-stage personnel)
5. Front-stage actions by customer-contact personnel
6. Line of visibility (between front stage and backstage)
7. Backstage actions by customer contact personnel
8. Support processes involving other service personnel
9. Support processes involving IT
Blueprinting the Restaurant Experience:
A Three Act Performance
⚪ Act 1: Prologue and Introductory Scenes*
⚪ Act 2: Delivery of Core Product
● Cocktails, seating, order food and wine, wine service
● Potential fail points: Menu information complete? Menu intelligible? Everything on
the menu actually available?
● Mistakes in transmitting information a common cause of quality failure—e.g. bad
handwriting; poor verbal communication
● Customers may not only evaluate quality of food and drink, but how promptly it is
served, serving staff attitudes, or style of service
⚪ Act 3: The Drama Concludes
● Remaining actions should move quickly and smoothly, with no surprises at the end
● Customer expectations: Accurate, intelligible and prompt bill, payment handled
politely, guest are thanked for their patronage
 Blueprinting the Restaurant Experience:
Act 1
Timeline Act 1
Service Standards W
W W
and Scripts Make Valet
Coat Room …
Stage

Physical Reservation Parking Line of

interaction
Evidence
Front -

Greet Greet, take

Accept Contact person
customer, coat, coat (visible actions)
reservation
take car keys checks
Line of
visibility
- Stage

Check Hang coat with Contact person

availability, Take car to visible check (invisible action
insert booking parking lot numbers
Back

Line of internal
Maintain Maintain Maintain physical
reservation (or rent) facilities/ interaction
Support
system facilities equipment
Processes
Standardization vs. Customization

⚪ According to Shostack, any service process is a

combination of both complexity and divergence

⚪ Complexity of process steps & sequences that

constitute the process
⚪ Divergence Degree of freedom or variability allowed
in a process sequence

⚪ Standardization High Complexity + Low Divergence

⚪ Customization Low Complexity + High Divergence
 Alternative Directions of Structural Changes
Strategic Advantages
Options
•Uniformity would reduce
cost, improve productivity
and make distribution
easier
Reduced
•Increase perceived
Divergence reliability, uniform service
quality, and greater
service availability
•Greater customization &
thus niche positioning
•Less volume dependent
Increased
•More margins as market
Divergence may respond positively to
personalization
Disadvantages
•Inflexibility in operating
procedures
•Lower customization
and thus consumer
rejection in spite of low
cost
•Difficult to manage,
control and distribute
•Limited number of
customers may be
available who are willing
to pay the price that
customization demands
 Alternative Directions of Structural Changes
Strategic Advantages Disadvantages
Options
•Indicates a specialization •Competitively risky if
strategy other provider
•Narrowing the service continues to offer
offering makes distribution more extensive full
Reduced
& control easier service alternative
Complexity •Perceived positively in the
market provided it stands
out

•Indicates a strategy to gain •Can be a barrier in

greater penetration
•Can increase efficiency by
Increased
maximizing the revenue
Complexity
providing innovative
and superior service
quality