SERVICE MANAGEMENT

Lesson 4:
Generating and Evaluating Design Concepts
 Generating and Evaluating Design
2
Concepts
Generating
Defining Specifying and Developing
design
design performance evaluating design
attributes standards design details
concepts

Improving Assessing Measuring Implementing

performance satisfaction performance the design

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 Outline
3

Functional Analysis

Defining and Documenting Processes

Concept Generation

Evaluating and Selecting Concept

Using the Pugh Method

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 From Specification to Concept
4
Selection–Stage 3 Activities

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5 Functional Analysis

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 Functional Analysis
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 Functional Analysis is a method for identifying the

activities that must be completed in order to deliver
the service
 FAST (Functional Analysis System Technique) is a
useful tool for visually representing the activities
and the relationship between them

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 FAST Diagram
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 FAST diagram represents sequence of functions needed to deliver

service
 The function are represented by the boxes arranged in a horizontal tree
stucture
 The root of the tree is at the extreme right of the diagram and is a high-level
description of the service
 Service functions identified from columns of QFD matrix
 FAST diagram represents these functions in a logical sequence that displays
their interactions
 Detail is successively added as we expand the tree leftwards through
the diagram
 Why function is performed is depicted by boxes to the right of each function
 How function is performed is depicted by boxes to the left of each function
 FAST diagram can be represented at various levels of detail

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 FAST Diagram for Service Edge
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Restaurant – First Level

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 FAST Diagram for Service Edge
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Restaurant – Second Level

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 Relationship matrix for 2nd level needs
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 Relationship matrix for 3rd-level needs
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for ―Good Service‖

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 Relationship matrix for 3rd-level needs
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for ―Good Service‖

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 FAST Diagram
13

 Once the diagram is complete, the team reviews the

entire chart to check for inconsistencies or gaps
 If some activities are identified that are not covered by the
design attributes, room 2 of HoQ should be revisited
 Some attributes are defined to broadly in the QFD matrix
 FAST diagram too detailed
 Some attributes have been omitted from the HoQ

 Watch out for situations where the functions do not cover all
attributes
 The functions in the FAST diagram have been defined too broadly
 more detail should be added to the diagram if required

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14 Defining and Documenting Processes

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15 Process Definition

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 Define processes from function
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 Processes created by assembling the functions in the

FAST diagram into the temporal sequence in which
the activities are performed
 Each process should be a collection of activities that
can logically designed or managed as a single
entity
 Processes should connect to customers at either or at
both ends
 Process definition should proceed from less detail to
more detail
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 Process definition
17

 Once all processes have been defined, the design team must ensure
that all the functions of the FAST diagram have been assigned to
processes, and that no gaps exist in the process definitions
 If gaps exist, the team must return to the diagram to investigate the
functions between which gaps are present and must define any
additional functions that may be missing
 For each process, the team must clearly define the process
boundaries, specify the inputs and outputs at the boundaries, and
establish procedures for the transfer of information at the process
interfaces
 The sequence of process functions must be visually displayed in a
process flow chart

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18
Operational and Customer Service
Activities

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 Operational and Customer Service
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Activities
 Processes consist of two types activities: the operational
activities and the customer service activities
 Operational activities reflect the steps needed to
deliver the service to the customer
 Customer service activities reflect the personal
interactions between the customer and the service
provider during the course of service delivery
 The quality of both activities together influences the
quality of the design  the design team should
therefore pay careful attention to the design of both
sets of activities
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 Operational activities:
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taking a restaurant customer’s order
 The tasks that are needed to collect the order
information from customers, note this information
and transmit it to the kitchen for the preparation of
the meal
 The quality of these activities is measured by
attributes such as promptness and accuracy with
which they are performed

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 Customer service activities:
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taking a restaurant customer’s order
 Focus on the attitude of the waiter when the order is
taken, the waiter’s professionalism and knowledge of
the items on the menu, how comfortable the customer
feel while interacting with the waiter, and so on
 The quality of these activities is measured by attributes
such as the friendliness, responsiveness, and patience of
the waiter when taking the order
 These attributes are characteristics of people, not
processes, but through careful design, procedures can
be developed that deliver a reliable level of
performance on these attributes as well
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22
Defining processes for the Service
Edge restaurant

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 Processes for restaurant service
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Process Name Begins Ends

Greeting and seating Customer arrives Customer is seated
Menu delivery Customer is seated Customer receive menu
Order-taking Customer receives menu Customer orders meal
Meal delivery Customer orders meal Customer receives meal
Meal service Customer is seated Customer leaves table
Billing Customer requests bill Customer receives bill
Payment collection Customer receives bill Customer pays
Bill Settlement Customer pays Bill is settled
Leavetaking Customer leaves table Customer Departs
Problem Resolution Customer has problem Problem is resolved

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 Processes for restaurant service
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 Each succeeding process begins where the

preceding process ends, leaving no gaps in the
process definition
 Each process begins and ends with the customer
 Each process consists of both service operations and
customers service activities even it is not explicitly
shown
 The attributes of both types of activities should be
included in the process design

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25 Process flow-charting

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 Process Documentation: flow chart
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 Processes should be documented through textual

descriptions or process flow charts
 Processes flow charts indicate how the process
functions are connected to each other
 High-level flow charts depict interaction between
processes
 Flow charts can be expanded to any desired level
of detail
 Blueprinting convention can be used to illustrate
process-customer interactions
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 Flow Chart of Processes for
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Restaurant Service

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 Details of the Meal Service and
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Problem Resolution Process

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29 Service blueprinting

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 Service blueprinting
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 A process analysis methodology developed by G. Lynn

Shostack  the need to apply a non-subjective quantifiable
framework to design service process
 To systematize the description, documentation, and analysis
of service processes
 The blueprint structures the process activities on either side
of a customer ―Line of visibility‖
 Above  visible to customer
 Below  backroom activities that are necessary to complete the
service operation but that customer does not see
 The blueprint makes it possible to easily identify the critical
process points where customer service can be affected

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 Process blueprint for Meal Delivery
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Processes

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32 Concept Generation

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 Generating design concept
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 Concepts are high-level views of the service  design

solution for the process
 Concept generation is a facilitated, imaginative service-
level activities whose objective is to develop innovative
design solutions for the service features, facilities, and
processes
 Initial set of concepts are generated by group brainstorming
 Final set of concepts are selected by individual
brainstorming
 Brainstorming  a technique by which a group attempts to
find a solution for a specific problem by amassing all the
ideas spontaneously contributed by its members

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 Method for generating ideas
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Transference

• A design solution used for one application is directly transferred to

another

Enhancement

• The modification of an existing solution to adapt it to the current

problem
• A combination of several solutions may also be considered

Analogy

• Solution to analogous problem in other industries are used to

generate concepts

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 Reducing the number of solution
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 The team performs an initial evaluation of the

concepts and rejects those that are irrelevant or far-
fetched
 The remaining concepts are analyzed further to
assess whether they can be consolidated, combined,
or enhanced to create a set of feasible options
 A second elimination follows, reducing the number
of concepts to ten or less
 These remaining concepts should be analyzed in
greater detail
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 Reducing the number of solution:
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individual brainstorming
 To ensure that the concept is really capable of
producing a design that meets the service requirements
 The concept should be compared against:
 A summary of the market segmentation studies listing
characteristics of targeted customer
 Verbatim statement of the five most important needs

 The five most important design attribute

 The three most critical features

 System view flow diagram of the major processes to be

designed

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37
Evaluating and Selecting Concepts—
Description of the Pugh Method

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 Concept Evaluation Using The Pugh
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Method
 Describe and understand concepts
 List concept as a evalution matrix columns
 List criteria as matrix rows
 Select cost, performance, and other nonfinancial evaluation
criteria
 Select baseline concept
 The least and the most attractive concept should be avoided
 The concept that is better than average, but not the best, is
a good first choice
 Create a concept that performs as well as the best
competitor on each criterion
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 Concept Evaluation Using The Pugh
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Method
 Evaluate concepts against baseline
 Compare concepts to baseline on better (+), worse (-),
same (S) scale
 Total the +, -, and S ratings for each concept
 Identify opportunities to remove negatives
 Identify opportunities to accentuate positives
 Discuss results and generate superior concepts

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 Concept Evaluation Using The Pugh
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Method
 Created improved concepts
 Remove weak concepts from the matrix
 Rerun matrix with new concepts and a new baseline
 Repeat as often as necessary until a superior
concept is found
 Continue evaluation until no more improvements are
possible
 Select concept for detailed design

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 PUGH Method
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Concept Selection Legend

Concept1

Concept2

Concept3

Concept4

Concept5
Better (+)
Same ( S)
Worse (-)
Performance Criterion 1 + S S +
Performance Criterion 2 S + S +
Performance Criterion 3 S + - S
Performance Criterion 4 + S - S
Performance Criterion 5 - + + +
Cost 1 S - S +
Cost 2 S S + +
Sum Of Positives 2 3 2 5
Sum Of Negatives 1 1 2 0
Sum Of Sames 4 3 3 2
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42
Using the Pugh Method to Evaluate
Restaurant Concepts

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 Evaluate restaurant concepts
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 Each concept addresses one or both of the service

objectives:
 Provide quick, accurate service
 Deliver responsive, individualized service

 Each concept reflects different ways in which

technology, staffing, restaurant layout, food
preparation methods, and training
 Each concept affects one or more of the service
processes
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 Description Restaurant Concept
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 Concept 1—customer database

 To provide high quality customer service by developing
a database for recording customer information
 Offer personal service to each customer

 Concept 2—dedicated waiter

 To blend personalized attention with prompt service
 One waiter is assigned to an average of only two
tables
 Provide personal service quickly and efficiently

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 Description Restaurant Concept
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 Concept 3—customer interaction training

 Requires the restaurant employees to undergo special
training to have better appreciation of customer unstated
emotional expectations of how they should be treated
 Reduced the distance between the employees and guests
 Assist the employees in providing genuinely friendly and
professional service
 Concept 4—food expertise
 To make each waiter an expert on the food served in the
restaurant
 Waiters are also encouraged to inquire about the dietary
or taste preferences of their guests and to suggest menu
variations that better satisfy these preferences
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 Description Restaurant Concept
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 Concept 5—waiter-operated POS (Point of Sale)

Systems
 Consists of a terminal at the waiter station into which the
customer orders can be entered
 The system can deliver meals to any desired degree of
promptness by adjusting the scheduling algorithm
 Concept 6—frozen ingredients
 controls the food preparation time by using as many frozen
ingredients as possible
 Concept 7—customer-operated POS Systems
 Operated by customer

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 Summary of Concepts For Restaurant
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Services
Concept
Number Concept Service Objective Affected
1 Customer database Personal Attention
2 Dedicated waiter Personal Attention
3 Customer interaction training Personal Attention
4 Food expertise Personal Attention
5 Waiter-operated POS Quick Service
6 Frozen ingredients Quick Service
7 Customer-operated POS Quick Service

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 Concept evaluation – First run
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Concept Selection Legend

Better +
Same S Concept Concept Concept Concept Concept Concept Concept Importance
Worse - 1 2 3 4 5 6 7 Ratings
Degree of friendliness S S + S S - 12
Degree of responsiveness + + S S S - 11
Promptness of meal delivery - - - S S S 10
Degree of patience S + S S S + 9
Promptness of menu delivery S + S S S + 9
Promptness of order taking S + S - S + 9
Degree of knowledge + S S + S + 7
Problem resolution + S S S S - 6
effectiveness
Implementation Cost - S S S - - 9
Operating Cost S + + + S S 9
Sum Of Positives 3 5 2 2 0 4
Sum Of Negatives 2 1 1 1 1 4
Sum Of Sames 5 4 7 7 9 2
Weighted sum of positives 24 47 21 16 0 34
Weighted sum of negatives 19 10 Service
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9 38
 Creating new concept
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 Concept A (customer database with training) – Concept 1

and 3
 The customer database improves the responsiveness of service
 Employees are trained to improve their interaction with customers
 Concept B (dedicated waiter with training) – Concept 2, 3,
and 4
 The dedicated waiters improved service responsiveness and
trained to be friendly and professional and to improve their
knowledge of the menu
 Concept C (customer-operated POS with waiter support) –
Add a personal attention to Concept 7
 Concept D (not an enhancement) – Concept 1 and 6
 Restricting menu items curtails the flexibility

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 Concept Evaluation – second run
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Importance
Concept 2 Concept A Concept B Concept C Ratings
Degree of friendliness + + S 12
Degree of responsiveness S S S 11
Promptness of meal delivery S S + 10
Degree of patience - S S 9
Promptness of menu delivery - S S 9
Promptness of order taking - S S 9
Degree of knowledge + + + 7
Problem resolution effectiveness + S S 6
Implementation Cost - - - 9
Operating Cost S S S 9
Sum Of Positives 3 2 2
Sum Of Negatives 4 1 1
Sum Of Sames 3 7 7
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