CHAPTER 2

DESIGN OF TOURISM AND

HOSPITALITY SERVICES
 OBJECTIVES
At the end of the chapter, the learner should be able to:

1. Describe how time- based competion is implemented by

Production/Operations Management (P/OM)
2. Describe customer participation in the design and production of
servces
3. Describe customer interation in process design
4. Identify recent advances in service technology
5. Discuss the four R's of sustainability
 INTRODUCTION
Quality means , serving in a manner which suits to the tourist within the limits of
the industry. It also refers to the quality provided to the people who have visited
an individual's place.

Delivering quality service is one of the major challenges facing hospitality

managers in the opening years of the millennium. It is be an essential condition
for success in the emerging, keenly competitive, global hospitality markets.

The service sector took TQM from the

manufacturing sector, and adapted it to the
characteristics of the tourism and hotel industry.
 GOODS AND SERVICES SELECTION
Service Strategy Options Support Competitive Advantage
A word of options exists in the selection, definition and design of services again
based on differentiation by offering a distinctly unique and high-quality
services, low cost strategy, by designing a service that can be produced with a
minimum cost; and rapid response, executing the fastest and shortest time to
get a service to market before customer tastes change and to do so with the
latest technology and innovations.
GENERATING NEW SERVICE
New service opportunities
One technique to generate new service ideas is brainstorming technique in which
a diverse group of people share, without criticism, ideas on a particular topic.
A. Understand the customer is the premier issue in new service development.
B. Economic change brings increasing levels of affluence in the long run but
economic cycles and price changes in the short run.
c. Sociological and demographic change may appear in such factors as
decreasing family size.
D. Technological change makes possible
E. Political/legal change brings about new trade aggrements, tariffs, and
government contract requirements.
F. Other chages may be brought about through market practice, professional
standartds, suppliers and distributors
Importance of new service
Despite constant efforts to introduce viable new services, many new services
do not succeed. Service selection, definition and design occur frequently,
perhaps hiundreds of times for each financially successful service.

SERVICE DEVELOPMENT

Service development system

An effective service strategy links service decision with cash flows, market
dynamics , service life cycle, and the organization's activities.

Sources of ideas
A. Marketing people see the need for something their customers want.
B. Production people see opportunities to improve methods and
processes.
C. Everyone in an organization is a potential source of ideas.
D. Outside the company, as fromits customers, or the public, or from
sources within the firm not directly reponsible for new service ideas like its
employees.
Stages in devloping a maretable service
A. Initiation of an idea
B. Gathering of necessary data on the marketability of the service
C. Screening of the gathered data by the preliminary service review
committee consisting of specialists from the sales, administration,
production and design departments.
 D. Determination of the immediate and ultimate marketing objectives of the
service after thorough scrutiny.
E. Development of the service with the combined efforts of the market research,
service development and service design.
F. Checking of the service development results and pre-testing for marketability.
G. Organizing the initiation of the service.
H. Field test of the service on its marketability.
I. Review of the design based on test results and from the point of view of
economic considerations
J. Standardization of the service criteria and the methid of providing the service.
Organizing for service development(approaches)

A. Traditional US approach to product development is an organization with

distinct departments.
1. A research and development department to do the necessary research.
2. An engineering department to design the service.
3. A service engineering department to design a service that can be
provided.
4. An operations department that provides the service.
B. Assign a service manager to champion the service through the service
development system and related organizations.
C. Use a teams.These teams are charged with the responsibility of moving from
market requirements for a service to achieving a service success.
D. Japanese Approach. They bypass the team issue by not subdividing into
organizations into research and development, engineering, production adn so
forth.
Value Engineering
Value engineering (usually done by design engineers) or value analysis
(usually done by the purchasing department) means that everything
that is made or purchased is thought of as being made or bought to
serve particular purpose. Value engineering answers:

A. Would another lower-cost design work as well?

B. Could anoyher less costly item fill the need?
C. Would less expensive material do the job?
D. On purchased items, ate the vendors prices as low as they could be
for the level of quality and delivery dated required?
Value engineering can be divided into five phases:

A. An information phase, getting all gthen available facts concerning the item
being studied and answering them:

1. What is it?
2. What is its function or special purpose?
3. Where it is used?
4. What environmental conditions will it be subjected to?
5. What it is frequency of use?
6. What cost estimates are available?

B. Creative phase, checklist are:

1. Can the design be simplified without impairing function or reliability.
2. Would a substitute, lower-cost material be suitable?
C. Could the part be produced as a precision casting, forging, extrusion or similar
form to reduce machining costs?
D. Are there any finish requirements that could be eliminated or changed?
E. Would a relaxation of any tolerances result in lower service costs?

C. Evaluation phase, ideas are refined.

D. Program planning, with a certain approach selected, the next step is to

develop the more promising ideas.

E.Reporing phase, when value engineers have fully developed their

recommendations, they are ready to report the results to management, to design
and manufacturing engineers, and others directky concerned.
SERVICE DESIGN

Designing services is challenging because they often have unique characteristics.

One reason productivity improvements in services are so low is because both the
design and delivery of service products include customer interactions..
However, like goods, a large part of the cost and quality of service is defined at the
design stage. Also as with goods, a number of techniques can both reduce costs
and enhance the product.
A. One technique is to design the product so that customazation is delayed as late
in the process as possible.
B. To modularize the product so that customization take the form of changing
moduels
C. Another approach to the design of services is to divide into small parts and
identify those parts that lend themselves to automation or reduced customer
interaction.
D. because of the high customer interaction in many service industries, a fourth
techniqu is to focus design on the so called moment of truth when the relationship
between the provider and the customer is crucial.

Documents for Services

The documentation for a service will often take the form of explicit job instructions
that specify what is to happen at the mioment of truth.

Design Criteria
A. Feasibility. this is the ability of an operation to produce a process. product or
service. The feasibilty of the design option, can we do it?
1. Do we have the skills (quality of resources)
 2. Do we have the organizational capacity (quantity resources)
3. Do we have the financial resources to cope with the option?

B. Acceptability. The attractiveness to the operation of a process, product or

service. The acceptability of the design opetion, do we want to do it?
1. Does the option satisfy the performance criteria which the design is
trying to achieve?
2. Will our customers want it?
3. Does the option give a satisfactory financial return?
C. Vulnerability. The risks taken by the operation in adopting a process, product
or service. Do we want to take the risks?
1. Do we understand the full consequences of adopting the option?
2. Beingh pessimistic, what could go wrong if we adopt the option? What
would be the consequences of everything going wrong?
SUSTAINABILITY

Managers may find it helpful to think in terms of the four R's as they address
sustaintability. These are :
1. Resources. Operations is ofetn the primary user of the firm's resources.
2. Recycle. As managers seek sustainability, they should realize that there are
only three things can be done with waste: burn it, bury it , or reuse it.
3. Regulation. Laws and regulations are affecting transportation, waste and
noise are proliferating and can be as much of a challenge as reducing
resource use.
4. Reputation. The marketplace may reward leadership in sustainability.
By. MAUREEN M. CALUAG