Service Process
In planning manufactured products, a great deal of attention must be paid to technical specifications such as size, weight, and engineering specifications. For physical characteristics, standard may be determined and the conformance to these standards can be monitored for quality assurance. The quality of services, on the other hand, depends on the skill and training of personnel who produce the services. It is more difficult to set standards on performance, and consistent quality is more difficult to ensure.
For example, all meals on an airline may be of the same quality, but service may vary considerably with different flight crews.
Another important difference between manufactured products and services is that manufactured products can be stored for future use, whereas services must be made available to the customer on demand. This difference is another important consideration for quality assurance. That is, major quality considerations must be planned and designed into the service just as it should be with manufactured products; however, finished goods may be inspected prior to being released from the factory. For services, this cannot be done.
Additional considerations should be given when designing service products are as follows:
1. To what extent will the customer be involved in the process? For example, will a retail operation be primarily self-service (Big Bazaar)? Will a financial institution allow customers to execute their own transactions using automatic teller machines or telephones (Citibank)? Normally, greater customer involvement is incorporated into the product either to reduce costs or to provide grater convenience to the customer by, for instance, eliminating the need to wait for a salesperson.
2. How quickly will service be provided? Human queuing systems are an important aspect of product quality for services. The intended speed of service will affect staffing, job design, scheduling, and facility layout.
3. How standardized or customized will the service be? For example, freight rail service is usually highly standardized: trains are scheduled
to run between specific locations, and if customers want to ship or receive materials, they must be ready at those times.
4. What variety of services will be offered? If a fast-food restaurant will provide only carry-out service, there is no need for seating space in the facility or extra service personnel to clean the tables.
5. What geographical area will be served? American Express Corporation, which sells its products based on quick worldwide replacement of lost or stolen traveler’s checks and credit cards. This product characteristic requires a large international network of American Express offices and agents with a telecommunications system linking them.
In planning manufactured products, a great deal of attention must be paid to technical specifications such as size, weight, and engineering specifications. For physical characteristics, standard may be determined and the conformance to these standards can be monitored for quality assurance. The quality of services, on the other hand, depends on the skill and training of personnel who produce the services. It is more difficult to set standards on performance, and consistent quality is more difficult to ensure.
For example, all meals on an airline may be of the same quality, but service may vary considerably with different flight crews.
Another important difference between manufactured products and services is that manufactured products can be stored for future use, whereas services must be made available to the customer on demand. This difference is another important consideration for quality assurance. That is, major quality considerations must be planned and designed into the service just as it should be with manufactured products; however, finished goods may be inspected prior to being released from the factory. For services, this cannot be done.
Additional considerations should be given when designing service products are as follows:
1. To what extent will the customer be involved in the process? For example, will a retail operation be primarily self-service (Big Bazaar)? Will a financial institution allow customers to execute their own transactions using automatic teller machines or telephones (Citibank)? Normally, greater customer involvement is incorporated into the product either to reduce costs or to provide grater convenience to the customer by, for instance, eliminating the need to wait for a salesperson.
2. How quickly will service be provided? Human queuing systems are an important aspect of product quality for services. The intended speed of service will affect staffing, job design, scheduling, and facility layout.
3. How standardized or customized will the service be? For example, freight rail service is usually highly standardized: trains are scheduled
to run between specific locations, and if customers want to ship or receive materials, they must be ready at those times.
4. What variety of services will be offered? If a fast-food restaurant will provide only carry-out service, there is no need for seating space in the facility or extra service personnel to clean the tables.
5. What geographical area will be served? American Express Corporation, which sells its products based on quick worldwide replacement of lost or stolen traveler’s checks and credit cards. This product characteristic requires a large international network of American Express offices and agents with a telecommunications system linking them.
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