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Generic Approaches To Service System Design

960 words - 4 pages

Generic approaches to service system design

production-line approach
routine services can be delivered through this approach, services are provided in a controlled environment to ensure consistent quality and efficiency of operation. a service taking this approach could gain a competitive advantage with a cost leadership strategy. this approach attempts to translate a successful manufacturing concept into the service sector.

limited discretionary action of personnel
a feature that contributes to the production line approach's success.
standardization and quality (defined as consistency in meeting specifications) are the hallmarks of a production line. for standardized routine ...view middle of the document...

this also helps to provide uniformity in service quality, because the process is easier to control.
customer as coproducer
instead of being a passive bystander, the customer represents productive labor just at the moment it's needed, and opportunities exist for increasing productivity by shifting some of the service activities onto the customer (making them a coproducer). this can also increase the degree of customization can support a competitive strategy of cost leadership with some customization
a contribution that a customer can make in the delivery of services. the substitution of customer labor for personalized services is the highest level of coproduction. the customer receives benefits for their labor in the form of convenience. this also addresses the problem of matching supply with demand in services because the customer brings the extra service capacity at the time when it is needed.
smoothing service demand
a contribution that a customer can make in the delivery of services.  service capacity is a time-perishable commodity. this approach emphasizes the permanent loss to the service provider of capacity whenever the server is idle through lack of customer demand. the nature of demand for a service, however, is one of pronounced variation by the hour of the day or day of week, etc. if variations in demand can be smoothed, the required service capacity will be reduced, and fuller, more uniform utilization of capacity can be realized and the result is improved service productivity. customers act as passive corproducers here, adjusting the timing of their demand to match the availability of the service, or by being forced to wait.
Customer-generated content
a contribution that a customer can make in the delivery of services. the internet has opened a new opportunity for customer coproduction- the actual generation of content used by others.
customer contact approach
how can managers design their operations to achieve the efficiencies of manufacturing when customers participate in the process? service delivery...

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