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The service process refers to how a service is provided or

delivered to a customer.
Designing a service delivery system begins with a service
concept & strategy to provide a service features to
differentiate it from the competition.
Designing a service process system involves issues such as
location, facility design & layout for effective customer and
work flow, procedures & jib definitions for service providers,
measures to ensure service quality, extent of customer
involvement, equipment selection and adequate service
capacity.
Once the service becomes operational, modifications in the
delivery system are introduced as condition warrant.
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There are certain specific characteristics of service process

design & implementation, which should be considered are as
follows:
a) Customer participation in the process
The level of involvement or participation of the customer in the
service process- in a self-service restaurant, for ex, as opposed to
waitress service
b) Location of service delivery
We have to consider questions like should the process be carried
out at the service only at providers premises or at the
customers home?
c) High contact or Low contact service
The level of contact between the customer & the service
providers personnel this can range from nil (ATM, Kiosks,
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Vending machines, ticket booking machines) to a very high

d) Degree of standardisation
The degree to which the service is delivered in a very standard
format (Mc Donald's) or whether customization is catered for
(Professional services)
The extent to which the service can be altered from the standard
to meet the needs of different customers or users may be termed
divergence.
e) Complexity of the service
The number of steps or activities, which contribute towards the
service delivery, measures this.

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Degree of interaction & Customization

Low
Degree of Labour Intensity

Service Factory
Low

Airlines
Transportation
Hotels
Resorts &
Recreation

Mass Service
Hig
h

Retailing
Wholesaling
Retail aspects of
commercial banking

Hig
h Shop
Service
Hospitals
Auto repair
Other repair
services

Professional
Service
Doctors
Lawyers
Accountants
Architects

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The service process spectrum forms the basis for developing

design options in operations systems.
The service design options are determined by the existence &
combination of the following concepts:
Input Uncertainty
Refers to the service organisations incomplete knowledge of
what the customer is going to bring to the service & how he is
likely to behave during the service encounter.
Customer Willingness to Participate
Refers to how far customers wish to play an active part in the
service. Customers capacity to become involved can be limited
by lack of knowledge, skills & understanding their role.

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Diversity of Demands
Refers to the uniqueness of customers demands. Are they to be
met in customized or standardized way?
Interdependencies
Refers to different patterns with respect to division of service
work (between front & back office and customer) and
customization versus and standardisation of service actions and
interdependencies.

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The service process planning must consider the following

strategic decisions & design elements:
Basic Technological Decision
Conversion/Materials Decision
Specific Equipment Decision
Process Flow Decision
Blue prints
Flow charts
Front office/Back office
Layouts
Benchmarks
People Decision

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Productivity is the measure of relationships between input and an

output.
Productivity = Output/Input
To develop an understanding for service productivity, we need to
have a clear understanding of the following services production
concepts:
Efficiency
Effectiveness
Economy
Production function
Capacity utilization
Reasons for low productivity in service industries
Small size of most service establishments
Difficulty of using machine technology & other labour saving
devices
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 Careful cost control, driven by a management desire to become

leaner & fitter
Job design management & employees in pursuit of
productivity improvement
Replace human labour with automation
Improve employee motivation
How do employees perceive the organisational
culture?
Do they feel part of the organisation?
Are awards commensurate with the tasks done?
Select people more predisposed for productivity
Isolate or even extend the back office so that the benefits of
the manufacturing technology can be achieved
Schedule resource deployment to match fluctuations in the
level of customer demand
Involve customers more in the production & delivery of service
Make sure that highly skilled employees are not doing jobs that
could be undertaken by less fully trained staff
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The role of technology and physical aids in service delivery

system is summarized in the following five functions:
Cost Rationalization
More effective Quality
Making Higher Quality Possible
Closer Link Up With The Customer
Technology As a Factor Affecting Behaviour

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