Nicole T. Aretaño 2BSA4 Assign#5 OPEMAN-18 Assignment#5 Questions

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Nicole T.

Aretaño
2BSA4
Assign#5
OPEMAN-18

Assignment#5 Questions

5.1. How would you define a service? What services blur the distinction between a
product and a service?

 A company that can analyse your DNA could also serve you daily
meal plans as they know your body the best. Your daily pill can scan your
health from inside your intestine and send back constant, valuable data to the
drug maker. Appliances are not islands anymore, for they talk to each other
and get better every day, in addition to obeying your words. In this digital
world, there is a palpable ‘Blur’ as the distinction between products and
services are vanishing.
Technological advances are enabling companies Blur the line between
products and services, and disrupt consumption at the fundamental level. 
In such a scenario, companies that focus their energies on providing
compelling product and service support while ensuring complete data
security and enhanced experience for the customers will be on the winners’
list. 
When customer engagement moves from mere ownership of
goods to a pure experiential standpoint, companies can define new ways to
create and monetize value long after the actual sale point, creating new
‘revenue tails’, riding on the digital halos – that are created around product
usage and customer behaviour. Value-added services enabled by digital halos
can be offered on a tiered manner, with a free base offering, with paid
premium services. In a service-based culture, an ‘as-a-service’ model that
addresses customers’ pain points and lend lasting value will be favoured by
the customer. 

5.2. List eight characteristics of services and explain what impact each characteristic
has on the design process.

1. Services are intangible: they are experienced, which may differ from customer
to customer
a. Designing a service involves describing what the customer is
supposed to experience, can be a difficult part
b. Because of intangibility, service is perceived more risky than buying a
product
2. Service output is variable
a. Various service providers employed and variety of customers they
serve, each with his/her own special needs
b. Most important measures of service quality to the customer are
reliability and consistency
3. Services have higher customer contact
a. Making sure the encounter is a positive one is a part of service design
Nicole T. Aretaño
2BSA4
Assign#5
OPEMAN-18

b. Service encounter between the service provider and customer is the


service in many cases
4. Services are perishable: service design should define not only what is to be
delivered but also where and when (timing and location of the service delivery
is also important)
5. The service itself and its delivery are inseparable: service design and process
design must occur concurrently
a. To decide what, where, when the service design also specifies how the
service should be provided
b. Including the degree of which customer participation in the service
process (front/back door activities)
c. The role and authority of the service provider and how automated the
service should be
6. Services tend to be decentralized and geographically dispersed
a. Many service employees are on their own to make decisions
b. Careful service designing will help the employees to deal successfully
with contingencies
7. Services are consumed more often than products
a. More opportunities to succeed and fail
b. Continuous improvement is always possible
8. Services can be easily emulated
a. Competitors can copy a new service easily
b. Service improvements occur more rapidly than product improvements
 Service design process: more comprehensive and more often than product
design
 Begins with a service concept and ends with the service delivery

5.3. Describe the service package for (a) a bank, (b) an airline, and (c) a lawn service.

Service package for a bank

It's generally a package of services that the bank will provide you for a monthly
fee. Certain packages contain things like a number of free money orders or a free
safety deposit box. The monthly fee will also cover your transactions to a certain level
of activity. The banks all have these packages. You can go to their websites and
compare the features.
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OPEMAN-18

Service package for an airline

Service package for flights


This is the assistance we provide when purchasing our service package for flights.
 If there are any schedule changes, we will find the best possible alternative for
you.
 Booking of luggage and special luggage such as baby carriages, golf bags and
ski equipment.
 Ordering special meals for the flight.
 Assist you with cancellations and changes in emergencies.
 Register a bonus card with the airline.
 All of this + access to our customer service department if you have any further
questions regarding your reservation.

Service package for a lawn service

Lawn routines such as watering, pest control, and soil testing, among others, are
examples of activities needed to nurture new lawns or preserve an existing one. These
activities are classified into two: lawn care and lawn maintenance.

5.4. Discuss briefly the relationship between waiting line analysis and quality
improvement.

 Waiting in line is common phenomena in daily life, for example, banks have
customers in line to get service of teller, cars queue up for re-filling, and
workers line up to access machine to complete their job.
Therefore, management needs to work on formulae, which will reduce wait
time and create delighted customers without incurring an additional cost.
Generally, queue management problems are trade off’s situation between cost
of time spent in waiting v/s cost of additional capacity or machinery.
 Quality improvement refers to the combined and unceasing efforts of
everybody in a company to make everything about it, especially its production
process, better. It is a systematic approach to the elimination or reduction of
rework, waste, and losses in the production process.
Put simply, quality improvement (QI) refers to methods to improve the
production process. It requires getting rid of or changing parts of the process
that do not function optimally.
In manufacturing, for example, the term nearly always refers to the production
process. However, management can target any part of a company or
organization for QI.
There are several different methods for quality improvement. They cover
people-based improvement, process improvement, and product improvement.
 Both empirical evidence and logic suggest that there is a
strong negative correlation between waiting time and a customer's evaluation
of the quality of a service. The evaluation of service, in turn, is related
strongly to customers' loyalty and other important outcomes. A conceptual
model, based on field theory, is developed. The model integrates key variables
derived from recent studies of consumer waiting behavior. Also incorporated
Nicole T. Aretaño
2BSA4
Assign#5
OPEMAN-18

are relevant constructs from the extant services literature, including the roles
of the disconfirmation of consumers' wait time expectations, prior service
encounters, and the quality of the customer's encounter with the contact
employee. Finally, data from actual consumers in a natural queueing context
are used to test the theoretical framework. 

5.5. Define the four basic waiting line structures and give an example of each.

 There are four basic waiting line structures that describe the general
conditions at a service facility. The simplest structure is our basic module. It is
called the single server case. There are many examples of this simple module:
the cashier at a restaurant, any single window operation in a post office or
bank, or a one-chair barber shop.

If the number of processing stations is increased but still draws on a


single waiting line, we have the multiple servers’ case shown. A post office
with several open windows but drawing on a single waiting line is a common
example of a multiple server waiting line structure. A simple assembly line or
a cafeteria line has, in effect, a number of service facilities in series and is an
example of the single server. Finally, the multiple servers in series case can be
illustrated by two or more parallel assembly lines. Combinations of any or all
of the basic four structures can also exist in networks in very complex
systems.
 The analytical methods for waiting lines are divided into two main
categories for any of the basic structures shown, depending on the size of the
source population of the inputs. When the source population is very large and,
in theory at least, the length of the waiting line could grow without fixed
limits, the applicable models are termed infinite waiting line models. On the
other hand, when arrivals come for a small, fixed size population, the
applicable models are termed finite waiting line models. For example, if we
are dealing with the maintenance of a bank of 20 machines and a machine
breakdown represents an arrival, the maximum waiting line is 20 machines
waiting for services, and a finite waiting line model is needed. On the other
hand, if we operated an auto repair shop, the source population of breakdowns
is very large and an infinite waiting line model would provide a good
approximation. We will discuss both infinite and finite models.
Here are other variations in waiting line structures that are
important in certain applications. The queue discipline describes the order in
which the units in the waiting line are selected for service. We imply that the
queue discipline is first come first served. Obviously, there are many other
possibilities involving priority systems. For example, in a medical clinic,
emergencies and patients with appointments are taken ahead of walk in
patients. In production scheduling systems there has been a great deal of
experimentation with alternate priority systems. Because of the mathematical
complexity involved, Monte Carlo simulation has been the common mode of
Nicole T. Aretaño
2BSA4
Assign#5
OPEMAN-18

analysis for systems involving queue disciplines other than first come first
served.
 Finally, the nature of the distributions of arrivals and services is an
important structural characteristic of waiting line models. Some mathematical
analysis is available for distribution that follows the Poisson or the Erlang
process (with some variations) or that have constant arrival rates or constant
service times. If distributions are different from these mentioned or are taken
from actual records, simulation is likely to be the necessary mode of analysis.
 Infinite waiting line models:
We will not cover all the possible infinite waiting line models but
will restrict our discussion to situations involving the first come first served
queue discipline and the Poisson distribution of arrivals. We will deal initially
with the single server case (our basic service facility module); later we will
also discuss the multiple server case. Our objective will be to develop
predictions for some important measures of performance for waiting lines,
such as the mean length of the waiting line and the mean waiting time for an
arriving unit.

Sources:

http://www.businessworld.in/article/As-The-Thin-Line-Between-Products-and-
Services-Blur

https://www.lawnbuddies.com/blog/what-is-included-in-lawn-care-services-it-
depends

https://www.managementstudyguide.com/waiting-line-management.htm

https://marketbusinessnews.com/financial-glossary/quality-improvement/

https://www.citeman.com/5625-structure-of-waiting-line-models.html

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