Process: Tutored By: Prof. Sunil D' Anto

Process
Tutored by : Prof. Sunil D’ Anto
1
Process-The Customer’s Point of View
 For example, opening a bank account was a humiliating

experience in olden days of public sector monopoly.
 It’s the same with the process of taking loans
 Today, the process has changed beyond recognition.
2
Process Blueprinting
 The process of service delivery can be mapped with a flow-chart or a
service “blueprint”.
 A diagrammatic representation makes it easy to tell at a glance if any

processes are redundant, overlapping, unnecessary or “just right”.
 Particularly if the typical time needed for each task on the process
map is identified, we can estimate the time spent by a customer in a
particular stage of service delivery system, and improvements can be
made through Process Re-engineering (also called SPR/BPR)
3
Example of a Process-Buying a Draft
ENTER Collect Application Form Submit at 2
Collect Draft when called Wait without notice
Fig.1 : Scenario 1 for a Draft Purchase at a bank
4
Alternative Scenario of the same process
Punch in Details of DD at ATM Collect draft
Fig. 2: Scenario 2 for a Draft Purchase at an ATM
5
BPR-Buying of Drafts
The first scenario we saw may still be the common

one at most banks, but scenario 2 may well become
routine in a few years.
Already, you can order drafts over the net at the

banks which offer internet banking.
6
Are new processes always better?
 the quarterly statement from your bank as a substitute

for the pass book. Is it a good thing?
 Think about its disadvantages as a customer..
 ATM withdrawal problems…how do you sort it out if

you get shortchanged?
7
Internet-based shopping
 Has promised a lot, but failed to live up to the hype during
initial years; but has scaled up tremendously in the recent
history
 Back end (non-ordering) processes were at fault in many

cases
 On the other hand, a lot of processes have been improved due

to technology...
8
Lost airline tickets
Some old processes have actually been greatly improved upon,

Earlier, all was lost if you lost your airline ticket. Now it need
not be so. If you have identity proof (and money), you can
actually travel, and also get a refund later.
9
Insurance co. processes & BPR
In an insurance co., customer acquisition can be one process, claims settlement
a second major one from the company’s point of view.
Buying an insurance policy and making a claim can be two from a customer’s
point of view.
From either viewpoint, the company can look for the most efficient and
customer-friendly process that serves the needs of both parties. For example,
unnecessary stages can be eliminated, or processes can be shortened,
documentation can be simplified by reducing unnecessary information asked, and
so on.
10
An Example from Indian Railways
Indian Railways has constantly updated its reservation processes to make
them more customer-friendly and convenient.
But its routine local telephonic enquiry at railway stations does not work half as
efficiently in most locations.
There is a serious need to re-look at it and re-engineer it for the benefit of
millions who use the service everyday.
 Even if one million passengers waste one hour of their time because the
enquiry number is not functioning to tell them about a late arrival, it is one
million man-hours wasted everyday- not counting other man hours of the
people who may go to the station to drop or pick up someone.
 Reengineering this process will translate into major savings for customers
 Reengineered >>>>> trainenquiry.com/ sms to 139
 Reengineered >>>>> FOIS.indianrail.gov.in / NTES app for the smartphones
11
Single Window Service Concept
Few years ago, Mr. T.N. Seshan, the then Chief Election
Commissioner, had suggested a single multi-purpose
identity card for every Indian citizen, that could be used for
voting too. The concept was a sound one. For example, the
driving license, the passport, the ration card, and the
voter’s card can all be easily issued by the local post office
or the local police station, because that is where the actual
verification happens in any case.
12
E-seva of the AP Govt.
 A pioneer in the use of the single window efficient service

idea is the e-seva initiative by the Andhra Pradesh
Government.
 Many services including bill payments and

applications/renewals of different types are provided at
one location, in a simple and comfortable environment.
13
Managing the Waiting Process
 Reasons for waits involved in the service process
 Limited space for customers (eg. In a Restaurant)
 Limited facilities for processing things

(eg: laundromat has 8 machines)
 Limited equipment to process information. For example, one computer which is

networked to the information that many customers want. Other counters cannot
provide that information, though counters are manned and vacant.
 Limited labor. Number of service providers is less than the demand, though there
may be equipment available. For example, check out clerks at a retail store
14
Possible Improvements in the Waiting Process
1. Seating versus Standing

2. Start another line on a particularly hot or crowded day
3. Giving people something to do (read, watch TV)
4. Providing Information on possible time in line
(eg: Disneyland lines)
5. Pre-process (some work can be done before reaching a
server, like nurse preparing a patient for operation)
15
Contd….handling capacity/demand mismatch
 Other techniques include price variations for use of

lean time capacity (night travel, phone calls, internet
use), reservation or appointments system (doctors, air
travel)
 Exercise: Think of a bottleneck you have experienced

as a customer of a service. How would you suggest the
provider deal with it?
16
The Six Sigma Concept in Banking
Six Sigma is based on statistical analysis of a company’s own
data to measure and improve any process or task. Many banks
in India are now using the concept of Six Sigma, made famous
by Motorola in the U.S., to improve process quality in their
processes.
 Some of the processes that have benefited from this concept

are account opening, certain tasks inside the bank such as
cheque collection, credit card delivery, cheque book delivery and
credit approval for loans to individuals and corporates. Some of
the goals that can be achieved with Six Sigma concepts are-cycle
time reduction, and reduction in the number of “defects”.
17
Contd…Six Sigma
Some of the banks that have either implemented six

sigma concepts for quality improvement in India or
are in the process of doing so, are Citibank, ICICI
Bank, HDFC Bank and HSBC.
18
A Major Service Process :
Complaints Management and Service Recovery
Only one out of 20 dissatisfied customers bothers to

complain.
12 positive experiences are required to erase one negative
experience
Around 50% of attempts at service recovery are botched
up, leaving customers even more dissatisfied.
86 percent of the bad memories quoted by respondents
are more than 5 -year old experiences.
19
Why customers complain
To appear intelligent or discerning to others

To get control over the provider (according to the search for
control model in consumer behaviour, a service encounter is
a search for control in some sense)
To build a consensus or to validate their viewpoint
To let off steam, as an emotional release of stress
20
Why customers don’t complain
They don’t know where or how to do it
They don’t think it’ll help
They doubt their own evaluation as being subjective
They are uncomfortable in complaining face to face
They feel they lack the technical expertise where
the credence attributes predominate (doctor’s
treatment, car repairs)
21
What can service marketers do?
Give customers a chance to complain or talk to you!
Develop the Capability of Learning From Complaints
 Develop Strategies for solving recurring complaints

 Give Guarantees
 Respond Fast
22
Summing Up
The potential for BPR is immense in Indian service
organisations in both the public and private sectors. This can
save consumers from long-winded procedures, increasing
satisfaction levels and customer retention.
The service organisation also stands to gain from reduced

costs of operations and a motivated workforce working to its
optimum capacity. ICICI Bank, according to an estimate by its
management, it expects its BPR initiatives to save upto 20 percent costs in
many of its operations.
23

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Process

Tutored by : Prof. Sunil D’ Anto

 For example, opening a bank account was a humiliating

 It’s the same with the process of taking loans

 Today, the process has changed beyond recognition.

 A diagrammatic representation makes it easy to tell at a glance if any

ENTER Collect Application Form Submit at 2

Collect Draft when called Wait without notice

Fig.1 : Scenario 1 for a Draft Purchase at a bank

Punch in Details of DD at ATM Collect draft

Fig. 2: Scenario 2 for a Draft Purchase at an ATM

The first scenario we saw may still be the common

Already, you can order drafts over the net at the

 the quarterly statement from your bank as a substitute

 Think about its disadvantages as a customer..

 ATM withdrawal problems…how do you sort it out if

 Back end (non-ordering) processes were at fault in many

 On the other hand, a lot of processes have been improved due

Some old processes have actually been greatly improved upon,

 A pioneer in the use of the single window efficient service

 Many services including bill payments and

 Limited space for customers (eg. In a Restaurant)

 Limited facilities for processing things

 Limited equipment to process information. For example, one computer which is

1. Seating versus Standing

 Other techniques include price variations for use of

 Exercise: Think of a bottleneck you have experienced

 Some of the processes that have benefited from this concept

Some of the banks that have either implemented six

Only one out of 20 dissatisfied customers bothers to

To appear intelligent or discerning to others

Give customers a chance to complain or talk to you!

Develop the Capability of Learning From Complaints

 Develop Strategies for solving recurring complaints

The service organisation also stands to gain from reduced

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