Service Operations Management: The total experience SECOND EDITION

1. Service Operations Management: The total experienceSECOND EDITION Chapter Three Service Process Improvement

2. Fig 3.1 Customer contact intensity

3. Fig 3.2 Service process review sequence

4. Organization readiness for change Key Performance Indicators (KPI’s) used to identify activities and to measure performance against targets. A step often missed by organizations when establishing KPIs is the asking of Key Performance Questions (KPQ’s). Developing exceptional service operations requires a major paradigm shift.

5. Fig. 3.3 Paradigm shift to accept continuous improvements

6. Improvement tools and techniques • Kaizen • Muda • Poka-yoke • Process mapping • Five Why’s • Brainstorming • Pareto Analysis • Affinity diagram • Cause and effect • diagram • Matrix diagram • Kano analysis • SIPOC • Quality function deployment • Failure modes and • effects analysis • Six sigma • Activity sampling

7. Fig. 3.4 Service process map of banking activities

8. Fig. 3.5 Brainstorming and cognitive mapping

9. Fig. 3.6 Pareto analysis

10. Fig. 3.7 Affinity diagram

11. Fig. 3.8 Cause and effect diagram

12. Fig. 3.9 Matrix diagram

13. Fig. 3.10 Kano analysis

14. Fig. 3.11 SIPOC

15. Fig. 3.12 Quality function deployment

16. Fig. 3.13 Failure modes and effects analysis

17. A culture embracing change Service process improvement is a continuous process. The culture of the organization, staff attitudes and their skills, and the support systems, all need to be agile and accepting of change and the seeking of improvements. For people, change is threatening; it takes them out of their comfort zone and into a period of learning and adoptation of new ways of working.

18. Fig. 3.14 Barriers to change

19. The sources and reasons for mistakes and errors are as varied as they are different. When empowered and self-regulated teams are successfully working and undertaking continuous improvement, it is only right to ask what management’s role in this culture change is? Of critical importance is the need for managers to stop regarding themselves as managers that must control and monitor, and to change and behave as leaders.

20. Fig. 3.15 Cumulative cost and impact of mistakes in the value chain

21. Fig. 3.16 Cumulative risk and sources of errors