sm process 10
TRANSCRIPT
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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 canbe made through Process Re-engineering (also
called BPR)
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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
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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.
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BPR-Buying of Drafts
The first scenario we saw may still
be the common one at most banks,
but scenario 2 may well becomeroutine in a few years.
Already, you can order drafts over
the net at the banks which offerinternet banking.
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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 problemshow do you
sort it out if you get shortchanged?
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Internet-based shopping
Has promised a lot, but failed to live up to
the hype.
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...
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Lost airline tickets
Some old processes have actually been
greatly improved upon, as illustrated by
the boxed item (see text) on lost airline
tickets. Earlier, all was lost if you lost yourairline ticket.
Now it need not be so. If you have identity
proof you can travel.
Also get a refund later.
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Insurance Co. Processes
In an insurance co., customer acquisition
can be one process, claims settlement a
second major one from the companys
point of view.
Buying an insurance policy is simple but
making a claim can be cumbersome from
a customers point of view.
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Contd..
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 unnecessaryinformation asked, and so on.
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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 railwaystations 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 usethe service everyday.
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Contd.
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 wastedeveryday- 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 intomajor savings for customers
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Single Window Service
Concept Some years ago, Mr. T.N. Seshan, the then
Chief Election Commissioner, had suggesteda single multi-purpose identity card for everyIndian citizen, that could be used for votingtoo. The concept was a sound one.
For example, the driving license, thepassport, the ration card, and the voters cardcan all be easily issued by the local post officeor the local police station, because that iswhere the actual verification happens in anycase.
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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.
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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 labor. Number of service providers is
less than the demand, though there may beequipment available. For example, check outclerks at a retail store.
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Possible Improvements in the Waiting
Process
(handling capacity/demand mismatch)
1. Seating versus Standing
2. Start another line on a particularly crowdedday
3. Giving people something to do (read, watchTV)
4. Providing Information on possible time inline
5. Pre-process (some work can be donebefore reaching a server, like nursepreparing a patient for operation)
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Contd.
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 dealwith it?
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Six Sigma
Six Sigma is a comprehensive and flexible
system for achieving sustaining and maximizing
business success by minimizing defects and
variability in process. At the quality level of Six Sigma, defectives per
million opportunities (DPMO) is 3.4
It is popular in banks, insurance, health care,
education etc.
Th Si Si C t i B ki
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The Six Sigma Concept in Banking
Six Sigma is based on statistical analysis of acompanys 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.
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ContdSix 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 Bankand HSBC.
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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 forcontrol in some sense)
To build a consensus or to validate their
viewpoint
To let off steam, as an emotional release of
stress
y cus omers on
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y cus omers oncomplain
They dont know where or how to do it
They dont think itll help
They doubt their own evaluation as being
subjective
They are uncomfortable in complaining face
to face
They feel they lack the technical expertisewhere the credence attributes predominate
(doctors treatment, car repairs)
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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 recurring complaints
Give Guarantees
Respond Fast
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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, expects its BPR initiatives to save
upto 20 percent costs in many of its operations.