2007 Pearson EducationProcess StrategyChapter 4 2007 Pearson Education?Banks lending process:?Movie studios producing a film:?Public accounting firms performance of audit:?Hospitals performing surgery on patient:ApplicationExamples of business processesCredit checkAsset evaluationDecisionScript selectionFinancingCastingShootingEditingPlanGather documentsAnalysisAssess issuesSubmit opinionExaminepatientSchedulePrepareOperatePost opRelease 2007 Pearson EducationProcess Strategy? Process strategy is the pattern of decisions made in managing processes so that they will achieve their competitive priorities. ? A process involves the use of an organizations resources to provide something of value. ? Major process decisions include: ?Process Structure ?Customer Involvement ?Resource Flexibility ?Capital Intensity 2007 Pearson EducationMajor Process Decisions? Process Structure determines how processes are designed relative to the kinds of resources needed, how resources are partitioned between them, and their key characteristics. ? Customer Involvement refers to the ways in which customers become part of the process and the extent of their participation. ? Resource flexibility is the ease with which employees and equipment can handle a wide variety of products, output levels, duties, and functions. ? Capital intensity is the mix of equipment and human skills in a process. 2007 Pearson EducationMajor Decisions for Effective Process Design 2007 Pearson EducationFaster Food 2007 Pearson EducationCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.Process Structure in ServicesProcess Structure in ServicesTABLE 3.1|DIMENSIONS OF CUSTOMER CONTACT IN SERVICE |PROCESSESDimensionHigh ContactLow ContactPhysical presencePresentAbsentWhat is processedPeoplePossessions or informationContact intensityActive, visiblePassive, out of sightPersonal attentionPersonalImpersonalMethod of deliveryFace-to-faceRegular mail or e-mail 2007 Pearson EducationHotel ExampleHotel ExampleCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall. 2007 Pearson EducationHospital ExampleHospital ExampleCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall. 2007 Pearson Education 2007 Pearson EducationCustomer-Contact Matrix for Service ProcessesLess Customer Contact and CustomizationLess Customer Contact and CustomizationServiceServicePackagePackageFront officeHybrid officeBack office(1)(2)(3) High interaction withSome interaction withLow interaction with customers, highlycustomers, standardcustomers, standardized customized serviceservices with some optionsservicesProcess Characteristics(1) Flexible flows, complex work with many exceptions(2) Flexible flows with some dominant paths, moderate job complexity with some exceptions(3) Line flows, routine work easily understood by employeesLess Complexity, Less Divergence, More Line Flows 2007 Pearson EducationProcess Flows?Flexible flow: The customers, materials, or information move in diverse ways, with the path of one customer or job often crisscrossing the path that the next one will take.?Line Flow: The customers, materials or information move linearly from one operation to the next, according to a fixed sequence. 2007 Pearson EducationService Process Structuring?Front office: A process with high customer contact where the service provider interacts directly with the internal or external customer. ?Hybrid office: A process with moderate levels of customer contact and standard services with some options available. ?Back office: A process with low customer contact and little service customization. 2007 Pearson Education 2007 Pearson EducationService Process Structures in the Financial Services IndustryHybrid Office Creation of quarterly performance report Data obtained electronically Report calculated using standardized process Report reviewed using standardized diagnostic systems Manager provides written analysis and recommendations in response to individual employee performance Manager meets with employee to discuss performanceBack Office Production of monthly client fund balance reports Data obtained electronically Report run using standardized process Results checked for “reasonableness” using well-established policies Hard copies and electronic files forwarded to analysts Process repeated monthly with little variationFront Office Sale of financial services Research customer finances Work with customer to understand customer needs Make customized presentation to customer addressing specific customer needs Involve specialized staff offering variety of services Continuing relationship with customer, reaction to changing customer needsTax sheltering strategy, tax form filling 2007 Pearson Education 2007 Pearson EducationThe Big Picture King Soopers BakeryThe Big Picture King Soopers BakeryRear Loadershome | all products | print this page 2007 Pearson Educati