•The products customers buy are preceded by a production or manufacturing process.•Any product like a car, TV, computer, etc pass through a complex process where different parts or components or ingredients are put together to create an end productGOODSIn case of goods, the manufacturing processes happens in a factory remote from the customer, and it is only the product that comes in contact with the customer after its productionSERVICESIn case of services, many processes are open and visible to the customer. Also, customer plays an active role in these processes. Hence, production and consumption often happen simultaneously in case of servicesProcesses in Goods and Services
Collection of raw milkElectronic milk test to kill germsMethylene blue reduction test, fat testPasteurization and standardizing processSeparation processQuality checkPackaging in pouchesStoragePackaged Milk Production ProcessProcess in Goods: An Example
Booking a ticket for travelReaching the airport on the specified date/timePersonal screening and luggage screening at the entranceCheck in boarding pass and personal securityWait in the airport loungePre flight check and boardingFlyingDisembarking, luggage collection and leaving airportGeneric Process for Air TravelProcess in Service: An Example
Unlike goods, in service industry, customer interaction with the system is often integral to service creation. Service failures are often attributed to inadequate or inappropriate service processesService performance in a business like McDonalds is judged by the time it takes for the staff to assemble the order. The front side performance has to be therefore enabled by the back room processes. The back room processes have to be precisely mapped and monitored so that the performance at the front end is not dissatisfactory for the customerImportance of Processes in Services
Characteristics of Service Process Design and Implementation•Divergence:The degree to which a service provider can vary services , deviating from the standard service, is known as divergence. Example- tourism .•Complexity: The complexity of a process should take in to consideration the contribution of the different activities to service quality.•Service Location:Neutral location, Provider location, Customer Location.•Customer participation and interaction: The level of interaction and participation differ from service to service . Example-Bankers and a customers in mobile banking.•The Service Itself: Process Based Service and Technology Based Service.
Types of ProcessA process should involve logical steps that can be broken down to increase efficiency . Two types process available for a service provider:Line or Flow Operations: The activities required to produce and deliver a service are arranged in a logical flow or assembly line. High coordination and speed is essential. Like ordering French Fries.