Customer routed services are those that offer

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Customer-routed services are those that offer customers broad freedom to select the pathways that are best suited for their immediate needs and wants from many possible pathways through the service- delivery system. The customer decides what path to take through the service- delivery system with only minimal guidance from management. Searching the Internet to purchase an item or visiting a park are examples. Provider-routed services constrain customers to follow a very small number of possible and predefined pathways through the service system. The service-encounter activity sequence consists of all the process steps and associated service encounters necessary to complete a service transaction and fulfill a customer’s wants and needs. It depends on two things: The degree of customer discretion, freedom, and decision-making power in selecting the service-encounter activity sequence. Customers may want the opportunity to design their own unique service-encounter activity sequence, in any order they choose. The degree of repeatability of the service-encounter activity sequence. Service-encounter repeatability refers to the frequency that a specific service encounter activity sequence is used by customers. Service-encounter repeatability provides a measure analogous to product volume for goods-producing firms. A task is a specific unit of work required to create an output. Examples are inserting a circuit board into an iPad subassembly or typing the address on an invoice. An activity is a group of tasks needed to create and deliver an intermediate or final output. Examples include all the tasks necessary to build an iPad, for example, connecting the battery and assembling the cover pieces; or inputting all the information correctly on an invoice, such as the items ordered, prices, discounts, and so on. A process consists of a group of activities. Examples of processes would be moving the parts and materials for an Apple’s iPad to the assembly stations, building the iPad, and packaging the unit and peripherals; or taking a customer order, filling the order, shipping it, and processing the invoice. A value chain is a network of processes. An example of a value chain might include developing the Web site and video clips for advertising an iPad, purchasing the materials for an iPad,
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manufacturing and packaging the units, transporting them to warehouses and retail stores, distributing them to customers, and providing customer support, software updates, and so on. Designing a goods-producing or service-providing process requires six major activities : 1. Define the purpose and objectives of the process. 2. Create a detailed process or value stream map that describes how the process is currently performed (sometimes called a current state or baseline map). Of course, if you are designing an entirely new process, this step is skipped. 3.
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