Parato The Service Process Matrix is a classification matrix of service industry firms based on the characteristics of the individual firm's service processes. The matrix was derived by Roger Schmenner and first appeared in Although considerably different, the Service Process Matrix can be seen somewhat as a service industry version of Wheelwright and Hayes' Product-Process Matrix. The Service Process Matrix can be useful when investigating the strategic changes in service operations.
The matrix was derived by Roger Schmenner and first appeared in The Service Process Matrix can be useful when investigating the strategic changes in service operations. In addition, there are unique managerial challenges associated with each quadrant of the matrix. By paying close attention to the challenges associated with their related classification, service firms may improve their performance.
The classification characteristics include the degree of labor intensity and a jointly measured degree of customer interaction and customization.
Labor intensity can be defined as the ratio of labor cost to plant and equipment. A firm whose product, or in this case service, requires a high content of time and effort with comparatively little plant and equipment cost would be said to be labor intense.
Customer interaction represents the degree to which the customer can intervene in the service process. For example, a high degree of interaction would imply that the customer can demand more or less of some aspects of the service.
The vertical axis on the matrix, as shown in Figure 1, is a continuum with high degree of labor intensity on one end bottom and low degree of labor intensity on the other end top. The horizontal axis is a continuum with high degree of customer interaction and customization on one ends right and low degree of customer interaction and customization on the other end left.
This results in a matrix with four quadrants, each with a unique combination of degrees of labor intensity, customer interaction and customization. Prentice Hall,page 11 The upper left quadrant contains firms with a low degree of labor intensity and a low degree of interaction and customization.
This quadrant is labeled "Service Factory. This allows service firms in this quadrant to operate in a fashion similar to factories, hence the title "Service Factory. The upper right quadrant contains firms with a low degree of labor intensity but a high degree of interaction and customization.
The upper right quadrant is labeled "Service Shop. The lower left quadrant contains firms with a high degree of labor intensity but a low degree of interaction and customization. This quadrant is labeled "Mass Service. Finally, the lower right quadrant contains firms with a high degree of labor intensity and a high degree of interaction and customization.
The lower right quadrant is labeled "Professional Service. Doctors, lawyers, accountants, architects, and investment bankers are typical service providers that tend to be labor intense and have a high degree of customer interaction and customization.
InDotchin and Oakland proposed that in addition to the four categories: They justify the inclusion by describing personal services as those directed at people, thereby high contact, as opposed to professional services which are directed to things, thereby, achieved with little contact time.
Firms that position themselves directly on the diagonal are seen to be the most efficient. Similarly, a notional diagonal can be said to run from the upper left corner to the lower right corner of the Service Process Matrix.
Schmenner states that many of the segmentation steps taken by service firms have been toward the diagonal. The attraction seems to be better control.
From the perspective of the matrix, need for control would be greater for service shops, which lie completely above the diagonal, and mass services, which lie below the diagonal.UPDATE The old (or was it ?) Shouldice case was updated by Harvard in , making it viable to teach again to date-sensitive students.
They generally take 1 hour to prepare and operate on patients and do 4 operations a day. Shouldice s management is considering expanding the hospital s capacity to serve a considerable unmet demand.
There are two options on the table. in Shouldice Hospital case the demand exceeds capacity due to the great service delivered to the patients 1/5(1). The Good Jobs Strategy: How the Smartest Companies Invest in Employees to Lower Costs and Boost Profits - Kindle edition by Zeynep Ton.
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