Service Science: Analysis and Improvement of Business Processes / Edition 1

by John Maleyeff

Overview

To remain relevant in today's world, practitioners should presume that they have two jobs: first, to do their work effectively so that they provide value to the organization; second, to improve how the work is done so that their organization remains competitive. This book offers clear guidance to excel at this ubiquitous second job.

Informed by an appreciation that most personnel that work in any firm, even firms that are manufacturing-oriented, routinely provide services as a key element of their jobs, this book explains how to provide and improve internal customer service, regardless of industry or role. It illustrates the common features, or service process "DNA," while providing a diverse set of examples to enhance understanding. Written by a pioneer in the development of principles and methodologies that address services in a structured and distinctive manner, this book stresses that service processes are distinctly different from manufacturing processes.

Rigorous and practical, this book will appeal to students and professionals alike, in business, hospitality, industrial management, public health, and other fields.

Online resources include Excel files that act as templates to help with quantitative analysis routines.

Product Details

ISBN-13:	9780367336035
Publisher:	Taylor & Francis
Publication date:	08/04/2020
Edition description:	New Edition
Pages:	238
Product dimensions:	6.00(w) x 9.00(h) x (d)

About the Author

John Maleyeff is an educator, practitioner, and researcher who specializes in how organizations analyze, optimize, and improve the delivery of goods and services. He is currently Associate Professor of the Practice at Metropolitan College at Boston University, USA, where he teaches courses in business process analysis, supply chain management, and quality assurance.

Table of Contents

List of Figures xiv

List of Tables xvi

Preface xvii

Acknowledgements xx

1 Service Science 1

Service Science Foundations 1

Manufacturing Vs. Service 2

Service Science Practitioners 3

Evolution of Business Process Management 4

Structure of the Book 6

Define Value from the Customer's Perspective (Chapter 3) 7

Create a Business Process Map (Chapter 4) 8

Remove Waste from the Process (Chapter 5) 8

Create Customer's Consumption Map (Chapter 6) 9

Add Value for Customers (Chapter 7) 9

Determine Capacity Levels (Chapter 8) 10

Calculate Capacity Buffers (Chapter 9) 10

Create Performance Metrics (Chapter 10) 11

Statistically Monitor Performance (Chapter 11) 11

Improve the Process (Chapter 12) 12

Supporting Infrastructure (Chapter 13) 12

Outsourcing Opportunities and Risks (Chapter 14) 13

Summary & Key Takeaways 13

Discussion Questions 14

References 14

2 The Business Process 15

Business Process Definition 15

Business Process Example: Jet Engine Manufacturer 16

Business Process Transformations 17

Service Process Description 18

Differences in Manufacturing Processes 20

Service Process Classifications 21

Challenges of Service Process Management 22

Prevalence of Information as a Key Flow Unit 23

Process Flows that Cross Functional Boundaries 23

Activity Duration Variability 25

Hidden Costs and Benefits 26

Example: Monthly Accounting Reports 26

Illustrative Simulation 27

Mortgage Application System 27

Simulated System Output 29

Summary & Key Takeaways 30

Discussion Questions 31

Reference 32

3 Defining Value 33

Typical Problems in a Business Process 33

Financial Audit Process 34

IT Change Request Process 35

Price Quoting Process 36

Blood Testing Process 36

Definition of Value 37

Financial Audit Process 38

IT Change Request Process 39

Price Quoting Process 40

Blood Testing Process 40

Determination of Performance Dimensions 41

Customer Comments & Surveys 41

Critical Incident Approach 42

Summary & Key Takeaways 43

Discussion Questions 44

References 44

4 Process Mapping & Analysis 45

Process Mapping 45

Process Map Development 46

Identification of Waste 47

Financial Audit Process 49

IT Change Request Process 51

Price Quoting Process 53

Blood Testing Process 53

Data Collection & Analysis 56

Check Sheets 56

Cause-and-effect (Fishbone) Diagrams 58

Pareto Charts 58

Histograms 60

Scatterplots 60

Summary & Key Takeaways 62

Discussion Questions 63

References 63

5 Waste Removal 64

The Five Whys and Finding Root Cause 64

Financial Audit Process 65

IT Change Request Process 66

Price Quoting Process 66

Blood Testing Process 66

Waste Removal: Achieving BCF by Being Smarter 67

Learning from Similar Processes 68

Lessons from Manufacturing 69

Using Lean Methods 70

Standard Work 70

Standard Work for the IT Change Request Process 70

The SS Method 71

5S for the Financial Audit Process 71

Poka-yoke 72

Poka-yoke for the Price Quoting Process 73

Visual Controls 73

Visual Controls in the Blood Testing Process 74

Summary' & Key Takeaways 74

Discussion Questions 75

References 75

6 Consumption Mapping 77

Service Providers & Customers 77

The Customer Experience 79

Consumption Mapping 81

Financial Audit Consumption Map 82

IT Change Request Consumption Map 82

Price Quoting Consumption Map 85

Blood Testing Consumption Map 85

Consumption Analysis 88

Solve the Customer's Problem Completely 88

Solve the Customer's Problem Quickly 89

Don't Frustrate or Confuse the Customer 89

Summary & Key Takeaways 90

Discussion Questions 91

References 91

7 Adding Value 92

Adding Value 92

Adding Value Using Lean Methods 93

Financial Audit Process 94

IT Change Request Process 94

Price Quoting Process 95

Blood Testing Process 95

Adding Value by Innovation 96

Random Word Approach 97

Required Innovation Infrastructure 99

Application of Self Service WO Summary & Key Takeaways 101

Discussion Questions 102

References 102

8 Determining Capacity Levels 103

Business Process Capacity Planning 103

Example: Audit Department 104

Dealing with Uncertainty 105

Key Definitions 105

Capacity Buffering 106

Calculating Resource Utilization 108

Workforce Scheduling 112

Workforce Scheduling for Contact Center 113

Managing Customer Expectations 114

Occupy Customers 115

Reduce Anxiety & Exude Fairness 116

Keep Customers Informed 116

Summary & Key Takeaways 117

Problems Set 117

References 118

9 Modeling Business Process Queues 119

A Queuing System and its Analysis 119

Measures of Effectiveness 121

Quantifying Uncertainty 122

Arrival Uncertainty 122

Service Time Uncertainty 123

The M/M/s Queuing Model 124

Comprehensive Example 127

Standard Capacity Buffer Levels 130

The Impact of Reducing Waste 132

Summary & Key Takeaways 133

Problems Set 133

Reference 134

10 Measuring Business Process Performance 135

Determining Performance Metrics 135

Financial Audit Process Metrics 136

IT Change Approval Process Metrics 137

Price Quoting Process Metrics 137

Blood Testing Process Metrics 138

Turnbacks, Mistakes, Close Calls, and Complaints 139

Theory of Mistakes 140

Skill-based Mistakes 141

Rule-based Mistakes 141

Knowledge-based Mistakes 142

Swiss Cheese Analogy 142

Customer Satisfaction Surveys 143

Satisfaction Survey Design 144

Integrated Performance Management 145

Summary & Key Takeaways 147

Discussion Questions 148

References 148

11 Statistical Monitoring of Performance 149

Variation 149

The Deming Philosophy 151

Process Thinking 152

Implementing Process Thinking 153

Analysing Process Stability 154

Proportion (P) Charts 154

Interpretation Rules 156

Note on Analysing Satisfaction Surveys 158

Analysing Process Capability 159

Example PCA 162

Summary & Key Takeaways 164

Discussion Questions & Problems Set 165

References 165

12 Business Process Improvement 166

Process Improvement 166

Six Sigma & DMA IC 167

Lean & Kaizen 169

Lean Six Sigma Process Improvement System 170

Project Initiation 171

Project Execution 173

Define - Create Problem Statement and Customer Value Definition (Chapters 2-3) 173

Measure - Create a Process or Consumption Map and Collect Associated Data (Chapters 4, 6, and 11) 174

Analyse - Identify Problems and Significant Waste (Chapters 4 & 6) 174

Improve - Find Ways to Eliminate Waste and/or Add Value (Chapters 5 & 7) 175

Control - Develop Implementation and Follow-Up Plan (Chapters 10-11) 176

Project Communication 177

Summary & Key Takeaways 177

Discussion Questions 178

References 178

13 Supporting Infrastructure for Process Improvement 179

Process Improvement Is Easy … and Difficult 179

Silo Mentality's Impact on a Price Quoting System 180

Respect for People 180

The Corporate Structure Dilemma 182

Unions 183

Organizational Infrastructure Recommendations 184

Develop a Sound, Consistent, and Robust Methodology 185

Build Trust by Removing Fear 186

Initiate Long Term Cultural Change 187

Publicize the Program to All Stakeholders 188

Summary & Key Takeaways 189

Discussion Questions 190

References 190

14 Business Process Outsourcing 191

Business Process Outsourcing 191

Business Process Offshoring 192

Offshoring Quality 193

Risk Identification 194

Risk Assessment 196

Failure Modes and Effects Analysis 197

Risk Avoidance & Mitigation 198

Impact of International Cultures 199

Summary & Key Takeaways 201

Discussion Questions 201

References 202

Appendix 203

Glossary 205

Supplemental Reading 212

Index 214