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Consider processing in the delivery of a service. You have learned from the text that the central consideration in designing and improving service delivery is the extent of customer contact: a high or low contact service. Part 1: Some considerations. Briefly define high and low contact. Why is this the critical consideration in operations planning for services? How does capacity planning differ for high and low contact services and why? What are the considerations for location with high and with low contact services and what do you think are the critical factors to consider? (Hint: if low contact service does not necessarily have to be near its customers, what factors might be important?)
What is means by high or low contact services? High and low contact services are differentiated on the degree of contacts between a service organization and its clients. Services that require higher degree of contact or active contact between the service organization and its clients are called high contact services. The client or customer is an important part in high contact service. Serving personnel actively makes numerous physical meeting with the customer in this system. If services require a lower degree of contact or nominal direct contact between services providing organization and its clients are called lower contact services. Little or no physical meetings are experienced between the customer and service organization in this system. Contacts are usually made through email or telephones in this system. How does capacity planning differ for high and low contact services and why? As to the capacity of planning differ for high and low contact services, high contact service are given more important in planning comparatively to low contact services. The high contact services are planned to vary with customers and changes can be made in delivery process to respond the customer. On the other low contact services are planned to be fixed or less extensive. This is important for a service organization to give different weightage to high and low contact services in planning because it is very essential to build and sustain long term relationships with organizations’ active customers. What are the considerations for location with high and with low contact services and what do you think are the critical factors to consider? The consideration of clients location is an important factor associated with high and low contact service of an organization. Location is very important factor to consider because out of access of remote locations affects an organization’s delivery system. Moreover, if customers’ location is not ideal for the organization it becomes a challenge to maintain active contacts with client having status of high contact customer in book of the organization.
You discussion of capacity planning doesn't discuss capacity. You do not explain what you mean by high contact varying with customers not by low contact as fixed. In the discussion of location, you don't explain why it is important other than to point out that it is important.
Part 2: A case study exercise Visit a service organization (a restaurant, bank, bookstore, clothing or other retail store, a college, or other). Respond to the following. What organization/business did you visit? What is the physical layout? Why was this layout chosen? If you were asked, could you make improvements on the layout? What would they be and why would they be an improvement? (Don't forget to refer to utility, service, efficiency.)
What organization/business did you visit? What is the physical layout? Why was this layout chosen? Physical layout play an important role in an organizations working and affects the over all performance of the organization. Now layout is being used by the organizations as a competitive tool in market competition (Ebert and Griffin, 2010). As suggested in the case study I visited First National Bank to view the bank from layout prospective. I remember the course studies and ideas build from reading the book Business Essentials. I made an analysis of the bank and found that the bank’s layout is good and supports its routine operations effectively. The reason why I choose First National Bank is that it is purely a service performing organization as suggested in the case. I found the layout of the bank purposeful as it was based on the bank service. The furniture, computers and other equipments were arranged in a way that there was enough capacity to move even in medium size hall. Customers serving counter are placed at the front in the ground floor and the bank internal operations/working staff is allocated their counters at first floor. If you were asked, could you make improvements on the layout? What would they be and why would they be an improvement? Although the bank’s layout is very good from the service point of view but still it can be improved upon. Employee counters are very near or joined with each other. There should be some space between these counters so that they could move easily. the current lay out is best for the customer who visit the bank for the purpose of depositing or withdrawing the money, but when an employee visit the bank for the purpose of new accounts opening he has to visit two counters one on the ground floor and other on the first floor. This is why it is suggested that interrelated counters should be align together to save time and achieve efficiency through physical layout tactics. REFERENCE: Ebert, R.J., & Griffin, R. W. (2010), “Business Essentials”, (8th Edition), Prentice Hall Publishers. Print
You don't offer sufficient description to allow the reader to understand the layout. However, your observations are good.
Revision as desired
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- Posted on Oct 10, 2011 at 1:21:40PM