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.