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Chapter
                                                      10







                                 Design and Improvement
                                   of Service Processes—

                                     Process Management







        10.1 Introduction
        There are two key aspects in delivering service to customers: the service
        product and the service process. Designing and improving the main service
        process and other supporting processes is a key task in achieving superior
        service quality.

        What is a process? Caulkin (1989) defines it as being a “continuous and
        regular action or succession of actions, taking place or carried on in a definite
        manner, and leading to the accomplishment of some result; a continuous
        operation or series of operations.” Keller et al. (1999) defines the process as
        “a combination of inputs, actions and outputs.” Anjard (1998) further defines
        it as being “a series of activities that takes an input, adds value to it and
        produces an output for a customer.” This view is summarized in Fig. 10.1.

        Processes involve a series of steps by which the inputs are converted into
        outputs, which may be goods, information, or services. The quality of
        outputs is entirely dependent upon the quality with which the processes are
        executed. In the manufacturing industry, the quality of a manufactured
        product depends on the quality of the process used to manufacture it. In a
        restaurant, the taste of a meal, the time from order to delivery, the cost, and
        customer satisfaction are all highly dependent on the quality of the service
        process. The quality of processes implies that the correct steps are used in
        the right order, the correct tools are used in the process, the correct technique
        is applied, and everything is performed at the right time.
        A process that achieves maximum quality and efficiency and uses minimum
        cost to run is often said to have achieved process excellence. The process


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