Page 369 - Design for Six Sigma for Service (Six SIGMA Operational Methods)

Design and Improvement of Service Processes—Process Management 329

The common problems in the office process include
1. Excessive errors
2. Excessive lead time
3. Low throughput or efficiency
4. Excessive work in process
5. Overdue transactions
6. Excessive rework
7. Poor customer interaction quality
8. Chaos, confusion, lost paperwork
9. Excessive transaction costs
10. Lost paperwork or transaction
These common problems are often caused by
• Poor office process design
• Poor transaction work flow
• Poor operator training
• Unbalanced processes or bottlenecks
• Poor computer or software maintenance
• Poor operator discipline or motivation

10.3.4 Service Factory Processes

Service factories are systems in which customers are provided services using
equipment and facilities requiring low labor involvement. Consequently,
labor costs are low while equipment and facility costs are high. Service
factories usually have both front room and backroom activities with total
service being provided in a matter of minutes. Customization is done by
selecting from a menu of options previously defined by the provider.

Service factory processes are similar to office processes, except that usually
the customer being served will almost immediately experience the level of
excellence, good or bad. For the service factory process, the quality of
customer-server interaction processes may be the most critical factor for
success, since poor performance in customer-server interaction will lead
very quickly to desertion by customers and loss of market share. Training of
personnel is often a key ingredient for achieving excellent customer-server
interaction. Waiting time and service time are also two primary factors for
customer satisfaction. Convenience of location is another important consid-
eration. In the service factory process, usually the customer commitment to the
provider is low because there are usually alternative providers just as conve-
niently located.