Using Bill of Services(BOS) to Achieve Effective Service Delivery

Gad Vitner and Moshe Avidan

Ruppin Academic Center

ISSIP Service Innovation Weekly Speaker Series Nov. 04, 2015

Agenda

• Introducing the world of services

• The Gap Model

• Service concept

• Bill of Materials (BOM)

• Bill of Services (BOS)

• General methodology of service industry

• BOS Example- Ruppin Academic Center Library

• Summary

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The World of Services

• Achieve valuable service delivery.

• Meet customers’ Expectations, Requirements and Demand.

• To be delivered when needed, to the complete satisfaction of the customer.

• Service capacity:

– Excess capacity → Extra costs

– Insufficient capacity →Long waiting times

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The Gap Model Prof. Uttarayan Bagchi, University of Texas at Austin

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Service Concept

• Starting point for the development of operated strategy:

a. Set of benefits to be delivered to the customer.

b. Set of service component to support each benefit.

c. Set of processes/technologies/facilities to support each component.

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Service Specifications

• For a given concept element: Define necessary procedures to ensure conformance with customer expectations

Service

Characteristics

Service Level

Different service levels require varying resource capacities in order to comply with a given service characteristics.

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Service Specification

a b c

a

The Operational Dilemma

• Service Specification:

Should comply with customer’s expectations

BUT Should satisfy management ability to allocate the needed resources capacity/budget in order

to satisfy service characteristics.

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Bill of Services (BOS) in service organizations

Referring to Bill of Materials (BOM) in manufacturing

• BOM- Tree Structured management mechanism containing all product’s components

Sub Assembly

Part

Component

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Final Product

a b m

k

a b n

BOM Usage

a. List of components: Supports purchasing

b. Production Planning and Control:

Creating “work orders”-

Part/Quantity/Due Date

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BOS Structure

Service

Category

Service

Characteristics

Service Level

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Service Organization

a b n

a b m

k2 km k1

General Methodology of Service Industry

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Customer

Needs Expectations

Service Specifications

Service Characteristics

Service Level

BOS

Service Capacity Service Costing

Customer satisfaction

Customer

Service Provider

Customer

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Library

Support Services

Front Desk Services

Material order

Training Consulting

Books Papers

Staff Student

Loan/ Return

Phone Response

Copying

Shelf Search

Scanning Printing

Data Bases

Student Orientation

Interlibrary Loan

BOS Example

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Front Desk Services

Loan/ Return

Phone Response

Shelf Search

BOS Example

Service Level: 5 min.

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Front Desk Services

Duration (min) Arrivals/h Product

Week days

Loan/ Return 5 10 50

Shelf Search 4 4 16

Phone Response 3 6 18

weighted average 4.2 20 84

Friday

Loan/ Return 5 5 25

Shelf Search 4 3 12

Phone Response 3 8 24

weighted average 3.8 16 61

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CategoryName CharacteristicName ServiceLevel Arrivals Duration Job Type Service

Days

Front Desk Services Loan/ Return, Shelf Search, Phone Response 08:00-20:00 20 4.2 Libririan Week days

Front Desk Services Loan/ Return, Shelf Search, Phone Response 08:00-13:00 16 3.8 Libririan Friday Friday

Front Desk Services Loan/ Return, Shelf Search, Phone Response 08:00-10:00 6 4.2 Libririan Gen Sunday

Front Desk Services Loan/ Return, Shelf Search, Phone Response 10:00-18:00 10 4.2 Libririan Gen Sunday

Front Desk Services Loan/ Return, Shelf Search, Phone Response 18:00-20:00 6 4.2 Libririan Gen Sunday

Front Desk Services Loan/ Return, Shelf Search, Phone Response 08:00-10:00 10 4.2 Libririan Gen Monday

Front Desk Services Loan/ Return, Shelf Search, Phone Response 10:00-18:00 20 4.2 Libririan Gen Monday

Front Desk Services Loan/ Return, Shelf Search, Phone Response 18:00-20:00 10 4.2 Libririan Gen Monday

Front Desk Services Loan/ Return, Shelf Search, Phone Response 08:00-20:00 20 4.2 Libririan Gen Tuesday

Front Desk Services Loan/ Return, Shelf Search, Phone Response 08:00-20:00 20 4.2 Libririan Gen Wednesday

Front Desk Services Loan/ Return, Shelf Search, Phone Response 08:00-13:00 10 4.2 Libririan Gen Thursday

Front Desk Services Loan/ Return, Shelf Search, Phone Response 13:00-20:00 6 4.2 Libririan Gen Thursday

Front Desk Services Loan/ Return, Shelf Search, Phone Response 08:00-10:00 6 3.8 Libririan Gen Friday

Front Desk Services Loan/ Return, Shelf Search, Phone Response 10:00-13:00 16 3.8 Libririan Gen Friday

Service Data

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Avg. Responsiveness per Arrival

vs. Capacity

Arrivals Duration

20

Shift 2 min. 3 min. 4 min. 5 min. 6 min.

12 1 0 0 120 239 359

2 0 0 0 0 0

3 0 0 0 0 0

4 0 0 0 0 0

0 0 0 0 0 0 0 0

120

0 0 0

239

0 0 0

359

0 0 0

-50

0

50

100

150

200

250

300

350

400

0 1 2 3 4 5

R

e

s

p

o

n

s

i

v

e

n

e

s

s

Capacity

2 min.

3 min.

4 min.

5 min.

6 min.

Duration

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Avg. Idle Time per Server vs. Capacity

Duration

2 min. 3 min. 4 min. 5 min. 6 min.

1 239 0 0 0 0

2 480 360 240 121 2

3 560 480 400 321 241

4 600 540 480 421 361

-100

0

100

200

300

400

500

600

700

0 1 2 3 4 5

I

d

l

e

T

i

m

e

Capacity

2 min.

3 min.

4 min.

5 min.

6 min.

Duration -100

0

100

200

300

400

500

600

700

0 1 2 3 4 5

I

d

l

e

T

i

m

e

Capacity

2 min.

3 min.

4 min.

5 min.

6 min.

Duration

Summary and Conclusions

• For a given Concept/Service category/Service Characteristics/Service level

• BOS supports management with:

a. Calculating/Allocating resources capacity

b. Calculating the related costs

c. Conducting sensitivity analysis

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Thank you

Gad Vitner

gadiv@ruppin.ac.il

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