Dr. Scott E. Sampson
A basic introduction
to PCN Analysis
with the Malawi’s Pizza
Catering case
Dr. Scott E. Sampson
http://services.byu.edu
Basic introduction to PCN Analysis
James M. Passey Professor of Service
Operations Management
Brigham Young University ©2014
Provo, Utah, USA
For educational use only. Images used according
to section 107 of US copyright code.
1
Dr. Scott E. Sampson
Your MISSION:
• document a service operation
• identify sources of value
• identify process problems
• inefficiencies and other costs
• potential service failures
• flaws in the customer experience
• explore possible process improvements
• identify opportunities for innovation
Basic introduction to PCN Analysis
2
Dr. Scott E. Sampson
Steps of basic PCN Analysis
1. Identify system entities and roles
2. Document key processes
3. Assess value propositions
4. Generate strategic improvement alternatives
Basic introduction to PCN Analysis
3
Dr. Scott E. Sampson
Steps of basic PCN Analysis
1. Identify system entities and roles
2. Document key processes
3. Assess value propositions
4. Generate strategic improvement alternatives
Basic introduction to PCN Analysis
4
Dr. Scott E. Sampson
1. Identify entities and roles
Event
planner
Event
attendees
Principle
Individual
Caterer
Venue
host
Basic introduction to PCN Analysis
5
Dr. Scott E. Sampson
Steps of basic PCN Analysis
1. Identify system entities and roles
2. Document key processes
3. Assess value propositions
4. Generate strategic improvement alternatives
Basic introduction to PCN Analysis
6
Dr. Scott E. Sampson
Elements of a PCN Diagram
• Process Entity
• Process Domain
• Process Regions
Basic introduction to PCN Analysis
7
Dr. Scott E. Sampson
Process Entity
Basic introduction to PCN Analysis
8
Dr. Scott E. Sampson
Process Entity
Event
planner
Event
attendees
Principle
Individual
Caterer
Venue
host
Basic introduction to PCN Analysis
9
Dr. Scott E. Sampson
Process Entity
Entity
Entity’s Process Domain
An entity’s Process
Domain includes all
processes that are
directly performed,
directed, controlled
by the entity.
Basic introduction to PCN Analysis
10
Dr. Scott E. Sampson
Process Domain
Pizza Restaurant
Restaurant’s Process Domain
Basic introduction to PCN Analysis
11
Dr. Scott E. Sampson
Process
Pizza Restaurant
Restaurant’s Process Domain
negotiate
supply
contract
identify
ingredients
order
supplies
online
receive
supplies
Basic introduction to PCN Analysis
forecast
supply needs
develop
recipes
preheat
ovens
maintain
supplies
cook
pizza
take order
serve
pizza
12
Dr. Scott E. Sampson
Process
Pizza Restaurant
Restaurant’s Process Domain
negotiate
supply
contract
identify
ingredients
order
supplies
online
receive
supplies
Basic introduction to PCN Analysis
forecast
supply needs
develop
recipes
preheat
ovens
maintain
supplies
cook
pizza
take order
serve
pizza
13
Dr. Scott E. Sampson
Three regions of a Process Domain
Pizza Restaurant
Restaurant’s Process Domain
Direct
interaction
(e.g. with
supplier)
Surrogate
interaction
(e.g. acting
on supplier
resources)
negotiate
supply
contract
identify
ingredients
order
supplies
online
receive
supplies
Basic introduction to PCN Analysis
Independent processing
(entity acting on entity’s
owned/controlled
resources)
forecast
supply needs
Surrogate
interaction
(e.g. acting
on customer
resources)
Direct
interaction
(e.g. with
customer)
develop
recipes
preheat
ovens
maintain
supplies
cook
pizza
take order
serve
pizza
14
Dr. Scott E. Sampson
Three regions of a Process Domain
Pizza Restaurant
Restaurant’s Process Domain
Direct
interaction
Surrogate
interaction
negotiate
supply
contract
identify
ingredients
order
supplies
online
receive
supplies
Basic introduction to PCN Analysis
Independent processing
forecast
supply needs
Surrogate
interaction
Direct
interaction
develop
recipes
preheat
ovens
maintain
supplies
cook
pizza
take order
serve
pizza
15
Dr. Scott E. Sampson
Three regions of a Process Domain
1. Direct Interaction
Entity person acting in conjunction
with another entity person.
People with people.
2. Surrogate Interaction
Entity person acting on/with
resource(s) of another entity.
People with things (belongings,
information).
3. Independent Processing
Entity acting only on/with entity’s
own resources.
Basic introduction to PCN Analysis
16
gate
tion
Dr. Scott E. Sampson
PCN Diagram
Pizza Restaurant
Restaurant’s Process Domain
Direct
interaction
Direct
interaction
Surrogate
interaction
negotiate
supply
contract
identify
ingredients
order
supplies
online
fill
order
Independent processing
receive
supplies
forecast
supply needs
Surrogate
interaction
Surroga
interacti
wait to be
seated
review me
cook
pizza
create order
wait for
pizza
serve
pizza
maintain
supplies
prepare
check
Basic introduction to PCN Analysis
Direct
interaction
seat
customer
develop
recipes
preheat
ovens
Direct
interaction
eat
pizza
present check
pay chec
17
Dr. Scott E. Sampson
Case:
Malawi’s Pizza Catering
Creating a PCN Diagram
based on information from the case.
Basic introduction to PCN Analysis
18
Dr. Scott E. Sampson
Provider’s Process Domain
Independent processing
Pizza catering planning
process
Surrogate interaction
Basic introduction to PCN Analysis
Direct interaction
Direct interaction
Customer’s Process Domain
Surrogate interaction
Independent processing
19
Dr. Scott E. Sampson
Provider’s Process Domain
Independent processing
Pizza catering planning
process
Surrogate interaction
Direct interaction
Direct interaction
ask event date,
type, # attend
Surrogate interaction
Independent processing
call Malawi’s
need catering
explore
alternatives
provide event
information
check schedule
date
available
?
Customer’s Process Domain
no
yes
wait
arrange meeting
calculate quantity
discuss menu options and taste test
determine price
discuss price
record in
catering book
book catering engagement
Basic introduction to PCN Analysis
price
acceptable
?
no
explore
other
alternatives
yes
20
Dr. Scott E. Sampson
Food preparation and delivery
process
Provider’s Process Domain
Customer’s Process Domain
Independent processing
Surrogate interaction
Direct interaction
Direct interaction
Surrogate interaction
Independent processing
assemble pizzas
par cook pizzas
maintain
mobile oven
load food and
supplies on trailer
drive to venue
determine
parking plan
clear
parking
space?
yes
no
discuss alternative parking locations
park trailer
unload trailer
A
Basic introduction to PCN Analysis
21
Dr. Scott E. Sampson
Food preparation and delivery
process
Provider’s Process Domain
Customer’s Process Domain
Independent processing
Surrogate interaction
Direct interaction
Direct interaction
Surrogate interaction
Independent processing
A
setup portable
kitchen
location
of serving area
obvious?
no
discuss serving location
yes
setup serving area
wait for event
start
heat pizzas
take pizzas to
serving area
Basic introduction to PCN Analysis
monitor pizza
consumption
eat pizza
22
Dr. Scott E. Sampson
Provider’s Process Domain
Independent processing
Surrogate interaction
Cleanup and payment
process
Direct interaction
Direct interaction
Customer’s Process Domain
Surrogate interaction
Independent processing
clean up
portable kitchen
load trailer
determine actual
number of pizzas
consumed
prepare final
invoice
present invoice
provide payment
clean up serving
and eating tables
return to store
unload trailer
Basic introduction to PCN Analysis
23
Dr. Scott E. Sampson
Steps of basic PCN Analysis
1. Identify system entities and roles
2. Document key processes
3. Assess value propositions
4. Generate strategic improvement alternatives
Basic introduction to PCN Analysis
24
Dr. Scott E. Sampson
Provider’s Process Domain
Independent processing
Pizza catering planning
process
Surrogate interaction
+$ value? 
-$ costs? 
Direct interaction
Direct interaction
ask event date,
type, # attend
Surrogate interaction
Independent processing
call Malawi’s
need catering
explore
alternatives
provide event
information
check schedule
date
available
?
Customer’s Process Domain
no
yes
wait
arrange meeting
-$
calculate quantity
discuss menu options and taste test
determine price
discuss price
record in
catering book
Basic introduction to PCN Analysis

book catering engagement
price
acceptable
?
no

explore
other
alternatives
yes
25
Dr. Scott E. Sampson
Food preparation and delivery
process
Provider’s Process Domain
Customer’s Process Domain
Independent processing
Surrogate interaction
+$ value? 
-$ costs? 
assemble pizzas
maintain
mobile oven
load food and
supplies on trailer
-$
Direct interaction
Direct interaction
Surrogate interaction
Independent processing

par cook pizzas
drive to venue
determine
parking plan
clear
parking
space?
no
discuss alternative parking locations
yes
park trailer
unload trailer
A
Basic introduction to PCN Analysis
26
Dr. Scott E. Sampson
Food preparation and delivery
process
Provider’s Process Domain
Customer’s Process Domain
Independent processing
Surrogate interaction
+$ value? 
-$ costs? 
Direct interaction
Direct interaction
Surrogate interaction
Independent processing
A
setup portable
kitchen
location
of serving area
obvious?
no
discuss serving location
yes
setup serving area
wait for event
-$ start
heat pizzas
take pizzas to
serving area
Basic introduction to PCN Analysis
monitor pizza
consumption
eat pizza

27
Dr. Scott E. Sampson
Provider’s Process Domain
Independent processing
Surrogate interaction
Cleanup and payment
process
Direct interaction
Direct interaction
Customer’s Process Domain
Surrogate interaction
Independent processing
+$ value? 
-$ costs? 
clean up
portable kitchen
load trailer
determine actual
number of pizzas
consumed

prepare final
invoice
present invoice
+$
provide payment
clean up serving
and eating tables
return to store
unload trailer
Basic introduction to PCN Analysis
28
Dr. Scott E. Sampson
Steps of basic PCN Analysis
1. Identify system entities and roles
2. Document key processes
3. Assess value propositions
4. Generate strategic improvement alternatives







Improved economies of scale?
Improved customization?
Improved efficiency?
Improved scalability?
Improved consistency?
Improved quality?
Improved value?
Basic introduction to PCN Analysis
29
Dr. Scott E. Sampson
Food preparation and delivery
process
Provider’s Process Domain
Customer’s Process Domain
Independent processing
Surrogate interaction
Direct interaction
Direct interaction
Surrogate interaction
Independent processing
assemble pizzas
par cook pizzas
maintain
mobile oven
load food and
supplies on trailer
drive to venue
determine
parking plan
clear
parking
space?
no
discuss alternative parking locations
yes
park trailer
unload trailer
A
Basic introduction to PCN Analysis
30
Dr. Scott E. Sampson
Your MISSION:
Basic introduction to PCN Analysis
31
Dr. Scott E. Sampson
Your MISSION:
1. Identify system entities and roles
2. Document key processes
3. Assess value propositions
4. Generate strategic improvement alternatives







Improved economies of scale?
Improved customization?
Improved efficiency?
Improved scalability?
Improved consistency?
Improved quality?
Summary sheet at
Improved value?
http://services.byu.edu
Basic introduction to PCN Analysis
32
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Introduction to PCN Analysis and Malawi Pizza Catering