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