James M Passey Professor of Service Operations Management Brigham Young University 2014 Provo Utah USA A basic introduction to PCN Analysis with the Malawis Pizza Catering case ID: 366921
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Dr. Scott E. SampsonJames M. Passey Professor of Service Operations ManagementBrigham Young University ©2014Provo, Utah, USA
A basic introduction to PCN Analysiswith the Malawi’s Pizza Catering case
Basic introduction to PCN Analysis
1
http://services.byu.edu
For educational use only. Images used according to section 107 of US copyright code.Slide2
Your MISSION:document a service operationidentify sources of valueidentify process problemsinefficiencies and other costs
potential service failuresflaws in the customer experienceexplore possible process improvementsidentify opportunities for innovation
Basic introduction to PCN Analysis
2
POSSIBLE
PCN AnalysisSlide3
Steps of basic PCN AnalysisIdentify system entities and rolesDocument key processesAssess value propositionsGenerate strategic improvement alternatives
Basic introduction to PCN Analysis3Slide4
Steps of basic PCN AnalysisIdentify system entities and rolesDocument key processesAssess value propositionsGenerate strategic improvement alternatives
Basic introduction to PCN Analysis4Slide5
1. Identify entities and rolesBasic introduction to PCN Analysis
5Slide6
Steps of basic PCN AnalysisIdentify system entities and rolesDocument key processesAssess value propositionsGenerate strategic improvement alternatives
Basic introduction to PCN Analysis6
PCN DiagramSlide7
Elements of a PCN DiagramProcess EntityProcess DomainProcess RegionsBasic introduction to PCN Analysis7Slide8
Process EntityBasic introduction to PCN Analysis8Slide9
Process EntityBasic introduction to PCN Analysis
9Slide10
Process Entity
Entity
Entity’s Process Domain
Basic introduction to PCN Analysis
10
An entity’s
Process
Domain
includes all processes that are directly
performed, directed, controlled
by the entity.Slide11
Process Domain
Pizza Restaurant
Restaurant’s Process Domain
Basic introduction to PCN Analysis
11Slide12
Process
Pizza Restaurant
Restaurant’s Process Domain
forecast
supply needs
order
supplies
online
identify ingredients
receive supplies
cook
pizza
maintain
supplies
serve
pizza
preheat
ovens
take order
negotiate
supply
contract
develop
recipes
Basic introduction to PCN Analysis
12Slide13
Process
Pizza Restaurant
Restaurant’s Process Domain
forecast
supply needs
order
supplies
online
identify ingredients
receive supplies
cook
pizza
maintain
supplies
serve
pizza
preheat
ovens
take order
negotiate
supply
contract
develop
recipes
Basic introduction to PCN Analysis
13Slide14
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)
Independent processing
(entity acting on entity’s owned/controlled resources)
Surrogate interaction
(e.g. acting on customer resources)
Direct interaction
(e.g. with customer)
forecast
supply needs
order
supplies
online
identify ingredients
receive supplies
cook
pizza
maintain
supplies
serve
pizza
preheat
ovens
take order
negotiate
supply
contract
develop
recipes
Basic introduction to PCN Analysis
14Slide15
Three regions of a Process Domain
Pizza Restaurant
Restaurant’s Process Domain
Direct interaction
Surrogate interaction
Independent processing
Surrogate interaction
Direct interaction
degree of process control
degree of process control
forecast
supply needs
order
supplies
online
identify ingredients
receive supplies
cook
pizza
maintain
supplies
serve
pizza
preheat
ovens
take order
negotiate
supply
contract
develop
recipes
Basic introduction to PCN Analysis
15Slide16
Three regions of a Process Domain1. Direct InteractionEntity person acting in conjunction with another entity person.People with people.
2. Surrogate InteractionEntity 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
16Slide17
Pizza Consumer
Consumer’s Process Domain
Direct interaction
Surrogate interaction
Independent processing
Surrogate interaction
Direct interaction
PCN Diagram
Pizza Restaurant
Restaurant’s Process Domain
Direct interaction
Surrogate interaction
Independent processing
Surrogate interaction
Direct interaction
Restaurant Supplier
Supplier’s Process Domain
Direct interaction
Surrogate interaction
Independent processing
Surrogate interaction
Direct interaction
forecast
supply needs
order
supplies
online
identify ingredients
receive supplies
cook
pizza
maintain
supplies
serve
pizza
preheat
ovens
create order
negotiate
supply
contract
develop
recipes
develop
appetite
eat
pizza
return home
wait to be
seated
seat customer
review menu
present check
prepare check
pay check
eat
leftovers
wait for
pizza
fill
order
Basic introduction to PCN Analysis
17Slide18
Case:Malawi’s Pizza CateringCreating a PCN Diagrambased on information from the case.Basic introduction to PCN Analysis
18Slide19
Pizza catering planningprocessBasic introduction to PCN Analysis19Slide20
Pizza catering planningprocessBasic introduction to PCN Analysis20
explore alternatives
need catering
call Malawi’s
provide event information
check schedule
date
available
?
arrange meeting
ask event date, type, # attend
discuss menu options and taste test
calculate quantity
determine price
price
acceptable
?
book catering engagement
wait
discuss price
yes
yes
no
explore
other alternatives
no
record in catering bookSlide21
Food preparation and deliveryprocessBasic introduction to PCN Analysis21
clear
parking
space?
yes
no
assemble pizzas
par cook pizzas
load food and supplies on trailer
maintain mobile oven
drive to venue
park trailer
discuss alternative parking locations
unload trailer
A
determine parking planSlide22
Food preparation and deliveryprocessBasic introduction to PCN Analysis22
location
of serving area
obvious?
yes
no
setup portable kitchen
setup serving area
discuss serving location
heat pizzas
take pizzas to serving area
wait for event
start
monitor pizza consumption
A
eat pizzaSlide23
Cleanup and payment processBasic introduction to PCN Analysis23
clean up portable kitchen
load trailer
prepare final invoice
return to store
unload trailer
clean up serving and eating tables
determine actual number of pizzas consumed
present invoice
provide paymentSlide24
Steps of basic PCN AnalysisIdentify system entities and rolesDocument key processesAssess value propositionsGenerate strategic improvement alternatives
Basic introduction to PCN Analysis24Slide25
Pizza catering planningprocessBasic introduction to PCN Analysis25
explore alternatives
need catering
call Malawi’s
provide event information
check schedule
date
available
?
arrange meeting
ask event date, type, # attend
discuss menu options and taste test
calculate quantity
determine price
price
acceptable
?
book catering engagement
wait
discuss price
yes
yes
no
explore
other alternatives
no
record in catering book
-$ costs?
+$ value?
-$
Slide26
Food preparation and deliveryprocessBasic introduction to PCN Analysis26
-$ costs?
+$ value?
-$
clear
parking
space?
assemble pizzas
par cook pizzas
load food and supplies on trailer
maintain mobile oven
drive to venue
park trailer
discuss alternative parking locations
unload trailer
A
determine parking plan
yes
noSlide27
Food preparation and deliveryprocessBasic introduction to PCN Analysis27
location
of serving area
obvious?
yes
no
setup portable kitchen
setup serving area
discuss serving location
heat pizzas
take pizzas to serving area
wait for event
start
monitor pizza consumption
A
eat pizza
-$ costs?
+$ value?
-$Slide28
Cleanup and payment processBasic introduction to PCN Analysis28
clean up portable kitchen
load trailer
prepare final invoice
return to store
unload trailer
determine actual number of pizzas consumed
present invoice
provide payment
clean up serving and eating tables
-$ costs?
+$ value?
+$
Slide29
Steps of basic PCN AnalysisIdentify system entities and rolesDocument key processesAssess value propositionsGenerate strategic improvement alternatives
Basic introduction to PCN Analysis29
Improved economies of scale?
Improved customization?
Improved efficiency?
Improved scalability?
Improved consistency?
Improved quality?
Improved
value?Slide30
Food preparation and delivery
process
Basic introduction to PCN Analysis
30
assemble pizzas
clear
parking
space?
yes
no
par cook pizzas
load food and supplies on trailer
maintain mobile oven
drive to venue
park trailer
discuss alternative parking locations
unload trailer
A
determine parking planSlide31
Your MISSION:Basic introduction to PCN Analysis31Slide32
Your MISSION:Identify system entities and rolesDocument key processesAssess value propositions
Generate strategic improvement alternativesBasic introduction to PCN Analysis
32
Improved economies of scale?
Improved customization?
Improved efficiency?
Improved scalability?
Improved consistency?
Improved quality?
Improved
value?
Explain and
justify.
Keep it simple.
Summary sheet at
http://services.byu.edu