1. Construct a service blueprint for the bear-making process indicating
(1) The stages in the process;
(2) The directional flow of the process;
(3) Labor cost for each stage in the process;
(4) The number of stations per stage; and
(5) The activity time for each process stage.
2. Based on the information provided in question 1, calculate
(1) The number of customers that can complete the bear-making process in an hour;
(2) The average service cost per bear; and
(3) Identify the bottleneck in the current process.
3. Develop a solution that minimizes the negative impact of the bottleneck and improves the number of customers that can make a bear in an hour.
(1) What is your suggestion to improve the bottleneck situation?
(2) Upon implementing your solution, how many customers can now build a bear in an hour?
(3) What is the new service cost per bear?
4. Discuss your next step in increasing the efficiency of the bear-making process. What are the managerial (practical) implications of taking additional steps to decrease the service cost per bear?

Service firms can strategically view their operations along a continuum ranging from necessary evil to the other extreme, where operations are viewed as a key source of competitive advantage. Clearly, Build-A-Bear Workshops have used their world-class service delivery systems to create a compelling service experience for its customers. Build-A-Bear Workshops offer an experience-based business model where customers and their children, grandchildren, nieces, nephews or friends can make and accessorize their own teddy bears. Given the option of purchasing a bear off the shelf at a the local discount toy store or accompanying a child to a Build-A-Bear Workshop where they can be personally involved in creating the bear as a family, many customers are enthusiastically opting for the latter choice.