Operation in service sector

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  • 1. Operation inService Industry By Praveen Sidola
  • 2. Role of Services in anEconomy Services are deeds, processes, and performances. Valarie Zeithaml & Mary Jo Bitner A service is a time-perishable, intangible experience performed for a customer acting in the role of a co-producer. James Fitzsimmons Service enterprises are organizations that facilitate the production and distribution of goods, support other firms in meeting their goals, and add value to our personal lives. James Fitzsimmons
  • 3. Role of Services in anEconomy
  • 4. Service Development Cycle• Full-scale launch• Post-launchreview Full Launch Enablers Development • Formulation of new services objective / strateg People • Idea generation• Service design and screening and testing • Concept• Process and system development and design and testing Product testing• Marketing program design and testing• Personnel training Technology Systems• Service testing and pilot run• Test marketing Tools Design Analysis • Business analysis • Project
  • 5. Role of Technology in the Service Encounter Technolog Technolog Technolog y y yCustome Serve Custome Serve Custome Serve r r r r r r A. Technology-Free B. Technology-Assisted C. Technology-Facilitated Service Encounter Service Encounter Service Encounter Technolog Technolog y y Custome Serve Custome Serve r r r r D. Technology-Mediated E. Technology-Generated Service Encounter Service Encounter
  • 6. Service Quality Gap Model Service Quality GapCustomer Customer Model Customer Satisfaction GAP 5 Perceptions ExpectationsManaging the Customer / Understanding Evidence Marketing Research the Customer Communication GAP 4 GAP 1 Management Service Perceptions Delivery of Customer Expectations Conformance Design GAP 2 GAP 3 Conformance Service Design Service Standards
  • 7. Service Process Control Customer input Service concept Service CustomerResources output process Take Monitor Establish corrective conformance to measure of action requirements performance Identify reason for nonconformance
  • 8. The Service Encounter Triad Service Organization Efficiency Efficiency versus versus autonomy satisfaction Contact Customer Personnel Perceived control
  • 9. Process Analysis Terminology Cycle Time is the average time between completions of successive units. Bottleneck is the factor that limits production usually the slowest operation. Capacity is a measure of output per unit time when fully busy. Capacity Utilization is a measure of how much output is actually achieved. Throughput Time is the time to complete a process from time of arrival to time of exit.
  • 10. Process Analysis Terminology(cont.)  Rush Order Flow Time is the time to go through the system without any queue time.  Direct Labor Content is the actual amount of work time consumed.  Total Direct Labor Content is the sum of all the operations times.  Direct Labor Utilization is a measure of the percentage of time that workers are actually contributing value to the service.
  • 11. Forecasting Models Subjective Models Delphi Methods Causal Models Regression Models Time Series Models Moving Averages Exponential Smoothing
  • 12. Strategies for Matching Supply and Demand for Services DEMAND SUPPLY STRATEGIES STRATEGIES Partitioning Increasing demand customer Developing participation Sharingcomplementary capacity services Establishing Scheduling price Developing Cross- work shifts incentives reservation training systems employees Promoting Creating off-peak adjustable Using demand capacity part-time employees Yield management
  • 13. Arrival Process Arrival process Static Dynamic Random Random arrival Customer- Facility- exercised arrivals with rate varying controlled controlconstant rate with timeAccept/Reject Price Appointments Reneging Balking
  • 14. Essential Features of Queuing Systems Renege Arrival Queue process DepartureCalling Queue discipline Servicepopulation configuration process Balk No future need for service
  • 15. Supply Chain for PhysicalGoods Suppliers Recycling/Remanufacturing Process and Customer Product Manufacturing Distribution Retailing Customer Service Design Material transfer Information transfer
  • 16. Customer-Supplier Duality inService Supply Relationships(Hubs) Supplier Service Service Provider Customer Design Material transfer Information transfer
  • 17. Inventory Models Economic Order Quantity (EOQ) Special Inventory Models With Quantity Discounts Planned Shortages Demand Uncertainty - Safety Stocks Inventory Control Systems Continuous-Review (Q,r) Periodic-Review (order-up-to) Single Period Inventory Model
  • 18. Expansion Strategies Single Service Multiservice Focused service: Clustered service:SingleLocation Focused network: Diversified network:Multisite
  • 19. Reference Service Management: Operations, Strategy, Information Technology By - James Fitzsimmons Service Management—Academic Issues and Scholarly Reflections from Operations Management Researchers. By - Metters, Richard, Marucheck, Ann1