This document discusses service operations and how they differ from manufacturing operations. It covers the key characteristics of services like intangibility, perishability, and inseparability of production and consumption. Some differences between goods and services and between manufacturing and services are outlined. The document then discusses various strategies for scheduling operations in different types of service industries, including quasi-manufacturing services, customer-as-participant services, and customer-as-product services. It emphasizes the importance of scheduling multiple resources like personnel, customers, equipment in a coordinated manner for effective service operations management.

1. Service Operations:
(Recommended Reading : POM ,Chap 4, production processe,Manufacturing and Service
operations,Aswathappa,Sridhar Bhatt(2008)(PP41 to 42,49 to 53)
Mfg operations :
These convert inputs into tangible items.Mfg processes may be categorized as Forming
processesCasting,forging,stamping,embossing,..changeing shape without
adding/removing material, Machining processes(Metal removal by
turning,drilling,milling,grinding,shaping,boring..,& chipless methods such as Electro
Discharge Machining,Electro Spark Erosion,Electro Chemical Machining,LASER
DRILLING etc,,,) Assembly processes(welding,brazing,soldering,riveting,fastening,use
of adhesive…),
SERVICES:
Services are those economic activities, which produce generally intangible product such
as health ,education,entertainment,hospitality,fovernment,finance,transportation
…..services. similarly,repair and
maintenance,restaurants,hotels,tourism,transportation,telecom,banking,insurance,trade,fin
ancial,real estate,…
In many DEVELOPING COUNTRIES,50% OF gdp IS FROM SERVICE SECTOR.
“Any major economy that is not competitive in the service sector is not competitive
internationally”
Primary characteristics of services: 1)Intangibility(Education,but tangible is college
furniture..Purchasing does not give ownership),2)Perishability(Service can not be
inventoried eg., seat in air plane,3)Inseperability,simultaneous production &
consumption,Variability(different levels of service quality,due to human element)
Difference between goods and services:
Goods can be resold/inventoried/ some of the quality measurable/production & selling
different/Location is important/easy to automate/
Difference between Manufacturing and services:
Exists in respect of ; customer contact (Less ,More) ,uniformity of input(Less ,More),
%Labour content(Less ,More), variability in output quality (Less ,More),Location of
facility (over all economics ,proximate to customer), Diffculty in Productivity
Measurement (Less ,More), production and delivery(Not simultaneous, simultaneous),
Quality assurance challenge(Less ,More)
(Recommended Reading : POM ,Chap 14, Service operations:Planning&Scheduling,
,Aswathappa,Sridhar Bhatt(2008) )(PP291 to 302)
OPERATION STRATEGIES FOR SERVICES;

2. COMPETITIVE PRIORITIES FOR SERVICE FIRM are(1) low service product
cost, (2)Fast and ontime delivery,(3) Services to be of high quality,(4)customer service
attitude & (5)flexibility.
THREE TYPES OF SERVICE OPERATIONS are(1) Quasi-
manufacturing,eg:Aircraft maintenance works, (2)Customer-as-participants(eg:Retailing,
(3)Customer as product(Beauty clinic, Hospital,Tailor..)
SCHEDULING FOR SERVICES: Services are by people & the demand pattern in non
uniform,Hence Scheduling of services involves(1) scheduling customers, (2) scheduling
work force, (1) scheduling Equipment,Eg:Restaurant
SCHEDULING STRATEGIES FOR SERVICES:
(1) Schedule for peak demand, (2) Chase demand (3) Reservation
strategy(Hotels,airlines…) (4) consumer participation (Self service Restaurants,ATM
services..), (5) Adjustable capacity (Close-off hours in a restaurants). (6) Cross
training(Banks, restaurants) (7) Sharing Services (Hiring buses from State R.T.Cc)
SCHEDULING STRATEGIES FOR QUASI –MANUFACTURING
“SERVICES”:
(1) Product- focused operations: Eg: Back room operations at a fast food restaurants like
layout,assembly line balancing,automation,HRD,Materials purchase,production of high
volume standard products,cost management , to meet highly variable hour-to-hour
customer demand.
(2) Process- focused operations: Eg: Medical test laboratory.Based on the nature of
service requested , the job is routed to the appropriate departments until it is completed.
PERSONNEL SCHEDULING IN SERVICES :due to demand variability,Service time
variability(Eg:Health spa), use of personnel when they are needed(full 7 part time
employees).
SCHEDULING ‘CUSTOMER-AS-PARTICIPANT ‘ SERVICE OPERATIONS:
Eg: Retailing,Tourism…Customer needs are to be looked into.
SCHEDULING ‘CUSTOMER-AS-PRODUCT’ SERVICE OPERATIONS:
Service is performed on customers.
Eg: Beauty clinic,medical Treatment, Surgery…
SCHEDULING MULTIPLE RESOURCES:
It is critical in service sector.Eg: An educational institute must schedule
Faculty,classrooms , LCD systems and Students.A hospital must schedule
Doctors,surgeons,Nurses,O.Ts,Ward staff,admissions,spl equipments,billing
activity….Others are Banks, Airlines.
Manning system is Cyclical or Rotating schedule.