2. UNIT I
Introduction to Services – Importance, role in economy
service sector – growth; Nature of services - The Nature
and Classification of Services. The Future of Services., E
commerce and public sector developments- Manufacturing
Continuum, Service classification , Service Package,
distinctive characteristics , open-systems view; Service
Strategy, Strategic service vision, competitive
environment
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3. OPERATIONS MANAGEMENT
Operations management is an area of management
concerned with designing and controlling the process
of production and redesigning business operations in
the production of goods or services.
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4. Services play a vital role in our day to day life as well as
in the economy of any nation. The services can be seen
between business to business service and business to
customer service. The services can be provided by
government sector or private sector or NGOs.
Services take place when customer direct some actions to
service provider to get some intangible benefits may or
may not assisted with some goods. The output can be in
the form of action done on customer like surgery or on
customer’s possessions like repair of customer’s car.
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5. SERVICE
An action of doing something for someone or something.
Or
Act /performance offered by one party to another.
Eg:KSRTC service
A product is tangible (ie; material ) since you can touch and own it.
A service tends to be an experience that is consumed at the point where it
is purchased & cannot be owned since it quickly perishes.
Services are those activities which satisfy our wants
Eg: Working of Airlines, Hotels, car rental firms, barber and beauticians etc
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6. SERVICE OPERATIONS MANAGEMENT
It is used to cover the activities, decisions and
responsibilities of operations managers in service
organisations.
Concerned with providing services, and value, to
customers or users, ensuring they get the right
experiences and the desired outcomes.
Involves
i. understanding the needs of the customers
ii. managing the service processes
iii. ensuring the organization's objectives are met
iv. while also paying attention to the continual improvement
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7. Definition and Perspectives of Services
According to Philip Kotlers Definition:
A service is any activity/benefit that one party can offer to
another that is essentially intangible and doesn’t result in the
ownership of anything.Its production may or may not be tied to
physical product.
A service is an activity or series of activities of more or less
intangible nature that normally, but not necessarily, take place
in interactions between customer and service employees
and/or physical resources or goods and/or systems of the
service provider, which are provided as solutions to customer
problems. - (Gronroos, 1990)
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8. Services are economic activities that produce time, place, form or
psychological utilities. – (Haksever et al., 2003)
A crèche service facility takes care of baby and saves parents
Time
Buying grocery or household items in one convenient Place that
is supermarket or big malls
A database service provider providing information in a Form to
insurance manager for easy usage
Going for a movie or theater for Psychological refreshment
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9. Service is a process or a set of activities in which a
customer interacts with service provider to produce
intangible experiences as an outcome. Service can be
provided as a combination of tangible good and intangible
experience.
Customer’s inputs and mostly physical presence are
important to initiate the service. In some self-services,
customer acts as co-producer of service
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13. Service operations Manager Duties and Responsibilities
● They are responsible for the service operation – the configuration of resources and processes that
provide service for the customer
● They are responsible for some of the organisation’s resources including materials, equipment,
staff, technology and facilities. These resources often account for a very large proportion of an
organisation’s total assets, so service operations managers are responsible for much of an
organisation’s cost base.
● They are responsible for the organisation’s customers (sometimes referred to as clients, users,
patients or students, for example) and/or the things belonging to their customers, such as their parcels
or orders.
● They are responsible for ‘processing’ their customers or their parcels or orders.
For the managing partner in a consultancy firm this might involve overseeing meetings with clients,
data gathering, analysis and report writing. For the nursing manager it might involve overseeing patient
admissions, tests, treatment and discharge.
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14. ● They are also responsible for the outputs; the ‘products’ provided to their customers.
● They are responsible for designing, creating and providing the right experience and outcomes for their
customers.
For eg: The nursing manager will be concerned to ensure the patient feels well cared for and leaves in a better
condition than how they came in. The managing partner will want their clients to feel informed, assured and
valued, and provide them with some real business benefits.
● They are responsible for delivering value to their customers and also to the organisation.
Value to the customers comes from their experiences and the benefits gained.
Value for the organisation comes from operations managers keeping to budgets, delivering
revenue, reducing costs and delivering the organisation’s strategy, for example.
● Service operations managers are responsible for generating most, if not all, of an organisation’s
revenue/income and managing most of its assets and staff.
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