The document classifies services according to the degree of customer contact with the technical core of the service. It identifies four types of services: 1. Stagnant personal services require direct customer contact and have low productivity gains. 2. Substitutable personal services can substitute technology for labor but customers may prefer personal services. 3. Progressive services have components that are labor intensive and automated, offering moderate innovation potential. 4. Explosive services involve little customer contact and have high innovation potential through technological advances.

1. Operational Classification of Services
• The industries within the services sector are too
heterogeneous for a common classification.
The Operational Classification of • Services are classified according to the degree of
customer contact with the technical core.
Services – High Contact (Pure Services):
• Entertainment, health centers, hotels, public transportation,
-Presented By: schools, etc.
Anupam Kumar – Medium Contact (Mixed Service):
Reader, • Police & fire departments, movers & packers, repair shops,
School of Management Sciences, Varanasi. etc.
Email: anupamkr@gmail.com – Low Contact (Quasi Manufacturing):
• Law firms, financial institutions, ad agencies, etc.
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Operational Classification of Services Stagnant Personal Services
• Services may however • These services frequently
require direct contact
be classified as under: between the customer and
– Stagnant Personal the service provider.
Services • The quality of service is
highly correlated with the
– Substitutable Personal labour time.
Services – It is difficult to realize
significant productivity gains
– Progressive Services without an appreciable
reduction in quality.
– Explosive Services.
• These services offer low
innovation potential and are
difficult to standardize.
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Substitutable Personal Services Progressive Services
• These services are similar to the • These services have two
stagnant personal services.
components.
• However, it is possible to
substitute these services with – One component requires
technology or automation. little labour and
• A great leap in productivity in considerable cost
substitutable personal service is reductions are possible
provided by technology. with it.
• While a substitute for a – The second part is
personal service may be less
labour intensive and is
expensive, but they may be
inferior. just like the stagnant
personal services.
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2. Explosive Services Operational Classification of Services
• These services virtually Stagnant Substitutable
Type Progressive Explosive
Personal Personal
involve no contact between Aspect Services Services
Services Services
the customers and the
service providers. Degree of Extremely low
Significantly
• These services offer high Automation (person Moderate Extremely high
low
and efficiency specific)
innovation potential as
technological advances Degree of
decrease the cost Significantly
Customer Extremely high Moderate Extremely low
high
substantially. Contact
• These services will
experience explosive Opportunity of
Extremely high
Significantly
Moderate Extremely low
sale high
growth in productivity.
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Bibliography
• Buffa, E.S. and Sarin, R.K., “Modern Production/Operations Management,” Eighth Edition. Singapore: John Wiley &
Sons (Asia). 1994.
• Martinich, J.S., “Production and Operations Management: An Applied Approach”, Singapore: John Wiley & Sons
(Asia), 2003.
• Monks, J.G., “Theory and Problems of Operations Management”, Second Edition, New Delhi: Tata McGraw Hill,
2004.
For further details / comments ... •
•
Chary, S.N., “Productions and Operations Management,” Third Edition, New Delhi: Tata McGraw Hill, 2004
Kumar, S.A., and Suresh, N., “Production and Operations Management”, Second Edition, New Delhi: New Age,
2008.
• Goel, B.S., “Production Operations Management”, Twenty Second Edition, Meerut, U.P.: Pragati Prakashan, 2010.
• Kachru, U. “Production and Operations Management: Text and Cases,” New Delhi: Excel Books, 2007.
• Rama Murthy, P., “Production and Operations Management,” New Delhi: New Age International, 2012.
-Contact: • Chunawalla, S.A., and Patel, D.R., “Production and Operations Management,” Mumbai: Himalaya Publishing
Anupam Kumar House, 2006.
• Jauhari, V. and Dutta, K., “Services: Marketing Operations and Management,” New Delhi: Oxford University Press,
Reader, 2010.
School of Management Sciences, Varanasi. • Verma, H.V., “Services Marketing: Text and Cases,” New Delhi: Dorling Kindersley, Pearson Education, 2009
• For images and clip arts:
Email: anupamkr@gmail.com – 123rf.com
– clipartillustration.com
– tabithaperez.blogspot.com
– blog.credoreference.com
– beehivequilt.blogspot.com
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