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Week 8: Introduction, Service Classifications(assignment hand
out, due on Friday week 12)
Week 9: Service Design
Week 10 (3 hours): (catching up), Service Productivity Service
Capacity
Week 11: Strategic Links - Cultural Issues
40%
20% (1500 )
20% (4000 )
60% (4000 )
40% (2000)
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(20%, 4000 )
(20%, 1500 )
(60%, 4000 )
(40%, 2000 )
How many of you see yourself workingin a
manufacturingfactory/plant/company in future?
More than 70% of the employment in
developed countries is in service jobs.
The figure is not that different in manydeveloping
countries.
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?
Would you call fast food take away a serviceoperation or a
manufacturing operation?
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:
Compare the operations in a Car Factory with operations in
a Management Consultancy Company:
What are the main differences (Operations point of view)?
1. Intangibility
2. Heterogeneity
3. Inseparability
4. Perishability
Consequences of service
characteristics:
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?
?
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?
?
Service characteristicsHL (integrated)
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, 1979 ()
Is it useful?
Why?
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: ?
For instance, how can we compare and
cluster these services?
Find (an) indicator/s that could be used for
classifying (clustering/grouping) these
services in a reasonable and beneficial way:
Airlines; Hospitals; Retailing; Doctors; Auto
Repair; Trucking; Schools; Lawyers; Hotels;
Retail Banking
:
The unique characteristics of service operations and the
wide variety of different kinds of services prompts the
researchers to look for operational variables that could be
used as indicators for understanding the behaviour of
services. These variables are called service dimensions.
There are no standard sets of service dimensions.
Service Dimensions are being used as criteria for
classification of services.
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: :
Degree of Customer Contact
Degree of Customisation
Degree of Front Value Added
Degree of Labour Intensity
Degree of Process Focus
Degree of Discretion
( ):
Chases suggestion (1978)
Schmenners suggestion (1986)
Silvestro et. al. suggestion (1992)
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()
Potential facility efficiency=
f[1 (CC time)/(service creation time)]
: 1
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()
LOW
LOWHIGH
HIGHCustomer Contact
Mail
contact
Onsite
technology
Phone
contact
Face-to-face
tight specs
Face-to-face
total cust.
Face-to-face
loose specs
Production
E
fficiency
Buffered CoreBuffered CoreBuffered CoreBuffered Core
Reactive systemReactive systemReactive systemReactive system
Permeable systemPermeable systemPermeable systemPermeable
system
(penetrable)(penetrable)(penetrable)(penetrable)
SalesO
pportunity
(, 1986)
Service Factory Service Shop
Mass Service Professional Service
High
High
Low
Low
Degree of interaction and customisation
Degreeoflabourintensity
Degreeoflabourintensity
Degreeoflabourintensity
Degreeoflabourintensity
AirlinesAirlinesAirlinesAirlines
HotelsHotelsHotelsHotels
TruckingTruckingTruckingTrucking
HospitalsHospitalsHospitalsHospitals
Auto RepairAuto RepairAuto RepairAuto Repair
RetailingRetailingRetailingRetailing
SchoolsSchoolsSchoolsSchools
Retail BankingRetail BankingRetail BankingRetail Banking
DoctorsDoctorsDoctorsDoctors
LawyersLawyersLawyersLawyers
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Service Factory Service Shop
Mass Service
High
High
Low
Low
Degreeofla
bourintensity
Degreeoflabourintensity
Degreeoflabourintensity
Degreeofla
bourintensity
AirlinesAirlinesAirlinesAirlines
HotelsHotelsHotelsHotels
TruckingTruckingTruckingTrucking
HospitalsHospitalsHospitalsHospitals
Auto RepairAuto RepairAuto RepairAuto Repair
RetailingRetailingRetailingRetailing
SchoolsSchoolsSchoolsSchools
Retail BankingRetail BankingRetail BankingRetail Banking
DoctorsDoctorsDoctorsDoctors
LawyersLawyersLawyersLawyers
Professional Service
Degree of interaction and customisationDegree of interaction and
customisationDegree of interaction and customisationDegree of
interaction and customisation
: ,
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()
Number of customers processed by an individual
service unit per day.
Volume of the Service
Professional
Services
Service Shops
Mass Services
Customer ContactCustomer ContactCustomer ContactCustomer
Contact
Process FocusProcess FocusProcess FocusProcess Focus
Front Value AddedFront Value AddedFront Value AddedFront Value
Added DiscretionDiscretionDiscretionDiscretion
Labour IntensityLabour IntensityLabour IntensityLabour
Intensity
CustomisationCustomisationCustomisationCustomisation
High
Med.
Low
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:
,
?
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22 : 625 1012
29 : 625 10 1 (3 )
6 : 1012
