Service Operations Management IN THE WORLD OF BUSINESS AND SERVICE INDUSTRYptx

PPT ON SERVICE OPERATIONS

1. Growth OF SERVICE SECTOR 1.Before Industrial Revolution : Extractive : Agriculture , Fishing , Forestry , Mining (Muscle power) 2.Industrial Era : Manufacturing: Automobile , Consumer durables, steel (Electric and fuel power.) 3.Post Industrial revolution: Services.. Health , Education ,Entertainment ,Internet ,communication ( Power of knowledge and Information)

2. GROWTH OF SERVICE SECTOR 1950 agriculture 70% 2020 Agriculture 10% Manufacturing 20% Manufacturing 20% Services 1 0% Services 70 % AGRICULTURE Manufacturing SERVICES 1950 2020

3. The Nature of SERVICES 1.Customer Participation in the service process (In the entire process or in the Front office) 2.Simulataneity (services are created and consumed at the same time eg . Saloon , surgery, personal coaching) 3.Perishability (service capacity cannot be stored , eg . A vacant seat in airline or hotel room or an hour with no patient by a dentist ,it is gone ) 4.Intangibility (customer cannot see ,touch ,feel , test performance before purchase in many cases) 5.Hetetogeneity (because of customer involvement in the process requirements and results vary , Eg . Education , the customer has to learn) 6.Customer Induced variability in demand , challenge in matching Demand and capacity

4. The Service Package 1.Supporting facility ( hospital , airline , Fitness centre …) 2.Facilitating goods (food in restaurant , auto parts in garage..) 3.Information (medical reports , airline booking website , mobile banking) 4.Explicit services , essential , intrinsic (no pain in tooth extraction smooth running car after repair , response time in fire dept ) 5.Implicit services (vague ,psychological , relationship/behavior of the staff or the person serving)

5. System view Production System Raw material Value added product Labour,Equipments Service system Customer Satisfied customer Facilties,Labour Goods

6. The Service Sector Health care , Hospitals Freight transportation Passenger transportation Laundry Beauty saloons Repair and Maintenance Fitness centre Vetenerary services Restaurants , Hotels Banking Insurance , mediclaim Education Legal services Entertainment , theatre Consultancy IT Services Accounting , Taxation

7. Classification of services 1. Level of Standardisation , Service factory ,service shop ,Mass service, Professional service Job type ,Batch processing, Mass processing 2.Recipient of Service : body, mind , intellect of the customer, or his property like a pet dog ,his car, or intangible assets like documnts for legal service , insurance 3.Degree of customization ( eg : in education: personal coaching, MBA batch , On line courses,std mass delivery) 4.Providing facilities, customer to make use of the same (theatre, water park, national park, National TV network.)

8. Service system Classification , criteria Equipment or People focus Degree of customization Value added in front office vs Back office Product or process focus Customer contact time per transaction Flexibility in the service offered from time to time Extent of customer self service Project , Job shop , Batching, line/mass concepts in service Impact of technology and Digitisation

9. SERVICES Competitive Environment Understand Competitive Environment Relatively low entry barrier Erratic demand fluctuations Product substitution Customer loyalty Low exit barrier Less opportunities for economies of scale

10. Competitive Strategies Overall Cost Leadership. Targeting low cost customer Standardising customer service/offerings Reducing personal element in service delivery Reducing Network cost Taking service operation offline Increasing customer participation/self service

11. SERVICE Strategies Diiffentiation Customising the service/product Bringing in Tangibles Enhancing Quality Enhancing customer experience FOCUS Build around serving specific segment

12. Strategic Anaysis Porters Five Force Model Competitive rivalry within industry Bargaining power of customer Bargaining power of suppliers Potential new entrants Threat of Substitution SWOT Analysis , Strength Opportunities Weakness Threats

13. Winning customers in the market place Quality Price Availability Convenience Personalisation Reputation Dependability Safety Speed Responsiveness

14. Design of Service System Focus on the customer, market Research to understand target customer , customer expectations Research and Develop service to be offered Design the Facilities , Plan the layout Process Design, Plan customer Role Information system design Recruitment , induction training of staff , organisation structure Test and Improve Measure customer perception and improve

15. Productiion LiNE APProach IN SERVIC sYSTEM Examples 1.Mc Donald 2.Chappathy / Roti making at Golden Temple 3.Buffet service of food (customer move from dish to dish , soup to dessert) 4.Onam sadhya ( servers with dishes move from customer to customer seated in line) 5.Covid vaccination centres (customer move from counter to counter) 6.Passport office (customers move from counter to counter, admitted in batches,queing in front of multiple servers). 7.Batch processing in circus , magic show, theatre ,Ferris (Giant ) wheel, 8.Food service at Isha centre , Brahmakumari Centre , Mount Abu where more than 10000 people are served with meals. 9.Eye testing and surgery at Arvind Eye care system (the Toyota of eye surgery) 10.Narayana Hrudayalaya Hospital (the wall mart of cardiac surgery)