MEASURING SERVICE PRODUCTIVITY

Presented by:
Manjari Agrawal Geeta Jagwani
7/18/12

Click to edit Master subtitle style Productivity in economic position is defined as the relation between output and input. Input element in an organization consists of resources used in the product creation process, such as labor, materials, energy. Output consists of a given product, service and the amount of both. Productivity = output input

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Click to measures amount of output Productivityedit Master subtitle style produced relative to the amount of inputs. Intangible nature of many service elements makes it hard to measure productivity of service firms, especially for information-based services

Difficult in most services because both input and output are hard to define Relatively simpler in possession-processing services, as compared to information- and people-processing services
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Productivity in a

Click to edit Master subtitle style Productivity shows whether the activity of an organization is efficient and effective. The terms like productivity, efficiency and effectiveness are used together therefore Productivity requires both efficiency and effectiveness, because a certain activity will not be productive if it is only efficient, but not effective, or effective, but not efficient.
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Service Efficiency,

Service Efficiency,

Click to edit Master subtitle style Efficiency: Involves comparison to a standard, usually time-based (for example: how long employee takes to perform specific task) Problem: focus on inputs rather than outcomes. May ignore variations in service quality/value

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Productivity: Involves financial valuation of outputs to inputs.

Consistent

delivery of outcomes desired by customers should command higher prices

Effectiveness:

Degree to which firm meets goals

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Measuring Service Productivity: Variability Is a Major Traditional measures of service Problem

output tend to ignore variations in quality or value of service.
Focus on outputs rather than outcomes Stress efficiency but not effectiveness

Firms

that consistently deliver outcomes desired by customers can command higher prices; loyal customers are more profitable. 7/18/12

Measuring service productivity

Service productivity quantity output Servic e volum e input Labor Raw material capital quality output Customer perceived quality input Tangible elements Intangible 7/18/12 elements

Thank you !!!!

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