Service Operations

Management

Anjali Chemkure - 127

Minal Kapgate - 144
Parth Bhoyar - 145
Pradyumna Kashyap - 147
Sagar Jaggi -156
Snehal Chougale - 168
 Service Operations

•Service operations management involves planning, coordinating, and

controlling the resources and processes required to meet customer demand.

•Service operations is responsible for developing a service strategy and

working with customer success, customer support, and customer experience
teams.

• The goal of the team is to help scale a business's customer service

organization.
Characteristics of Service operations

Subjectively determined quality

Higher labour cost relative to capital
cost
Close customer contact
Intangible outputs that can not be
Inventoried.
Shorter lead time

COMPETITIVE PRIORITIES OF SERVICE FIRMS

Low product costs.

Fast and on time delivery.
High quality services.
Customer service.
Flexibility.

 KEY DIFFERENCES BETWEEN MANUFATURING AND SERVICE

OPERATIONS

Intangibility:
Fundamentally, services differ from manufacturing with respect to tangibility. Because services are experiences rather than
objects, they cannot be touched, tasted or felt as in the case of objects. The output of a service firm, such as consultancy or
training, is intangible. Manufacturers produce tangible goods, which are physical products that can be held and seen and stored.

Heterogeneity :
The second differentiating aspect of services is the high degree of heterogeneity associated with them. Since the experiential
component is dominant in a service, it is likely that no two services are exactly alike. The differences are attributed to the
differences in the service receivers, the service providers. For example, A Dentist attending to two consecutive patients having
identical ailments may provide more or less the same type of service. Nevertheless, the two patients may have different
perceptions of the quality of the service and may have different satisfaction level.
 Simultaneous Production and Consumption:
More often, services occur in the presence of the customer, who may also be involved at the time the service is produced for
his/her consumption. In the example of the dentist and the patient, the doctor and the patient are in the system together to
produce and consume the service. In the case of manufacturing, however, most goods are produced at some point in time and
distributed to the customer later.

Perishability:
Services are perishable. This implies that they cannot be inventoried. Thirty minutes of a doctor's consulting expertise today
cannot be stored for future use, reused, or returned in a future period. The possibility of inventorying the supply and using it at a
later time is very common in a manufacturing system. The implication for operations is that service systems require methods
that work without inventories.
Types of Service Operations
Quasi Manufacturing :
In this type of service operations production occurs just as it occurs in
manufacturing.
Physical goods are dominant over intangible services associated with it.
Relatively low involvement of customers in production unlike that of
other services.
Services maybe be either standard or customized.
There are two types of Quasi manufacturing services.
1. Product focused operations
2. Process focused operations
 1.Product focused operations
some service operations are just like product focused production lines in
manufacturing.
Example -Back room operations of Restaurant.

2.Process focused operations

Process focused quasi manufacturing operations are just as similar to job

shop manufacturing operations.
They are planned, controlled, analysed, scheduled,and managed just like in
job manufacturing.
 CUSTOMER AS PARTICIPANT
There is a high degree of customer involvement in the service
operation in which the significant goods may or may not be the
significant part. Services may be custom or standard. The design ,
planning, controlling, analyzing and managing these operations are
greatly affected because of actual participation of customer in
operations.

For example:- A food/beverage provider, tourism.

 CUSTOMER AS PRODUCT

In this type of service operations customer becomes so involved in the

operations that the service is actually performed on the customer i.e
the customer becomes the service product.
Here, operations are designed, planned, controlled, analyzed with
objective of satisfying the customer.
Examples of this type of service operations are hairdressing, medical
treatment or Hospitals.
SERVQUAL

MODEL
Reliability
Responsiveness
Empathy
Assurance
Tangible
Gap 1. Knowledge gap
A gap in the service arises if the organization is not aware of what customer wants. If the organization fails to understand
customers' expectations, it will prevent them from serving customers better.

Gap 2. Standards gap

The organization has already formulated its ideas about what kind of services the customer wants. These ideas do not match
up with what customers really want. There is, therefore, a high chance that the organization will translate them incorrectly
into a quality policy and set of rules.

Gap 3. Delivery gap

Let's assume that the organization has clearly understood what the customer wants (no knowledge gap) and has
appropriately formulated the customer's needs into their policies and work processes (no standard gap). Still, there is a
possibility that the organization might fail to deliver the service in the planned way. This will be the delivery gap.
Gap 4. Communications gap
To avoid creating false expectations or misleading promises, organizations

should ensure that their external communications accurately reflect what

they can deliver. Over-promise and under-delivery could raise customer

expectations high, and the organization fails to deliver at that standard. This

will be the communication gap.

To reduce the risk of communication gaps, organizations should ensure that

they communicate clearly about their products or services.

Gap 5. Satisfaction gap

Customers are unhappy because they expect a certain level of service but get

something different. Eventually, customers will be dissatisfied with the

product or service they receive.

Thank you!