1

Production & Operations

Management

Dr. Kanishka Bedi, Universitas 21 Global, Bangalore

Copyright © 2007 Oxford University Press Chapter 2: Service Operations Management

 Service Operations
Management

Copyright © 2007 Oxford University Press Chapter 2: Service Operations Management

 Services Scenario in India

Sector shares in GDP (at factor cost and 1999-00

prices), in per cent, 1990–91 to 2005–06

100%

80%

60%

40%

20%

0%
1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

Agriculture Industry Services

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 Services Scenario in India

Average growth rates over the 1990s of selected services sectors

Business services, incl IT 21.1

Communications 15.1

Banking 11.8

Life insurance 11.0

Hotels & restaurants 10.1

Education 9.9

Medical & health 9.0

Distribution 8.1

Road transport 7.7

Air transport 6.1

Legal services 5.8

Construction 5.2

Real estate 4.9

Water transport 4.4

Dw ellings 4.1

Entertainment services 3.4

Railw ays 3.2

Postal 1.8

Storage 1.7

Significantly liberalised Moderately liberalised Non-liberalised

Copyright © 2007 Oxford University Press
Source: World Bank 2004. Chapter 2: Service Operations Management
 Characteristics of Services

1. Services are intangible

2. Services inspired the ‘Just-in-time’ concept

3. Services are more people-centric

Copyright © 2007 Oxford University Press Chapter 2: Service Operations Management

 Classification of Services

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 Service Capacity

Strategies for Service Capacity Planning

• Constant capacity

• Chase strategy

• Demand smoothening

Copyright © 2007 Oxford University Press Chapter 2: Service Operations Management

 Chase Strategy

Copyright © 2007 Oxford University Press Chapter 2: Service Operations Management

 Designing Service Processes

1. Designing the ‘high customer contact’ and

‘low customer contact’ operations of a
service process separately

2. Designing through an assembly line

approach

3. Designing services with technological

interfaces

Copyright © 2007 Oxford University Press Chapter 2: Service Operations Management

 Service Blueprinting

Copyright © 2007 Oxford University Press Chapter 2: Service Operations Management

 Service Blueprinting

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 Measuring Service Quality using SERVQUAL (The
Gap Model)

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 Waiting Time Management

Formats of queues
• Classic Queue Format (Multiple servers, multiple
queues)
• Zigzag Queue Format (Multiple servers, single queue)
• Numbered Queue Format (Multiple servers, single
queue with numbered customers)
• Split Queue Format (Multiple servers, single split queue)

Copyright © 2007 Oxford University Press Chapter 2: Service Operations Management

 Classic Queue Format

Copyright © 2007 Oxford University Press Chapter 2: Service Operations Management

 Zigzag Queue Format

Copyright © 2007 Oxford University Press Chapter 2: Service Operations Management

 Numbered Queue Format

Copyright © 2007 Oxford University Press Chapter 2: Service Operations Management

 Numbered Queue Format

Copyright © 2007 Oxford University Press Chapter 2: Service Operations Management