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There are no such things as service i d ti industries. Th There are only l i industries d ti whose service components are greater or less than those of other industries. Everybody is in service
(Levitt 1972: 41-42).
Why Study Service Operations Service firms forms a large percentage of the economies of industrialized nations
80% of the US economy (employment and GDP)
Gain a competitive edge. There is little focus on services in the academic world Not all management tools that are appropriate for manufacturing are transferable into a service environment
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What is Operations? The transformation process that turns inputs p , that is, , the act of combining g into outputs, people, raw materials, technology, etc. into useable services and products Who is in the operations function?
The people who actually make a product or perform a service Typically operations has the largest number of employees of any functional area
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Regardless of your functional area, you will b involved be i l d in i t transformational f ti l processes, in other words, getting things done Service operations can help you get things done more effectively and more efficiently
Event Management Incident Management Problem handling and management Data management
Fundamentally, there are no differences between service and manufacturing operations! Both are concerned with: Efficiency Effectiveness Quality Cost
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Characteristics of services
Rules: Services are intangible Simultaneous production and consumption Proximity to the customer Services cannot be inventoried Exceptions: Tangible services taxi service, etc. Computer system upgrades; janitorial services Internet-based services; catalogs Retailers hold inventory; hotel rooms, airline seats are inventory
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Mixed Services
Branch offices
Quasi-Mfg.
Home offices Distribution centers
Manufacturing
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Lessons learned
Service firms constitute an overwhelmingly large percentage of the economy. economy Despite the size, a lack of attention given to services provides a competitive advantage to those students who pursue its study. Moreover, specialized and different managerial techniques are employed in services.
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