Application of OM to Service Operations
Initially the application of operations management concepts was much more narrow focused concentrating almost entirely on manufacturing however as shown in Exhibit I as countries become more developed services continue to represent a larger percentage of their respective Gross Domestic Products (GD s) This growth in services over time presented for the United States in Exhibit combined with the increased recognition services could learn much from manufacturing and vice avers expanded the application operations management to also address related issues in services.
Thoreau Levine of Harvard business School in his article entitled service was one of the first to recognize that many of the developed for manufacturing can actually be applied to that operations concepts can be seen readily at McDonald's are cooked in batches of at a teem or at Benita's timers are batched into groups of eight to increase entitled TIT in Services. A Review of-Current Practices es arch by Disclose Siva and hummus showed that just-inning applied to a wide variety of service operations such as the northern Telecom Inc and the automatic replenishment timers are batched into groups of eight to increase eff- Ie entitled TIT in Services A Review of-Current Practices es arch by Disclose Siva and Hummus, showed that just-inning applied to a wide variety of service operations such as the northern Telecom Inc and the automatic replenishment.
system at Walt marts retail operations which is actually a pull type system is of described as a pull system for moving atrial In this example the selling of an it pulls a replacement order from stock or a supple Exhibit lists some of the major differences between goods and services goods tangible something you can drop on your foot while services being acts rather objects are considered to be intangible Another difference between goods and service that goods can be inventoried whereas services cannot For example you can buy a g such as a book or even food, and use it sometime in the future This is not possible services because they are acts associated with a specific point in time the revenue fro hotel room that remains vacant for a given night or an airline seat that is not sold scheduled flight or a rental car that is not leased on a given day is lost forever. Would it be great if the airlines could save in inventory all the empty seats they have during year to use at peak holiday periods the third distinguishing characteristic between and services is that the customer does not have to be present when the good is actually diced,but must be present for the performance of a service For example you do not to go to an automobile assembly plant to buy a car but it would be difficult to have hair cut without you actually being at the barbershop or beauty salon, or to undergo a of tests in a hospital without being physically present However it is becoming more difficult to differentiate between services and factoring. Consequently instead of looking at operations from two perspectives manufacturing and services today's approach suggests that the vast majority of pr consist of both a goods component and a service component as suggested in Exhibit and that both elements need to be addressed as a whole in order for a firm lei be note throughout this book product will refer to the combination or bundle provided whereas goods will refer to the tangible output and sire tangible output.