Services Operations Management

Topics: Pricing, Outsourcing, Business process outsourcing Pages: 25 (8615 words) Published: November 4, 2011
special reference to

Gaurav Tyagi10DM-189
Gaurav Singh10IB-029
Neha Sinha10DM-093
Neha Kaushik 10DM-092
Harsh Shah10IB-030
Keshav Shenoy 10HR-019

Under the guidance of
Prof. Kunal Ganguly

Manufacturing, service and agriculture are the major economic activities in any country. In India, manufacturing and services together constitute nearly 75% of the GDP. Moreover, in recent years the growth in GDP is primarily due to the growth in these sectors of the economy. During the last ten years, the share of services in the GDP has grown steadily from about 40% to about 51%. The Union Government began taxing three services in 1994-95. This has grown steadily and as of 2004-05 the number of services taxed has gone up to 71. All these indicate the growing importance of services in the Indian economy and the need to apply management practices to plan and control operations in the service sector SERVICE DEFINITIONS

Services are deeds, processes, and performances. (Valarie A. Zeithaml and Mary Jo Bitner, Services Marketing, New York: McGraw-Hill, 1996, p. 5.)

A service is an activity or series of activities of more or less intangible nature that normally, But not necessarily, take place in interactions between customer and service employees and/or physical resources or goods and/or systems of the service provider, which are provided as solutions to customer problems. (Christian Gronroos, Service Management and Marketing, Lexington, Mass: Lexington Books, 1990, p. 27.)

Most authorities consider the services sector to include all economic activities whose output is not a physical product or construction, is generally consumed at the time it is produced, and provides added value in forms (such as convenience, amusement, timeliness, comfort, or health) that are essentially intangible concerns of its first purchaser. (James Brian Quinn, Jordan J. Baruch, and Penny Cushman Paquette, Scientific American, vol. 257, no. 2, December 1987, p. 50.)

Services are economic activities offered by one party to another, most commonly employing time-based performances to bring about desired results in recipients themselves or in objects or other assets for which purchasers have responsibility. In exchange for their money, time, and effort, service customers expect to obtain value from access to goods, labor, professional skills, facilities, networks, and systems; but they do not normally take ownership of any of the physical elements involved. (Christopher Lovelock and Lauren Wright, Services Marketing: People, Technology, Strategy, 6 th ed., Upper Saddle River, NJ: Prentice-Hall, 2007, p. 6.)

A service system is a value-coproduction configuration of people, technology, and other internal and external service systems, and shared information (such as language, processes, metrics, prices, policies, and laws). (Jim Spohrer, Paul Maglio, John Bailey, and Daniel Gruhl, Computer, January 2007, p. 72.)

A service is a time-perishable, intangible experience performed for a customer acting in the role of co-producer. (James Fitzsimmons)
Modern World witnessing the greatest labor migration since the industrial revolution. This migration from agriculture and manufacturing to services is both invisible and largely global in scope. The migration is driven by global communications, business and technology growth, urbanization, and low-cost labor. Service industries are leaders in every industrialized nation, they create new jobs that dominate national economies, and have the potential to enhance the quality of life of everyone. Many of these jobs are for high-skilled knowledge workers and have the greatest projected growth in professional and business services.


Services are central to the economic...
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