Service Planning Difficulties

Topics: Manufacturing, Management, Finished good Pages: 3 (1076 words) Published: August 27, 2013
INTRODUCTION & SERVICE PLANNING DIFFICULTIES

Servis operations is an enterprise that provides work performed in an expert manner by an individual or team for the benefit of its customers. Service businesses are enterprises that are established and maintained for the purpose of providing services rather than product to private and commercial customers. In a service business, you would be looking to add people who possess the requisite skills to perform the work. The typical service business provides intangible products, such as accounting, banking, consulting, cleaning, landscaping, education, insurance, treatment, and transportation services. While a service organization will also require some equipment and supplies, its key planning decisions surround processing times. The primary input to most service processes is labor. Whether it's an auto mechanic tuning an engine or an insurance agent preparing an application for coverage, the constraint is the amount of time it takes to process each task. The constraining or "bottleneck" process is often a department with limited personnel or resources, as opposed to a mechanical process with a fixed time or capacity constraint. As such, it usually requires less investment to add capacity to a service organization to satisfy more customer demand. This is opposite of what manufacturing does in planning. In manufacturing planning, one organization must plan to have materials, personnel, facilities and equipment all ready at the right time to produce finished goods for sale. Many manufacturing companies use a software to help schedule all the required resources at the right time. The key difference that tends to make manufacturing planning more complex than service planning is the addition of materials and physical processing. Many physical processes have fixed time and space requirements that can't be compressed.

ADVANTAGES OF SERVICE PLANNING

In a planning, it's more difficult to increase capacity after the...
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