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Operations management for services - Wikipedia

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data-event-name="pinnable-header.vector-toc.pin">move to sidebar</button> <button class="vector-pinnable-header-toggle-button vector-pinnable-header-unpin-button" data-event-name="pinnable-header.vector-toc.unpin">hide</button> </div> <ul class="vector-toc-contents" id="mw-panel-toc-list"> <li id="toc-mw-content-text" class="vector-toc-list-item vector-toc-level-1"> <a href="#" class="vector-toc-link"> <div class="vector-toc-text">(Top)</div> </a> </li> <li id="toc-Definition_of_services" class="vector-toc-list-item vector-toc-level-1"> <a class="vector-toc-link" href="#Definition_of_services"> <div class="vector-toc-text"> <span class="vector-toc-numb">1</span> <span>Definition of services</span> </div> </a> <ul id="toc-Definition_of_services-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Comparison_of_manufacturing_and_services" class="vector-toc-list-item vector-toc-level-1"> <a class="vector-toc-link" href="#Comparison_of_manufacturing_and_services"> <div class="vector-toc-text"> <span class="vector-toc-numb">2</span> <span>Comparison of manufacturing and services</span> </div> </a> <ul id="toc-Comparison_of_manufacturing_and_services-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Service_industries" class="vector-toc-list-item vector-toc-level-1"> <a class="vector-toc-link" href="#Service_industries"> <div class="vector-toc-text"> <span class="vector-toc-numb">3</span> <span>Service industries</span> </div> </a> <ul id="toc-Service_industries-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Service_design" class="vector-toc-list-item vector-toc-level-1"> <a class="vector-toc-link" href="#Service_design"> <div class="vector-toc-text"> <span class="vector-toc-numb">4</span> <span>Service design</span> </div> </a> <ul id="toc-Service_design-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Operations_decisions" class="vector-toc-list-item vector-toc-level-1"> <a class="vector-toc-link" href="#Operations_decisions"> <div class="vector-toc-text"> <span class="vector-toc-numb">5</span> <span>Operations decisions</span> </div> </a> <button aria-controls="toc-Operations_decisions-sublist" class="cdx-button cdx-button--weight-quiet cdx-button--icon-only vector-toc-toggle"> <span class="vector-icon mw-ui-icon-wikimedia-expand"></span> <span>Toggle Operations decisions subsection</span> </button> <ul id="toc-Operations_decisions-sublist" class="vector-toc-list"> <li id="toc-Process_decisions" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Process_decisions"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.1</span> <span>Process decisions</span> </div> </a> <ul id="toc-Process_decisions-sublist" class="vector-toc-list"> <li id="toc-Customer_contact" class="vector-toc-list-item vector-toc-level-3"> <a class="vector-toc-link" href="#Customer_contact"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.1.1</span> <span>Customer contact</span> </div> </a> <ul id="toc-Customer_contact-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Production-line_approach" class="vector-toc-list-item vector-toc-level-3"> <a class="vector-toc-link" href="#Production-line_approach"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.1.2</span> <span>Production-line approach</span> </div> </a> <ul id="toc-Production-line_approach-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Service_process_matrices" class="vector-toc-list-item vector-toc-level-3"> <a class="vector-toc-link" href="#Service_process_matrices"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.1.3</span> <span>Service process matrices</span> </div> </a> <ul id="toc-Service_process_matrices-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Self-service" class="vector-toc-list-item vector-toc-level-3"> <a class="vector-toc-link" href="#Self-service"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.1.4</span> <span>Self-service</span> </div> </a> <ul id="toc-Self-service-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Lean_thinking" class="vector-toc-list-item vector-toc-level-3"> <a class="vector-toc-link" href="#Lean_thinking"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.1.5</span> <span>Lean thinking</span> </div> </a> <ul id="toc-Lean_thinking-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Queuing" class="vector-toc-list-item vector-toc-level-3"> <a class="vector-toc-link" href="#Queuing"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.1.6</span> <span>Queuing</span> </div> </a> <ul id="toc-Queuing-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Service-profit_chain" class="vector-toc-list-item vector-toc-level-3"> <a class="vector-toc-link" href="#Service-profit_chain"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.1.7</span> <span>Service-profit chain</span> </div> </a> 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<span>Capacity and scheduling</span> </div> </a> <ul id="toc-Capacity_and_scheduling-sublist" class="vector-toc-list"> <li id="toc-Forecasting" class="vector-toc-list-item vector-toc-level-3"> <a class="vector-toc-link" href="#Forecasting"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.3.1</span> <span>Forecasting</span> </div> </a> <ul id="toc-Forecasting-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Capacity_planning" class="vector-toc-list-item vector-toc-level-3"> <a class="vector-toc-link" href="#Capacity_planning"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.3.2</span> <span>Capacity planning</span> </div> </a> <ul id="toc-Capacity_planning-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Revenue_management" class="vector-toc-list-item vector-toc-level-3"> <a class="vector-toc-link" href="#Revenue_management"> <div class="vector-toc-text"> <span class="vector-toc-numb">5.3.3</span> <span>Revenue management</span> </div> </a> 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.sidebar-list-title,html.skin-theme-clientpref-night .mw-parser-output .sidebar:not(.notheme) .sidebar-title-with-pretitle{background:transparent!important}html.skin-theme-clientpref-night .mw-parser-output .sidebar:not(.notheme) .sidebar-title-with-pretitle a{color:var(--color-progressive)!important}}@media screen and (prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .sidebar:not(.notheme) .sidebar-list-title,html.skin-theme-clientpref-os .mw-parser-output .sidebar:not(.notheme) .sidebar-title-with-pretitle{background:transparent!important}html.skin-theme-clientpref-os .mw-parser-output .sidebar:not(.notheme) .sidebar-title-with-pretitle a{color:var(--color-progressive)!important}}@media print{body.ns-0 .mw-parser-output .sidebar{display:none!important}}</style><table class="sidebar sidebar-collapse nomobile nowraplinks hlist"><tbody><tr><th class="sidebar-title" style="font-size:130%;"><a href="/wiki/Business_administration" title="Business administration">Business administration</a></th></tr><tr><td class="sidebar-above"> Management of a business</td></tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="text-align: center;;color: var(--color-base)"><a href="/wiki/Accounting" title="Accounting">Accounting</a></div><div class="sidebar-list-content mw-collapsible-content"> <ul><li><a href="/wiki/Management_accounting" title="Management accounting">Management accounting</a></li> <li><a href="/wiki/Financial_accounting" title="Financial accounting">Financial accounting</a></li> <li><a href="/wiki/Audit" title="Audit">Audit</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="text-align: center;;color: var(--color-base)"><a href="/wiki/Legal_person" title="Legal person">Business entity</a> (<a href="/wiki/List_of_legal_entity_types_by_country" title="List of legal entity types by country">list</a>)</div><div class="sidebar-list-content mw-collapsible-content"> <ul><li><a href="/wiki/Corporate_group" title="Corporate group">Corporate group</a></li> <li><a href="/wiki/Corporation_sole" title="Corporation sole">Corporation sole</a></li> <li><a href="/wiki/Company" title="Company">Company</a></li> <li><a href="/wiki/Conglomerate_(company)" title="Conglomerate (company)">Conglomerate</a></li> <li><a href="/wiki/Holding_company" title="Holding company">Holding company</a></li> <li><a href="/wiki/Cooperative" title="Cooperative">Cooperative</a></li> <li><a href="/wiki/Corporation" title="Corporation">Corporation</a></li> <li><a href="/wiki/Joint-stock_company" title="Joint-stock company">Joint-stock company</a></li> <li><a href="/wiki/Limited_liability_company" title="Limited liability company">Limited liability company</a></li> <li><a href="/wiki/Partnership" title="Partnership">Partnership</a></li> <li><a href="/wiki/Privately_held_company" title="Privately held company">Privately held company</a></li> <li><a href="/wiki/Sole_proprietorship" title="Sole proprietorship">Sole proprietorship</a></li> <li><a href="/wiki/State-owned_enterprise" title="State-owned enterprise">State-owned enterprise</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="text-align: center;;color: var(--color-base)"><a href="/wiki/Corporate_governance" title="Corporate governance">Corporate governance</a></div><div class="sidebar-list-content mw-collapsible-content"> <ul><li><a href="/wiki/Annual_general_meeting" title="Annual general meeting">Annual general meeting</a></li> <li><a href="/wiki/Board_of_directors" title="Board of directors">Board of directors</a></li> <li><a href="/wiki/Supervisory_board" title="Supervisory board">Supervisory board</a></li> <li><a href="/wiki/Advisory_board" title="Advisory board">Advisory board</a></li> <li><a href="/wiki/Audit_committee" title="Audit committee">Audit committee</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="text-align: center;;color: var(--color-base)"><a href="/wiki/Corporate_law" title="Corporate law">Corporate law</a></div><div class="sidebar-list-content mw-collapsible-content"> <ul><li><a href="/wiki/Commercial_law" title="Commercial law">Commercial law</a></li> <li><a href="/wiki/Constitutional_documents" title="Constitutional documents">Constitutional documents</a></li> <li><a href="/wiki/Contract" title="Contract">Contract</a></li> <li><a href="/wiki/Corporate_crime" title="Corporate crime">Corporate crime</a></li> <li><a href="/wiki/Corporate_liability" title="Corporate liability">Corporate liability</a></li> <li><a href="/wiki/Insolvency_law" class="mw-redirect" title="Insolvency law">Insolvency law</a></li> <li><a href="/wiki/International_trade_law" title="International trade law">International trade law</a></li> <li><a href="/wiki/Mergers_and_acquisitions" title="Mergers and acquisitions">Mergers and acquisitions</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="text-align: center;;color: var(--color-base)"><a href="/wiki/Corporate_title" title="Corporate title">Corporate title</a></div><div class="sidebar-list-content mw-collapsible-content"> <ul><li><a href="/wiki/Chairman" class="mw-redirect" title="Chairman">Chairman</a></li> <li><a href="/wiki/Chief_business_officer" title="Chief business officer">Chief business officer</a>/<a href="/wiki/Chief_brand_officer" class="mw-redirect" title="Chief brand officer">Chief brand officer</a></li> <li><a href="/wiki/Chief_executive_officer" title="Chief executive officer">Chief executive officer</a>/<a href="/wiki/Chief_operating_officer" title="Chief operating officer">Chief operating officer</a></li> <li><a href="/wiki/Chief_financial_officer" title="Chief financial officer">Chief financial officer</a></li> <li><a href="/wiki/Chief_human_resources_officer" title="Chief human resources officer">Chief human resources officer</a></li> <li><a href="/wiki/Chief_information_officer" title="Chief information officer">Chief information officer</a>/<a href="/wiki/Chief_marketing_officer" title="Chief marketing officer">Chief marketing officer</a></li> <li><a href="/wiki/Chief_product_officer" title="Chief product officer">Chief product officer</a>/<a href="/wiki/Chief_technology_officer" title="Chief technology officer">Chief technology officer</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="text-align: center;;color: var(--color-base)"><a href="/wiki/Economics" title="Economics">Economics</a></div><div class="sidebar-list-content mw-collapsible-content"> <ul><li><a href="/wiki/Commodity" title="Commodity">Commodity</a></li> <li><a href="/wiki/Public_economics" title="Public economics">Public economics</a></li> <li><a href="/wiki/Labour_economics" title="Labour economics">Labour economics</a></li> <li><a href="/wiki/Development_economics" title="Development economics">Development economics</a></li> <li><a href="/wiki/International_economics" title="International economics">International economics</a></li> <li><a href="/wiki/Mixed_economy" title="Mixed economy">Mixed economy</a></li> <li><a href="/wiki/Planned_economy" title="Planned economy">Planned economy</a></li> <li><a href="/wiki/Econometrics" title="Econometrics">Econometrics</a></li> <li><a href="/wiki/Environmental_economics" title="Environmental economics">Environmental economics</a></li> <li><a href="/wiki/Open_economy" title="Open economy">Open economy</a></li> <li><a href="/wiki/Market_economy" title="Market economy">Market economy</a></li> <li><a href="/wiki/Knowledge_economy" title="Knowledge economy">Knowledge economy</a></li> <li><a href="/wiki/Microeconomics" title="Microeconomics">Microeconomics</a></li> <li><a href="/wiki/Macroeconomics" title="Macroeconomics">Macroeconomics</a></li> <li><a href="/wiki/Economic_development" title="Economic development">Economic development</a></li> <li><a href="/wiki/Economic_statistics" title="Economic statistics">Economic statistics</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="text-align: center;;color: var(--color-base)">Finance</div><div class="sidebar-list-content mw-collapsible-content"> <ul><li><a href="/wiki/Financial_statement" title="Financial statement">Financial statement</a></li> <li><a href="/wiki/Insurance" title="Insurance">Insurance</a></li> <li><a href="/wiki/Factoring_(finance)" title="Factoring (finance)">Factoring</a></li> <li><a href="/wiki/Cash_conversion_cycle" title="Cash conversion cycle">Cash conversion cycle</a></li> <li><a href="/wiki/Insider_dealing" class="mw-redirect" title="Insider dealing">Insider dealing</a></li> <li><a href="/wiki/Capital_budgeting" title="Capital budgeting">Capital budgeting</a></li> <li><a href="/wiki/Commercial_bank" title="Commercial bank">Commercial bank</a></li> <li><a href="/wiki/Derivative_(finance)" title="Derivative (finance)">Derivative</a></li> <li><a href="/wiki/Financial_statement_analysis" title="Financial statement analysis">Financial statement analysis</a></li> <li><a href="/wiki/Financial_risk" title="Financial risk">Financial risk</a></li> <li><a href="/wiki/Public_finance" title="Public finance">Public finance</a></li> <li><a href="/wiki/Corporate_finance" title="Corporate finance">Corporate finance</a></li> <li><a href="/wiki/Managerial_finance" title="Managerial finance">Managerial finance</a></li> <li><a href="/wiki/International_finance" title="International finance">International finance</a></li> <li><a href="/wiki/Liquidation" title="Liquidation">Liquidation</a></li> <li><a href="/wiki/Stock_market" title="Stock market">Stock market</a></li> <li><a href="/wiki/Financial_market" title="Financial market">Financial market</a></li> <li><a href="/wiki/Tax" title="Tax">Tax</a></li> <li><a href="/wiki/Financial_institution" title="Financial institution">Financial institution</a></li> <li><a href="/wiki/Capital_management" title="Capital management">Capital management</a></li> <li><a href="/wiki/Venture_capital" title="Venture capital">Venture capital</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="text-align: center;;color: var(--color-base)">Types of management</div><div class="sidebar-list-content mw-collapsible-content"> <ul><li><a href="/wiki/Asset_management" title="Asset management">Asset</a></li> <li><a href="/wiki/Brand_management" title="Brand management">Brand</a></li> <li><a href="/wiki/Business_intelligence" title="Business intelligence">Business intelligence</a></li> <li><a href="/wiki/Business_development" title="Business development">Business development</a></li> <li><a href="/wiki/Capacity_management" title="Capacity management">Capacity</a></li> <li><a href="/wiki/Capability_management_in_business" title="Capability management in business">Capability</a></li> <li><a href="/wiki/Change_management" title="Change management">Change</a> <ul><li><a href="/wiki/Innovation_management" title="Innovation management">innovation</a></li></ul></li> <li><a href="/wiki/Commercial_management" title="Commercial management">Commercial</a> <ul><li><a href="/wiki/Marketing_management" title="Marketing management">Marketing</a></li></ul></li> <li><a href="/wiki/Communications_management" title="Communications management">Communications</a></li> <li><a href="/wiki/Configuration_management" title="Configuration management">Configuration</a></li> <li><a href="/wiki/Conflict_management" title="Conflict management">Conflict</a></li> <li><a href="/wiki/Content_management" title="Content management">Content</a></li> <li><a href="/wiki/Customer_relationship_management" title="Customer relationship management">Customer relationship</a></li> <li><a href="/wiki/Distributed_management" title="Distributed management">Distributed</a></li> <li><a href="/wiki/Earned_value_management" title="Earned value management">Earned value</a></li> <li><a href="/wiki/Electronic_business" title="Electronic business">Electronic business</a></li> <li><a href="/wiki/Enterprise_resource_planning" title="Enterprise resource planning">Enterprise resource planning</a>&#160; <ul><li><a href="/wiki/Management_information_system" title="Management information system">management information system</a></li></ul></li> <li><a href="/wiki/Financial_management" title="Financial management">Financial</a></li> <li><a href="/wiki/Human_resource_management" title="Human resource management">Human resource</a>&#160; <ul><li><a href="/wiki/Human_resources" title="Human resources">development</a></li></ul></li> <li><a href="/wiki/Incident_management" title="Incident management">Incident</a></li> <li><a href="/wiki/Knowledge_management" title="Knowledge management">Knowledge</a></li> <li><a href="/wiki/Enterprise_legal_management" title="Enterprise legal management">Legal</a></li> <li><a href="/wiki/Materials_management" title="Materials management">Materials</a></li> <li><a href="/wiki/Network_management" title="Network management">Network</a> <ul><li><a href="/wiki/Network_administrator" title="Network administrator">administrator</a></li></ul></li> <li><a href="/wiki/Office_management" title="Office management">Office</a></li> <li><a href="/wiki/Operations_management" title="Operations management">Operations</a>&#160; <ul><li><a class="mw-selflink selflink">services</a></li></ul></li> <li><a href="/wiki/Performance_management" class="mw-redirect" title="Performance management">Performance</a></li> <li><a href="/wiki/Power_management" title="Power management">Power</a></li> <li><a href="/wiki/Business_process_management" title="Business process management">Process</a></li> <li><a href="/wiki/Product_life-cycle_management" class="mw-redirect" title="Product life-cycle management">Product life-cycle</a></li> <li><a href="/wiki/Product_management" title="Product management">Product</a></li> <li><a href="/wiki/Project_management" title="Project management">Project</a></li> <li><a href="/wiki/Property_management" title="Property management">Property</a></li> <li><a href="/wiki/Quality_management" title="Quality management">Quality</a></li> <li><a href="/wiki/Records_management" title="Records management">Records</a></li> <li><a href="/wiki/Resource_management" title="Resource management">Resource</a></li> <li><a href="/wiki/Risk_management" title="Risk management">Risk</a>&#160; <ul><li><a href="/wiki/Crisis_management" title="Crisis management">crisis</a></li></ul></li> <li><a href="/wiki/Sales_management" title="Sales management">Sales</a></li> <li><a href="/wiki/Security_management" title="Security management">Security</a></li> <li><a href="/wiki/Service_management" title="Service management">Service</a></li> <li><a href="/wiki/Strategic_management" title="Strategic management">Strategic</a></li> <li><a href="/wiki/Supply_chain_management" title="Supply chain management">Supply chain</a></li> <li><a href="/wiki/Systems_management" title="Systems management">Systems</a> <ul><li><a href="/wiki/System_administrator" title="System administrator">administrator</a></li></ul></li> <li><a href="/wiki/Talent_management" title="Talent management">Talent</a></li> <li><a href="/wiki/Technology_management" title="Technology management">Technology</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="text-align: center;;color: var(--color-base)">Organization</div><div class="sidebar-list-content mw-collapsible-content"> <ul><li><a href="/wiki/Organizational_architecture" title="Organizational architecture">Architecture</a></li> <li><a href="/wiki/Organizational_behavior" title="Organizational behavior">Behavior</a></li> <li><a href="/wiki/Organizational_communication" title="Organizational communication">Communication</a></li> <li><a href="/wiki/Organizational_culture" title="Organizational culture">Culture</a></li> <li><a href="/wiki/Organizational_conflict" title="Organizational conflict">Conflict</a></li> <li><a href="/wiki/Organization_development" title="Organization development">Development</a></li> <li><a href="/wiki/Organizational_engineering" title="Organizational engineering">Engineering</a></li> <li><a href="/wiki/Hierarchical_organization" title="Hierarchical organization">Hierarchy</a></li> <li><a href="/wiki/Organizational_patterns" title="Organizational patterns">Patterns</a></li> <li><a href="/wiki/Organizational_space" title="Organizational space">Space</a></li> <li><a href="/wiki/Organizational_structure" title="Organizational structure">Structure</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="text-align: center;;color: var(--color-base)"><a href="/wiki/Trade" title="Trade">Trade</a></div><div class="sidebar-list-content mw-collapsible-content"> <ul><li><a href="/wiki/Business_analysis" title="Business analysis">Business analysis</a></li> <li><a href="/wiki/Business_ethics" title="Business ethics">Business ethics</a></li> <li><a href="/wiki/Business_plan" title="Business plan">Business plan</a></li> <li><a href="/wiki/Business_judgment_rule" title="Business judgment rule">Business judgment rule</a></li> <li><a href="/wiki/Consumer_behaviour" title="Consumer behaviour">Consumer behaviour</a></li> <li><a href="/wiki/Business_operations" title="Business operations">Business operations</a></li> <li><a href="/wiki/International_business" title="International business">International business</a></li> <li><a href="/wiki/Business_model" title="Business model">Business model</a></li> <li><a href="/wiki/International_trade" title="International trade">International trade</a> <ul><li><a href="/wiki/Trade_route" title="Trade route">Trade route</a></li></ul></li> <li><a href="/wiki/Business_process" title="Business process">Business process</a></li> <li><a href="/wiki/Business_statistics" class="mw-redirect" title="Business statistics">Business statistics</a></li></ul></div></div></td> </tr><tr><td class="sidebar-below"> <ul><li><span class="nowrap"><span class="noviewer" typeof="mw:File"><a href="/wiki/File:Emblem-money.svg" class="mw-file-description"><img alt="icon" src="//upload.wikimedia.org/wikipedia/commons/thumb/f/f3/Emblem-money.svg/16px-Emblem-money.svg.png" decoding="async" width="16" height="16" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/f/f3/Emblem-money.svg/24px-Emblem-money.svg.png 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/f/f3/Emblem-money.svg/32px-Emblem-money.svg.png 2x" data-file-width="48" data-file-height="48" /></a></span> </span><a href="/wiki/Portal:Business_and_economics" class="mw-redirect" title="Portal:Business and economics">Business and economics&#32;portal</a></li></ul></td></tr><tr><td class="sidebar-navbar"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><style data-mw-deduplicate="TemplateStyles:r1239400231">.mw-parser-output .navbar{display:inline;font-size:88%;font-weight:normal}.mw-parser-output .navbar-collapse{float:left;text-align:left}.mw-parser-output .navbar-boxtext{word-spacing:0}.mw-parser-output .navbar ul{display:inline-block;white-space:nowrap;line-height:inherit}.mw-parser-output .navbar-brackets::before{margin-right:-0.125em;content:"[ "}.mw-parser-output .navbar-brackets::after{margin-left:-0.125em;content:" ]"}.mw-parser-output .navbar li{word-spacing:-0.125em}.mw-parser-output .navbar a>span,.mw-parser-output .navbar a>abbr{text-decoration:inherit}.mw-parser-output .navbar-mini abbr{font-variant:small-caps;border-bottom:none;text-decoration:none;cursor:inherit}.mw-parser-output .navbar-ct-full{font-size:114%;margin:0 7em}.mw-parser-output .navbar-ct-mini{font-size:114%;margin:0 4em}html.skin-theme-clientpref-night .mw-parser-output .navbar li a abbr{color:var(--color-base)!important}@media(prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .navbar li a abbr{color:var(--color-base)!important}}@media print{.mw-parser-output .navbar{display:none!important}}</style><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Business_administration" title="Template:Business administration"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Business_administration" title="Template talk:Business administration"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Business_administration" title="Special:EditPage/Template:Business administration"><abbr title="Edit this template">e</abbr></a></li></ul></div></td></tr></tbody></table> <p><b>Operations management for services</b> has the functional responsibility for producing the services of an organization and providing them directly to its customers.<sup id="cite_ref-Bozarth_1-0" class="reference"><a href="#cite_note-Bozarth-1"><span class="cite-bracket">&#91;</span>1<span class="cite-bracket">&#93;</span></a></sup><sup class="reference nowrap"><span title="Pages: 6–7">&#58;&#8202;6–7&#8202;</span></sup> It specifically deals with decisions required by operations managers for simultaneous production and consumption of an intangible product. These decisions concern the process, people, information and the system that produces and delivers the service. It differs from <a href="/wiki/Operations_management" title="Operations management">operations management</a> in general, since the processes of service organizations differ from those of <a href="/wiki/Manufacturing" title="Manufacturing">manufacturing</a> organizations.<sup id="cite_ref-Malhotra_2-0" class="reference"><a href="#cite_note-Malhotra-2"><span class="cite-bracket">&#91;</span>2<span class="cite-bracket">&#93;</span></a></sup><sup class="reference nowrap"><span title="Pages: 2–7">&#58;&#8202;2–7&#8202;</span></sup> </p><p>In a <a href="/wiki/Post-industrial_economy" title="Post-industrial economy">post-industrial economy</a>, service firms provide most of the <a href="/wiki/GDP" class="mw-redirect" title="GDP">GDP</a> and employment. As a result, management of service operations within these service firms is essential for the economy.<sup id="cite_ref-Bell_3-0" class="reference"><a href="#cite_note-Bell-3"><span class="cite-bracket">&#91;</span>3<span class="cite-bracket">&#93;</span></a></sup> </p><p>The services sector treats services as intangible products, service as a <a href="/wiki/Customer_experience" title="Customer experience">customer experience</a> and service as a package of facilitating goods and services. Significant aspects of service as a product are a basis for guiding decisions made by service operations managers.<sup id="cite_ref-Fitzsimmons_4-0" class="reference"><a href="#cite_note-Fitzsimmons-4"><span class="cite-bracket">&#91;</span>4<span class="cite-bracket">&#93;</span></a></sup> The extent and variety of services industries in which operations managers make decisions provides the context for <a href="/wiki/Decision-making" title="Decision-making">decision making</a>. </p><p>The six types of decisions made by operations managers in service organizations are: process, <a href="/wiki/Quality_management" title="Quality management">quality management</a>, capacity &amp; <a href="/wiki/Scheduling" class="mw-redirect" title="Scheduling">scheduling</a>, <a href="/wiki/Inventory" title="Inventory">inventory</a>, service supply chain and <a href="/wiki/Information_technology" title="Information technology">information technology</a>.<sup id="cite_ref-5" class="reference"><a href="#cite_note-5"><span class="cite-bracket">&#91;</span>5<span class="cite-bracket">&#93;</span></a></sup> </p> <meta property="mw:PageProp/toc" /> <div class="mw-heading mw-heading2"><h2 id="Definition_of_services">Definition of services</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Operations_management_for_services&amp;action=edit&amp;section=1" title="Edit section: Definition of services"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>There have been many different definitions of service. Russell and Taylor (2011) state that one of the most pervasive, and earliest definitions is “services are intangible products”.<sup id="cite_ref-Russell_6-0" class="reference"><a href="#cite_note-Russell-6"><span class="cite-bracket">&#91;</span>6<span class="cite-bracket">&#93;</span></a></sup> According to this definition, service is something that cannot be manufactured. It can be added after manufacturing (e.g. product repair) or it can stand alone as a service (e.g. dentistry) delivered directly to the customer. This definition has been expanded to include such ideas as “service is a <a href="/wiki/Customer_experience" title="Customer experience">customer experience</a>.”<sup id="cite_ref-Johnston_7-0" class="reference"><a href="#cite_note-Johnston-7"><span class="cite-bracket">&#91;</span>7<span class="cite-bracket">&#93;</span></a></sup><sup class="reference nowrap"><span title="Pages: 7–8, 162–192">&#58;&#8202;7–8,&#8202;162–192&#8202;</span></sup><sup id="cite_ref-8" class="reference"><a href="#cite_note-8"><span class="cite-bracket">&#91;</span>8<span class="cite-bracket">&#93;</span></a></sup> In this case the customer is brought into the definition as the experience the customer receives while “consuming” the service. </p> <figure class="mw-default-size" typeof="mw:File/Thumb"><a href="/wiki/File:Customer_service_photo.jpg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/9/97/Customer_service_photo.jpg/220px-Customer_service_photo.jpg" decoding="async" width="220" height="220" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/9/97/Customer_service_photo.jpg/330px-Customer_service_photo.jpg 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/9/97/Customer_service_photo.jpg/440px-Customer_service_photo.jpg 2x" data-file-width="2000" data-file-height="2000" /></a><figcaption>Service is a customer experience</figcaption></figure> <p>A third definition of service concerns the perceived service as consisting of physical facilitating goods, explicit service and implicit service.<sup id="cite_ref-Russell_6-1" class="reference"><a href="#cite_note-Russell-6"><span class="cite-bracket">&#91;</span>6<span class="cite-bracket">&#93;</span></a></sup> In this case the facilitating goods are the buildings and inventory used to provide the service. For example, in a restaurant the facilitating goods are the building and the food. The explicit service is what is perceived as the observable part of the service (the sights, sounds and look of the service). In a restaurant the explicit service is the time spent waiting for service, the appearance of the facility and the employees, and the ambience of sounds and light and the decor. The implicit service is the feeling of safety, psychological well-being and happiness associated with the service. </p> <div class="mw-heading mw-heading2"><h2 id="Comparison_of_manufacturing_and_services">Comparison of manufacturing and services</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Operations_management_for_services&amp;action=edit&amp;section=2" title="Edit section: Comparison of manufacturing and services"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>According to Fitzsimmons, Fitzsimmons and Bordoloi (2014) differences between manufactured goods and services are as follows:<sup id="cite_ref-Fitzsimmons_4-1" class="reference"><a href="#cite_note-Fitzsimmons-4"><span class="cite-bracket">&#91;</span>4<span class="cite-bracket">&#93;</span></a></sup><sup class="reference nowrap"><span title="Pages: 14–18">&#58;&#8202;14–18&#8202;</span></sup> </p> <ul><li><i>Simultaneous production and consumption.</i> High contact services (e.g. haircuts) must be produced in the presence of the customer, since they are consumed as produced. As a result, services cannot be produced in one location and transported to another, like goods. Service operations are therefore highly dispersed geographically close to the customers. Furthermore, simultaneous production and consumption allows the possibility of self-service involving the customer at the point of consumption (e.g. gas stations). Only low-contact services produced in the "backroom" (e.g., check clearing) can be provided away from the customer.</li> <li><i>Perishable.</i> Since services are perishable, they cannot be stored for later use. In manufacturing companies, inventory can be used to buffer supply and demand. Since buffering is not possible in services, highly variable demand must be met by operations or demand modified to meet supply.</li> <li><i>Ownership.</i> In manufacturing, ownership is transferred to the customer. Ownership is not transferred for service. As a result, services cannot be owned or resold.</li> <li><i>Tangibility.</i> A service is intangible making it difficult for a customer to evaluate the service in advance. In the case of a good, customers can see it and evaluate it. Assurance of quality service is often done by licensing, government regulation, and branding to assure customers they will receive a quality service.</li></ul> <p>These four comparisons indicate how management of service operations are quite different from manufacturing regarding such issues as capacity requirements (highly variable), quality assurance (hard to quantify), location of facilities (dispersed), and interaction with the customer during delivery of the service (product and process design). </p> <div class="mw-heading mw-heading2"><h2 id="Service_industries">Service industries</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Operations_management_for_services&amp;action=edit&amp;section=3" title="Edit section: Service industries"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Industries have been defined by economists as consisting of four parts: Agriculture, Mining and Construction, Manufacturing, and Service.<sup id="cite_ref-:8_9-0" class="reference"><a href="#cite_note-:8-9"><span class="cite-bracket">&#91;</span>9<span class="cite-bracket">&#93;</span></a></sup> Services have existed for centuries. Early service was associated with servants. Servants were hired to do tasks that the wealthy did not want to do for themselves (e.g. cleaning the house, cooking, and washing clothes). Later, services became more organized and were provided to the general public. </p><p>In 1900 the U.S. service industry (e.g., consisting of banks, professional services, schools and general stores) was fragmented, except for the railroads and communications. Services were largely local in nature and owned by entrepreneurs and families. The U.S. in 1900 had 31% employment in services, 31% in manufacturing and 38% in agriculture.<sup id="cite_ref-10" class="reference"><a href="#cite_note-10"><span class="cite-bracket">&#91;</span>10<span class="cite-bracket">&#93;</span></a></sup> </p><p>Services have now evolved to become the dominant form of employment in industrialized economies. Much of the world has progressed, or is progressing, from agricultural to industrial and now post-industrial economies.<sup id="cite_ref-Bell_3-1" class="reference"><a href="#cite_note-Bell-3"><span class="cite-bracket">&#91;</span>3<span class="cite-bracket">&#93;</span></a></sup> The U.S. Bureau of Labor Statistics provides a table of the employment of the 151 million people by industry in the U.S. for 2014. </p> <table class="wikitable"> <tbody><tr> <th>Industry</th> <th>% employment </th></tr> <tr> <td>Agriculture and Mining</td> <td>2 </td></tr> <tr> <td>Construction</td> <td>5 </td></tr> <tr> <td>Manufacturing</td> <td>10 </td></tr> <tr> <td>Federal Government</td> <td>2 </td></tr> <tr> <td>State Governments</td> <td>13 </td></tr> <tr> <td>Leisure &amp; Hospitality</td> <td>9 </td></tr> <tr> <td>Health Care and Social</td> <td>10 </td></tr> <tr> <td>Education Private</td> <td>2 </td></tr> <tr> <td>Professional and Business</td> <td>11 </td></tr> <tr> <td>Financial Services</td> <td>6 </td></tr> <tr> <td>Information Services</td> <td>2 </td></tr> <tr> <td>Transportation &amp; Utilities</td> <td>3 </td></tr> <tr> <td>Retail and Wholesale</td> <td>14 </td></tr> <tr> <td>Other services</td> <td>4 </td></tr> <tr> <td>Self Employed</td> <td>7 </td></tr> <tr> <td><big>Totals</big></td> <td><big>100</big> </td></tr></tbody></table> <p>Source:<sup id="cite_ref-:8_9-1" class="reference"><a href="#cite_note-:8-9"><span class="cite-bracket">&#91;</span>9<span class="cite-bracket">&#93;</span></a></sup> </p><p>The table shows that service industries now constitute 83% of employment in the U.S., while agriculture, mining, construction and manufacturing are only 17% of the total employment. Service industries are very diversified ranging from those that are highly capital intensive (e.g. banks, utilities, airlines, and hospitals) to those that are highly people intensive (e.g. retail, wholesale, and professional services). In capital intensive services the focus is more on technology and automation, while in people intensive services the focus is more on managing service employees that deliver the service.<sup id="cite_ref-Russell_6-2" class="reference"><a href="#cite_note-Russell-6"><span class="cite-bracket">&#91;</span>6<span class="cite-bracket">&#93;</span></a></sup> </p><p>Service and manufacturing industries are highly interrelated. Manufacturing provides tangible facilitating goods needed to provide services; and services such as banking, accounting and information systems provide important service inputs to manufacturing. Manufacturing companies have an opportunity to provide more services along with their products. This can be an important point of <a href="/wiki/Product_differentiation" title="Product differentiation">product differentiation</a>, leading to increased sales and profitability for manufacturers.<sup id="cite_ref-Malhotra_2-1" class="reference"><a href="#cite_note-Malhotra-2"><span class="cite-bracket">&#91;</span>2<span class="cite-bracket">&#93;</span></a></sup><sup class="reference nowrap"><span title="Pages: 2–7">&#58;&#8202;2–7&#8202;</span></sup> </p><p>While the focus is often on service industries, there is an opportunity to apply service principles to internal services in an organization, particularly by focusing on internal customers. Internal services such as payroll, accounting, legal, information systems or human resources often have not identified their internal customers, nor do they understand their customer needs. Service ideas ranging from process design, to lean systems, quality management, capacity and scheduling have been widely applied to internal services.<sup id="cite_ref-Womack_11-0" class="reference"><a href="#cite_note-Womack-11"><span class="cite-bracket">&#91;</span>11<span class="cite-bracket">&#93;</span></a></sup><sup id="cite_ref-Johnston_7-1" class="reference"><a href="#cite_note-Johnston-7"><span class="cite-bracket">&#91;</span>7<span class="cite-bracket">&#93;</span></a></sup><sup class="reference nowrap"><span title="Pages: 30–32">&#58;&#8202;30–32&#8202;</span></sup> </p> <div class="mw-heading mw-heading2"><h2 id="Service_design">Service design</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Operations_management_for_services&amp;action=edit&amp;section=4" title="Edit section: Service design"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p><a href="/wiki/Service_design" title="Service design">Service design</a> begins with a business strategy and service strategy. The business strategy defines what business the firm is in, for example, the Walt Disney Company defines its business strategy "as making people happy." A business strategy also defines the target market, competitors, financial goals, new products, how the company competes, and perhaps some aspects of operations. </p><p>Following from the business strategy is the service concept.<sup id="cite_ref-Johnston_7-2" class="reference"><a href="#cite_note-Johnston-7"><span class="cite-bracket">&#91;</span>7<span class="cite-bracket">&#93;</span></a></sup><sup class="reference nowrap"><span title="Pages: 47–50">&#58;&#8202;47–50&#8202;</span></sup> It must provide the rationale for why the customer should buy the service offered. It defines what the customer is receiving and what the service organization is providing. The service concept includes: </p> <ol><li>Organizing Idea. The vision and essence of the service.</li> <li>Service Provided. The process and results designed by the provider.</li> <li>Service Received. The customer experience and outcomes expected.</li></ol> <p>Managers can use the service concept to create organizational alignment and develop new services. It provides a means for describing the service business from an operations point of view. </p><p>After defining the service concept, operations can proceed to define the service-product bundle (or service package) for the organization. It consists of five parts: service facility, facilitating goods, information, explicit service and implicit services.<sup id="cite_ref-Fitzsimmons_4-2" class="reference"><a href="#cite_note-Fitzsimmons-4"><span class="cite-bracket">&#91;</span>4<span class="cite-bracket">&#93;</span></a></sup> It is important to carefully define each of these elements so that operations can subsequently design and manage a service operation. The service-product bundle must come first before operations decisions. </p><p>An example of service-product bundle characteristics follows:<sup id="cite_ref-Fitzsimmons_4-3" class="reference"><a href="#cite_note-Fitzsimmons-4"><span class="cite-bracket">&#91;</span>4<span class="cite-bracket">&#93;</span></a></sup><sup class="reference nowrap"><span title="Pages: 18–19">&#58;&#8202;18–19&#8202;</span></sup> </p> <ul><li><b>Service Facility:</b> Accessible by public transportation, sufficient parking, interior decorating, architecture, facility layout and traffic flow</li> <li><b>Facilitating goods:</b> sufficient inventory, quality and selection</li> <li><b>Information:</b> Is it accurate, up-to-date, timely, and useful to the customer and service providers</li> <li><b>Explicit service:</b> waiting time, training and appearance of personnel, and consistency</li> <li><b>Implicit service:</b> Sense of well-being, privacy and security, atmosphere, attitude of service providers.</li></ul> <p>Once the service package is specified, operations is ready to make decisions concerning the process, quality, capacity, inventory, supply chain and information systems. These are the six decision responsibilities of service operations. Other decision responsibilities such as market choice, product positioning, pricing, advertising and channels belong to the marketing function. Finance takes care of financial reporting, investments, capitalization, and profitability. </p> <div class="mw-heading mw-heading2"><h2 id="Operations_decisions">Operations decisions</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Operations_management_for_services&amp;action=edit&amp;section=5" title="Edit section: Operations decisions"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <div class="mw-heading mw-heading3"><h3 id="Process_decisions">Process decisions</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Operations_management_for_services&amp;action=edit&amp;section=6" title="Edit section: Process decisions"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Process decisions include the physical processes and the people that deliver the services to the customer. A service process consists of all the routines, tasks and steps that are used to deliver service to customers along with the jobs and training for service employees. There are many ways to organize a process to provide customer service in an effective and efficient manner to deliver the service-product bundle. Several ideas have been advanced on how to design a service process.<sup id="cite_ref-Jacobs_12-0" class="reference"><a href="#cite_note-Jacobs-12"><span class="cite-bracket">&#91;</span>12<span class="cite-bracket">&#93;</span></a></sup><sup class="reference nowrap"><span title="Pages: 173–243, 401–431">&#58;&#8202;173–243,&#8202;401–431&#8202;</span></sup> </p> <div class="mw-heading mw-heading4"><h4 id="Customer_contact">Customer contact</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Operations_management_for_services&amp;action=edit&amp;section=7" title="Edit section: Customer contact"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Design of a <a href="/wiki/Service_system" title="Service system">service system</a> must consider the degree of customer contact. The importance of customer contact was first noted by Chase and Tansik (1983).<sup id="cite_ref-13" class="reference"><a href="#cite_note-13"><span class="cite-bracket">&#91;</span>13<span class="cite-bracket">&#93;</span></a></sup> They argued that high customer contact processes should be designed and managed differently from low-contact processes. High-contact processes have the customer in the system while providing the service. This can lead to difficulties in standardizing the service or inefficiencies when the customer makes demands or expects unique services. On the other hand, high-contact also provides the possibility of self-service where customers provide part of the service themselves (e.g. filing your own gas tank, or packing your own groceries). Low-contact services are performed away from the customer in what is often called "the back room." In this case, the service process can be more standardized and efficient (e.g. check clearing in a bank, filling orders in a warehouse) since the customer is not in the system to request preferences, customization or changes. Low-contact services can be managed more like manufacturing, high-contact services cannot. </p> <div class="mw-heading mw-heading4"><h4 id="Production-line_approach">Production-line approach</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Operations_management_for_services&amp;action=edit&amp;section=8" title="Edit section: Production-line approach"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <figure class="mw-default-size" typeof="mw:File/Thumb"><a href="/wiki/File:Bdg_McDonalds_07-2013.jpg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/1/1e/Bdg_McDonalds_07-2013.jpg/220px-Bdg_McDonalds_07-2013.jpg" decoding="async" width="220" height="296" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/1/1e/Bdg_McDonalds_07-2013.jpg/330px-Bdg_McDonalds_07-2013.jpg 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/1/1e/Bdg_McDonalds_07-2013.jpg/440px-Bdg_McDonalds_07-2013.jpg 2x" data-file-width="1024" data-file-height="1378" /></a><figcaption>McDonald's uses the production-line approach to service</figcaption></figure> <p>In 1972 Levitt introduced the "production-line approach to service".<sup id="cite_ref-14" class="reference"><a href="#cite_note-14"><span class="cite-bracket">&#91;</span>14<span class="cite-bracket">&#93;</span></a></sup> He argued that service processes could be made more efficient by standardizing them and automating them like manufacturing. He gave the example of McDonald's that has standardized both the services at the front counter and the backroom for producing the food. They have limited the menu, simplified the jobs, trained the managers (at "Hamburger U"), automated production and instituted standards for courtesy, cleanliness, speed and quality. As a result, McDonald's has become a model for other service processes which have been designed for high efficiency, not only in fast food, but in many other services. At the same time, it leaves open the option for more customized and flexible services for customers who are willing to pay more for "better" or more personalized service. While these services are less efficient, they cater more to unique customer's needs. </p> <div class="mw-heading mw-heading4"><h4 id="Service_process_matrices">Service process matrices</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Operations_management_for_services&amp;action=edit&amp;section=9" title="Edit section: Service process matrices"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Many different service process matrices have been proposed for explaining the relationship between service products that are selected and corresponding processes.<sup id="cite_ref-Johnston_7-3" class="reference"><a href="#cite_note-Johnston-7"><span class="cite-bracket">&#91;</span>7<span class="cite-bracket">&#93;</span></a></sup><sup class="reference nowrap"><span title="Pages: 193–225">&#58;&#8202;193–225&#8202;</span></sup> One of these is shown below. </p><p>The Service Delivery System Matrix<sup id="cite_ref-15" class="reference"><a href="#cite_note-15"><span class="cite-bracket">&#91;</span>15<span class="cite-bracket">&#93;</span></a></sup> by Collier and Meyer (1998) illustrates the various types of routings used for service process depending on the amount of customization and customer involvement in the process. With high levels of customization and customer involvement, there are many pathways and jumbled flows for service. As a result, the service delivery of Customer-Routed services is less efficient than Co-routed or Provider-Routed processes that have less customization and less customer involvement. Process that should be used for each combination of customization and customer involvement are shown on the diagonal of this matrix. </p> <figure class="mw-halign-left" typeof="mw:File/Thumb"><a href="/wiki/File:Service_delivery_system_matrix.png" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/d/d0/Service_delivery_system_matrix.png/550px-Service_delivery_system_matrix.png" decoding="async" width="550" height="365" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/d/d0/Service_delivery_system_matrix.png 1.5x" data-file-width="788" data-file-height="523" /></a><figcaption></figcaption></figure> <div class="mw-heading mw-heading4"><h4 id="Self-service">Self-service</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Operations_management_for_services&amp;action=edit&amp;section=10" title="Edit section: Self-service"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Self-service is in wide use. For example, in the 1960s gas station attendants came out and pumped your gas, cleaned your windshield and even checked your oil. Fast food is famous for self-service, since customers have been trained to order their own food, pay immediately, find a table, and clean up the trash. ATM's have replaced many traditional tellers and online banking provides even more self-service. </p><p>When self-service is accepted by the customer, it can reduce costs and even provide better service in the customer's eyes—faster service with less hassle.<sup id="cite_ref-Jacobs_12-1" class="reference"><a href="#cite_note-Jacobs-12"><span class="cite-bracket">&#91;</span>12<span class="cite-bracket">&#93;</span></a></sup><sup class="reference nowrap"><span title="Pages: 173–243, 401–431">&#58;&#8202;173–243,&#8202;401–431&#8202;</span></sup> Self-service falls in the provider-routed or co-routed part of the Service delivery matrix. Services that were previously customer-routed have been moved down the diagonal to be more efficient and accepted by customers. </p><p><b>Service Blueprint</b> The <a href="/wiki/Service_blueprint" title="Service blueprint">service blueprint</a> is a way to describe the flow of a customer through a service operation from the start to the finish, along with the actions provided by the service providers both in interaction with the customer and in the "back room" out of sight of the customer. For example, if a customer wishes to purchase a suit, the service blueprint starts with entry to the store, next the customer is greeted by a sales representative, the customer then provides information on his/her needs, the sales representative searches for appropriate suits, one or more suits are selected and tried-on for a fitting, a suit is selected and then alterations are done (which take place away from the customer), the customer pays for the suit and returns later to pick it up. A blueprint flowchart shows every step in the process and can be used to illustrate the process and improve it.<sup id="cite_ref-16" class="reference"><a href="#cite_note-16"><span class="cite-bracket">&#91;</span>16<span class="cite-bracket">&#93;</span></a></sup> </p> <div class="mw-heading mw-heading4"><h4 id="Lean_thinking">Lean thinking</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Operations_management_for_services&amp;action=edit&amp;section=11" title="Edit section: Lean thinking"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>If <a href="/wiki/Lean_thinking" title="Lean thinking">lean thinking</a> is applied, the time taken for each step in a service blueprint flowchart can be recorded, or a separate value-stream map can be constructed. Then the process can be analyzed for time reductions to reduce waiting and non-value added steps.<sup id="cite_ref-Womack_11-1" class="reference"><a href="#cite_note-Womack-11"><span class="cite-bracket">&#91;</span>11<span class="cite-bracket">&#93;</span></a></sup> Changes are made to reduce time and waste in the process. Waste is anything that does not add value to the process including waiting time in line, possibility of more self-service, customer hassle, and defects in service. But, lean thinking also requires attention to the customer and the people providing the service. It is important to apply important principles such as completely solve the customer's problem, don't waste time and provide exactly what the customer requires. </p><p>Leite and Vieira (2015) state that service managers must realize that the customer will be happy if the service provided meets or exceeds expectations. Also the interaction between the customer and the people providing the service is essential to achieve satisfied customers. Employee involvement is often emphasized as part of lean thinking to achieve high levels of commitment by service employees.<sup id="cite_ref-17" class="reference"><a href="#cite_note-17"><span class="cite-bracket">&#91;</span>17<span class="cite-bracket">&#93;</span></a></sup> </p> <div class="mw-heading mw-heading4"><h4 id="Queuing">Queuing</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Operations_management_for_services&amp;action=edit&amp;section=12" title="Edit section: Queuing"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <figure class="mw-default-size" typeof="mw:File/Thumb"><a href="/wiki/File:HK_Central_%E4%B8%AD%E7%92%B0%E4%B8%AD%E5%BF%83_The_Center_mall_shop_interior_service_counters_queue_line_barrier_visitors.jpg" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/d/d8/HK_Central_%E4%B8%AD%E7%92%B0%E4%B8%AD%E5%BF%83_The_Center_mall_shop_interior_service_counters_queue_line_barrier_visitors.jpg/220px-HK_Central_%E4%B8%AD%E7%92%B0%E4%B8%AD%E5%BF%83_The_Center_mall_shop_interior_service_counters_queue_line_barrier_visitors.jpg" decoding="async" width="220" height="165" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/d/d8/HK_Central_%E4%B8%AD%E7%92%B0%E4%B8%AD%E5%BF%83_The_Center_mall_shop_interior_service_counters_queue_line_barrier_visitors.jpg/330px-HK_Central_%E4%B8%AD%E7%92%B0%E4%B8%AD%E5%BF%83_The_Center_mall_shop_interior_service_counters_queue_line_barrier_visitors.jpg 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/d/d8/HK_Central_%E4%B8%AD%E7%92%B0%E4%B8%AD%E5%BF%83_The_Center_mall_shop_interior_service_counters_queue_line_barrier_visitors.jpg/440px-HK_Central_%E4%B8%AD%E7%92%B0%E4%B8%AD%E5%BF%83_The_Center_mall_shop_interior_service_counters_queue_line_barrier_visitors.jpg 2x" data-file-width="3264" data-file-height="2448" /></a><figcaption>Post office queue. Operations management studies both manufacturing and services.</figcaption></figure> <p><a href="/wiki/Queuing" class="mw-redirect" title="Queuing">Queuing</a> is an analytic method for determining waiting time when customers must wait in line to get service. The length of the queue and waiting time can be calculated based on the arrival rate, service rate, number of servers and type of lines. There are many formulas for various types of <a href="/wiki/Queuing_theory" class="mw-redirect" title="Queuing theory">queuing theory</a> problems.<sup id="cite_ref-18" class="reference"><a href="#cite_note-18"><span class="cite-bracket">&#91;</span>18<span class="cite-bracket">&#93;</span></a></sup> The formulas generally predict that the <i>average</i> service time must be significantly less than the <i>average</i> time between arrivals when there is randomness in arrivals and/or service time. The reason for this is that a long line will build up when randomness of arrivals occurs faster than the average and service times are longer than the average. If the distributions of arrival times and service times are known, formulas are available for calculating the exact waiting times and line lengths for many different queuing configurations of servers, types of lines, server distributions and arrival distributions. </p> <div class="mw-heading mw-heading4"><h4 id="Service-profit_chain">Service-profit chain</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Operations_management_for_services&amp;action=edit&amp;section=13" title="Edit section: Service-profit chain"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Heskett, Sasser and Schlensinger (1997) proposed the <a href="/wiki/Service-profit_chain" class="mw-redirect" title="Service-profit chain">service-profit chain</a> as a way to design service processes. The service-profit chain links various aspects and tasks required to deliver superior service and profits. It starts with a high level of internal quality leading to employee satisfaction and productivity to deliver superior external customer service leading to customer satisfaction, customer loyalty and finally high revenues and profits.<sup id="cite_ref-19" class="reference"><a href="#cite_note-19"><span class="cite-bracket">&#91;</span>19<span class="cite-bracket">&#93;</span></a></sup> </p> <figure class="mw-halign-none" typeof="mw:File/Thumb"><a href="/wiki/File:Service_profit_chain_2.png" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/5/53/Service_profit_chain_2.png/800px-Service_profit_chain_2.png" decoding="async" width="800" height="135" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/5/53/Service_profit_chain_2.png 1.5x" data-file-width="940" data-file-height="159" /></a><figcaption>A description of the service-profit chain</figcaption></figure> <p>Every link in this chain is important and the linkage between the service providers and the customer is essential in service operations. The service manager should not break any of the links in order to receive the results of high probability and growth. </p> <div class="mw-heading mw-heading3"><h3 id="Quality_management">Quality management</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Operations_management_for_services&amp;action=edit&amp;section=14" title="Edit section: Quality management"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <div class="mw-heading mw-heading4"><h4 id="SERVQUAL_measurement">SERVQUAL measurement</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Operations_management_for_services&amp;action=edit&amp;section=15" title="Edit section: SERVQUAL measurement"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Using the customer experience approach, a questionnaire called <a href="/wiki/SERVQUAL" title="SERVQUAL">SERVQUAL</a> has been developed to measure the customer's perception of the service.<sup id="cite_ref-20" class="reference"><a href="#cite_note-20"><span class="cite-bracket">&#91;</span>20<span class="cite-bracket">&#93;</span></a></sup> The dimensions of SERVQUAL are designed to measure the customer experience in both explicit and implicit measures. The dimensions are: </p> <ol><li>Tangible: Cleanliness, appearance of facilities and employees</li> <li>Reliability: Accurate, dependable and consistent services without errors</li> <li>Responsiveness: Promptly assist customers in a timely manner</li> <li>Assurance: Conveying knowledge, trust and confidence</li> <li>Empathy: Caring, approach-ability and relating to customers</li></ol> <p>A debate about SERVQUAL has ensued about whether customer service should be measured in absolute terms or relative to expectations.<sup id="cite_ref-21" class="reference"><a href="#cite_note-21"><span class="cite-bracket">&#91;</span>21<span class="cite-bracket">&#93;</span></a></sup> Some argue that if high levels on all SERVQUAL dimensions are provided then the service is high quality. Others argue that ultimately the service result is judged by the customer relative to the customer's expectations and not by the service provider. If customer expectations are low, even low levels on SERVQUAL dimensions provides high quality. </p> <div class="mw-heading mw-heading4"><h4 id="Quality_management_approaches">Quality management approaches</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Operations_management_for_services&amp;action=edit&amp;section=16" title="Edit section: Quality management approaches"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p><a href="/wiki/Quality_management" title="Quality management">Quality management</a> practices for services have much in common with manufacturing, despite the fact that the product is intangible. The following approaches are widely used for quality improvement in both manufacturing and services: </p> <ul><li>The <a href="/wiki/Baldrige_Awards" class="mw-redirect" title="Baldrige Awards">Baldrige Awards</a>: A comprehensive framework for quality improvement in organizations<sup id="cite_ref-22" class="reference"><a href="#cite_note-22"><span class="cite-bracket">&#91;</span>22<span class="cite-bracket">&#93;</span></a></sup></li> <li>The <a href="/wiki/W._Edwards_Deming" title="W. Edwards Deming">W. Edwards Deming</a> Management Method: Fourteen Points for Management<sup id="cite_ref-23" class="reference"><a href="#cite_note-23"><span class="cite-bracket">&#91;</span>23<span class="cite-bracket">&#93;</span></a></sup></li> <li><a href="/wiki/Joseph_Juran" class="mw-redirect" title="Joseph Juran">Joseph Juran</a>'s Approach: Planning, Improvement and Control<sup id="cite_ref-24" class="reference"><a href="#cite_note-24"><span class="cite-bracket">&#91;</span>24<span class="cite-bracket">&#93;</span></a></sup><sup id="cite_ref-25" class="reference"><a href="#cite_note-25"><span class="cite-bracket">&#91;</span>25<span class="cite-bracket">&#93;</span></a></sup></li> <li><a href="/wiki/Six_Sigma" title="Six Sigma">Six Sigma</a>: DMAIC (Design, Measurement, Analysis, Improvement and Control)<sup id="cite_ref-26" class="reference"><a href="#cite_note-26"><span class="cite-bracket">&#91;</span>26<span class="cite-bracket">&#93;</span></a></sup><sup id="cite_ref-27" class="reference"><a href="#cite_note-27"><span class="cite-bracket">&#91;</span>27<span class="cite-bracket">&#93;</span></a></sup></li></ul> <p>These approaches have several things in common. They begin with defining and measuring the customer's needs (e.g. using SERVQUAL). Any service that does not meet a customer's need is considered a defect. Then these approaches seek to reduce defects through statistical methods, cause-and-effect analysis, problem solving teams, and involvement of employees. They focus on improving the processes that underlie production of the service.<sup id="cite_ref-Harvey1998_28-0" class="reference"><a href="#cite_note-Harvey1998-28"><span class="cite-bracket">&#91;</span>28<span class="cite-bracket">&#93;</span></a></sup> </p><p>In addition to intangibility, there are two approaches about quality that are unique to service operations management. </p> <div class="mw-heading mw-heading4"><h4 id="Service_recovery">Service recovery</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Operations_management_for_services&amp;action=edit&amp;section=17" title="Edit section: Service recovery"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>For manufactured products, quality problems are handled through warranties, returns and repair after the product is delivered. In high contact services there is no time to fix quality problems later; they must be handled by <a href="/wiki/Service_recovery" title="Service recovery">service recovery</a> as the service is delivered. For example, if soup is spilled on the customer in a restaurant, the waiter might apologize, offer to pay to have the suit cleaned and provide a free meal. If a hotel room is not ready when promised, the staff could apologize, offer to store the customer's luggage or provide an upgraded room. Service recovery is intended to fix the problem on the spot and go even further to offer the customer some form of consolation and compensation. The objective is to make the customer satisfied with the situation, even though there was a service failure.<sup id="cite_ref-29" class="reference"><a href="#cite_note-29"><span class="cite-bracket">&#91;</span>29<span class="cite-bracket">&#93;</span></a></sup><sup id="cite_ref-30" class="reference"><a href="#cite_note-30"><span class="cite-bracket">&#91;</span>30<span class="cite-bracket">&#93;</span></a></sup> </p> <div class="mw-heading mw-heading4"><h4 id="Service_guarantee">Service guarantee</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Operations_management_for_services&amp;action=edit&amp;section=18" title="Edit section: Service guarantee"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>A <a href="/wiki/Service_guarantee" title="Service guarantee">service guarantee</a> is similar to a manufacturing guarantee, except the service product cannot be returned. A service guarantee provides a specific monetary reward for failure of service delivery. Some examples are: </p> <ul><li>Your package will be delivered by the time promised or you will not pay.</li> <li>We will fix your automobile or give you $100 if you must bring it back for repair.</li> <li>Customers that are not satisfied with their haircut, get the next haircut free.</li></ul> <p>Service guarantees serve to assure the customer of quality and they provide a way for the employees to know the cost of service failure.<sup id="cite_ref-31" class="reference"><a href="#cite_note-31"><span class="cite-bracket">&#91;</span>31<span class="cite-bracket">&#93;</span></a></sup><sup id="cite_ref-32" class="reference"><a href="#cite_note-32"><span class="cite-bracket">&#91;</span>32<span class="cite-bracket">&#93;</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Capacity_and_scheduling">Capacity and scheduling</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Operations_management_for_services&amp;action=edit&amp;section=19" title="Edit section: Capacity and scheduling"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <div class="mw-heading mw-heading4"><h4 id="Forecasting">Forecasting</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Operations_management_for_services&amp;action=edit&amp;section=20" title="Edit section: Forecasting"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p><a href="/wiki/Forecasting" title="Forecasting">Forecasting</a> demand is a prerequisite for managing capacity and scheduling. Forecasting demand often uses big data to predict customer behavior. The data comes from scanners at retail locations or other service locations. In some cases traditional time series methods are also used to predict trends and seasonality. Future demand is forecasted based on past demand patterns. Many of the same time-series and statistical methods for forecasting are used for manufacturing or service operations.<sup id="cite_ref-33" class="reference"><a href="#cite_note-33"><span class="cite-bracket">&#91;</span>33<span class="cite-bracket">&#93;</span></a></sup><sup id="cite_ref-34" class="reference"><a href="#cite_note-34"><span class="cite-bracket">&#91;</span>34<span class="cite-bracket">&#93;</span></a></sup> </p> <div class="mw-heading mw-heading4"><h4 id="Capacity_planning">Capacity planning</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Operations_management_for_services&amp;action=edit&amp;section=21" title="Edit section: Capacity planning"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p><a href="/wiki/Capacity_planning" title="Capacity planning">Capacity planning</a> is quite different between manufacturing and services given that service cannot be stored or shipped to another location.<sup id="cite_ref-Bozarth_1-1" class="reference"><a href="#cite_note-Bozarth-1"><span class="cite-bracket">&#91;</span>1<span class="cite-bracket">&#93;</span></a></sup><sup class="reference nowrap"><span title="Pages: 208–241">&#58;&#8202;208–241&#8202;</span></sup> As a result, location of services is very dispersed to be near the customer. Customers are only willing to travel short distances to receive most services. Exceptions are health care when the illness requires a specialist, airline transportation when the service is to move the customer, and other services where local expertise is not available. Aside from these exceptions, location analysis depends on the "drawing power" based on the distance a customer is willing to travel to a service site relative to competitive offerings and locations. The drawing power of a site for a particular customer is high if the site is close by and provides the required service. High drawing power is related to high sales and profits. This is very different from manufacturing locations which depend on the cost of building a factory plus the cost of transporting the goods to the customers. Manufacturing plants are located on the basis of low costs rather than high revenues and profits for services. </p><p>A second difference from manufacturing is planning for capacity utilization once a facility is built. Since the product cannot be stored in inventory and sold later, service capacity is perishable and must meet peak demand at any point in time.<sup id="cite_ref-Jacobs_12-2" class="reference"><a href="#cite_note-Jacobs-12"><span class="cite-bracket">&#91;</span>12<span class="cite-bracket">&#93;</span></a></sup><sup class="reference nowrap"><span title="Pages: 96–129">&#58;&#8202;96–129&#8202;</span></sup> There are two ways to deal with this problem. First, management can attempt to reduce peak demand and level it over time by the following actions. </p> <ul><li>Higher prices during peak-demand times</li> <li>A reservation system to limit peak demand</li> <li>Advertising and promotion to shift peak demand</li></ul> <p>Management can also use various methods to manage the supply of services including: </p> <ul><li>Part-time labor</li> <li>Hiring and Layoff of Employees</li> <li>Using Overtime</li> <li>Subcontracting</li></ul> <p>While some of these same mechanisms are used in manufacturing, they are much more crucial in service operations. </p> <div class="mw-heading mw-heading4"><h4 id="Revenue_management">Revenue management</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Operations_management_for_services&amp;action=edit&amp;section=22" title="Edit section: Revenue management"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p><a href="/wiki/Revenue_management" title="Revenue management">Revenue management</a> is unique to services, since capacity is perishable. This applies to the airline industry. When the plane leaves the runway, empty seats generate no revenue, but the cost of the flight is almost the same. As a result, mathematical models have been formulated to allocate capacity at various prices and times as the flight is booked in advance. Initially, a certain number of seats are reserved for first class, coach, premium coach and various other categories. Based on the elasticity of demand, seats prices are lowered at the last minute in order to fill empty seats and maximize the revenue of the flight.<sup id="cite_ref-35" class="reference"><a href="#cite_note-35"><span class="cite-bracket">&#91;</span>35<span class="cite-bracket">&#93;</span></a></sup> Similar models have also been developed for revenue management in hotels, where the capacity is also perishable.<sup id="cite_ref-36" class="reference"><a href="#cite_note-36"><span class="cite-bracket">&#91;</span>36<span class="cite-bracket">&#93;</span></a></sup> </p> <div class="mw-heading mw-heading4"><h4 id="Scheduling">Scheduling</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Operations_management_for_services&amp;action=edit&amp;section=23" title="Edit section: Scheduling"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p><a href="/wiki/Scheduling" class="mw-redirect" title="Scheduling">Scheduling</a> has some differences between manufacturing and service. In manufacturing, jobs are scheduled through a factory to sequence them in the best order to meet due dates and reduce costs. In services, it is customers who are being scheduled. As a result, waiting time becomes much more critical. While manufacturing orders don't mind waiting in line or waiting in inventory, real customer's do mind. Some of the scheduling applications for services are: scheduling of patients to operating rooms in hospitals and scheduling students to classes. Many scheduling problems have been solved by using <a href="/wiki/Operations_research" title="Operations research">operations research</a> methods to optimize the schedule.<sup id="cite_ref-37" class="reference"><a href="#cite_note-37"><span class="cite-bracket">&#91;</span>37<span class="cite-bracket">&#93;</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Inventory">Inventory</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Operations_management_for_services&amp;action=edit&amp;section=24" title="Edit section: Inventory"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p><a href="/wiki/Inventory" title="Inventory">Inventory</a> management and control is needed in service operations with facilitating goods. Almost every service uses some amount of facilitating goods. The presence of facilitating goods is critical in retail and wholesale operations but these operations don't manufacture anything, rather they distribute goods and provide service while doing it. One difference from manufacturing inventories is that services use only finished goods, while manufacturing has finished goods, work-in-process and raw-materials inventories. As a result, manufacturing uses a Materials Requirements Planning System, while services do not. Services use Replenishment inventory control systems such as order-point and periodic-review systems.<sup id="cite_ref-38" class="reference"><a href="#cite_note-38"><span class="cite-bracket">&#91;</span>38<span class="cite-bracket">&#93;</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Service_supply_chains">Service supply chains</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Operations_management_for_services&amp;action=edit&amp;section=25" title="Edit section: Service supply chains"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p><a href="/wiki/Supply_chains" class="mw-redirect" title="Supply chains">Supply chains</a> for service operations are critical to supply facilitating goods. A typical hospital supply chain is an example. A hospital will use many goods from suppliers to construct and furnish the building. During day-to-day operation of the hospital, inventories of supplies will be held for the operating rooms and throughout the building. The pharmacy will hold drugs and the kitchen will need supplies of food. The supply chain of facilitating goods in hospitals is extensive. </p><p><a href="/wiki/Purchasing" title="Purchasing">Purchasing</a> controls a large part of costs in retail and wholesale operations, approximately 75% of all costs are for purchased goods. Outside of retail and wholesale operations, facilitating goods are a much smaller part of total costs reaching a low of 10% for most professional services.<sup id="cite_ref-Bozarth_1-2" class="reference"><a href="#cite_note-Bozarth-1"><span class="cite-bracket">&#91;</span>1<span class="cite-bracket">&#93;</span></a></sup><sup class="reference nowrap"><span title="Pages: 291–334">&#58;&#8202;291–334&#8202;</span></sup> Both manufacturing and service organizations purchase goods and must deal with outsourcing and offshoring, as well as, domestic products. </p><p>Service inputs are critical for manufacturing including capital from banks, energy, information systems and human resources. Services are part of the manufacturing supply chain, just like the physical inputs of products from other manufacturing companies. </p><p>Both manufacturing and service operations can purchase services from outside the organization. Internal business services such as accounting, legal, human resources, call centers, and information systems may be outsourced in part or entirely. Some of these services can also be purchased from offshore. Logistics services may be outsourced to Third Party Logistics (3PL) providers. These services include transportation, warehousing, order fulfillment, returns and tariffs.<sup id="cite_ref-Johnston_7-4" class="reference"><a href="#cite_note-Johnston-7"><span class="cite-bracket">&#91;</span>7<span class="cite-bracket">&#93;</span></a></sup><sup class="reference nowrap"><span title="Pages: 31–32">&#58;&#8202;31–32&#8202;</span></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Information_technology">Information technology</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Operations_management_for_services&amp;action=edit&amp;section=26" title="Edit section: Information technology"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>The Internet and information technology has dramatically changed the delivery of services. Some of the major changes are as follows:<sup id="cite_ref-Fitzsimmons_4-4" class="reference"><a href="#cite_note-Fitzsimmons-4"><span class="cite-bracket">&#91;</span>4<span class="cite-bracket">&#93;</span></a></sup> </p> <ol><li>Providing information and knowledge directly to consumers. Before the Internet, consumers used a variety of sources for acquiring knowledge including libraries, phone calls, universities and personal contacts. Now information can be provided immediately as a service by searching the Internet.</li> <li>Providing service at a distance. Services such as call centers, banking, entertainment and legal services can be provided over long distances, even internationally.</li> <li>Reservations can be made on the Internet to reserve capacity more easily than by calling ahead for the reservation.</li> <li>Facilitating goods can be ordered directly by the Internet and delivered without traveling to a retail store. The services provided includes browsing for merchandise, order entry, order checking, payment, order confirmation, notification of delivery and return services.</li> <li>Internal information systems now provide an array of management information to help managers make better decisions.</li></ol> <div class="mw-heading mw-heading4"><h4 id="Management_science_and_operations_research_(MSOR)"><span id="Management_science_and_operations_research_.28MSOR.29"></span>Management science and operations research (MSOR)</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Operations_management_for_services&amp;action=edit&amp;section=27" title="Edit section: Management science and operations research (MSOR)"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Analysis using MSOR methods has been extensive in services. Areas where they have been heavily applied are in inventory, capacity, scheduling, queuing and forecasting. With the advent of the Internet, information systems, big data and analytics, there are many opportunities to make improvements in decision making for services. The analytic techniques include <a href="/wiki/Statistics" title="Statistics">statistics</a>, <a href="/wiki/Management_science" title="Management science">management science</a><sup id="cite_ref-39" class="reference"><a href="#cite_note-39"><span class="cite-bracket">&#91;</span>39<span class="cite-bracket">&#93;</span></a></sup> and <a href="/wiki/Operations_research" title="Operations research">operations research</a>.<sup id="cite_ref-40" class="reference"><a href="#cite_note-40"><span class="cite-bracket">&#91;</span>40<span class="cite-bracket">&#93;</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="References">References</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Operations_management_for_services&amp;action=edit&amp;section=28" title="Edit section: References"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1239543626">.mw-parser-output .reflist{margin-bottom:0.5em;list-style-type:decimal}@media screen{.mw-parser-output .reflist{font-size:90%}}.mw-parser-output .reflist .references{font-size:100%;margin-bottom:0;list-style-type:inherit}.mw-parser-output .reflist-columns-2{column-width:30em}.mw-parser-output .reflist-columns-3{column-width:25em}.mw-parser-output .reflist-columns{margin-top:0.3em}.mw-parser-output .reflist-columns ol{margin-top:0}.mw-parser-output .reflist-columns li{page-break-inside:avoid;break-inside:avoid-column}.mw-parser-output .reflist-upper-alpha{list-style-type:upper-alpha}.mw-parser-output .reflist-upper-roman{list-style-type:upper-roman}.mw-parser-output .reflist-lower-alpha{list-style-type:lower-alpha}.mw-parser-output .reflist-lower-greek{list-style-type:lower-greek}.mw-parser-output .reflist-lower-roman{list-style-type:lower-roman}</style><div class="reflist reflist-columns references-column-width" style="column-width: 30em;"> <ol class="references"> <li id="cite_note-Bozarth-1"><span class="mw-cite-backlink">^ <a href="#cite_ref-Bozarth_1-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-Bozarth_1-1"><sup><i><b>b</b></i></sup></a> <a href="#cite_ref-Bozarth_1-2"><sup><i><b>c</b></i></sup></a></span> <span class="reference-text"><style data-mw-deduplicate="TemplateStyles:r1238218222">.mw-parser-output cite.citation{font-style:inherit;word-wrap:break-word}.mw-parser-output .citation q{quotes:"\"""\"""'""'"}.mw-parser-output .citation:target{background-color:rgba(0,127,255,0.133)}.mw-parser-output .id-lock-free.id-lock-free a{background:url("//upload.wikimedia.org/wikipedia/commons/6/65/Lock-green.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-limited.id-lock-limited a,.mw-parser-output .id-lock-registration.id-lock-registration a{background:url("//upload.wikimedia.org/wikipedia/commons/d/d6/Lock-gray-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-subscription.id-lock-subscription a{background:url("//upload.wikimedia.org/wikipedia/commons/a/aa/Lock-red-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .cs1-ws-icon a{background:url("//upload.wikimedia.org/wikipedia/commons/4/4c/Wikisource-logo.svg")right 0.1em center/12px no-repeat}body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-free a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-limited a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-registration a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-subscription a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .cs1-ws-icon a{background-size:contain;padding:0 1em 0 0}.mw-parser-output .cs1-code{color:inherit;background:inherit;border:none;padding:inherit}.mw-parser-output .cs1-hidden-error{display:none;color:var(--color-error,#d33)}.mw-parser-output .cs1-visible-error{color:var(--color-error,#d33)}.mw-parser-output .cs1-maint{display:none;color:#085;margin-left:0.3em}.mw-parser-output .cs1-kern-left{padding-left:0.2em}.mw-parser-output .cs1-kern-right{padding-right:0.2em}.mw-parser-output .citation .mw-selflink{font-weight:inherit}@media screen{.mw-parser-output .cs1-format{font-size:95%}html.skin-theme-clientpref-night .mw-parser-output .cs1-maint{color:#18911f}}@media screen and (prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .cs1-maint{color:#18911f}}</style><cite id="CITEREFBozarth,_Cecil_and_Handfield,_Robert2006" class="citation book cs1">Bozarth, Cecil and Handfield, Robert (2006). <i>Introduction to Operations and Supply Chain Management</i>. Upper Saddle River, N.J., Pearson. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a>&#160;<a href="/wiki/Special:BookSources/0-13-185804-1" title="Special:BookSources/0-13-185804-1"><bdi>0-13-185804-1</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&amp;rft.genre=book&amp;rft.btitle=Introduction+to+Operations+and+Supply+Chain+Management&amp;rft.pub=Upper+Saddle+River%2C+N.J.%2C+Pearson.&amp;rft.date=2006&amp;rft.isbn=0-13-185804-1&amp;rft.au=Bozarth%2C+Cecil+and+Handfield%2C+Robert&amp;rfr_id=info%3Asid%2Fen.wikipedia.org%3AOperations+management+for+services" class="Z3988"></span><span class="cs1-maint citation-comment"><code class="cs1-code">{{<a href="/wiki/Template:Cite_book" title="Template:Cite book">cite book</a>}}</code>: CS1 maint: multiple names: authors list (<a href="/wiki/Category:CS1_maint:_multiple_names:_authors_list" title="Category:CS1 maint: multiple names: authors list">link</a>)</span></span> </li> <li id="cite_note-Malhotra-2"><span class="mw-cite-backlink">^ <a href="#cite_ref-Malhotra_2-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-Malhotra_2-1"><sup><i><b>b</b></i></sup></a></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFMalhotraKrajewskiRitzman2013" class="citation book cs1">Malhotra, Manoj K.; Krajewski, Lee J.; Ritzman, Larry P. (2013). <i>Operations management&#160;: processes and supply chains</i> (10th&#160;ed.). Upper Saddle River, N.J.: Pearson. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a>&#160;<a href="/wiki/Special:BookSources/978-0-13-280739-5" title="Special:BookSources/978-0-13-280739-5"><bdi>978-0-13-280739-5</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&amp;rft.genre=book&amp;rft.btitle=Operations+management+%3A+processes+and+supply+chains&amp;rft.place=Upper+Saddle+River%2C+N.J.&amp;rft.edition=10th&amp;rft.pub=Pearson&amp;rft.date=2013&amp;rft.isbn=978-0-13-280739-5&amp;rft.aulast=Malhotra&amp;rft.aufirst=Manoj+K.&amp;rft.au=Krajewski%2C+Lee+J.&amp;rft.au=Ritzman%2C+Larry+P.&amp;rfr_id=info%3Asid%2Fen.wikipedia.org%3AOperations+management+for+services" class="Z3988"></span></span> </li> <li id="cite_note-Bell-3"><span class="mw-cite-backlink">^ <a href="#cite_ref-Bell_3-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-Bell_3-1"><sup><i><b>b</b></i></sup></a></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFBell1973" class="citation book cs1">Bell, Daniel (1973). <a rel="nofollow" class="external text" href="https://archive.org/details/comingofpostind000bell"><i>The coming of post-industrial society; a venture in social forecasting</i></a>. New York: Basic Books. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a>&#160;<a href="/wiki/Special:BookSources/978-0465012817" title="Special:BookSources/978-0465012817"><bdi>978-0465012817</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&amp;rft.genre=book&amp;rft.btitle=The+coming+of+post-industrial+society%3B+a+venture+in+social+forecasting&amp;rft.place=New+York&amp;rft.pub=Basic+Books&amp;rft.date=1973&amp;rft.isbn=978-0465012817&amp;rft.aulast=Bell&amp;rft.aufirst=Daniel&amp;rft_id=https%3A%2F%2Farchive.org%2Fdetails%2Fcomingofpostind000bell&amp;rfr_id=info%3Asid%2Fen.wikipedia.org%3AOperations+management+for+services" class="Z3988"></span></span> </li> <li id="cite_note-Fitzsimmons-4"><span class="mw-cite-backlink">^ <a href="#cite_ref-Fitzsimmons_4-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-Fitzsimmons_4-1"><sup><i><b>b</b></i></sup></a> <a href="#cite_ref-Fitzsimmons_4-2"><sup><i><b>c</b></i></sup></a> <a href="#cite_ref-Fitzsimmons_4-3"><sup><i><b>d</b></i></sup></a> <a href="#cite_ref-Fitzsimmons_4-4"><sup><i><b>e</b></i></sup></a></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFFitzsimmonsFitzsimmonsBordoloi2014" class="citation book cs1">Fitzsimmons, James; Fitzsimmons, Mona; Bordoloi, Sanjeev (2014). <i>Service Management: Operations, Strategy, Information Technology, 8th ed</i>. New York: McGraw-Hill/Irwin. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a>&#160;<a href="/wiki/Special:BookSources/978-0-07-802407-8" title="Special:BookSources/978-0-07-802407-8"><bdi>978-0-07-802407-8</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&amp;rft.genre=book&amp;rft.btitle=Service+Management%3A+Operations%2C+Strategy%2C+Information+Technology%2C+8th+ed&amp;rft.place=New+York&amp;rft.pub=McGraw-Hill%2FIrwin&amp;rft.date=2014&amp;rft.isbn=978-0-07-802407-8&amp;rft.aulast=Fitzsimmons&amp;rft.aufirst=James&amp;rft.au=Fitzsimmons%2C+Mona&amp;rft.au=Bordoloi%2C+Sanjeev&amp;rfr_id=info%3Asid%2Fen.wikipedia.org%3AOperations+management+for+services" class="Z3988"></span></span> </li> <li id="cite_note-5"><span class="mw-cite-backlink"><b><a href="#cite_ref-5">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFHeizerRender2011" class="citation book cs1">Heizer, Jay; Render, Barry (2011). <i>Operations Management, 10th ed</i>. Upper Saddle River, N.J.: Prentice-Hall. pp.&#160;7–8. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a>&#160;<a href="/wiki/Special:BookSources/978-0-13-611941-8" title="Special:BookSources/978-0-13-611941-8"><bdi>978-0-13-611941-8</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&amp;rft.genre=book&amp;rft.btitle=Operations+Management%2C+10th+ed.&amp;rft.place=Upper+Saddle+River%2C+N.J.&amp;rft.pages=7-8&amp;rft.pub=Prentice-Hall&amp;rft.date=2011&amp;rft.isbn=978-0-13-611941-8&amp;rft.aulast=Heizer&amp;rft.aufirst=Jay&amp;rft.au=Render%2C+Barry&amp;rfr_id=info%3Asid%2Fen.wikipedia.org%3AOperations+management+for+services" class="Z3988"></span></span> </li> <li id="cite_note-Russell-6"><span class="mw-cite-backlink">^ <a href="#cite_ref-Russell_6-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-Russell_6-1"><sup><i><b>b</b></i></sup></a> <a href="#cite_ref-Russell_6-2"><sup><i><b>c</b></i></sup></a></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFRussellTaylor2011" class="citation book cs1">Russell, Roberta; Taylor, Bernard (2011). <span class="id-lock-limited" title="Free access subject to limited trial, subscription normally required"><a rel="nofollow" class="external text" href="https://archive.org/details/operationsmanage00russ_513"><i>Operations Management: Creating Value Along the Supply Chain, 7th ed</i></a></span>. New York: John Wiley &amp; Sons. p.&#160;<a rel="nofollow" class="external text" href="https://archive.org/details/operationsmanage00russ_513/page/n214">191</a>. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a>&#160;<a href="/wiki/Special:BookSources/978-0-470-52590-6" title="Special:BookSources/978-0-470-52590-6"><bdi>978-0-470-52590-6</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&amp;rft.genre=book&amp;rft.btitle=Operations+Management%3A+Creating+Value+Along+the+Supply+Chain%2C+7th+ed&amp;rft.place=New+York&amp;rft.pages=191&amp;rft.pub=John+Wiley+%26+Sons&amp;rft.date=2011&amp;rft.isbn=978-0-470-52590-6&amp;rft.aulast=Russell&amp;rft.aufirst=Roberta&amp;rft.au=Taylor%2C+Bernard&amp;rft_id=https%3A%2F%2Farchive.org%2Fdetails%2Foperationsmanage00russ_513&amp;rfr_id=info%3Asid%2Fen.wikipedia.org%3AOperations+management+for+services" class="Z3988"></span></span> </li> <li id="cite_note-Johnston-7"><span class="mw-cite-backlink">^ <a href="#cite_ref-Johnston_7-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-Johnston_7-1"><sup><i><b>b</b></i></sup></a> <a href="#cite_ref-Johnston_7-2"><sup><i><b>c</b></i></sup></a> <a href="#cite_ref-Johnston_7-3"><sup><i><b>d</b></i></sup></a> <a href="#cite_ref-Johnston_7-4"><sup><i><b>e</b></i></sup></a></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFJohnstonClarkShulver2012" class="citation book cs1">Johnston, Robert; Clark, Graham; Shulver, Michael (2012). <i>Service Operations Management: Improving Service Delivery</i> (Fourth&#160;ed.). London, England: Pearson. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a>&#160;<a href="/wiki/Special:BookSources/978-0-273-74048-3" title="Special:BookSources/978-0-273-74048-3"><bdi>978-0-273-74048-3</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&amp;rft.genre=book&amp;rft.btitle=Service+Operations+Management%3A+Improving+Service+Delivery&amp;rft.place=London%2C+England&amp;rft.edition=Fourth&amp;rft.pub=Pearson&amp;rft.date=2012&amp;rft.isbn=978-0-273-74048-3&amp;rft.aulast=Johnston&amp;rft.aufirst=Robert&amp;rft.au=Clark%2C+Graham&amp;rft.au=Shulver%2C+Michael&amp;rfr_id=info%3Asid%2Fen.wikipedia.org%3AOperations+management+for+services" class="Z3988"></span></span> </li> <li id="cite_note-8"><span class="mw-cite-backlink"><b><a href="#cite_ref-8">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFMeyerSchwager2007" class="citation journal cs1">Meyer, Christopher; Schwager, Andre (February 2007). <a rel="nofollow" class="external text" href="https://hbr.org/2007/02/understanding-customer-experience">"Understanding Customer Experience"</a>. <i>Harvard Business Review</i>. <b>85</b> (2): 116–26, 157. <a href="/wiki/PMID_(identifier)" class="mw-redirect" title="PMID (identifier)">PMID</a>&#160;<a rel="nofollow" class="external text" href="https://pubmed.ncbi.nlm.nih.gov/17345685">17345685</a>.</cite><span title="ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&amp;rft.genre=article&amp;rft.jtitle=Harvard+Business+Review&amp;rft.atitle=Understanding+Customer+Experience&amp;rft.volume=85&amp;rft.issue=2&amp;rft.pages=116-26%2C+157&amp;rft.date=2007-02&amp;rft_id=info%3Apmid%2F17345685&amp;rft.aulast=Meyer&amp;rft.aufirst=Christopher&amp;rft.au=Schwager%2C+Andre&amp;rft_id=https%3A%2F%2Fhbr.org%2F2007%2F02%2Funderstanding-customer-experience&amp;rfr_id=info%3Asid%2Fen.wikipedia.org%3AOperations+management+for+services" class="Z3988"></span></span> </li> <li id="cite_note-:8-9"><span class="mw-cite-backlink">^ <a href="#cite_ref-:8_9-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-:8_9-1"><sup><i><b>b</b></i></sup></a></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFRichard_Henderson2015" class="citation web cs1">Richard Henderson (2015). <a rel="nofollow" class="external text" href="https://www.bls.gov/opub/mlr/2015/article/industry-employment-and-output-projections-to-2024.htm">"Industry employment and output projections to 2024&#160;: Monthly Labor Review"</a>. U.S. Bureau of Labor Statistics<span class="reference-accessdate">. Retrieved <span class="nowrap">2017-03-15</span></span>.</cite><span title="ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&amp;rft.genre=unknown&amp;rft.btitle=Industry+employment+and+output+projections+to+2024+%3A+Monthly+Labor+Review&amp;rft.pub=U.S.+Bureau+of+Labor+Statistics&amp;rft.date=2015&amp;rft.au=Richard+Henderson&amp;rft_id=https%3A%2F%2Fwww.bls.gov%2Fopub%2Fmlr%2F2015%2Farticle%2Findustry-employment-and-output-projections-to-2024.htm&amp;rfr_id=info%3Asid%2Fen.wikipedia.org%3AOperations+management+for+services" class="Z3988"></span></span> </li> <li id="cite_note-10"><span class="mw-cite-backlink"><b><a href="#cite_ref-10">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFFisk2003" class="citation web cs1">Fisk, Donald M. (2003-01-30). <a rel="nofollow" class="external text" href="http://www.bls.gov/opub/mlr/cwc/american-labor-in-the-20th-century.pdf">"American Labor in the Twentieth Century"</a> <span class="cs1-format">(PDF)</span>. <i>www.bls.gov</i>. U.S. Bureau of Labor Statistics<span class="reference-accessdate">. Retrieved <span class="nowrap">2017-03-15</span></span>.</cite><span title="ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&amp;rft.genre=unknown&amp;rft.jtitle=www.bls.gov&amp;rft.atitle=American+Labor+in+the+Twentieth+Century&amp;rft.date=2003-01-30&amp;rft.aulast=Fisk&amp;rft.aufirst=Donald+M.&amp;rft_id=http%3A%2F%2Fwww.bls.gov%2Fopub%2Fmlr%2Fcwc%2Famerican-labor-in-the-20th-century.pdf&amp;rfr_id=info%3Asid%2Fen.wikipedia.org%3AOperations+management+for+services" class="Z3988"></span></span> </li> <li id="cite_note-Womack-11"><span class="mw-cite-backlink">^ <a href="#cite_ref-Womack_11-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-Womack_11-1"><sup><i><b>b</b></i></sup></a></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFWomack,_J.P._and_Jones,_D.T.2003" class="citation book cs1">Womack, J.P. and Jones, D.T. (2003). <i>Lean Thinking</i>. New York: Simon and Schuster. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a>&#160;<a href="/wiki/Special:BookSources/0-7432-4927-5" title="Special:BookSources/0-7432-4927-5"><bdi>0-7432-4927-5</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&amp;rft.genre=book&amp;rft.btitle=Lean+Thinking&amp;rft.pub=New+York%3A+Simon+and+Schuster&amp;rft.date=2003&amp;rft.isbn=0-7432-4927-5&amp;rft.au=Womack%2C+J.P.+and+Jones%2C+D.T.&amp;rfr_id=info%3Asid%2Fen.wikipedia.org%3AOperations+management+for+services" class="Z3988"></span><span class="cs1-maint citation-comment"><code class="cs1-code">{{<a href="/wiki/Template:Cite_book" title="Template:Cite book">cite book</a>}}</code>: CS1 maint: multiple names: authors list (<a href="/wiki/Category:CS1_maint:_multiple_names:_authors_list" title="Category:CS1 maint: multiple names: authors list">link</a>)</span></span> </li> <li id="cite_note-Jacobs-12"><span class="mw-cite-backlink">^ <a href="#cite_ref-Jacobs_12-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-Jacobs_12-1"><sup><i><b>b</b></i></sup></a> <a href="#cite_ref-Jacobs_12-2"><sup><i><b>c</b></i></sup></a></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFJacobs_F._Robert_and_Chase,_Richard_B.2013" class="citation book cs1">Jacobs F. Robert and Chase, Richard B. (2013). <i>Operations and supply chain management: The Core, 3rd ed</i>. 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John Wiley &amp; Sons. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a>&#160;<a href="/wiki/Special:BookSources/9780471265726" title="Special:BookSources/9780471265726"><bdi>9780471265726</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&amp;rft.genre=book&amp;rft.btitle=Implementing+Six+Sigma%3A+Smarter+Solutions+Using+Statistical+Methods&amp;rft.pub=John+Wiley+%26+Sons&amp;rft.date=1999&amp;rft.isbn=9780471265726&amp;rft.aulast=Breyfogle&amp;rft.aufirst=Forrest+W.+III&amp;rfr_id=info%3Asid%2Fen.wikipedia.org%3AOperations+management+for+services" class="Z3988"></span></span> </li> <li id="cite_note-Harvey1998-28"><span class="mw-cite-backlink"><b><a href="#cite_ref-Harvey1998_28-0">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFHarvey1998" class="citation journal cs1">Harvey, J (1998). <a rel="nofollow" class="external text" href="https://doi.org/10.1016%2FS0272-6963%2897%2900026-0">"Service quality: a tutorial"</a>. <i>Journal of Operations Management</i>. <b>16</b> (5): 583–597. <a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<span class="id-lock-free" title="Freely accessible"><a rel="nofollow" class="external text" href="https://doi.org/10.1016%2FS0272-6963%2897%2900026-0">10.1016/S0272-6963(97)00026-0</a></span>. <a href="/wiki/ISSN_(identifier)" class="mw-redirect" title="ISSN (identifier)">ISSN</a>&#160;<a rel="nofollow" class="external text" href="https://search.worldcat.org/issn/0272-6963">0272-6963</a>.</cite><span title="ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&amp;rft.genre=article&amp;rft.jtitle=Journal+of+Operations+Management&amp;rft.atitle=Service+quality%3A+a+tutorial&amp;rft.volume=16&amp;rft.issue=5&amp;rft.pages=583-597&amp;rft.date=1998&amp;rft_id=info%3Adoi%2F10.1016%2FS0272-6963%2897%2900026-0&amp;rft.issn=0272-6963&amp;rft.aulast=Harvey&amp;rft.aufirst=J&amp;rft_id=https%3A%2F%2Fdoi.org%2F10.1016%252FS0272-6963%252897%252900026-0&amp;rfr_id=info%3Asid%2Fen.wikipedia.org%3AOperations+management+for+services" class="Z3988"></span></span> </li> <li id="cite_note-29"><span class="mw-cite-backlink"><b><a href="#cite_ref-29">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFHartHeskettSasser1990" class="citation journal cs1">Hart, Christopher; Heskett, James; Sasser, W. 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(1997). <i>Revenue Management: Hard-Core Tactics for Market Domination</i>. 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Springer. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a>&#160;<a href="/wiki/Special:BookSources/978-1-4419-0909-1" title="Special:BookSources/978-1-4419-0909-1"><bdi>978-1-4419-0909-1</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&amp;rft.genre=book&amp;rft.btitle=Planning+and+Scheduling+in+Manufacturing+and+Services&amp;rft.edition=2nd&amp;rft.pub=Springer&amp;rft.date=2009&amp;rft.isbn=978-1-4419-0909-1&amp;rft.aulast=Pinedo&amp;rft.aufirst=Michael&amp;rfr_id=info%3Asid%2Fen.wikipedia.org%3AOperations+management+for+services" class="Z3988"></span></span> </li> <li id="cite_note-38"><span class="mw-cite-backlink"><b><a href="#cite_ref-38">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFMuller2011" class="citation book cs1">Muller, Max (2011). <i>Essential of Inventory Management</i> (2nd&#160;ed.). AMACOM. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a>&#160;<a href="/wiki/Special:BookSources/978-0814416556" title="Special:BookSources/978-0814416556"><bdi>978-0814416556</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&amp;rft.genre=book&amp;rft.btitle=Essential+of+Inventory+Management&amp;rft.edition=2nd&amp;rft.pub=AMACOM&amp;rft.date=2011&amp;rft.isbn=978-0814416556&amp;rft.aulast=Muller&amp;rft.aufirst=Max&amp;rfr_id=info%3Asid%2Fen.wikipedia.org%3AOperations+management+for+services" class="Z3988"></span></span> </li> <li id="cite_note-39"><span class="mw-cite-backlink"><b><a href="#cite_ref-39">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFThompson,_Gerald_E.1982" class="citation book cs1">Thompson, Gerald E. (1982). <a rel="nofollow" class="external text" href="https://archive.org/details/managementscienc00thom"><i>Management Science: An Introduction to Modern Quantitative Analysis and Decision Making</i></a>. New York: McGraw-Hill. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a>&#160;<a href="/wiki/Special:BookSources/978-0070643604" title="Special:BookSources/978-0070643604"><bdi>978-0070643604</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&amp;rft.genre=book&amp;rft.btitle=Management+Science%3A+An+Introduction+to+Modern+Quantitative+Analysis+and+Decision+Making&amp;rft.place=New+York&amp;rft.pub=McGraw-Hill&amp;rft.date=1982&amp;rft.isbn=978-0070643604&amp;rft.au=Thompson%2C+Gerald+E.&amp;rft_id=https%3A%2F%2Farchive.org%2Fdetails%2Fmanagementscienc00thom&amp;rfr_id=info%3Asid%2Fen.wikipedia.org%3AOperations+management+for+services" class="Z3988"></span></span> </li> <li id="cite_note-40"><span class="mw-cite-backlink"><b><a href="#cite_ref-40">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFHillerLieberman2014" class="citation book cs1">Hiller, Frederick; Lieberman, Gerald (2014). <i>Introduction to Operations Research</i> (10th&#160;ed.). New York: McGraw-Hill. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a>&#160;<a href="/wiki/Special:BookSources/978-0077298340" title="Special:BookSources/978-0077298340"><bdi>978-0077298340</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&amp;rft.genre=book&amp;rft.btitle=Introduction+to+Operations+Research&amp;rft.place=New+York&amp;rft.edition=10th&amp;rft.pub=McGraw-Hill&amp;rft.date=2014&amp;rft.isbn=978-0077298340&amp;rft.aulast=Hiller&amp;rft.aufirst=Frederick&amp;rft.au=Lieberman%2C+Gerald&amp;rfr_id=info%3Asid%2Fen.wikipedia.org%3AOperations+management+for+services" class="Z3988"></span></span> </li> </ol></div> <div class="mw-heading mw-heading2"><h2 id="Further_reading">Further reading</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Operations_management_for_services&amp;action=edit&amp;section=29" title="Edit section: Further reading"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <ul><li><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFChaseApte2007" class="citation journal cs1">Chase, Richard B.; Apte, Uday M. (March 2007). <a rel="nofollow" class="external text" href="https://zenodo.org/record/854722">"A history of research in service operations: What's the big idea?"</a>. <i>Journal of Operations Management</i>. <b>25</b> (2): 375–386. <a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.1016%2Fj.jom.2006.11.002">10.1016/j.jom.2006.11.002</a>.</cite><span title="ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&amp;rft.genre=article&amp;rft.jtitle=Journal+of+Operations+Management&amp;rft.atitle=A+history+of+research+in+service+operations%3A+What%27s+the+big+idea%3F&amp;rft.volume=25&amp;rft.issue=2&amp;rft.pages=375-386&amp;rft.date=2007-03&amp;rft_id=info%3Adoi%2F10.1016%2Fj.jom.2006.11.002&amp;rft.aulast=Chase&amp;rft.aufirst=Richard+B.&amp;rft.au=Apte%2C+Uday+M.&amp;rft_id=https%3A%2F%2Fzenodo.org%2Frecord%2F854722&amp;rfr_id=info%3Asid%2Fen.wikipedia.org%3AOperations+management+for+services" class="Z3988"></span></li> <li><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFSprague2007" class="citation journal cs1">Sprague, Linda G. (March 2007). "Evolution of the field of operations management". <i>Journal of Operations Management</i>. <b>25</b> (2): 219–238. <a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.1016%2Fj.jom.2007.01.001">10.1016/j.jom.2007.01.001</a>.</cite><span title="ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&amp;rft.genre=article&amp;rft.jtitle=Journal+of+Operations+Management&amp;rft.atitle=Evolution+of+the+field+of+operations+management&amp;rft.volume=25&amp;rft.issue=2&amp;rft.pages=219-238&amp;rft.date=2007-03&amp;rft_id=info%3Adoi%2F10.1016%2Fj.jom.2007.01.001&amp;rft.aulast=Sprague&amp;rft.aufirst=Linda+G.&amp;rfr_id=info%3Asid%2Fen.wikipedia.org%3AOperations+management+for+services" class="Z3988"></span></li> <li><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFChase1978" class="citation journal cs1">Chase, Richard B. 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