LEO SANCHEZ Towards A Classification of Service Processes

Objective Developing an understanding of management issues in service organizations across industry boundaries through an integrated service typology.

Manufacturing Process Types Six Service Dimensions Project Jobbing Batch Line Continuous process operations Equipment/People Focus Length of Customer contact time Extent of Customization Extent to which customer contact personnel exercise judgment in meeting individual needs Source of Value Added(Front office/Back office) Product/Process Focus Traditional Perspective

Application of Service Classifications A research team funded by the Chartered Institute of Management Accountants analyzed and put together 11 in depth case studies on large, for profit UK service organizations. Objective Find clusters of features, which may lead to an integrated typology Aim Develop and Understand: -Competitive service strategies -Nature of Service Processes -Tasks and challenges encountered by service man managers

Methodology 1. Rank organizations by the volume of customers processed by a typical unit per day 2. Rank organization by service dimension Contact time was easily measured, but other dimensions were ranked according to a Delphi Technique

Results A pattern emerges as the number of customers processed by a typical unit per day increases, the general trend: *Focus moves from people to an equipment orientation *Length of contact time moves from high to low *Degree of customization moves from high to low *Level of employee discretion moves from high to low *Value added moves from front office to back office (Focus moves from a process to product orientation.) Customer processing is an appropriate measure of volume There are three service types  1. Professional services  2. Service Shop  3. Mass Services

Three Types of Service 1. Professional Services: Organizations with relatively few transactions, highly customized, process oriented, with relatively long contact, with most value added in the front office, where considerable judgment is applied in meeting customer needs 2. Mass Services: Organizations where there are many customer transactions, involving limited contact time and little customization. The offering is predominantly product oriented with most value being added in the back office and little judgment applied by the front office staff. 3. Service Shops: A categorization which falls between professional and mass services with the levels of the classification dimensions falling between the other two extremes. Service Factory: Service oriented manufacturing company

Implications Service strategy, control, and performance measurement differ significantly between the three types of services (professional, service shop, and mass services) Service organizations are unique, but can be classified into one of three types of services A unified framework for the service organization can be developed and improve:  Competitive service strategies  Issues in service organizations  Improve overall service organization.