Search

PurposeThe need for an efficient provision of product variety has been widely established as a means of competing in the marketplace, yet previous studies into the management of product variety have commonly analysed products in isolated developed markets. The purpose of this paper is to investigate how firms manage their product variety in emerging markets. This paper aims to investigate the rationale underlying the restriction of variety in such settings, and define general mechanisms by which firms can adapt their product variety when operating in both emerging and developed markets simultaneously.Design/methodology/approachThe paper uses the case of a global vehicle manufacturer that offers common products across developed and emerging markets to illustrate the difference between them in terms of product variety, and examine the process that underlies its management. The paper utilises a combination of data collection techniques.FindingsThe paper shows empirically how product variety (in particular ex factory variety) is restricted in emerging markets, as one would expect, and it identifies the mechanisms by which product variety is managed across different markets. The paper further illustrates how emerging markets have developed secondary coping mechanisms to deliver additional variety through late configuration in the distribution system.Originality/valueBy examining the differential management of product variety in emerging and developed markets, the findings yield several novel aspects by providing both empirical evidence and explanations for the restriction of product variety in emerging markets.

PurposeThis paper seeks to present an empirical snapshot of the application of operations management (OM) activities in Australian service firms. The four key areas addressed in this study are the nature or characteristics of services, the level of importance of OM techniques, the level of importance of performance indicators, and the challenges encountered by the management of service firms.Design/methodology/approachThe empirical data for this study were drawn from 190 managers of the Australian service organisations whose primary responsibilities were related to the daily operations of the firms. The targeted service organisations encompassed various sectors including transportation, communication, banking, insurance, health care, education, wholesale, retail, and professional services.FindingsThe results indicate that most services are characterised by high customer contact and a low degree of differentiation. In terms of OM activities, service delivery, customer service and quality control received the highest priority. This result was confirmed by customer retention, on time delivery, and quality which received the highest priority among performance measures. Innovation, on the other hand, surprisingly received the least attention among the surveyed firms. Finally, building service culture appears to be the most challenging issue encountered by managers in dealing with service operations as opposed to managing facilities which raised only little concern from management's point of view. In general, there is no significant difference between Schmenner's four service types with respect to the key issues addressed in this study.Practical implicationsFrom a managerial point of view, this study provides an insight into the importance of key OM practices and strategic performance indicators in the Australian service industry.Originality/valueThis study builds on previous studies focusing on the implementation of OM practices carried out in the USA. Therefore, it contributes to knowledge by providing comparison with the Australian context.

Purpose – To investigate the relationship between service practices, service performance, business performance and information technology (IT) sophistication.Design/methodology/approach – A conceptual framework is developed, incorporating dimensions of services practice and service performance and structural equation modeling is used to test the model with data from 231 companies.Findings – This paper extends the basic service practice‐service performance relationship by incorporating the interaction effects of IT sophistication in a contingency framework. Previous studies found mixed support for the direct effects of IT sophistication on service performance.Research limitations/implications – Using single informants leads to common methods bias.Practical implications – Companies need to identify how IT contributes to service effectiveness from a customer perspective.Originality/value – This study adds to the emerging literature of the relationship between services management and information technology.

PurposeThe purpose of this paper is to assess developments in the service literature over the last six years and to lay out some challenges and opportunities for the operations management academic community.Design/methodology/approachThe paper is based on issues raised in a previous paper and contains the results of a literature review and a content analysis of around 250 papers from three journals.FindingsThe paper suggests that there is a window of opportunity for operations academics to engage in the service arena and apply their knowledge and skills to answer fundamental questions in the areas of quality, productivity and efficiency, and to apply their expertise in business services and the not‐for‐profit and voluntary sectors.Research limitations/implicationsThis polemic reflects the biased opinions of the author.Originality/valueAssesses developments in the service literature.

The purpose of this paper is to set forth a reliable and valid means of measuring online service quality based on a broad conceptual framework which integrates theory and conceptualization in customer service quality, information systems quality, and product portfolio management, into online service quality. An ethnographic content analysis of 848 customer reviews of online banking services was employed to identify salient online service quality dimensions. The most frequently cited online service quality attributes, along with literature review and personal interview results, were utilized to develop the survey questionnaire. Subsequent to the pre‐test, a Web‐based survey was undertaken to verify and test the online service quality model. A confirmatory factor analysis produced six key online service quality dimensions: reliability, responsiveness, competence, ease of use, security, and product portfolio. This paper includes a discussion of the managerial and theoretical implications of this online service quality model.

Before introducing the articles in this special issue, and taking the First World Conference on Operations Management as an example, the author proposes a new‐conference product, an innovation in service design and implementation. He describes nine key factors which need to be taken into account in order to achieve outstanding success in this kind of service.

Draws on the service management literature to enhance understanding of the key operational differences in managing professional services, at one extreme, and mass services, at the other. Contributions are drawn together, developed and integrated into the service process model. This yields an understanding of the contingencies which render the design, control and improvement of different service processes appropriate. Strategic implications of the service process model are considered. It is contended that cost effective services will be positioned along the volume‐variety diagonal. It is proposed that the service process model can be used as a strategic tool in three ways. First, it can be used to evaluate possible strategic moves along the volume‐variety diagonal. Second, it can be used to analyse a competitive area and evaluate a service offering relative to the competition. Third, it can be used to analyse internal organisational processes with a view to identifying processes which have different volume‐variety characteristics and which should therefore perhaps be managed separately.

Over the last 20 years we have witnessed the emergence of a large‐scale, world‐wide academic movement concerned with the management of services. This paper charts the role and impact of operations management on this movement and proposes that the current key focus for service academics should be with the application of frameworks and techniques. Also suggests that as the service movement has grown, with increasing overlap between the subjects of operations, marketing and HRM for example, there is a need to “return to roots”. Contends that service academics, in their bid to develop cross‐functional service management material, may have lost, or inadvertently ignored, the strength of their core disciplines. Re‐focusing on the traditional strengths of operations management, such as performance quality, design, and operational improvement, might help provide a greater rigour to the developing subject of service management. Discusses nine areas for service operations research and suggests specific research questions. The topics include linking operational performance to business drivers, performance measurement and operations improvement, service design, service technology, the design of internal networks and managing service capacity.

The service sector of the American economy is expanding very rapidly at a greater than 6 per cent annual growth rate during the 1984‐88 period. The extraordinary growth of the service sector in the last two decades has focused attention on the challenges of effective management of service organizations and operations, vastly different from those faced in classical manufacturing settings. However, while services play an increasingly significant role in society, the productivity of services is much less than that of manufacturing. Determines and describes operations‐related practices and assesses skills development requirements faced by service firms operating in a real‐life environment. Findings of the study include the degree of awareness of the importance of operations‐related tasks and of their impact or organizational performance in services, the performance drivers and allocation of responsibilities for operational decisions, and the significance of operational gaps and misalignments that need correcting to enhance the effectiveness of service firms.

Pursues the concept of fit, defined as congruence between the capabilities of an operation and the characteristics sought by the market it was set up to serve. Traces the design, development and testing of the Service Template for illustrating fit in service organizations. The technique compares the actual service experienced by a customer with his/her expectations of that service and it is able to incorporate both soft and hard aspects of a service package. Reviews literature on visual representation of fit in manufacturing and service operations and examines the suitability of existing devices. Uses a case example to illustrate the mechanics of the technique which was tested in 33 situations and is now offered as generically applicable. Identifies areas for future research.

The research reported examines the role of service in manufacturing. Focuses on the degree to which Chase′s “Service Factory” concept is applicable in the UK. Also examines the role of service in four manufacturing companies. It was found that the roles reported by Chase in the USA are also used by a number of UK companies, and it is concluded that the service‐factory concept is robust and is not necessarily embedded in some of the cultural norms of the USA, as are some TQM practices. The case data indicated that the source of customer service may be in customers being served by various parts of the organization, that customer service is complex and that service levels are a function of both manufacturing and distribution. This would seem to point to the distribution view of customer service, the field‐service view and/or the service‐factory view being too narrow in terms of the company as a whole.

Although research attention has been given to the modelling process for simultaneous demand‐output management in manufacturing systems, little interest has been demonstrated in service organisations despite the fact that such organisations face unique conditions that further complicate the demand‐output management issue. In response to this lack of emphasis, we review the relevant research from both marketing and operations management and present a cost‐effectiveness model for balancing demand and service output.

The relationship between the operational behaviour of a service system and the type of management control system used by the service company is addressed. A number of case studies are used to demonstrate that when the management control systems are not well adapted to the service strategy, the service operators have a tendency to show an operational behaviour that might destroy competitive advantage and result in poor service quality.

In the Western world we are already living in a service economy. Services do not only account for a substantial part of gross national product, but they are also becoming the basis for a competitive advantage for many firms. Moreover, it is not only important to manage services successfully in the service sector of the economy. For manufacturers of goods, the service elements in their customer relations are becoming increasingly important. A competitive advantage can be developed by managing these services well. Implementing a service strategy requires a new “service know‐how”. Five rules of service are put forward and discussed in the present article. These rules cover demand analysis, quality control and marketing.

Concern for the productivity of employees in service operations combined with the difficulty of managerial control creates a need for a definitive means of measuring output. The same principles of statistical process control that apply in the production environment can be used to assess employee performance in a variety of service applications. A one‐sided control chart that can be used to monitor service times is described. Assuming a gamma probability distribution, the parameters of the distribution from company requirements regarding an average service time and tolerable service time interval are estimated.

The concept of the focused factory is well known and accepted in manufacturing industries. It is argued that the same concept can and should be applied in service industries as well. The differences between a service and manufactured product, however, cause some specific problems with respect to focusing. These problems are the variance among firms within a certain service sector, customer participation, the variability of customer needs, the need for consistency among the various elements of the service encounter, and the difference between the front and the back office. Some recommendations are made to cope with these problems.

Most Western countries are demonstrating a trend in the public and private sector away from traditional manufacturing operations. This has resulted in customer‐led pressure for Production/Operations Management teachers to give service operations equal time with manufacturing. Service industries have the same operating issues as manufacturing but for effective teaching two aspects must be considered. The first is the context of service operations and the second is those differences that do exist between manufacturing and services. A teaching strategy is proposed. This emphasises the use of service cases and examples to illustrate the application of operations management approaches; an understanding of the key contextual differences in the service environment; and the development of electives focusing on specific service features in operations management. Examples from undergraduate and postgraduate teaching are given.

A model of service quality is developed which includes three groups of service quality components: physical and procedural, behavioural, and judgemental. Classification schemes for service operations based on their relative degrees of labour intensity, process and product customisation, and contact and interaction between the customer and the service organisation are reviewed and synthesised. The application of the service quality model to different classes of service organisations are discussed.

This article identifies three main trends in service operations. It identifies how these have been applied to service industries in general and to the food service sector in particular. The relationship between these and specific industry sectors is identified. The application and implementation of these trends in food service organisations is discussed in relation to the organisational culture, leadership style and systems that such firms adopt.