Operational considerations for creating and managing a high performance Service organization.

THE SERVICE DELIVERY PROCESS:-

For every service organization customer service plays an important role in making that organization conditional for its growth. According to Gronroos, (2007), service is the method, which includes various processes and activities, which includes people, infrastructure. Customer doesnt only receives the services but he indulge in the process to market that product and service among the customer by explaining his thoughts and opinions provided on that product and services. If a product is sold to a customer, the process includes the customer satisfaction and the value of that product. According to Wright, (1999), customer service is the reason for the existence of any organization. He later explains that customer satisfaction must be provided with in the boundary and following rules and regulations made by that organization. Service delivery process includes operations management, which is again the framework for providing service to the customer. For every service to be given, customer is required for that, without which interaction of service will not take place. There may be situations in which the service procedure to the customer is in front of him Wright, (1999). For example, when a customer comes to a bar, he himself will observe the quality and the staff behavior, which are again the needs for a customer satisfaction. There may be situations in which the customer is not in face to face with the service provider. For example when a customer offers a product online, he just places the order and he gets that product within a agreed working day. Here the customer is not sure about the quality of the product, but the service delivery process takes place for sure. If the customer has not chosen the product, the procedures could not have happened. Thus we can say that service delivery process is the major and initial step in any of the organization to develop its quality and market its product and services in a revised manner to the customers. Operational manger of the organization should plan for the efficient use of resources to gain the customer satisfaction, by utilizing the available resources

and providing services within the norms and conditions approved by the organization.

MANAGING THE PHYSICAL EVIDENCE OF SERVICES:-

The physical evidence of service is tangible aspect of providing services to a customer. There are many things in this aspect which manages the organizational performance and its locality in the market. According to woodruffe, 1992, the physical evidence s may include the following aspects: Infrastructure:- the outer look of an organization is so much to tell about its prosperity and brand quality. Customer always needs a satisfactory level for their need and want. They would not enter an organization whose building structure is very poor or when they go inside that organization for example a restaurant the dcor is not good and furnitures are torn or they are not arranged properly, these things dont make anybodys mind to enter there for getting a service. Accessibility:- the other factors may include the car parking in that organization or it could be the geographical locations, in which area the company is situated or are there markets around that organization. The places should be secure and one who is coming there to avail the services should feel secure.

 Staff:- the behavior of the staff is one of the physical evidence. This includes the staff dress code, their knowledge for what they are working, their conduct and guest relations are also counted in physical evidences. Organization can manage this by providing staff induction and by launching various training programs. The above mentioned physical evidence s can be managed by improving the corporate identity of any organization. It is done by developing the values and motives of the organization. It can be said that by showing the benefits and qualities provided by the organization to the customers improves and reinforces the organization to achieve its goal. Other forms may include the dress code improvement, brand names, logo and consistency in prviding services are the major aspects to improve the organizational structure. He later explains about the standard issues to be followed in the organization. For example, kfc experience, if there is anything to alter based on the customer needs and wants the, the needs are fulfilled by keeping a standard which doesnt alter the brand locality. OPERATION STRATEGY:According to chase, 2006, Operation strategy is mainly concerned setting broad policies and plans for utilizing the resources of an organization for a long term competitive strategy. This indicates the growth of an organization by elaborating its resources and the objectives of the organization for its long term running business. It is a part of planning process which deals with the operational goals to compete with the other organization in the area. In todays world the customers are in dilemma of which thing to buy at what price, how to decide the quality of that product and from

where the goods and services is to be bought. This indicates customer variation over the product, services and price. Some customers are price oriented and few are quality oriented. This forms a competition among the companies to promote their goods and services. Following are the strategy to be made to restore the firms demand among the customers: Cost of the product: - there are large segment of market who tends to buy products and services at the cheap rate and to compete with this a firm should always be a low cost producer.but this also not even indicates profit as many companies selling that services are also there, thus there is ideed a sort of success but there exists the failures also. There can be only one low cost provider in the market. For example_ when we buy shirts from Louis phillipie, by seeing all its feature and quality but yet the price is not low. Quality:- this ensures the organization to produce the good quality product and provide great services. Whenever a product is designed, it consists of two qualities the one is its design quality and the other is process quality. As a 8 years old child will like a bi-cycle for its design quality compared to a professional cyclist. The process quality directly says about the reliability on that product and services. Whether its a bicycle for a child or cyclist, every customer want a non-defective goods. It also depends upon the delivery speed and delivery values of the goods and services. Deliver the goods once it is promised. Flexibility and its new product changing techniques: - a wide range of product and services in an organization should be available. By evaluating a particular product and services changes should always be made to that product.

SUPPLY CHAIN MANAGEMENT According to Bhat, 2008, supply chain management is the business process which links the manufacturers, retailers, customers and suppliers for the successful delivery of a particular goods and services in a chain form. These functions lead in the development of product and its marketing. The supply chain management is finally achieved by a customer which is the end point of the chain or process. IMPORTANCE OF SUPPLY CHAINS MANAGEMENT: Due to globalization, the supply chain managent links with a outside company, thus helping the organization to develoy its chain process globally. By managing the supply chain management effectively in all aspects and at all points of chain, the operational cost can be reduced. Hence it will lead in increasing the customer satisfaction. In todays world supply chain management is developing its new method in reducing the inventory cost and increasing customer response globally. For example:- in India companies are linked with their suppliers and manufacturers. A application software is used, which was earlier done manually. if the one supplier is unable to respond or deliver the goods at a particular time, the software tends to find another supplier immediately.

Supply chain management can be explained with a diagram:-

FLOW OF PHYSICAL GOODS

SUPLLIES

MANUFACTURER

WHOLESELLER

FLOW OF DEMAND INFORMATIO N

RETAILER Thus from the above diagram it is clear that process involves the demand information which is carried by the retailer via wholeseller, manufacturer, supplier to the flow of physical goods. According to Mentzer, 2001, he explains that the supply chain management lift for the growth of financial situations by getting responses from the customers. This will lead in market share improvement of the organization. He later explains the these values and development is achieved only by satisfying the guest needs and wants perfectly. According to Bhat, 2008, he explains the decision

phases in the supply chain management at different levels . the different levels include the following: Strategic level:- this level includes the long term planning in the process of supply chain management. The planning includes the resource allocation and behaviors of the people at different level in the chain management. This also includes the planning for making factrories and ware houses in the different area, depending upon the geographic\cal condition. Tactical level:- to make changes or planning at this level which can be said medium term decisions, can be described as the supply of goods to different markets in coming time and the organization nneds for changing the suppliers and retailers. Operational level:- at this level of decision making, the concepts are made on day today or the weekly basis. This may include the pickup of goods from the warehouses and updating all the records for future references.

SERVICE QUALITY AND TOTAL QUALITY MANAGEMENT (TQM) Service quality is a aspect of providing the service according to customer need and wants , which meets their expectations at different level. This is a Japanese style of management. This was originated in Japan in various organizations. Tqm consists of quality assurance, participative management and quality in work life. Quality assurance indicates the quality of the product to be satisfactory, reliable and economical for every consumer. As a total quality manager employee should be always treated partially and there should be a sense of trust among the employees. Encouragement among the team members by the tq manager is an

important aspect. According to George, 2008, following are the steps to launch the TQM prgaram in an organisation: Preparing for the implementation: - the process is carried out by taking suggestions in a flexible manner. To generate fresh and developing ideas brain storming is done by making staff members work on a particular project. The needs of the organization are pointed out in a selective manner and the things that is to be planned is kept in mind to achieve a particular goal for the organization. Learning from the others needs and wants, a particular approach and atmosphere in the organization is made. This can be made by evaluating previous years results of the economy and other aspects. After that it is evaluated in a productive manner. The staff members are are trained and developed to use the TQM tools by working in a team on day to day basis, which can also include roleplays. The organizational needs is to be evaluated and by analyzing the organizational needs in future changes can be made for the development and for the better service procedures. According to antony,2002, TQM is really operated by taking in mind the customer needs or it is strategy based on the customer desire to meet its satisfaction. If every top level management commits for the improvement, the staff members are motivated and by achieving their cooperation, staff members work for improving services in an organization

MANAGING SERVICE CAPACITY:-

The fastest growing part of our economy is the service sector. As service industry is always customer oriented, the customer is an important aspect of the service organization which must indicate the customer satisfaction at all levels. Service capacity management covers a variety of essentials to meet the demand. For example yield management is the essential aspect of managing the service capacity of a firm and it covers a range of marketing activities . The goal of Yield manasgement is to maximize the revenue by proper utilization of goods and resources, (connor, 2008). According to Blokdiijk, 2008, service capacity management prcess covers the following aspects: The right capacity At the right location. At the right moment. For the right customer. Against the right cost. These aspects are made clear to meet the future demand. OBJECTIVES OF SERVICE CAPACITY MANAGEMENT:following are some of the objectives of service capacity management: To produce and develop the capacity plan to reflect the future needs and wants for the organization. Give advice and give guidance to all other departments in the organization all service proceedings issues and matter. Ensure the target is achieved by making all the requirements and by managing all the resources and services in the organization. Assist the needs before the resolution of different firms with the performance and service capacity related incidents and issues. Thus capacity while performing all these tasks and management coast efficiency should be considered.

Management is an important aspect in maintaining the resources and developing an organization. MANAGING SERVICE EMPLOYEES AND CUSTOMERS:The Service employees working in an organization is the face for the development of any organization. As the customer is the first point of contact with the customer, managing service employees thus is an important aspect in achieving industry needs and objectives. According to lovelock, 2010, he explains that the success of any organization around the world is measured by its effective management in its hr practices. These practices include staff motivation, training, and retention of the employee. He later explains that the front line employees directly meet with the customers and they eventually represent the brand loyalty and reputation of that organization at the global level. Thus employees in the organization should be motivated and cooperated by the top managers in the company. Following are the ways in which an employee of the organization can be related to its organization: Employees are the inner and crucial part of the product as they provide the services to the customer, thus thy represent or determine the service quality. Employees are the service firm as the employees who are in front line or considered to be the front line employees are directly meeting the wants of the customer, so according to them they are the firm. Employees are the brand as the employees only decide the services which are delivered are their own organizational value. Following are the ways to improve the employee standard in the organization: Extensive training.

Training and empowerment of front line personnel to control quality. Jokb designing. Employee satisfaction and positive service attitudes. Managing customers is an important aspect. It can be achieved by keeping in contact with the customer regularly and geeting an respose evry time the customer comes to the organization. Giving discounts and other benefits for the regular customers enables an organization to meet future needs. According to Peppers, 2011, he explains about the customer relationship management which a technology or the software that helps in tracking data and information of the customers, which can be used to determine the customer needs and wants and thus customer relations could improve in a better way. He explains following points to improve the profit in an organization which is discussed below: Acquire the profitable customers Win back the profitable customers Eliminate unprofitable customers Introduce up selling to profitable customers Cross selling or other products selling to the customers Reduce service and operational cost.

JIT AND MRP JUST IN TIME AND MATERIAL REQUIREMENT PLANNING Material requirement planning is a set of procedures to be followed for the requirement of the products in the organization. According to Gopalkrishnan, 1990. MRP is the planning for material requirement for each component that includes inventotry of the goods and scheduling techniques. It is started by estimating what products are needed for the particular period of time and finishes when the product is ready for the use or delivering the service by using that product. MRP is particularly important as it meets the requirement

for the production department as the materials required are delivered to them. JUST IN TIME:- According to Hutchins, 1999, he explains that the JIT process which says that whenever there is demand of a product in the market occurs , the procedures to overcome or steps to meet the demand at given period of time is referred as JIT. The main goal of the JIT is the achievement of the zero inventory, not in the organization only but also with in the whole supply chain. To achieve the aspect of JIT, stock control should be kept in mind. Here MRP and JIT link to form a particular product in the market. MANAGING CUSTOMER SATISFACTION AND SERVICE FAILURES The most promising outcome of any service industry is consumer satisfaction. By providing good services to the customer which meets their expectations, customer satisfaction can be achieved. According to Oliver, he explains that the customer satisfaction is achieved when a customer experience following things: When a customer feels that the consumption of the goods were excellent than what he has thought. When a customer feels that services are good as compared to their last visit or prior experience in the organization. Thus it can be said that customer satisfaction analysis helps an organization work in a better way. If you are working in an organization it is not necessary every time that you will succeed , few times failures occurs . Which also results in the dissatisfaction of the customers to a greater extent? But these things to be kept in mind so that failures doesnt happen and in case it happens some measures in favor of customer must be taken into consideration. According to Kandampully, the service failures may occur due to omissions in the service, which means that some part of the service is not provided or the some part of service is not available at that moment of time. For example: -

when a guest in the hotel leaves the room and say the attendant to prepare his rooms and it is not done. This shows the service failures. To overcome these service failures following things are to be kept in mind: Proper planning of resources available to be utilized carefully and effectively. Carefully understand the customer needs and wants . Finish the given work in time to maintain the daily working pressure in the organization. Staff training about the organization and proper induction reduces the chance of failures.

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