Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / NewStats: 3,194,624 members, 7,955,287 topics. Date: Saturday, 21 September 2024 at 09:36 PM |
Nairaland Forum / Science/Technology / Lean Six Sigma And The Service Industry (235 Views)
Sigma Asia Summit Takes Manila By Storm: A Revolutionary Confluence Of Gaming An / Need The Service Of A Hacker? / I NEED THE SERVICE OF AN IT PERSON (2) (3) (4)
(1) (Reply)
Lean Six Sigma And The Service Industry by tannu2790: 9:15pm On Jun 04, 2022 |
The service industry has its own special characteristics, which differentiate it from manufacturing and make it harder to apply Lean Six Sigma tools, which can be summarized in the following main areas (Kotler, 1997; Regan 1963; Zeithmal, Parasur and Berry 1985): Intangibility: Although services can be consumed and perceived, they cannot be measured easily and objectively, like manufacturing products. An objective measurement is a critical aspect of lean six sigma training, which requires data-driven decisions to eliminate defects and reduce variation. The lack of objective metrics is usually addressed in service organizations through the use of proxy metrics (e.g. customer survey). Perishability: Services cannot be inventoried, but are instead delivered simultaneously in response to the demand for them. As a consequence, services processes contain far too much ‘work-in-process’ and work can spend more than 90% of its time waiting to be executed (George, 2003). Inseparability: Delivery and consumption of service is simultaneous. This adds complexity to service processes, unknown to manufacturing. Having customers waiting in line or on the phone involves some emotional management, not present in a manufacturing process. Variability: Each service is a unique event dependent on so many changing conditions, which cannot be reproduced exactly. As a result of this, the variability in service processes is much higher than in manufacturing processes, leading to very different customer experiences. Owing to these inherent differences, it has been harder for service organizations, such as financial companies, health-care providers, retail and hospitality organizations, to apply Lean Six Sigma to their own reality. However, there are also great opportunities in the service organizations (George 2003): - Empirical data has shown the cost of services are inflated by 30–80% of waste. - Service functions have little or no history of using data to make decisions. It is often difficult to retrieve data and many key decision-makers may not be as ‘numerically literate’ as some of their manufacturing counterparts. - Approximately 30–50% of the cost in a service organization is caused by costs related to slow speed, or carrying out work again to satisfy customer needs. In the last few years, successful applications in service organizations have come to fruition and we will illustrate three possible applications: in a call centre, in human resources, and finally in a healthcare provider. |
(1) (Reply)
Read Printer Recommendation / Free Certification! Sign Up Now / Types Of Computer
(Go Up)
Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health religion celebs tv-movies music-radio literature webmasters programming techmarket Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 7 |