It is due to this reason that the researchers and economist have carried out studies the study due to the significance and contribution of this industry in the country’s annual GDP.
The different theorist has described services in different ways which help the management to understand the positioning and formulation of strategies to organize the resources. Their conclusions can be used to get the wider view and all the dimensions of the various theorist, based on that the management can draw their own conclusions from their own understanding. These researchers covered different areas of the service industry but this paper especially discusses the implication of operation management in the Australian service industry. In order to understand the challenges faced by the management it is very important to understand the characteristics of the services. Operation management is a technique which can help to resolve the problems faced by the company.
Before that, there is an overview of the different researchers. Their work has helped to form the basis of understanding. Nie and Kellogg distinguished the services into some unique characteristics which make services different from manufacturing. A service oriented business has more customer interaction due to which the entire process of delivering the service also becomes important. Services are intangible, there can be variations in the output, they are perishable, there production delivery and consumption all takes place at one time and they are more labor intensive.
Schinner has come up with one of the most useful topologies of the service industry which can be applied in all kinds of service-oriented professions. He has defined these degrees in a simple matrix form which is indicating a high and low level of labor intensity and customer interaction. Such distinction can help the management in classifying each profession into a certain area like service factory professions have low labor intensity as well as customer interaction. Similarly, professional services like doctors have high customer interaction as well as high labor intensity. Based on this the management can increase their focus and see which area needs more attention. Schmenner’s theory can be connected to Wright and Mechling conclusion which explains how these topologies can be used in the planning and controlling process.
The key performance indicators are the managerial tools which help an organization in achieving its long term goals. Once the goals are set and strategies are implemented there has to be a way to measure the progress or success and KPI is one of the ways. These are measurable indicators. It can be one or many depending on the organization. For service-oriented businesses, the key indicator can be the number of clients per month in an auditing firm. KPI is a useful management tool because when you know the strengths and weakness of your business and your goals are specific and clear to all then one can define a certain indicator to measure its evaluation and performance over the period of time. These can be applied in different service processes such as the framework of Armistead which had categories like the delivery system and the volume of output. Such measures can be taken as an indicator and can be used to upgrade the entire process.
Service industries face many problems which can be resolved through the implication of the operational management tools. Operations .management itself is an area of study in business which ensures that limited resources are used in the production of goods and services. .