**2. Service management**

*Concepts, Applications and Emerging Opportunities in Industrial Engineering*

1.Equipment failure losses (requiring corrective maintenance)

Six Big Losses are grouped as follows:

2.Set-up and adjustment losses

a visitor)

policy)

completion)

5.Defects and rework

losses as numbered above, would be:

time lost, situation and/or causes).

to be paid for a full shift.

Losses that determine equipment availability

Losses that determine performance efficiency

Losses that determine rate of quality products

The calculation of each of these quantities is illustrated by example in the references by Nakajima [5], and Robinson and Ginder [6]. The example in Nakajima further illustrates why the three input quantities to OEE are seldom calculated to be 100%. Essentially, the use of OEE in TPM uncovers the "Six Big Losses" which become the focus of improvement efforts by an individual engineer, or a team. The

3.Idling and minor stoppages (e.g., clearing a jammed workpiece, or stopping for

4.Reduced speed (e.g., running slower to avoid overheating, or avoid early job

6.Reduced yield due to start-up losses (either due to nature of process, or company

Some examples of how to improve OEE above status quo, based on the six big

2.To reduce set-up time, there is a Japanese practice originally known as Single Minute Change of Die (SMED)—meaning work to reduce change-over times to less than 10 minutes (single digits) with a goal of single minute changeovers; in the US, this practice is called Quick Changeover Technology and, for example, has been observed in casting machines in pipe shops, and welding machines for tubular steel products. This practice is essentially a specialized time and motion study, again carried out by a single engineer or improvement

team, and the saving from avoided set-up losses can be substantial.

3.Periods of idling and instances of minor stoppages should be recorded (total

4.Reduced speed losses—there may be good reasons for running equipment at less than ideal processing rate, such as to avoid overstressing the equipment or safety concerns for the operator or other workers in the vicinity. In instances where work crews intentionally slow down, management needs to re-plan schedules so every worker can get in a full shift, having come to work intending

1.Study equipment failure and repair records. Use the Pareto Principle to identify which machines are causing downtime, in rank order: then, for the least available machine, identify the machine elements that are the causes of downtime, in rank order. Focus improvement efforts on the most problematic machines, and once identified, the most problematic machine elements.

**54**

A simple definition of service is "work performed for someone else." In other words, services are all those economic activities in which the primary output is neither a good nor a construct, so services are for the most part intangible. Of course, services may occur *internal* to a company, educational institution, medical facility, or government agency, or in service encounters between individuals, or exchanges between larger-scale entities—two companies, or perhaps a university and a government agency. In general, services cannot be inventoried. When considering services in context of the overall economy, a big distinction is that product-oriented sectors of an economy always produce a tangible product; a service may or may not terminate in a tangible product. Also, services are rendered on demand—either instant demand or scheduled demand—often with the customer present and involved in the service. So, the reliability characteristic "ready on demand" is critical to high quality service. Once service begins, uninterrupted service may be another customer expectation. Variability of service in response to specific customer requests may be intentional—information gets transformed into customized action in an attempt to satisfy the requests. It may also be unclear which party "owns" the service. In contrast, a manufactured product is tangible, produced and consumed at different locations at different times, expected to be of consistent quality, to be inventoried with like items, and to have clear ownership as it changes hands.

The Service Sector of the US economy in 2019 accounted for 79% of US employment. The percentage of service workers in other advanced economies are approximately 75% in Great Britain, 65% in France, and 60% in Germany and Japan. Service is considered a tertiary sector following the Primary Sector "Extractive" industries (Fishing, Agriculture, Mining, Oil and Gas, etc.) and the Secondary Sector "Transformative" industries (Manufacturing and Construction). The service sector is highly diverse; see the following groupings used by the US Dept. of Labor:

	- Wholesale Trade (NAICS 42)
	- Retail Trade (NAICS 44-45)
	- Transportation and Warehousing (NAICS 48-49)
	- Utilities (NAICS 22)
	- Finance and Insurance (NAICS 52)
	- Real Estate and Rental and Leasing (NAICS 53)
	- Professional Scientific and Technical Services (NAICS 54)
	- Management of Companies and Enterprises (NAICS 55)
	- Administrative and Support; Waste Management and Remediation (NAICS 56)
	- Educational Services (NAICS 61)
	- Health Care and Social Assistance (NAICS 62)
	- Arts, Entertainment, and Recreation (NAICS 71)
	- Accommodations and Food Services (NAICS 72)

Characteristics of services are:


**57**

*A Service Management Metric with Origin in Plant Management*

might be "fitness for use as determined by those features of the service that the customer considers to be beneficial." As explained in Jain and Gupta [19], "services require a distinct framework for quality explication and measurement" and "involves evaluation of the outcome (i.e., what the customer actually receives from the service) and the process of service act (i.e., the manner in which the service is delivered)." Another line of research at that time concerned measurement of service expectations, pre- and post-consumption [20]. Parasuraman et al. [21] created the SERVQUAL scales and questionnaire organized around these five measures of service quality:

• Reliability—the ability to perform the desired service dependably and

• Assurance—the knowledge and courtesy of employees and their ability to

• Tangibles—the appearance of physical facilities, equipment, personnel, and

• Empathy—the provision of caring, individualized attention to the customer

• Responsiveness—the willingness to help customers and provide prompt

In a later publication [22], these same three authors presented a list of nine

Pitt et al. [23] concluded that SERVQUAL is an appropriate instrument for

• Poor or inattentive service costs companies about 10% of volume annually

• 96% of unhappy customers never complain, but 90% never return. Each

We have collected together six widely-known customer reactions to service quality:

researchers seeking a measure of information system service quality.

dimensions classifying how customers perceive service quality:

• Reliability—performed as promised, consistently

*DOI: http://dx.doi.org/10.5772/intechopen.93139*

convey trust and confidence

communication materials

• Tangibles—physical appearance

• Access—easy to do business with

• Understanding customer needs.

• Communication—keeping customer informed

unhappy customer tells at least nine others.

accurately

service.

• Responsiveness

• Security/Safety

(until corrected)

• Competence

• Credibility

Quality of a product (service, good, or software) has been defined by Juran [17] as "fitness for use, in the intended environment" and by Deming [18] as "meets or exceeds customer expectations." Therefore, a broad definition of service quality
