*A Service Management Metric with Origin in Plant Management DOI: http://dx.doi.org/10.5772/intechopen.93139*

*Concepts, Applications and Emerging Opportunities in Industrial Engineering*

○ Transportation and Warehousing (NAICS 48-49)

○ 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)

• Trade, Transportation, and Utilities

○ Wholesale Trade (NAICS 42)

○ Retail Trade (NAICS 44-45)

○ Finance and Insurance (NAICS 52)

• Professional and Business Services

• Education and Health Services

• Leisure and Hospitality

Characteristics of services are:

• The product is intangible, for the most part

• Government

participating

personalized manner.

○ Educational Services (NAICS 61)

○ Health Care and Social Assistance (NAICS 62)

○ Arts, Entertainment, and Recreation (NAICS 71)

○ Accommodations and Food Services (NAICS 72)

• Other Services (except Public Administration) (NAICS 81)

• Usually performed in real time, with the customer present and often

• Seldom inventoried, so must be delivered on the customer's schedule

• Something of value is provided (like manufacturing) but in a more immediate,

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

○ Utilities (NAICS 22)

• Information (NAICS 51)

• Financial Activities

**56**

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:


In a later publication [22], these same three authors presented a list of nine dimensions classifying how customers perceive service quality:


Pitt et al. [23] concluded that SERVQUAL is an appropriate instrument for researchers seeking a measure of information system service quality.

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


Let us consider several examples of the last point, which is very important for the industrial engineer:

	- The student registration system to provide accurate class rolls and a means to report final grades to the registrar
	- The classroom assignment system to provide a lecture hall to match the enrollment
	- The textbook ordering system to order, receive, and distribute the correct class materials in the correct quantities, on time
	- The classroom audio-visual system and computer software/internet access provided in the lecture hall.
	- The patient appointment scheduling system
	- The measurement of patient vital signs by nurses as the visit begins, with computer access
	- Blood testing machines and/or radiological scans done prior to the visit, with computer access
	- Computer access to records of previous ailments and treatments, surgeries, vaccinations, etc.
	- Equipment he/she may use during the patient encounter.
	- An information system showing the customer's current service details, including start-up and service end dates
	- An information system showing additional or alternative services available to the customer based on location, with costs and time frame for change in service

**59**

operation as follows:

*A Service Management Metric with Origin in Plant Management*

○ An information system showing a customer's accounts, safe deposit boxes, progress on any money electronically moved from or to customer's accounts

○ An information system tracking cash transactions (deposits, dispersals, exchanges, etc.) completed by the teller and what should be the status of

○ In a large bank, a formal schedule of teller work assignments and for each, their schedule of breaks and lunch, and an out-of-office schedule for the

Overall Service Effectiveness (OSE) was first described in Berhan [24], and is the focus of the remainder of this chapter. The OSE metric for services extends the OEE production metric developed along with TPM as described earlier in the chapter. For the reader's convenience, we shall demonstrate how OSE is a simple rewrite of the formulas for OEE and its three input components in a manner that fits service transactions an industrial engineer might be challenged to design or improve, using OSE as a guide. In the equations below, the term "units" could be units of a manufactured good or quantities of a service completed. Examples of the latter might be: queries to an information systems; patients seen by a doctor or dentist; customer transactions at a bank—in person or electronic; riders transported by a bus or aircraft, or by the bus line or airline. Note these are all situations which an industrial engineer might encounter, and traditional IE tools such as queuing theory or system simulation might be in use. Agreeing with the OSE equations of Berhan [24], we shall use:

Availability = Total Time Available – Downti ( me / Total Time Available ) ( ) (5)

( ) ( )

( )

( )

( )

Number of Passengers Transported (11)

Ideal Number of Units Produced (6)

Number of Units Produced (7)

OSE = Availability ×Performance×Quality. (8)

Total Time Available (9)

Target Number of Passengers Transportable (10)

Performance = Number of Units Produced /

An example for an urban transportation system described in Berhan [24] adapted the equations for the three inputs above to the specifics of the service

Availability = Total Transport Time Available – Lost Transport Time /

Performance = Number of Passengers Transported /

( )

( )

Quality = Number of Passengers Transported – Number of Dissatisfied Passengers /

Note that the bus service, like many encountered in modern society, is a "knowledge embedded service" [25] which are services which embed the customer

Quality = Number of Units Produced – Number of Defects /

( )

( )

( )

current day and perhaps for the weeks or months ahead.

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

their cash drawer

**3. Overall service effectiveness**

