Service Operation Analysis: Application Of Industrial Engineering

Poorly defined processes, improper staff training, and badly implemented service infrastructure can lead to significant reductions in the efficiency of a service operation.  The results are slower response times and longer resolution windows, higher case backlogs, poor utilization of service staff, poor morale and higher turnover of service staff. STEPUP can help streamline processes, improve operational efficiency and drive significant gains in service effectiveness. In addition, we can provide a framework for service excellence that will enable continuous improvement and measurement of service effectiveness.

Services operations management is related with delivering service to the customers of the service which involves understanding the service needs of the target customers, managing the processes that deliver the services, ensuring objectives are met, while also paying attention to the constant improvement of the services.  As such operations management is a central organizational function and one that is critical to organizational triumph. Service organizations react to the wants of customers and leave certain experiences in the minds of the customer through a service delivery system.

It is crucial to establish an effective interaction horizontally from the point where the company meets its customers in the front office functions to the company’s ”engine room” in the back office. This is the process perspective on the organization where processes typically run across functions.

At the same time, it is important to address the vertical difference between the operational environments in different parts of the organization; from front office multifunction environments to back office “factory environment”.

Managing service operations can be a pretty challenging task because so many factors are involved. Not only do you have to manage workers, coordinate schedules, keep track of equipment, and respond to emergencies, you also must keep customers happy with fast and effective service.

Many companies have successfully transformed their manufacturing, R&D, and other business functions, improving their performance while stripping out cost. Yet far fewer have optimized their service operations, even though they can have an outsized effect on customer acquisition and retention. When service levels and costs are properly balanced and optimized, they can deliver a substantial and sustainable competitive advantage that competitors will find hard to match.

Service operations are often labor intensive and complex to manage. Additionally, executives across many industries are finding it increasingly challenging to keep service costs in check while maintaining service levels.  Designing a tailored set of service models based on segments is a prerequisite for providing the desired services without overspending.

In order to identify the issues affecting operational performance, companies need to conduct detailed assessments to uncover root cause issues. Our proven assessment methodology leverages a four-step process that includes interviews with key executives and individual contributors, discussions and site visits with strategic customers, service process observation and review and best practice comparison to align your processes with industry standards. The result is a clear understanding of the issues affecting your operation and a detailed road map to improve service operations efficiency.

STEPUP experts will apply Industrial engineering techniques to analyze the entire service operation and find solutions to the issues.  The improvement actions across the service operations will be deployed to improve the productivity and efficiency.