As discussed with Bethuel Best - Need by 4 PM 16th March - Uber

Running Head: PRODUCTION-LINE APPROACH 1

PRODUCTION-LINE APPROACH 6

Production-Line Approach

Institutional Affiliation

Student Name

There have been divided arguments on service operations, with some noting that the service sector is growing in size but shrinking in quality. Most of the people in service operations argue that such is because their problems are fundamentally different from those of the manufacturing industry, where the service sector is predominantly labor-intensive while the manufacturing sector is mostly capital intensive (Mudie& Pirrie, 2012). In the past, the production-line approach has been employed in the manufacturing sector, resulting in collective success as it resulted in the production of standard high-quality goods at a relatively low price (Mudie& Pirrie, 2012). Hence, theorists have argued, the same level of success could be enjoyed in the service sector, once the production line approach is employed. A number of industries in the service sector have, as a result, applied the production line approach with a focus to standardization of services, sequential flow of processes and division of labor (Mudie& Pirrie, 2012). However, the same level of success as that of the manufacturing industries was barely attained, as the consumers demanded the delivery of customized services within shorter production cycles, which, unfortunately, the production line approach could not attain (Mudie& Pirrie, 2012). Therefore, the production line approach in the service sector although created to increase system efficiency has resulted in prolonged production cycle times and reduced productivity, hence resulting in the demand for a more viable approach to be used in the delivery of the service sector. Comment by User: The assignment is very short, if you discuss this long introduction, you will end up getting less works for actual arguments. Comment by User: I think need to focus on heterogeneity of services instead

The service sector plays a crucial role in structuring the economic transformations of most economies in the world, as a result of its continued GDP contributions. Through the years, there has been a growing trend inclined towards the merging of goods and services into one offering. Such implies that production needs to be redefined to foster the combined creation of products and services more effectively (Mudie& Pirrie, 2012). However, very few studies have explored the most effective service system designs to be employed in the production of goods and services. Nevertheless, Levitt (1972, 1976), proposed the use of the production line approach to be used in the service operations of the service industries as it improves the system efficiency through the application of manufacturing approaches to the service delivery process (Trinh& Kachitvichyanukul, 2013).

Levitt proposed the production line design in 1972 and 1976 suggesting that service industry may enhance their efficiency and quality of products through the adoption of a technocratic approach in place of the humanistic approach. Through the elimination of the humanistic approach, then the service sector would notice an instant reduction in their production, thereby influencing the customer’s perception of the quality of the services delivered (Trinh& Kachitvichyanukul, 2013). Levitt further argues that hence the production line approach would ensure a remodel of the provision of services while enhancing the creation of improved goods. Seeking inspiration from service industries like McDonald’s, Levitt argues that the production-line approach exhibits better manufacturing principles since it results in the standardization of goods, simplification, and automation of processes and ensures effective monitoring and control of the process performance (Trinh& Kachitvichyanukul, 2013). Hence, Levitt maintains that a service firm using the production line approach stands to acquire a competitive advantage in the market especially with a cost leadership strategy (Trinh& Kachitvichyanukul, 2013). Nevertheless, the production-line approach for the service sector failed to adapt to the market changes since the consumers demanded for shorter-cycle times for production, with critics arguing that owing to the heterogeneity of the service industry then it was impossible to take such a systematic approach. Comment by User: Reduce wordcount of benefits because we ned to focus mainly on issues.

Levitt’s desirability to transfer the manufacturing practices to the service sector has been strongly challenged by practitioners and service researchers alike. These critics have argued that in the place of a production-line approach, the service sector should seek to re-industrialize by putting in place revised and progressive manufacturing technologies in place. According to Bowen and Youngdahl, major service industries like Southwest Airlines and Taco Bell have succeeded as a result of their application of the lean manufacturing principles in their service operations (Bowen & Yongdahl, 1998). Since the service industry tends to be slack in innovation compared to the manufacturing industry, the lean manufacturing principles are better suited for the service industry in place of the production line approach proposed by Levitt (Bowen & Yongdahl, 1998). Comment by User: We are not discussing about heterogeneity part?

The underlying concept of the lean approach is to assist businesses in establishing that which is valuable for their consumers while optimizing on their creation processes by cutting out wastes so that the operations of the business run smoothly. Hence the lean approach aims to attain maximum productivity with the use of fewer resources (Hanna, 2007). In most cases, the service sector is under pressure to deliver excellent customer services using faster response time, a feature that was not supported by the production-line approach. Hence lean is a more effective strategy since it helps to optimize on the service delivery process by targeting wastes where it either annihilates the wastes or it shifts them to a more effective state as part of a continuous journey of improvement (Hanna, 2007).

In conclusion, the production line approach in the service sector although created to increase system efficiency has resulted in prolonged production cycle times and reduced productivity, hence resulting in the demand for a more viable approach to be used in the delivery of the service sector. Levitt proposed the use of the production line approach to be used in the service operations of the service industries as it improves the system efficiency through the application of manufacturing approaches to the service delivery process. Nonetheless, owing to the underlying differences between the service and manufacturing industries, the production line approach failed to produce effective results in the service industry as it increased the production time which the customers were not ready for. Hence the lean approach serves as an improvement of the production line approach since its focus on standardization, improved quality and cost reduction. Therefore, the lean approach is a better and more productive technique since it helps to motivate the employees, to boost customer value and to improve the efficiency of the business.

References

Bowen, D. E., & Youngdahl, W. E. (1998). “Lean” service: in defense of a production-line approach. International journal of service industry management, 9(3), 207-225.

Hanna, J. (2007). Bringing ‘lean principles to service industries. HBS Working Knowledge, 22, 1-2.

Mudie, P., & Pirrie, A. (2012). Services marketing management. Routledge.

Trinh, T. H., & Kachitvichyanukul, V. (2013).A unified framework for the design of service systems. International Journal of Services and Operations Management, 15(3), 374-388.