How can service businesses survive and prosper?

Given the competitive spirit of the service sector, the time has come for service businesses to recognize that they are really a part of a larger whole, and not merely unique, entrepreneurial entities unto themselves. In fact, the author of this article warns that if service businesses remain isolated from one another, their mortality rate will continue to rise. Through the use of a service matrix, the author shows how service businesses can broaden their professional relationships with other services that have similar operations and managerial challenges, and in so doing, gain the economic foothold needed to survive and prosper.     

Elements to organize the third place that promotes sustainable relationships in service businesses

Modernization, urbanization, and digitalization have made human lifestyles and culture increasingly more individualized. Common activities and mutual support by relatives and neighbors have been divided into individual ones and replaced by servitized economies, which have diluted social relationships. External services have satisfied functional needs, but have had little to do with sensitive human issues. That is why service communities and the third place have been recently focused on in service businesses.This paper proposes how the service business model can establish sustainable relationships between service providers and service receivers by introducing the third place into the service model.The third place is classified into four types, i.e., communication, private space, meaning focus, and knowledge focus types. We found five factors to effectively organize the third place through case studies i.e., shared space, shared objectives, shared time, self affirmation, and economic sustainability.These factors should promote a sustainable service model, which is quite material and effectively establishes the third place in communities to develop sustainable businesses.     

Veolia to sell USFilter businesses to refocus on long-term service contracts

Veolia Environnement is to sell USFilter’s consumer and commercial business, comprising Culligan and Everpure, and its equipment and industrial services operations, to focus on long-term operating contracts.This is a short news story only. Visit www.filtsep.com for all the latest filtration industry news.     

Quality versus productivity in service production systems: an organisational analysis

The study presents an organisational analysis into the linked issues of service productivity and perceived service quality. The operations management literature postulates that a trade-off exists between service productivity and perceived service quality, an assertion which is supported by evidence from managerial experiences and other academic researches. However, is it possible to prevail over the trade-off between productivity and perceived quality? Further, what is the effect of the trade-off on company profitability? To respond to these questions, a retrospective longitudinal study is performed, based on analysis of data collected from 52 offices of a major European banking group over the years 2010–2011. A first analysis verifies the existence of the trade-off. A second then examines the suitability of the employee incentive system intended to overcome the trade-off. Finally, a multiple linear regression model is developed in order to verify whether service productivity and perceived service quality impact on company profitability, and to what extent.     

Improving productivity of a multi-product machining line at a motorcycle manufacturing plant

This paper introduces a case study to improve productivity of a multi-product transmission case machining line at a motorcycle manufacturing plant. First, the manufacturing process is introduced to characterise the production flow. Through structural modelling, such a process is simplified through aggregations and transformed into a two-stage Bernoulli line model with split dedicated machines and finite buffers. Using Markov chain analysis, the system throughput can be estimated. The results are validated by plant data. To improve system productivity, through numerical experiments, we investigate the impacts of increasing machine efficiency, varying demands and implementing different loading policies. Such a study provides a quantitative tool for plant engineers and managers to improve production operations.     

Dana merges sealing businesses

Dana Corp, currently the ninth largest global supplier to the automotive industry, has consolidated the sealing companies within the group.This is a short news story only. Visit www.worldpumps.com for the latest pump industry news.     

Improving productivity by using strategic inventories: Theoretical issues and field results

The study investigated the effectiveness of a new proposed inventory control technique to improve materials productivity for make-to-order and/or assembly-to-order companies. This new model is designed to manage peaks of finished products market demand, allowing the operative working capital to be reduced. The model fits real-life manufacturing environments where a satisfactory level of return on investments in capital goods is a prerequisite. Furthermore, the model can face the changing external environment and the parameters upon which production system performances depend. This is particularly true when the control technique is required to react to a reduction of the delivery lead-time, which is commonplace of the majority of competitive markets. Finally, a multistage production system environment is analysed early and the applicability of the model in various real-life industrial environments is suggested. To this purpose, a set of case histories of Italian companies belonging to different branches of industry is reported.     

Estimating professional service productivity: theoretical model,empirical estimates and external validity

Productivity of professional service is difficult to measure, due to the high degree of customization, variable throughput time, and high degree of labor intensity. Using the complex design engineering for large construction projects as an example, this study reviews the common professional service productivity measurement problem of determining surrogate measures of inputs and outputs. This research was sponsored by the construction industry, and required a team of academic and construction executives to work closely to develop a procedure and a comprehensive empirical model for measuring engineering design productivity. The model addresses the complexity of productivity estimation arising from the interactions among the multiple outputs and variability of labor hours, both requiring surrogate measures. The mathematical model was statistically estimated using data from a large number of design engineering organizations. The statistical results and the model were externally validated in several organizations for their pragmatic usefulness. The proposed methodology is applicable to those service industries where there are high degrees of output variability and highly skilled professionals working to achieve complex objectives.     

Ionics restructures,consolidates Australian businesses

Water purification and wastewater treatment company Ionics Inc of Watertown, Massachusetts is to restructure and consolidate its Australian operations under Ionics Australasia Pty Ltd.     

The design of microcomputer applications for small businesses

This paper considers the special factors affecting the design and development of microcomputer-based applications for small businesses. It examines the techniques that are available for the design of such systems and discusses their use. The conclusion is reached that tools should be developed which allow owners/users to design their own systems more effectively than at present.