Productivity Measurement in Service Operations: A Case Study from the Healthcare Environment

3074 Words Mar 8th, 2011 13 Pages
Celebrate and record Productivity measurement in service operations: a case study from the healthcare environment
Atul Gupta

The author Atul Gupta is a member of the Division of Professional Studies, The Richard Stockton College of New Jersey, Pomona, New Jersey, USA. Abstract Examines the issue of productivity measurement in service operations. Proposes a dynamic model for productivity measurement in service operations. This model is based on the idea that the intangible output for service operation is the quality of their services and the input is the level of skill of their employees. Both the skill level and the quality are measured on the same scale. Bases the measurement of service quality on the five dimensions suggested by
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For example: • The intangibility of services precludes the stockpiling and counting of finished goods inventory. • Productivity measures the capability to meet demand not the sales. A manufacturer has no difficulty in separating the two factors; products are made in anticipation of demand, so production and demand are decoupled to a certain extent. But, in service operation the delivery system typically must accommodate simultaneous production and consumption. Consequently attempts to measure the output in terms of units sold in a shop, or meals served in a restaurant, mixes both a production measure and a demand measure in a way that makes it difficult to quantify. • Even if the traditional measures of productivity for service operations are considered, one question that still remains unanswered is: What should we measure as input and output respectively? Our experience with the service organization has shown that the majority of service organizations still use production surrogates such as, number of customers served for output, and time consumed to serve customers as input. We believe that, owing to the intangible nature of service operations, one-dimensional measurement will not be appropriate. The intangible nature of service adds to the complexity of measurement, requiring a multi-dimensional analysis. 32

Methodology This study described here was conducted at a 934-bed not-for-profit

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