Page 173 - BA2 Integrated Workbook STUDENT 2018

Performance measurement

Performance measures in service

industries

So far we have focused largely on manufacturing. We will now look at issues with
performance measurement when dealing with service industries.

There is a wide variety of service organisations, ranging from private sector
organisations such as banks, hotels and courier services, to public sector
organisations such as hospitals and schools.

5.1 Features of service industries

 Intangibility. Services cannot be packaged for the customer to take away with
them.

 Variability. Each service is unique and cannot usually be repeated in exactly
the same way.

 Simultaneous production and consumption. Services are often created by
the organisation at the same time as they are consumed by the customer.

 Perishability. Services cannot be stored for later.

167