Question

Many service industries link labor rate and time (quantity) standards with their processes. One example is the standard time to board an aircraft. The reason time plays such an important role in the service industry is that it is viewed as a competitive advantage: best service in the shortest amount of time. Although the labor rate component is difficult to observe, the time component of a service delivery standard is often readily apparent – for example, “Lunch will be served in less than five minutes, or its free.”

Required:

Select two service industries for your analysis. Identify and describe at least three time elements each industry uses to create a competitive advantage. Who should be held accountable if the time standard is not achieved?

Answer 1

Ans: Two service industries that uses service delivery standard

a) Online shopping sites- three time elements this industry uses to create a competitive advantage

1) by delivering product in less time to rule out the competition such as delivery in 2 hours

2) giving incentive if not delivered in time.

3) giving customer an option to select there time of delivery and giving incentive when time of delivery selected is other than heavy traffic time.

In case of time standard is not met the the personnel responsible for dispatch of goods is to be held responsible.

b) Rides in amusement park

1) giving more benefits then their competitors in the same price such as longer riding time on a ride in same price that of its competitor

2) longer stay time in the park as compare to their competitor.

3) lower time to stand in queue to get entry in the park

4) online ticket facility so the time wasted on taking ticket physically can be reduced.

In case of time standard is not met the the Curator or manager of the park is held responsible.