The Creation of Output and Quality in Services: A Framework to Analyze Information Technology-Worker Systems

• Published in: Production and operations management Vol. 13; no. 3; pp. 245 - 259
• Main Authors: Napoleon, Karen, Gaimon, Cheryl
• Format: Journal Article
• Language: English
• Published: Oxford, UK Blackwell Publishing Ltd 01.09.2004; SAGE Publications; Blackwell Publishers Inc
• Subjects: Banking; Cost control; Customer services; flow shop; Industrialized nations; Information technology; Inventory; job shop; Job shops; Manufacturing; Materials management; Mathematical models; Operations management; Production functions; Productivity; Profits; service operations; services; Studies; worker skill; Workers; flow shop; job shop; service operations; services; worker skill; information technology
• ISSN: 1059-1478; 1937-5956
• DOI: 10.1111/j.1937-5956.2004.tb00509.x

Information technology has profoundly impacted the operations of firms in the service industry and service environments within manufacturing. Two models are introduced that establish a conceptual framework linking firm profit to attributes of the IT‐worker system. The framework considers the impact of IT capabilities (such as functionality and ease‐of‐use) and worker skill as drivers of output volume and quality. The framework contrasts attributes of the IT‐worker systems when services are mass‐produced (flow shop) versus customized (job shop). Mathematical models are introduced to formalize the conceptual framework. Numerical examples are presented that illustrate the types of insights that can be obtained from the models.