Can services be delivered by means of process operations? Support your answer with an example.
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Top comments (1)
A process operation is the workflow system where identical things are produced in a continuous process. The cost cannot be traced in this process to each product. Process costing is useful in place where production is done through one or more process. The cost of each unit is an average of total cost included in all process divided by the units produced.
Yes, services can also be delivered through the process flow operations. The work in a service industry can also divided into different individual processes or units and the work flows between them in coordinated manner. For Example a fast food restaurant, people have their responsibilities like cleaning, serving, chopping vegetables, billing etc. The work flows between them in a coordinated manner. Similarly, they also have standardized deliverance as quality service and a pre-determined standardized product on their menu.
Service industry has homogenous and repetitively produced product or service as an offerenings and hence can be called as using Process operations. Say, in an airlines industry, some employees deal with ticketing, some are engaged in baggage handling, others as airhostess etc. Everyone has homogenous nature of work and is repetitive in nature. Hence with these 2 examples, I would conclude that, like manufacturing industry, service industry also works in Process Operations System.