ABSTRACT
This chapter helps to understand how important services are to most economies on a global basis. It identifies some of the complexities in defining and managing services. The chapter explains how services might actually be managed, in spite of these complexities. Many articles and texts make sweeping distinctions between manufacturing and service operations. The chapter argues that this is not always helpful when trying to manage operations. What provides better insight is in viewing manufacturing and service operations as collaborative activities in providing goods and services to customers. Once customers and suppliers engage in a transaction–both in consumer and business (B2B) settings–organizations must ensure that resources go into producing the services so that 'the moment of truth' that takes place in this contact is positive. The chapter focuses on specific service sectors in order to evaluate the application of the statement.
