How the Production Line Approach to Service Has Been Applied to a Particular Sector of the Hospitality Industry - Essay Example

Introduction The production line approach to the service industry is a management approach that was originally used in the manufacturing sector. Audrey Gilmore quotes Sasser and Arbeit (1976) who describe this as a ‘low risk/ high return’ mode of managing that enables the industry to ‘streamline and control service delivery.’ In this approach, the managers design the systems while employees execute activities; work is standardised and allows for consistent work patterns and outcomes (p.127). The production line approach pertains to the capability of the organization in perfecting the point of interface between the customer and the service provider. Theodore Levitt maintains that ‘discretion is the enemy of order, standardization, and quality.’ (p. 65) He supports the production line of approach to service by stating that …thinking in humanistic rather than technocratic terms ensures that the service sector of the modern economy will be forever inefficient and that our satisfactions will be forever marginal… to improve the quality and efficiency of service, companies must apply the kind of technocratic thinking which in other fields has replaced the high-cost and erratic elegance of the artisan with the low-cost, predictable munificence of the manufacturer. (p. 63) Lashley, Lynch and Morrison strongly differ from this view as they feel that this approach to hospitality opposes the very tenets of ‘…diversity and differentiation, enchantment and humanization (sic)’ (p.133) on which the industry is based. They argue against the McDonaldisation of the hospitality industry that fails to serve the very individual needs of the patrons. What does the customer at a fast food outlet expect? Hygiene, speed, consistent food quality, flexibility of food options and a correctly served order are basic requirements that fast-food outlets seek to satisfy. The production line approach was popularised by fast food outlets that promised customers with predictable food taste within fixed time limits. To meet this promise and the concurrent high expectation, it became imperative for the internal processes to be streamlined to provide excellent service within the expected time frame. Each culinary process had to be studied and broken down into its component processes. The scientific study of processes became the base for ergonomic kitchen and job design. McDonalds is an example of a fast-food chain that has successfully implemented this approach and standardised the service level across its global franchise network. Consumers can safely expect to experience the same taste within a reasonable time regardless of the location of the outlet. This approach has been increasingly used in the service industry to increase process efficiency and reduce waste and customer dissatisfaction caused by human error. This approach has been profitably applied across the service industry to provide greater service efficiency at reduced cost. Impact of production line approach to service The practices of the manufacturing industry are believed to be superior to those in the hospitality industry. Payne highlights that ‘manufacturing firms tend to use significantly more employee-involvement practices than do service firms. Manufacturing firms use quality circles, participation groups… (p.150). Nankervis points out that in the manufacturing firm, the front line are better equipped to engage with the customer. The front line is knowledgeable about the product and can ably offer product features as solutions that meet the customer’s need. It has been argued that the McDonaldisation of the hospitality industry leads to transactional interactions with service providers putting up a masquerade of friendly behaviour and barely managing to hide the ulterior profit motive. Fast-food restaurants provide limited scope for interaction and tend to focus on a transactional communication between the service provider and guest. Hospitality, it is argued is expected to provide individual service with an attitude of servility. The desire to please the patron is replaced by a speed of movement that suggests a preference for getting the transaction completed rather than ensuring a pleasant customer interaction. Unlike the manufacturing industry, the production line approach to service leads to reduced thinking and skill levels of the practitioners in the hospitality industry. Does this lead to an unhappy consumer? A person who looks to eat a quick meal will prefer the speed of a fast food restaurant while the intention of lunch with a person for creating an impression will lead the consumer to prefer a better restaurant with more personalised services. However, personalised service that depends on individual craft is prone to inconsistent outputs. The restaurant of preference provides service support based on the same tenets as that of the fast-food restaurant. The degree of personal interaction is limited by set guidelines. Global fast-food outlets have been successful in replicating the customer experience with the use of the production line approach accompanied by a need to upgrade all serving members to a similar level of process expertise. Changing customer preferences An observation of the working of the fast-food industry displays the efficacy of the production line approach. The earlier customer who was happy to unquestioningly accept the output from a fast-food outlet has been replaced by questioning customers. The customer is aware of the ills of consuming trans-fats and wants to see more greens on the plate. The connection between serious diseases and excess consumption of fast-foods has put pressure on the industry to change its offering. Peter Jones has highlighted the industry response to the changing demand with the example of the introduction of salads and organic sandwiches at fast food cafes. Fast food outlets highlight the fact that trans-fats are not in use for fried items due to customer pressure against its use. Primary research A survey carried out on 50 customers of a fast food franchise highlighted the fact that the need for predictable service and product quality within set time limits are the important factors in choosing this form of service. 46% disagreed that a more personalised approach would attract them to the outlet more often while 3% agreed with this. 48% felt that they were more likely to visit a fast-food outlet at the end of a workday while 26% responded that they were likely to exercise this option on weekends. The choice was unaffected by the presence of lack of personalised service. 78% of the respondents felt the presence of a personalised approach was unlikely to attract them to a particular outlet. A survey of the employees in the fast food restaurant highlighted the fact that cross-training ensured equal capabilities among staff members and increased the sense of empowerment when handling a task. This was in direct contradiction with the fear that the production line approach led to under-utilisation of skills of the workforce. The growing trend of health awareness has led to increased customer queries about the use of trans-fats in food preparation and requests for low calorie food options. This was a comment supported by 84% of frontline staff of the fast food outlet. Neither consumer nor service provider felt the need for more personalised service. 76% of the staff maintained that an error in the order led to greater dissatisfaction than the absence of a personal approach. Errors were contained by the production line approach. Mayle suggests that there is limited scope for Staff Empowerment in the fast food sector limited to only suggestions and he visualises a possibility of almost complete replacement of human staff by machines, as in ATMs. This impression is not brought out in the survey. The franchise outlet has chosen to bring all the staff to similar levels of competence to allow for substitution during emergencies. Machines will not be able to manage indecisive and young customers who need help in making a choice. The fast food restaurants focus their marketing efforts on the current fads and trends of the youth market. The youth market places less value on the food consumed and more on the gift that represents a current preference of the age. The production line approach does not hinder the ability to cater to changing market demand. Market segments refer to a firm’s strategic focus. Ashkanasy reveals that there are eight market segments and the fast food industry caters to the segment that has a high expectation on speed, ‘responsible, reliable and offering quick service that meets promised deadlines.’ (p.33) Assessment of the future of the approach The business environment is predictable in the fast food industry. Payne and others opine that ‘Fast-food restaurants… operate in stable environments. Operations are fairly fail-safe; customer expectations are simple and predictable’ (p.151). The production line approach to service is here to stay. Speed continues to be of essence in the fast food industry. Speed coupled with quality and hygiene minimises the scope of providing consumable offerings to suit different palates and requires the possibility of introducing new cuisines that can be worked into the production line approach. Mayle’s insight that ‘customers… are only concerned that the service is of the standard they expect… they will go to a fast-food restaurant that will provide a speedy meal…’ (p.133) highlights the relevance of the approach under discussion. References Ashkanasy, Neal M. 2003, Handbook of Organizational Culture and Climate, SAGE Clarke, Alan & Chen, Wei 2007, International Hospitality Management: Concepts and Cases, Butterworth-Heinemann Gilmore, Audrey 2003, Services Marketing and Management, SAGE Jones, Peter 2002, Introduction to Hospitality Operations: An Indispensable Guide to the Industry, Cengage Learning EMEA Lashley, Conrad, Lynch, Paul & Morrison, Alison 2006, Hospitality: A Social Lens, Elsevier Lashley, Conrad & Morrison, Alison J. 2001, In Search of Hospitality: Theoretical Perspectives and Debates, Butterworth-Heinemann Levitt, Theodore 2006, Ted Levitt on marketing, Harvard Business Press Mayle, David 2006, Managing Innovation and Change, SAGE Nankervis, Alan R. 2005, Managing services, Cambridge University Press, Payne, Adrian, Chartered Institute of Marketing, Christopher, Martin, Peck, Helen, Clark, Moira 1998, Relationship Marketing for Competitive Advantage: Winning and Keeping Customers, Butterworth-Heinemann Williams, Alistair 2002, Understanding the Hospitality Consumer, Butterworth-Heinemann Read More