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- W1569192466 abstract "ABSTRACT Over past 25 years, America has migrated from an industrial economy toward information, technology and service. The shift is well documented by various statistics regarding declining balance of manufacturing exports-to-imports, declining manufacturing employment and declining direct labor content within goods, as well as through transformation of Dow Jones Average components. The production/operations management discipline has been slow to respond. Since 1992, only smallest percentage of academic articles in leading production/operations management journals have been devoted to service operations. Textbook content reveals only weakest trend to alter classic manufacturing paradigm toward services. Accordingly, this paper hypothesizes that basic quality concepts embedded within production/operations management body of knowledge have been slow to transfer into service sector. The survey instrument, involving 126 service corporations across 32 industries, enjoyed a 91% response rate. The results find that overall degree of knowledge in service sector is very low. Many of resulting means placed within lowest quartile of Likert scale. The authors hope that this paper and evidence will effectively serve as a call for production & operations management academics to more aggressively shift their discipline perspective toward services. THE RISE OF SERVICE AND THE DISCIPLINE PERSPECTIVE Over past twenty-five years, America has migrated from an economy based upon industrial and manufacturing activity toward an economy, to great extent, based upon information, technology and service--in agreement with prophetic 1980 perspective of futurist Alvin Toffler (1980). There is little doubt that service sector has now all but replaced dominance of manufacturing sector within American By 1990, service accounted for 72% of U.S. Gross National Product (U.S. Bureau of Economic Analysis, 1991) and accounted for 70% of American employment (Schmenner, 1995). Employment in manufacturing sector began a rapid decline during late 1990s, with 3 million jobs lost between 2000 and 2003, that being one-sixth of total manufacturing sector (Anonymous, 2003a, 2003b) , while number of Americans employed in service continues to increase (Stevenson, 1996). The American economic shift away from manufacturing toward service is also well documented with various other economic statistics regarding declining balance of manufacturing exports-to-imports, declining manufacturing employment and declining direct labor content within goods. Perhaps even more persuasive evidence of American economic shift from manufacturing toward service in last twenty-five years is found within composition of thirty component corporations of Dow Jones Industrial Average (DJIA); during that time, component basis of DJIA has steadily moved toward service. Table 1 displays a number of significant changes evidencing trend (Dow Jones & Company, 2004; Shell, 2004). According to a recent USA Today article (Shell, 2004), 1999 changes represented point at which the stodgy index that once tracked smokestack economy went 'new economy.' The article also states that International Paper was expelled because basic materials matter less in today's information-based economy. In addition, other long-standing DJIA component corporations such as IBM and Honeywell have clearly shifted a significant percentage of their core business into service sector. With similar perspective, Fortune magazine stopped distinguishing between service and manufacturing within its Fortune 500 list during 1990s. The rise of service is also evidenced throughout much of industrialized world as well, representing nearly 70% of civilian labor force in Canada, Australia, France and Netherlands and nearly 50% in Germany, Japan and Italy (U. …" @default.
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- W1569192466 date "2004-01-01" @default.
- W1569192466 modified "2023-09-24" @default.
- W1569192466 title "Production & Operations Quality Concepts: Deficient Diffusion into the Service Sector" @default.
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