Determination of the Critical Success Factors of Philosophies, Techniques, and Tools for Continuous Improvement Applied in the Service Sector

Determination of the Critical Success Factors of Philosophies, Techniques, and Tools for Continuous Improvement Applied in the Service Sector

Karla F. Madrigal (Universidad Autonoma de Ciudad Juarez, Mexico), Erwin Martinez Gomez (Universidad Autonoma de Ciudad Juarez, Mexico), Salvador A. Noriega Morales (Universidad Autonoma de Ciudad Juarez, Mexico), Vianey Torres-Arguelles (Universidad Autonoma de Ciudad Juarez, Mexico) and Roberto Romero López (Universidad Autonoma de Ciudad Juarez, Mexico)
Copyright: © 2020 |Pages: 24
DOI: 10.4018/978-1-7998-1052-0.ch011

Abstract

At the global level, the service industry represents a critical component for the economy and its growth trend is above of the other sectors. This sector alone is responsible for 63% of the gross domestic product and 45.5% of labor occupation worldwide. Despite its role in modern economies, the sector receives very little attention. In the literature, the authors have found the efforts that have been made to increase the efficiency and productivity of this type of organizations: adapting philosophies, tools, and/or techniques that were born to achieve this goal in the manufacturing industry, such as Lean manufacturing, total quality management, six sigma, lean six sigma, among others. The objective of this study is to perform an exhaustive literature review of the critical success factors reported in diverse studies of the implementation of these tools or philosophies in the service sector, as well as their differences, similarities, and results.
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Introduction

In the last three decades there has been a continuous evolution of the services sector in the developed economies modifying the structure of employment and the generation of added value (Maroto Sánchez, 2010).

The services are the main income source of developed economies as well as the major employment generators (Piercy & Rich, 2009), representing 63% of the world´s gross domestic product. With regard to the gross domestic product generated by this sector, Table 1 shows the percentage that contributes to the gross domestic product of some of the most important economies in the world. As you can notice in this information, this sector also plays an important role in developing economies.

Table 1.
GDP by sector of origin
PPP GDP 2017AgricultureIndustryService
European Union1,6%25,1%70,9%
United States0,9%19,1%80,0%
China7,9%40,5%51,6%
India15,4%23,0%61,5%
Mexico3,6%31,9%64,5%

Source: https://www.cia.gov/library/publications/resources/the-world-factbook/fields/214.html#XX

Regarding generation of jobs, this sector represents 70% of the total in the developed economies (Maroto Sánchez, 2010).

The efficiency and the effectiveness are starting to grasp greater importance within the organizations of this kind (Suárez-Barraza, Smith, & Dahlgaard-Park, 2012), because these can be a key factor for the country’s growth and economic competitiveness.

Key Terms in this Chapter

Total Quality Management (TQM): It is a management practice that focuses on exceeding customer expectations.

Service Sector: It is the sector where the organizations that produce intangible goods are grouped.

Six Sigma (SS): It is a philosophy that focuses on the processes control to improve the efficiency of organizations.

Lean Services (LS): It is a philosophy that is based on the elimination of waste in the service sector.

Critical Success Factors (CSF): Elements that are needed so that the efforts in the implementations of methods are successful.

Lean Six Sigma (LSS): It is a philosophy that focuses on the elimination of waste and the processes control to improve the productivity of organizations.

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