The Focused Factory in Service Industry

Abstract

The concept of the focused factory is well known and accepted in manufacturing industries. It is argued that the same concept can and should be applied in service industries as well. The differences between a service and manufactured product, however, cause some specific problems with respect to focusing. These problems are the variance among firms within a certain service sector, customer participation, the variability of customer needs, the need for consistency among the various elements of the service encounter, and the difference between the front and the back office. Some recommendations are made to cope with these problems.