Critical Success Factors of Continuous Improvement Tools in Service Industry

KF Madrigal Estrada, E Martínez Gómez, V Torres-Arguelles and E Beltrán Salomón

Department of Manufacturing and Industrial Engineering. Autonomous University de Ciudad Juárez,

Ciudad Juárez, México

Corresponding author's Email: kmadrigal@uabc.edu.mx Author Note: Karla Madrigal and Erika Beltrán are Ph.D. students enrolled in the program Doctorate in Technology at the Autonomous University of Ciudad Juarez. Erwin Martínez G. is a professor and researcher on Engineering and Technology Institute of the Autonomous University of Ciudad Juárez. His actual work is related to the determination of critical success factors for Six Sigma in the high technology industry in Ciudad Juarez, Mexico. Other areas of specialty include strategic planning, quality improvement, and simulation of manufacturing systems. Vianey Torres-Argüelles, works like Professor and researcher on Engineering and Technology Institute of the Autonomous University of Ciudad Juárez. Since 2011 is a member of de National System of Researchers (SNI). Her work is related to the analysis of the complex system using the tools of Fractal Geometry, and links multidisciplinary areas, from natural to technological systems, with emphasis on the characterization of the basic attributes of the systems under study. Abstract: The service sector represents a critical component of the world economic development. This sector accounts for the 58% of the world´s gross domestic product, however, its productivity is far below when compared to that of the manufacturing industry. In order to increase their efficiency, the organizations within this sector employ diverse tools or philosophies or both, for instance; total quality management, lean manufacturing, six sigma, among others, all of these developed for the manufacturing industry but then adapted to the service industry with the purpose of increase their productivity. 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. Keywords: critical success factors, service sector, continuous improvement.

1. Introduction

The services are the main income source of developed economies as well as the major employment generators (Piercy & Rich, 2009), representing 58% of the world´s gross domestic product. At the dawn of the new millennia, jobs related to the services sector in the United States represented 79% out of the total (Dos, Leite, & Vieira, 2015). Similarly, in Mexico according to from data provided from INEGI, this sector employs 71.2% from the economically active population. Furthermore, this sector has seen an important growth over the last two decades, hence, 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 countries growth and economic competitiveness. Regardless of the importance of this sector for the world economy, the services quality does not meet the level required by customers (Piercy & Rich, 2009). Therefore the productivity in this sector is far below when compared to that of the manufacturing industry, e.g. in the 1981 – 1990 period the growth factor of the services sector was 0.1% yearly compared to the 3% of the manufacturing industry (Suárez-Barraza, Smith, & Dahlgaard-Park, 2012).

On the other hand, globalization represents a challenge for the survival of every organization of any kind because of the intense competition, consequently, they are searching new approaches to improve efficiency as well as to remain as market leaders. These organizations are faced with different challenges for instance; cost reduction, quality improvement, flexibility for changes, delivery time reduction, among others, all of which obliges organizations to innovate the way how they execute their processes. The manufacturing industry has been the pioneer to face these challenges (Hadid & Afshin Mansouri, 2014). Thus, they have invested in the systemic exploration of process improvement opportunities, cost reduction, and efficiency improvement. As a result, numerous innovative tools and philosophies have been developed (De Koning, Does, & Bisgaard, 2008). Philosophies and methodologies based on continuous improvement, in quality, and also in productivity, for instance:

Proceedings of the 6th Annual World Conference of the Society for Industrial and Systems Engineering, Herndon, VA, USA October 19-20, 2017

ISBN: 97819384961-0-3 184