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M.Tech Industrial Engineering & Management 2012-14 Semester II

1. INTRODUCTION

Service sector is the lifeline for the social and economic growth of a country. It is the largest and

fastest growing sector contributing more to the global output and employing more people than anyother sector. The real reason for the growth of the service sector is an increase in urbanisation,

privatisation and more demand for intermediate and final consumer services. Services comprise

mostly a set of economic activities like transport, trade, tourism, communication, banking, insurance,

real estate, public administration and defence. The activities under the purview of the service sector

are quite diverse. The infrastructures including trading, transportation and communication, financial,

real estate and business services, community, social and personal services come within the gambit of

the service industry.

Transport is an important infrastructure in the economy of India. It assumes a greater role in

developing countries since all the sectors of the development are closely dependent upon the

existence of suitable transportation network. The whole structure of industry and commerce rests on

the well laid foundation of transportation. Thus, an effective transport system is a pre-requisite for

economic development of a country. The evident economic growth in India over the last two decades

has increased demand for all transport services, particularly land transport through road and rail. The

development of railways is one of the landmarks in the progress of human civilisation.

Indian ailways owned a total route length of !",### kilometres, $,%!,&%& wagons, '(,$!' coaches,

&,&'( locomotives and runs about a total of %$,### passenger trains and &,### freight trains daily. It

carries nearly $' million passengers every day and transports over $.!) million tonnes of freight

daily. The *ead +uarters of the Indian ailways is in ew elhi. Indian ailways is controlled by

the overnment of India through the /inistry of ailways. 0t present, there are %& 1ones and !2

divisions in the Indian ailways. Indian ailways has identified model stations for the provision ofupgraded passenger amenities. Some of the stations have been identified for provision of certain

3touch and feel items4 to transform them into modern stations in order to bring about visible

improvements at stations.

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3. BACKGROUND RESEARCH

In economics, a service is an intangiblecommodity. That is, services are an example of

intangible economic goods. Service provision is often an economic activity where the buyer does notgenerally, except by exclusive contract, obtain exclusiveownershipof the thing purchased. The

benefits of such a service, if priced, are held to be self-evident in the buyerAs willingness to pay for it.

5ublic services are those societies 6nation state, fiscal union, and regional7 as a whole pays for

through taxes and other means.

3.1. SERVICES; DEFINITION

The generic clear-cut and complete, concise and consistent definition of the service term reads as

follows>

0 service is a set of one time consumable and perishable benefits

delivered from the accountable service provider, mostly in close coactions with his internal

and external service suppliers,

effectuated by distinct functions of technical systems and by distinct activities of individuals,

respectively,

commissioned according to the needs of his service consumers by the service customer from

the accountable service provider,

rendered individually to an authori1ed service consumer at hisBher dedicated trigger,

and finally, consumed and utili1ed by the triggering service consumer for executing hisBher

upcoming business activity or private activity.

3.2. CHARACTERISTICS

%. Intangibility

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http://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Ownershiphttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Commodityhttp://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Ownership


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Services areintangibleand insubstantial> they cannot be touched, gripped, handled, looked at,

smelled, and tasted. Thus, there is neither potential nor need for transport, storageor stocking of

services. Curthermore, a service can be 6re7sold or owned by somebody, but it cannot be turned over

from the service provider to the service consumer. Solely, the service delivery can be commissioned

to a service provider who must generate and render the service at the distinct request of an authori1ed

service consumer.

$. Inventory 65erishability7

Services have little or no tangible components and therefore cannot be stored for a future use.

Services are produced and consumed during the same period of time.

Services are perishable in two regards

The service relevant resources, processes and systems are assigned for service delivery

during a definite period in time. If the designated or scheduled service consumer does not

request and consume the service during this period, the service cannot be performed for him.

Crom the perspective of the service provider, this is a lostbusiness opportunityas he cannot

charge any service deliveryD potentially, he can assign the resources, processes and systems

to another service consumer who requests a service.

?hen the service has been completely rendered to the requesting service consumer, this

particular service irreversibly vanishes as it has been consumed by the service consumer.

'. Inseparability

The service provider is indispensable for service delivery as he must promptly generate and render

the service to the requesting service consumer. In many cases the service delivery is executed

automatically but the service provider must preparatory assign resources and systems and actively

keeps up appropriate service delivery readiness and capabilities. 0dditionally, the service consumer

is inseparable from service delivery because he is involved in it from requesting it up to consuming

the rendered benefits.

". Inconsistency 6@ariability7

http://en.wikipedia.org/wiki/Intangible_assethttp://en.wikipedia.org/wiki/Intangible_assethttp://en.wikipedia.org/w/index.php?title=Insubstantial&action=edit&redlink=1http://en.wikipedia.org/wiki/Warehousehttp://en.wikipedia.org/wiki/Business_opportunityhttp://en.wikipedia.org/wiki/Intangible_assethttp://en.wikipedia.org/w/index.php?title=Insubstantial&action=edit&redlink=1http://en.wikipedia.org/wiki/Warehousehttp://en.wikipedia.org/wiki/Business_opportunity


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8ach service is unique. It is one-time generated, rendered and consumed and can never be exactly

repeated as the point in time, location, circumstances, conditions, current configurations andBor

assigned resources are different for the next delivery, even if the same service consumer requests the

same service. /any services are regarded as heterogeneous or lacking homogeneity and are typically

modified for eachservice consumeror each new situation 6consumerised7.

). Involvement

Ene of the most important =haracteristic of services is the participation of the customer in the

service delivery process. 0 customer has the opportunity to get the services modified according to

specific requirement. 8ach of these characteristics is retractable per se and their inevitable

coincidence complicates the consistent service conception and makes service delivery a challenge in

each and every case. 5roper service marketing requires creative visuali1ationto effectively evoke a

concrete image in the service consumerAs mind. Crom the service consumerAs point of view, these

characteristics make it difficult, or even impossible, to evaluate or compare services prior to

experiencing the service delivery.

/ass generation and delivery of services is very difficult. This can be seen as a problem of

inconsistentservice quality. Foth inputs and outputs to the processes involved providing services are

highly variable, as are the relationships between these processes, making it difficult to maintain

consistent service quality. Cor many services there is labour intensity as services usually involve

considerable human activity, rather than a precisely determined processD exceptions

includeutilities.*uman resource management is important. The human factor is often the key

success factor in service economies. It is difficult to achieveeconomies of scaleor gain

dominantmarket share. There are demand fluctuations and it can be difficult to forecast demand.

emand can vary by season, timeof day,GBHJKLMNO9PQRRUVWXY-Zv[.S\]^[Uxk_

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http://en.wikipedia.org/w/index.php?title=Service_consumer&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Service_consumer&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Service_consumer&action=edit&redlink=1http://en.wikipedia.org/wiki/Creative_visualizationhttp://en.wikipedia.org/w/index.php?title=Service_consumer&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Service_consumer&action=edit&redlink=1http://en.wikipedia.org/wiki/Mass_generationhttp://en.wikipedia.org/wiki/Service_qualityhttp://en.wikipedia.org/wiki/Service_qualityhttp://en.wikipedia.org/wiki/Public_utilityhttp://en.wikipedia.org/wiki/Public_utilityhttp://en.wikipedia.org/wiki/Human_resource_managementhttp://en.wikipedia.org/wiki/Human_resource_managementhttp://en.wikipedia.org/wiki/Economy_of_scalehttp://en.wikipedia.org/wiki/Economy_of_scalehttp://en.wikipedia.org/wiki/Market_sharehttp://en.wikipedia.org/wiki/Market_sharehttp://en.wikipedia.org/wiki/Demand_curvehttp://en.wikipedia.org/wiki/Demand_curvehttp://en.wikipedia.org/wiki/Seasonhttp://en.wikipedia.org/wiki/Timehttp://en.wikipedia.org/wiki/Timehttp://en.wikipedia.org/wiki/Busi7%EF%86%8D%C2%A9%C2%A2%E2%80%9E%C3%81%20%C2%A0%C3%86%E2%82%AC%C3%8D3%03%C3%B2%04%1C%C3%94%E2%80%9C%C2%ACt%19%C3%90%C3%91O%C3%9A%7D%1D%C2%B6%C3%A9%C3%AAhttp://en.wikipedia.org/wiki/Busi7%EF%86%8D%C2%A9%C2%A2%E2%80%9E%C3%81%20%C2%A0%C3%86%E2%82%AC%C3%8D3%03%C3%B2%04%1C%C3%94%E2%80%9C%C2%ACt%19%C3%90%C3%91O%C3%9A%7D%1D%C2%B6%C3%A9%C3%AAhttp://en.wikipedia.org/wiki/Busi7%EF%86%8D%C2%A9%C2%A2%E2%80%9E%C3%81%20%C2%A0%C3%86%E2%82%AC%C3%8D3%03%C3%B2%04%1C%C3%94%E2%80%9C%C2%ACt%19%C3%90%C3%91O%C3%9A%7D%1D%C2%B6%C3%A9%C3%AAhttp://en.wikipedia.org/w/index.php?title=Service_consumer&action=edit&redlink=1http://en.wikipedia.org/wiki/Creative_visualizationhttp://en.wikipedia.org/w/index.php?title=Service_consumer&action=edit&redlink=1http://en.wikipedia.org/wiki/Mass_generationhttp://en.wikipedia.org/wiki/Service_qualityhttp://en.wikipedia.org/wiki/Public_utilityhttp://en.wikipedia.org/wiki/Human_resource_managementhttp://en.wikipedia.org/wiki/Economy_of_scalehttp://en.wikipedia.org/wiki/Market_sharehttp://en.wikipedia.org/wiki/Demand_curvehttp://en.wikipedia.org/wiki/Seasonhttp://en.wikipedia.org/wiki/Timehttp://en.wikipedia.org/wiki/Busi7%EF%86%8D%C2%A9%C2%A2%E2%80%9E%C3%81%20%C2%A0%C3%86%E2%82%AC%C3%8D3%03%C3%B2%04%1C%C3%94%E2%80%9C%C2%ACt%19%C3%90%C3%91O%C3%9A%7D%1D%C2%B6%C3%A9%C3%AA


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The data collected from the sample passengers regarding their level of awareness towards the

services provided by the Indian ailways are classified, tabulated and processed for factor analysis

which is the most appropriate multivariate technique to identify the group of determinants.

Cactor 0nalysis is a method of summarising the information contained in a number of original

variables into a smaller set of new composite dimensions. In this study, all the $) statements rated by

the passengers are taken up for analysis. The factor analysis is preceded with the computation of

correlation matrix. The matrix reveals the extent of relationship among the factors. Curther, Fartlett4s

test of sphericity and }aiser-/eyer-Elkin 6}/E7 measure of sampling adequacy are applied to the

resultant correlation matrix to test the significance of the relationship among the variables.

The Fartlett4s test of sphericity is used to test whether the correlation matrix is an identity matrix. 0n

identity matrix is one where all the diagonal terms in the matrix are % and the off diagonal terms inthe matrix are #. The }/E measure of sampling adequacy test is based on the correlations and

partial correlations of the variables. If the }/E measure is more than #.), the factor analysis can be

employed. The findings of }/E and Fartlett4s test are shown in Table ".

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It is found from the Table " that the test value is $&!2.&! at % level of significance. 0s the

significance level is so small, it is clear that the correlation matrix is not an identity matrix. It implies

that there exists correlation between the variables. It is also revealed that the value of test statistic is

#.2$( which is more than #.). This indicates that the factor analysis for the selected variables is

appropriate to the data. The 5rincipal =omponent 0nalysis has been used to extract the factors since

the obective is to summari1e most of the original information in a minimum number of factors for

prediction purpose. 0 5rincipal =omponent 0nalysis is a factor model used to transform a set of

correlated factors into a set of uncorrelated factors so that the factors are unrelated and the variables

selected for each factor are related. The variances extracted by the factors are called 8igen values.

The total variance by successive factors is shown in Table ).

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loadings which indicates the weight assigned to each factor. 0lthough the factor matrix indicates the

relationship between the factors and the individual variables, it is difficult to identify meaningful

factors based on this matrix. To identify the factors that meaningfully summari1e the sets of closely

related variables, the rotation of the factor matrix is made. Eblique rotation is one of the popular

methods which is used in the study to simplify the factor structure and extract meaningful factors.

The otated Cactor /atrix using oblique rotation is shown in Table &.

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0fter determining the common factors, factor score co-efficient is calculated for all variables as each

factor is a linear combination of all variables. It is then used to estimate factor scores for each

individual. The original values of the variables are retained for further analysis and factor scores are

obtained by adding the values of the respective variables for that particular factor for each

respondent.

The $) variables are thus reduced to & factors. etails are shown in Table 2.

T!: v. Fk Ig:kZZ:g AZk Skk::k R:kZ k A%:: ^::

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=oach indication board

Cactor %

=ommunication and retiring

services

5latform indication board0ssistance of TT8 B =oach attender

5ublic address system5latform ticket vending machineFoard showing train detailsetiring roomsEn-line reservation

Cactor $ eservation knowledgeTouch screenTatkal scheme5antry car inside the train Cactor ' =atering services5urified drinking water facility

Cactor " tility services5orter serviceCirst aid

nreserved ticketing systemrievance redressal cellefund of ticket fare

Cactor ) Ticketing and faresCare concessionInteractive telephone enquiry system5rovision of wheel chair

Cactor ! Special servicesSpecial compartment forladiesBarmyBdisabled0vailability of complaint book=loak room

Cactor & /iscellaneous servicesSecurity camerasFed rolls

Table 2 shows that the Cactor % is =ommunication and retiring services which comprises of variables

like coach indication board, platform indication board, assistance of TT8 B coach attender, public

address system, platform ticket vending machine, board showing train details and retiring rooms.

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The Cactor $ is eservation knowledge which comprises of on-line reservation, touch screen and

tatkal scheme. It gives knowledge on reservation aspects of train travel. The Cactor ' is catering

services which focus on the pantry car facility inside the train. The Cactor " deals with tility

services comprising of variables like porter service, purified drinking water facility, first aid, cloak

room and grievance redress cell.

The Cactor ) is Ticketing and fares. It includes refund of ticket fare, fare concession and interactive

telephone enquiry system. The Cactor ! is Special services which cover provision of wheel chair to

physically challenged people, special compartment for ladies B army men B disabled and availability

of complaint book. The Cactor & is /iscellaneous services like unreserved ticketing system, security

cameras and provision of bed rolls.

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. SUGGESTIONS

In the light of the findings of the study, the following suggestions have been made to increase the

level of awareness of the railway passengers regarding the services offered to them.

It is found that &!." of the sample passengers have low level of awareness about the services

offered by the Indian ailways. *ence, it is suggested that the /inistry of ailways should take all

possible steps to propagate the various services provided to the passengers by keeping adequate

index boards and bulletin boards in all possible places like rest room, at the entrance, ticket counter,

passengers4 lounge and platform. It may enable the passengers to know about the facilities provided

by the Indian ailways.

It is suggested that announcements could be made quite often regarding the services provided by

the Indian ailways. Fy doing so, the level of awareness of the passengers about the services can be

improved to the fullest extent.

?hile examining the association between independent variables and level of awareness, it is found

that there is a significant association between annual individual expenditure, class of travel, mode of

ticket reservation and level of awareness of the passengers. *ence, it is suggested that the /inistry

of ailways must create awareness among the passengers regarding various services offered to them

in various classes of travel by printing them on their ticket. It will enable the passengers to choose

their class of travel based on the amenities available to them and their level of expenditure.

Curther, it is also suggested that awareness has to be created among the passengers regarding the

procedures involved in the mode of ticket reservation either at station counter or through agent or

internet. It will facilitate the passengers to reserve their tickets easily in advance to their travel.

The public may be created awareness through rallies by voluntary organisations or by issuing

pamphlets and through placards regarding the safety measures to be adopted while travelling in train

as well as in the railway track. This will enable to avoid unnecessary accidents in future.

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v. REFERENCES

B g

%. @ishnuvarthani, S and Selvara, 0., 6$#%'7, :ailway 5assengers4 0wareness En Services> 0

Study In Salem ivision Ef Southern ailway

lilu report

Documents