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

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 any other 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 of upgraded 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.
Rajiv Gandhi Institute ! Techn l g"# $ tta"am
M.Tech Industrial Engineering & Management 2012-14
Semester II
2. LITERATURE REVIEW
5aul S. .oldner 6$##!7 .rigoroudis, 8 and Siskos, 9 6$##(7 defines, :;a customer is any organi1ation or individual with which you have done business over the past twelve months<. :=ustomer means the party to which the goods are to be supplied or service rendered by the supplier<. 5rovide definition for 3customer4 upon two approaches> ?ith reference to loyalty, :0 customer is the person that assesses the quality of the offered products and services< and on process oriented approach, :the customer is the person or group that receives the work output<. Satisfaction has been broadly defined by @avra, T... 6%((&7 as a satisfactory post-purchase experience with a product or service given an existing purchase expectation. *oward and Sheth 6%(!(7 0ccording to ?estbrook and eilly 6%(2'7define satisfaction as, :The buyer4s cognitive state of being adequately or inadequately rewarded for the sacrifices he has undergone<. =ustomer satisfaction is :an emotional response to the experiences provided by, associated with particular products or services purchased, retail outlets, or even molar patterns of behaviour such as shopping and buyer behavior, as well as the overall market place<.
Semester II
3. BACKGROUND RESEARCH
In economics, a service is an intangible commodity. That is, services are an example of intangible economic goods. Service provision is often an economic activity where the buyer does not generally, except by exclusive contract, obtain exclusive ownership of 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
Semester II
Services are intangible and insubstantial> they cannot be touched, gripped, handled, looked at, smelled, and tasted. Thus, there is neither potential nor need for transport, storage or 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 lost business opportunity as 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
Semester II
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 each service consumer or 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 visuali1ation to 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 inconsistent service 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 include utilities. *uman resource management is important. The human factor is often the key success factor in service economies. It is difficult to achieve economies of scale or gain dominant market share. There are demand fluctuations and it can be difficult to forecast demand. -emand can vary by season, time of day, GBHIJKLMNO9PQRSTRUVWXY-Zv[.S\]^[Uxk_
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It is found that hypothesis relating to gender, age, educational status, marital status, si1e of the family, occupational status, annual income, frequency of travel, purpose of travel and mode of buying ticket have been accepted and the hypothesis relating to annual expenditure, class of travel and mode of ticket reservation have not been accepted. Curther, the C - test and - test reveals that the hypothesis relating to gender, age, educational status, marital status, occupational status, frequency of travel, purpose of travel, class of travel and mode of buying ticket have been accepted and the hypothesis relating to si1e of the family, annual income, annual expenditure and mode of ticket reservation have not been accepted.
.3 ÂSSENGERS4 AWARENESS] FACTOR ANALlSIS
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Semester II
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 $) statements rated by the passengers are taken up for analysis. The factor analysis is preceded with the computation of correlation matrix. The matrix reveals the extent of relationship among the factors. Curther, Fartlett4s test of sphericity and }aiser-/eyer-Elkin 6}/E7 measure of sampling adequacy are applied to the resultant correlation matrix to test the significance of the relationship among the variables. The Fartlett4s test of sphericity is used to test whether the correlation matrix is an identity matrix. 0n identity matrix is one where all the diagonal terms in the matrix are % and the off diagonal terms in the matrix are #. The }/E measure of sampling adequacy test is based on the correlations and partial correlations of the variables. If the }/E measure is more than #.), the factor analysis can be employed. The findings of }/E and Fartlett4s test are shown in Table ". T!: q. KNO g Bk:kk4 T:k A%:: VZ!: KZ:cN::cOZ N:: SiZ- Ag: Bk:kk T:k 0pproximate =hi-Square Si`:ZZk -f #.2$( $&!2.&! '##
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 obfective 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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Semester II
T!: . Tk VZ: A%:: VZ!: Ci:k % $ ' " ) ! & 2 ( %# %% %$ %' %" %) %! %& %2 %( $# $% $$ $' $" $) IZkZ EZ-: V: Tk VZ: ).")) $%.2%2 %.2)! &."$$ %.)%) !.#)( %."'$ ).&$( %.$$) ".2(2 %.#)2 ".$'$ %.#'" ".%'! #.((! '.(2" #.(%! #.2&& #.2%2 #.&() #.&!# #.&#2 #.!(# #.!"! #.!#& #.)"" #.)$) #.)#& #."&' #."") #."#% #.'&$ #.'"! '.!!' '.)#2 '.$&$ '.%&2 '.#'2 $.2'$ $.&!% $.)2) $."$( $.%&2 $.%## $.#$& %.2(" %.&2% %.!#! %."2! %.'2' EkkZ S S:g LgZCkZ&: Tk VZ: CkZ&: $%.2%2 ).")) $%.2%2 $%.2%2 $(.$"% %.2)! &."$$ $(.$"% ').'## %.)%) !.#)( ').'## "%.#$2 %."'$ ).&$( "%.#$2 ").($& %.$$) ".2(2 ").($& )#.%)( %.#)2 ".$'$ )#.%)( )".$(" %.#'" ".%'! )".$(" )2.$&2 !%.("% !).""( !2.&$% &%.2(( &".('& &&.&!( 2#.)'% 2'.%%! 2).)") 2&.&$' 2(.2$' (%.2)# ('.&"" ().)$) (&.%'% (2.!%& %##.###
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Semester II
Table ) reveals that the extent of variance explained by each factor out of total variance is given as percentage in the third column of the table. It is found that factor % accounts for $$ of variance, factor $ about & of variance and factor ' about ! of variance, factor " with !, factor ) with ), factor ! and & with " of variance each. The number of factors to be extracted are decided based on the 8igen value being % or above for each component. 0n 8igen value is the column sum of squares for a factor which represents the amount of variance in the data. *ence, the model identifies & factors for the given data. The Table ! shows the =omponent /atrix for factors. T!: O. Ci:k NkZ A%:: VZ!:
Skk::k 5ublic address system Interactive telephone enquiry system 0ssistance of TT8 B =oach attender Foard showing train details 5latform indication board 5latform ticket vending machine Cirst aid Care concession .rievance redressal cell etiring rooms nreserved ticketing system =oach indication board Security cameras 0vailability of complaint book 5orter service Fed rolls 5antry car inside the train En-line reservation Touch screen Tatkal scheme efund of ticket fare 5urified drinking water facility 5rovision of wheel chair Special compartment for ladiesBarmyBdisabled =loak room Ci:k 1 2 #.!#! -#.#(" #.)"$ #.%") #.)$& -#.%&' #.)$) -#.'"! #.)%! -#.'"# #.)%' -#.%$" #.)#$ -#.#!! #.)#% #.#'( #.)## #.%!2 #."() -#.#(! #."2! #.%&" #."2! -#.$)" #."2# #.##! #."!' #.$'' #."'& -#.'%( #."'% #.#&2 #."$" #.$$# #.'2" #.!!# #."#$ #.)&& #.'(" #."') #."'% #.%%' #."'' -#."%2 #.""$ -#.#'$ #.$(! -#.%'% #.'"! -#.%2% 3 #.#$( -#.#(% #.#'# -#.'#) -#."$( #.%#& -#.'(2 -#.#!% #.%2' #.#() -#.$2' -#.#2$ #."$# #.')2 #.%'$ #."#% #.'%( -#.$%' -#.#(" -#.')# -#.%%) -#.#() #.$!& #.$"# #.%%# q -#.$%2 #.$"2 -#.''# -#.#%' -#.%&& -#.'$) #.'#$ #.%$( #.%2% -#.$)$ #."#2 -#.'(& -#.%#( #.%(! #.$'& -#.%!! #.#'$ -#.$'! -#.%'! -#.%2& #.')2 #.%'" #.#(" #.'2" #.#"& -#.#22 -#.%"& -#.%#( #.#"" -#.$"" #.%!$ #.$#" -#.")2 #.'&) #.%2( #.#&' -#.#(& -#.#"! #.#") #.$(% -#.%#% -#.#() #.#"& #.$(& #.#'$ -#."!% #.")# -#.%!# -#.#') -#.%%$ O -#.$&% -#.'!$ #.#$) #.$"& -#.#($ #.#%# #.#2) -#.%2! -#.#%" #.#(& -#.%"# #.%$" -#.%!" #.%'% -#.%!( #.#(# -#.'&) #.#&" #.#"2 #.$#( #.%!! -#.%%# #."!) #."%% #.#$" < -#.$%$ -#.#!' -#.#$% -#.#(' -#.#%2 -#.%&% #.%2' -#.%!% #.#"% #.#!# #.#!% -#.#&' #.'#& -#.$$( #.%$2 #.$&# -#.%'$ #.##2 -#.%'" #.$!2 #.#'' -#.%"2 -#.$#' -#.%') #.!!2
Table ! reveals that 5rincipal =omponent 0nalysis has extracted seven factors which are the coefficient used to express a standardi1ed variable in terms of the factors. These are called as factor
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Semester II
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 &. T!: <. Rkk:g Ci:k NkZ A%:: VZ!:
Skk::k Ci:k 1 2 #.OvO #.#"# #.Oq -#.#"" #.<# #.#"' #.2v #.#'$ #.23 #.%%& #.#v #.#%( #.3<v #.%!! #.#)& #.v1 #.#%# #.<qq #.#(% #.<13 #.#%( #.#!' #.$2" -#.%'! #.#") -#.%($ #.#'# #.$') -#.%"2 #.$!( -#.%%' #.$&2 -#.#'' #.#!$ #.$'$ -#.#'% #.#$2 #.%%$ #.%(% #.#%% -#.#&' -#.%") 3 -#.#!& -#.%'( #.#!2 #.'2% #.%&' -#.'%# #.#%$ #.#)! #.%)2 -#.$&$ #.O2# #.#%2 #.%#) -#.'%$ #.#$# #.%2$ -#.#2" #.$&! #.')" -#.#'( -#.%#( q -#.#!$ #.#(& -#.#") #.#(2 #.%$! #.$&& #.%)! -#.%)# #.#(! -#.#!' #.#'& #.<# #.2 #.3# #.q3< #.q3O -#.%#! -#.#($ #.$'( -#.%$) #.%$# #.#%( -#.'(' -#.#%2 -#.%!" #.%(( -#.%'# #.$#2 -#.#!# #.%%% -#.#(! -#.%&) #.%%# #.#$% -#.$)! -#."'# #.%%2 #.O2q #.< #.#q -#.#"' -#.#&" O #.#)% -#.%&2 #.#") -#.#") #.#(& #.%(! #.#2( -#.#") #.#!# -#.#2' #.#'' #.#'! #.#") #.#'# #.#%% #.$#" #.'"& #.%#( -#.#)# #.<## #.Ov< < #.#!$ #.### #.%!% -#.##" #.##) -#.#2! #.%(( -#.#$( -#.%"& #.%!( #.%%! -#.%$$ #.$"$ #.#&' #.##( #.%"( #.%%% #.##' #.#'( #.#%2 #.##2
=oach indication board 5latform indication board 0ssistance of TT8 B =oach attender 5ublic address system 5latform ticket vending machine Foard showing train details etiring rooms En-line reservation Touch screen Tatkal scheme 5antry car inside the train 5urified drinking water facility 5orter service Cirst aid nreserved ticketing system .rievance redressal cell efund of ticket fare Care concession Interactive telephone enquiry system 5rovision of wheel chair Special compartment for ladiesBarmyBdisabled 0vailability of complaint book =loak room Security cameras Fed rolls
-#.#!" -#.#%2 #.#(# #.%%$
#.%!( -#.#2# -#.##) #.#(&
#.'%% -#.$#! #.'#( #.%"2
#.#&& #.%#% #.#'' -#.%"$
-#.#%( -#.%%# #.#'! #.#(#
#.2q -#.#2% #.#%( #.%22
-#.##) #.<<q #.v #.32
It is clear from the Table & that each factor identifies itself with a few set of variables after &" iterations. The variables which identify with each of the factors are sorted in descending order and are shown against each column and row.
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Semester II
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 A-Zk Skk::k R:kZ- k A%:: ^:-: Skk::k =oach indication board 5latform indication board 0ssistance of TT8 B =oach attender 5ublic address system 5latform ticket vending machine Foard showing train details etiring rooms En-line reservation Touch screen Tatkal scheme 5antry car inside the train 5urified drinking water facility 5orter service Cirst aid nreserved ticketing system .rievance redressal cell efund of ticket fare Care concession Interactive telephone enquiry system 5rovision of wheel chair Special compartment for ladiesBarmyBdisabled 0vailability of complaint book =loak room Security cameras Fed rolls Fk Fk N:
Cactor %
=ommunication and retiring services
Cactor $ Cactor ' Cactor "
eservation knowledge =atering services tility services
Cactor ) Cactor !
Ticketing and fares Special services
Cactor &
/iscellaneous services
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. Rajiv Gandhi Institute ! Techn l g"# $ tta"am (2
Semester II
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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Semester II
O. 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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<. CONCLUSION
It is well known that offering better services is essential for the growth of the Indian ailways. It is also equally important to make the passengers aware of the services. Still, Indian ailways has to take more possible steps to enhance the level of awareness of the passengers. En the basis of the findings of the present study, some constructive and viable suggestions have been made. If the suggestive measurements have been considered earnestly by the Indian future. ailways and the 5olicy /akers, it is hope that the Indian ailways will shine and bring grandeur to our country in the near
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v. REFERENCES
B g %. @ishnuvarthani, S and Selvaraf, 0., 6$#%'7, : ailway 5assengers4 0wareness En Services> 0 Study In Salem -ivision Ef Southern ailway<, international fournal of management $. Shafahan, S., 6$##)7, Services Mar+eting , - nce.ts# /ractices and cases !r m Indian Envir nment, /umbai, *imalaya 5ublishing *ouse, p.%!. '. avishanker, 6$##27, Services Mar+eting-The Indian /ers.ective, ,ew -elhi, 8xcel Fooks, p.%( ". .eetika and Shefali ,andan, 6$#%#7, :-eterminants of customer satisfaction on service quality> 0 study of ,o.%, pp.(&-%$#. ). 0nderson, -urston and 5oole., 6%(&#7, Thesis and 0ssignment 1riting# ,ew -elhi, ?iley 8astern niversity. W:!Zk: %. www.ncl.ac.ukBissBstatisticsBdocsBfactoranalysis.php. $. www.indianrailwayhistory.org. '. www.en.wikipedia.orgBwikiBIndianh ailways. ". www.indianrailway.com ). www.indianrailways.co.in !. www.indianrailways.gov.in &. www.indianrailways.org.in
() www.southernrailway.gov.in
ailway platforms in India<, oournal of 5ublic Transportation, @ol.%',
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Rajiv Gandhi Institute ! Techn l g"# $ tta"am