There are several customer in higher education, i.e. employer, students, and student's parents. Among any other customer, students are prime or main customer in higher education service sector. Conducting assessment on quality in higher education, students's perception toward higher education's service quality must be placed on main focus in order to keep and serve them. Good practices of higher education must consider how students felt about education process during their study so that they satisfied. This research implement gronroos's service quality model in higher education service sector based on student's perception. Gronroos model state that overall service quality perception influences by functional quality, technical quality and image. This research conduct in Industrial Engineering Study Program in ITB using close questionnaire and respondent from S1, S2 and S3 student's degree. For exact 189 sets of questionnaire as data had been collected and fully covered by students at S1, S2 and S3 degree. The data processing were done by SEM methods using Lisrel version 8.30 software. The output of data processing show that total influence of image to overall service quality is 49%, total influence of functional quality to overvall service quality is 24.5%, total influence of technical quality to overall service quality is 14.7%, total influence of functional quality to image is 50% and total influence of technical quality to image is 30%. The output shows that effects of functional and technical quality toward overall service quality is not a direct effects, but influenced by indirect effects through image variable |