Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 8- 1 Chapter 8 Designing Quality Services

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.8- 1

Chapter 8

Designing Quality Services


Strategic Quality PlanningDesigning Quality ServicesChapter 8

Differences between services and manufacturingWhat do services customers want?SERVQUALDesigning and improving the services transactionThe customer benefits package



Service Transaction AnalysisImproving Customer Service in governmentQuality in Health CareSupply Chain Quality in ServicesA Theory for Service Quality Management



Power of satisfied customersProfit Growth over Time


Strategic Quality PlanningDesigning Quality ServicesDifferences between Services and Manufacturing

Many service attributes are intangibleOutput of service are heterogeneousCustomer contactCustomer coproductionInternal versus external servicesVoluntary versus involuntary services


Strategic Quality PlanningDesigning Quality ServicesDifferences between Services and Manufacturing

How service quality issues different from those of manufacturing?In manufacturing, dimensions are available for measurementIn services, such measurable dimensions are often unavailableSimultaneous production and consumption means you have to get it right the first timeProduct liability


Strategic Quality PlanningDesigning Quality Services Differences between Services and Manufacturing

How service quality issues similar to those of manufacturing?For both, the customer is the core of the businessBy focusing on the customer many manufacturers and services firms have come to view themselves as service providers


Strategic Quality PlanningDesigning Quality Services What do Services Customers want?

Chapter 1 listed dimensions of quality:TangiblesReliabilityResponsivenessAssuranceEmpathy


Strategic Quality PlanningDesigning Quality Services SERVQUAL

Developed for assessing services quality.An off-the-shelf approach that can be used in many service situations



Advantages are:It is accepted as a standard for assessing different dimensions of services qualityIt has been shown to be valid for a number of service situations



Advantages are:It has been demonstrated to be reliableIt is parsimonious in that it only has 22 itemsIt has a standardized analysis procedure



The SERVQUAL survey has two parts:

1. Customer expectations

2. Customer perceptions

If we understand them both, we can assess the gap in these areas



The SERVQUAL survey has 22 questions:

Tangibles – Questions 1 – 4 Reliability – Questions 5 – 9 Responsiveness – Questions 10 – 13 Assurance – Questions 14 – 17 Empathy – Questions 18 – 22


SERVQUAL Expectations Survey


SERVQUAL Perceptions Survey



The SERVQUAL survey is useful for gap analysis

Gaps in communication and understanding between employees and customers have a serious negative effect on the perceptions of service quality.



The SERVQUAL survey is useful for gap analysis – Gap 1

Difference between actual customer expectations and management’s idea or perception of customer expectations




Managers’ expectations of service quality may not match service quality

specifications




Service delivery and

Service quality expectations




Service delivery and

External communications to customers




Expected service and

Perceived service




The key to closing gap 5 is to first close gaps 1 through 4






By averaging the difference between Perception and expectation a two dimensional map can be created identifying strengths and weaknesses



Two-Dimensional Differencing Plane


Strategic Quality PlanningDesigning Quality Services Designing and improving the services transaction

One way to improve perceptions of quality …Improve the process of delivery of the service

Services Blueprinting Moments-of-truth Concept Poka-yoke



Services Blueprinting

1. Identify processes

2. Isolate fail points

3. Establish a time frame

4. Analyze profits



Services Blueprinting Example in a Hair Salon



Moments-of-truth Concept Fail Points .. Moments of truth.

These are times at which the customer expects something to happen.



Poka-yoke Fail safe devices Warning methods Physical contact methods Visual contact methods



Poka-yoke Fail safe devices – “The Three T’s”

1. Tasks to be performed

2. Treatment provided to customer

3. Tangibles provided to customer


Strategic Quality PlanningDesigning Quality Services The Customer Benefits Package

Customer benefits packages (CBP)

Tangibles that define the service Intangibles that make up the service



Customer benefits packages (CBP) Four stages of the service benefit

package…

1. Idea/concept generation

2. The definition of a service package

3. Process definition and selection

4. Facilities requirements definition



CBP Design Process



Customer benefits packages (CBP) Objectives…

Make sure the final CBP attributes you are using are the correct ones




Evaluate the relative importance of each attribute in the customers mind




Evaluate each attribute in terms of process and service encounter capability




Figure out how to best segment the market and position CBP’s in each market




Avoid CBP duplication and proliferation




Bring each CBP, and associated process and service encounters, to market as quickly as possible. Use the CBP framework and final attributes to design facilities, processes, equipment, jobs, and service encounters.




Maximize customer satisfaction and profits.



Services Package Unique services package Selective services package Restricted services package Generic services package


Strategic Quality PlanningDesigning Quality Services Service Transaction Analysis

Method of identifying service transactions and evaluating them from the customer’s perspective to determine if there is a gap between service design and what the customer perceives as the service



Strategic Quality PlanningDesigning Quality Services Improving Customer Service in Government

The government established a searchable list of 4,000 customer service standards for 570 federal departments and agencies



32 states have established quality award programs



Several factors driving this change:

People want and desire to do good work




Quality management is associated with improved employee satisfaction




Government leaders are mandating standards, strategic plans and new levels of performance




Demand for government services is growing at a faster rate than funding for them




Threat of privatization in government has led to an improvement in service


Strategic Quality PlanningDesigning Quality Services Quality in Health Care

Health care is facing the same “cost squeeze” that government is facing

A move to HMO’s is causing hospitals to streamline operations

There is increased diversity in health care


Strategic Quality PlanningDesigning Quality Services Supply Chain Quality in Services

Bi-directional Services Supply Chain


Strategic Quality PlanningDesigning Quality Services A theory for Service Quality Management

Proposition 1: Unified services theory Proposition 2: The unreliable supplier

dilemma Proposition 3: Capricious Labor Proposition 4. Everyone presumes to be

an expert


Strategic Quality PlanningDesigning Quality Services Summary

Because services involve intangibles they are different from manufacturing

Lack of hard measures, statistical Quality Control techniques are not always successful

The bottom line is a satisfied customer


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Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 8- 1 Chapter 8 Designing Quality Services