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CUSTOMER SERVICE A SUMMARY - FROM J.M.JURAN HANDBOOK 1

Customer Services Aqm

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CUSTOMER SERVICE

A SUMMARY - FROM

J.M.JURAN HANDBOOK

1

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EMERGENCE AND IMPORTANCE

OF CUSTOMER SERVCE

• Emerged during the 1980s in companies with a mission of leading edge enterprise.

• To motivate customers,

• To enhance behaviors that affect the enterprise’s sales and

profitability.

• Includes transactions with customers and relationships withcustomers that occur before and after purchase of product orservice

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• jf 

KEY CUSTOMER SATISFIERS(KCSs)

• Elements that provide competitive edge to enterprises.

• These can be changing because every enterprise strives for

betterment.Traditional pre-sale

elements

Innovative pre-sale

elements

•Sales information

•Ordering

•Packaging•Transport

•Delivery

•Installation

•Maintenance

•Complaint handling

•Problem solving

•Market research for key

customer satisfiers

•Report cards•Customer care

•Value-added

information access

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QUALITY CONSIDERATIONS IN

CUSTOMER SERVICE

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• Strategic Intent Part of product planning cycle

• Design Part of product lifecycle

• Organizational Structure According to requirements of product life-cycle design

• Operations Results are achieved, measured and improved

QUALITY CONSIDERATIONS IN CUSTOMER SERVICE

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LISNEL – DRESNER MODEL OF

CUSTOMER SERVICE

Helps us visualize customer service as a vehicle to achieve strategic goals and objectives

for a product or a service

QUALITY CONSIDERATIONS IN CUSTOMER SERVICE

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EXPANDED LISREL MODEL OF

CUSTOMER SERVICE

Usage of pre-implementation techniques

QUALITY CONSIDERATIONS IN CUSTOMER SERVICE

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STRATEGIC INTENT

AT&T UNIVERSAL CARD SERVICES

• Created in March 1990

• Took only 30 months to become the second largest credit card issuer in the US

Drawbacks of AT&T Card:

• Card is very costly.

• Representatives who took weeks to process changes.

• customers who had lost their cards in tangles of paperwork and phone calls &became very anxious.

Solutions:

• Implementing Blueprints 

• Daily bonus plan for all employees supported by leading edge technology.

• Cards given at lower interest than other companies

• Customers in relationship with credit bureaus and other users of creditinformation

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BLUEPRINT

QUALITY CONSIDERATIONS IN CUSTOMER SERVICE

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STRATEGIC INTENT

NEW ENGLAND TELEPHONE• The Interexchange Customer Service Center (ICSC) of New England Telephone

made changes in 1988.

Drawback of New England Telephone

• Customers did not like the job that the center was doing, nor did management or

the employees.

• Everyone did the job according to the job description, but accountability for the

results occurred only at executive levels

Solutions

• Creating a service blueprint

• Reengineering the operation, establishing a customer-focused team structureresponsible for all processing and service support for a customer segment.

QUALITY CONSIDERATIONS IN CUSTOMER SERVICE

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STRATEGIC INTENT

HEWLETT-PACKARD COMPANY

Hewlett-Packard summarizes its overall strategy for quality with two acronymsThey are FURPS & AART. 

FURPS

•  F - Functionality . The feature set, capabilities, comparability, and security.

•  U - Usability . The human factors, consistency and documentation of the product.

 R - Reliability . The frequency and severity of failures. The predictability andaccuracy of the product.

•  P - Performance. The speed and efficiency of the product, as well as resourceconsumption.

•  S - Supportability . Maintainability and serviceability of the product, along with itsability to be installed.

QUALITY CONSIDERATIONS IN CUSTOMER SERVICE

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DESIGN

SYSTEMS ENGINEERING

Major Inputs, Activities, and Outputs of Service Delivery Systems

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DESIGN

ORGANIZATIONAL STRUCTURE

The accepted organizational types are:

• functional,

• divisional,

• and matrix. Design Attributes Roles in Organization

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HUMAN RESOURCES

The design of new customer service systems can be

evaluated for user-friendliness by coordinated studies thatinclude

• Analysis of present customer service systems

• Benchmarking of best-in-class customer service systems

User interviews• Laboratory studies of protocols for user-system

interactions

• Field tests of customer services

• In-service follow-up studies for continuous improvement

DESIGN

QUALITY CONSIDERATIONS IN CUSTOMER SERVICE

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DESIGN

ELECTRONIC DATA SYSTEMS

In 1992, EDS put in place a matrix organizational structure radically different

from those in most successful U.S. Companies.

EDS’s approach to human resources is based on customer focus and rewards. 

These are the key elements of the HR architecture.

Customer focus: The company keeps its people focused on what isimportant: quality delivery. The company practices a severe approach to

employee alignment—“If you can’t change the people, change the

people!” 

• Reward system: Since 1993, EDS has changed its reward system to

emphasize team awards. This appears to be comparable to the approachpracticed by AT&T’s Universal Card Services, described earlier. 

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STRUCTURE

The attributes of the design of the Work Center team for highquality performance are:

• The team includes all the necessary work functions.

• The team bears complete responsibility for satisfying the customer.Performance of the team is measured accordingly.

• The team uses a set of work processes that are formulated in the

design step that eliminate rework and review and that meet servicedelivery quality objectives.

• The team is provided with the technology and systems that enableits members to meet the objectives.

• The team is sized and trained according to the criteria included in

the design process.QUALITY CONSIDERATIONS IN CUSTOMER SERVICE

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HUMAN RESOURCE

ARCHITECTURE

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IMPORTANT TOOLS IN

CUSTOMER SERVICE SYSTEM

QUALITY CONSIDERATIONS IN CUSTOMER SERVICE

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A TRADITIONAL ORGANIZATION

WITH FUNCTIONAL WORK CENTERS

AND SEPARATE DATABASES

QUALITY CONSIDERATIONS IN CUSTOMER SERVICE

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A MORE ADVANCED ORGANIZATION

WITH TEAM WORK CENTER AND

INTEGRATED DATABASE

QUALITY CONSIDERATIONS IN CUSTOMER SERVICE

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OPERATIONS

Quality must be considered in the operational

area.

improved

measured

achieved

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OPERATIONS

Process control

Process capability

Process improvement

Human performance

Performance metrics

The ongoing

performance of 

operating

customer serviceprocesses includes

QUALITY CONSIDERATIONS IN CUSTOMER SERVICE

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PROCESSES ANDSYSTEMS

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FLOWCHARTNG SYMBOLS

The process diagram uses a particular flowcharting convention.

Processes are represented by large diamonds with the name of theprocess written inside

Processes external to the process to be improved are depicted as

diamonds with “cut corners”. The name of the external process is written

inside the diamond

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FLOWCHARTNG SYMBOLS

The names of organizations external to the process to be improved

(e.g., Customer or Vendor), are shown as a square with “cut

corners”. 

Functions performed by organizations or work centers aresymbolized by a vertical rectangular, with rounded corners.

The rectangle is divided into three areas. The top area contains

the acronym and function number. The middle area contains

the name given to the function. The bottom area identifies the

organization performing the

function.

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FLOWCHARTNG SYMBOLS

Functions performed solely by computer systems are depicted by a

circle divided into three areas, The top two areas are as described

above; the bottom area contains the name of the computer system.

Support systems are depicted by a circle containing the name of the

information system. This symbol is used when the system is supporting a

function. Two parallel, vertical lines show input and output flowing

between the system and function.

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FLOWCHARTNG SYMBOLS

A small circle divided into two sections depicts a specific database that

is being accessed by a system. The top half contains the name of the

computer support system, and the bottom half contains the name of 

the database.

Any issue identified within a process is shown in an oval above or

below the point at which it occurs. The point is marked by an X and

is connected to the oval by a line.

Any metric associated with part of a process is shown in a rectangle

above or below the point at which the metric is measured. The

measured point is marked by an X and is connected to the rectangle

by a line.

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FLOWCHARTNG SYMBOLS

Feedback symbols are used to prevent flow-charts from becoming

too cluttered.

Feedbacks are always labeled numerically. Identical labels must be

given to both ends of the feedback flow.

Connector symbols are used when the splitting of a flow must be

divided between pages. The symbol is a small circle with a capital

letter. The identical letter is given to both sides of the division.

Decision points are shown as small diamonds. These are points at

which choices are made based on pre-specified conditions called

decision rules. They are generally given as supporting function

descriptions .

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OUTSOURCING

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OUTSOURCING IN ENTERPRISES

• Business process re-engineering (BPR) initiatives introduceissues relating to legacy migration and outsourcing.

• Legacy migration is a term used to connote the migration of customer service systems from their traditional (legacy)processes and associated systems to modern, leading-edgeprocesses and systems.

• Companies that provide customer service functions on anoutsourced basis are prominent in the customer servicearena, performing many of the associated functions atsuperior levels.

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MEASUREMENTAND METRICS

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• Metric: Unit of measurement. Common metrics in everyday life aremiles (or kilometers) to measure distance and pounds (orkilograms) to measure weight.

•  Statistical metric: The result of a calculation procedure. Forinstance, the most commonly used statistical metric is thearithmetic average of a set of numerical values. One could easilycalculate the average weight of people riding in the elevator withyou by asking them their individual weights, adding the numbers,

together with your weight, and dividing the sum by the totalnumber of people in the elevator. Of course, the people in theelevator may not know their weights exactly, so the calculatedaverage would be an estimate.

 Data: A set of individual measurements. The data are usually theinput to a statistical metric. For instance, the weights of theindividuals in the elevator comprise a set of data.

• Analysis: Structured ways of comparing data and statistical metrics.For instance, Tom weighs more than the average of the people in

the elevator.

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MEASUREMENT AND METRICS

IN IBM

Customer service quality measurements at IBM address four areas that affect

customers

Customerrequirements

Taskrequirements

Organizationalrequirement

Processcontrolrequirement

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CUSTOMER REQUIREMENTS

CUSTOMER REQUIREMENTS

Customerpartnership

Qualityassurance Reliability Empathy Durability

Responsiveness

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TASK REQUIREMENTS

Supplieroptions

Vendoroptions

Operati

onaloptions

Depart

mentoptions

Inter-function

aloptions

Cross-function

aloptions

Producti

onoptions

Deliveryoptions

Consum

ptionoptions

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ORGANIZATIONAL REQUIREMENTS

Managementcommitment

Education &training

defined roles&

responsibilities

Recognition& reward

communications

Goal-settingprocess

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PROCESS CONTROL REQUIREMENTS

Measure

menttools

Evaluation tools

Improvementtools

Information

Resource

allocations

Planning

Feedback

mechanisms

Environment

monitoring tools

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