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8/3/2019 Quality in Services
1/23
Service Quality
8/3/2019 Quality in Services
2/23
Quality in Services
Customer perceived quality is often definedas the relationship between the the customer
expectations of the service and the customerperception of the service received.
8/3/2019 Quality in Services
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Moments of Truth Each customer contact is called a
moment of truth.
You have the ability to either satisfy ordissatisfy them when you contact them.
Aservice recoveryis satisfying apreviously dissatisfied customer and
making them a loyal customer.
8/3/2019 Quality in Services
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Perceived Service QualityWord ofmouth
Personalneeds
Pastexperience
Expectedservice
Perceived
service
Service QualityDimensions
ReliabilityResponsiveness
Assurance
EmpathyTangibles
Service Quality Assessment1. Expectations exceeded
ESPS (Unacceptable quality)
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MEASURING SERVICE QUALITY
Service Quality Gap Analysis
Customer
Perceptions
Customer
Expectations
Service
Delivery
Service
Standards
Management
Perceptions
of Customer
Expectations
Managing the
Evidence
Conformance Service Design
Understanding
the Customer
Customer Satisfaction
GAP 5
Customer /
Marketing Research
GAP 1
Conformance
GAP 3
Communication
GAP 4
Design GAP 2
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Measuring Service Quality
SERVQUAL It is a multidimensional scale for measuring
five dimensions of service quality: Reliability,
responsiveness, assurance, empathy andtangibles.
Reliability: Right and timely delivery,error free records, conformance to standards
Responsiveness:exact communication,promptness and willingness to help
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Stages in quality development This summarises the progressive steps in
Quality Development QUALITY FUNCTION DEPLOYMENT QUALITY SERVICE BY DESIGN UNCONDITIONAL SERVICE GURANTEE COST OF QUALITY
QUALITY TRAINING PROGRAMMES STATISTICAL PROCESS CONTROL INSPECTION
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SERVICE QUALITY BY DESIGN It is incorporation of quality in Service package
Supporting Facility: Physical resources that must be I placebefore a service can be offered
Facilitating goods: The material purchased or consumed by thebuyer
Information: Operations data or information that is provided bythe customer to enable efficient and customised services
Explicit Service : The benefits that are readily observable by thesenses that are essential features of the service
Implicit Service: Psychological benefits that the customer willsense only vaguely
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Service Quality by Design Taguchi methods
Named after Genichi Taguchi
For a customer a products quality is inits performance when abused
So he advocates the use of robustdesigns of products
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Service Quality by Design Poka Yoke
Errors occur not because employees are
incompetent but sometimes because ofinterruptions in routine or lapses in attention
He suggests the use of low cost, inprocess,quality control mechanisms androutines used by employees in their work toachieve high quality without costly inspectione.g. checklists and manual devices
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QUALITY FUNCTION
DEPLOYMENT Establish the aim of the project Determine customer expectations Describe the elements of service Note the strength of relationship between service
elements Note the association between customer expectations
and service elements Weighting the service elements Service element improvement difficulty rank Assessment of competition Strategic assessment and goal setting
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House of Quality
Im
portance
R e la
ti v e
1 2 3 4 5Customer Expectations
Reliability
Responsiveness
Assurance
Empathy
Tangibles
Comparison with Volvo Dealer
Weighted score
Improvement difficulty rank
O O
O Weak
Medium
* Strong
9
9
9
Training
Attitude
Capacit
y
Informatiion
Equipm
ent
8
7
7
6 6
5 5
5
5
4
4
3 3
3
3
2
2 2
2
+
_
+
Customer Perceptions
o
+
+
+
o
o
o
o
+
o
o
o
o
o
o Village Volvo
+ Volvo Dealer
Service Elements
Relationships
127 82 63 102 65
1
* *
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BENCHMARKING Comparing with the performance of
other companies known for being Best
in ClassVisit the leading firms to understand
how the management has achieved
such outstanding performance
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Walk Through Audit A walk Through Audit is a customer focussed
survey to uncover areas of improvement
The entire customer experience is tracedfrom beginning to end.
It is focussed on the detqails of the servicedelivery process in an effort to uncoveractionable items for improvement
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Achieving Service Quality COST OF QUALITY
Prevention Cost: Costs associated with operations or activitiesthat keep failure from happening and minimizing detection costs
Detection Costs: Costs incurred to ascertain the condition of aservice and to determine whether it conforms to safetystandards.
Internal failure: Costs incurred to correct non conforming workprior to delivery to the customer
External failure: Costs incurred to correct non conforming workafter delivery to the customer or to correct work that did notsatisfy a customers special needs
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Service Process Control
Compare the output with the standard Communicate the deviations from the standard back to the
input Make adjustments to keep the output within a tolerable limit In case of services it is difficult to define Service Performance
Measures because services are intangible so surrogatemeasures of service quality have to be used.
Because of inseparability controlling service quality isdifficult.Monitoring only the final consumer responses , howevermay be too late to avoid the loss of future sales
So companies must focuss on the service delivery processitself.through a process called Statistical Process Control
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Service Process Control
Resources
Identify reasonfor
nonconformance
Establishmeasure ofperformance
Monitorconformance torequirements
Takecorrective
action
Serviceconcept
Customerinput
Customer
outputServiceprocess
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Statistical Process control
A visual display called a control chart is used to plot values of ameasure of process performance
Steps in preparing a control chart: Decide on some measure of service system performance
Collect representative historical data from which estimates of thepopulation mean and variance for the system performance measurecan be made
Decide on sample size and using the estimates of population mean andvariance, calculate +_3 standard deviation control limits
Graph the control chart as a function of sample mean values versustime
Plot sample means collected at random on the chart , and interpret theresults as follows
Process in control Process out of control Update the control chart
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P- Chart for SPC
Fraction of sorting errors- y axis
Random samples drawn daily-x axis
LCL
p
UCL
1 2 3 4 5
.05
.11
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Unconditional Service Guarantee:Management View
Focuses on customers (British Airways)
Sets clear standards (FedEx)
Guarantees feedback (Manpower)
Promotes an understanding of theservice delivery system (Bug Killer)
Builds customer loyalty by makingexpectations explicit
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Service Recovery Framework
Patronage
Loyalty
Satisfaction
Retention
Severity
Of
Failure
Perceived
Service
Quality
Psychological
-empathy
-apology
Tangible
-fair fix
-value add
Psychological
-apology
-show interest
Follow-up
Service
Recovery
Tangible
-small token
Service
Recovery
Expectations
Service
Recovery
Customer
Loyalty
Service
GuaranteeSpeed of
RecoveryFrontline
Discretion
Service
Failure
Occurs
Provider
Aware of
Failure
Fair
Restitution
Pre-recovery Phase Immediate Recovery Phase Follow-up Phase
Service Recovery Framework
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Service Guarantee Features
Unconditional
Easy to understand and communicate
Meaningful
Easy to invoke
Easy to collect
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Advantages
Focuses on customer
Sets clear standards
Guarantees Feedback
Promotes an understanding od servicedelivery system
Builds customer loyalty