Topic 4 - Service Quality

8/3/2019 Topic 4 - Service Quality

1/31

TOPIC 4SERVICE QUALITY INTHE PUBLIC SECTOR

1


2/31

Service

Any primary or complementary activity thatdoes not directly produce a physical productthat is, the non-goods part of the transactionbetween buyer (customer) and seller(provider)

(Evans and Lindsay, 2008).

Since service is part and parcel of theorganisational activities --- important toincorporate the concept of quality withservices provided.

2


3/31


4/31

Typically intangible- Little / no tangible evidence to show once

service has been performed- E.g. consultation with a doctor, investment

advice, legal advice, etc

The production and consumption of manyservices are simultaneously- Service may not be separable from seller,

and customer may be involved in serviceperformance- Thus, service process becomes vital to

service quality

4


5/31

5

Heterogeneity- Various services --- due to labour inputs and

non-standardisation of delivery- Thus, the usage of conventional quality

standards is difficult

Unable to store- Many services cannot be stored to meet

fluctuations in demand (e.g. hotel rooms, adoctors time, purchase of shares)

- The organisations need to develop system tomanage supply and demand


6/31

Key Service Dimensions

6

Customer contact and interaction

Labor intensity

Customization


7/31

Service Quality

Basically --- meeting customer needs andrequirements, and with how well the service leveldelivered matches customers expectations.

Must translate expectations into performancestandards and specifications.

Becomes a consumer judgment and results ---comparing expectations of service with theirperceptions of actual service delivered.

7


8/31

Characteristics of QualityService

1. Timeliness

2. Avoidance of backlog of work

3. Responsiveness to customers needs

4. Readiness for use

5. Reliability

6. Any action taken should always befair & just


9/31


10/31

Key Idea

The American Management Association

estimates that the average company

loses as many as 35 percent of itscustomers each year, and that about

two-thirds of these are lost because of

poor customer service.


11/3111

Dimension ofService Quality


12/31

According to Parasuraman et al.(1988)

12

Reliability ability to provide what waspromised

Assurance knowledge and courtesy ofemployees and ability to convey trust

Tangibles physical facilities and appearanceof personnel

Empathy degree of caring and individualattention

Responsiveness willingness to helpcustomers and provide prompt service


13/3113

Identifying Gaps in

Service Quality

GAPS Model


14/31

Development of Gaps Model

Developed by Zeithaml, Parasuraman andBerry (1990)

Conceptual model of service quality (gaps)that identified gaps in service quality and

suggested measures to close them

14


15/31

GAPS Model

Gap Analysis --- formal means of identifying andcorrecting gaps

The gaps refers to the differences between desiredlevels of performance and actual level of performance

- Manufacturing --- difference between the desiredconformance levels vs. the existing conformancelevel

- Services --- difference between the expected andthe actual level of service provided

Gaps are importance --- once a gap has been identifiedit is a candidate for corrective action and processimprovement

15


16/31

16


17/31

GAP ANALYSIS

Definition --- Comparison of the current condition tothe desired state

It has 5 gaps:

- GAP 1 Not knowing what customers expect- GAP 2 Not knowing the right service designs

and standards- GAP 3 Not delivering to service standards

- GAP 4 Not matching performance to promises- GAP 5 Customer gap --- Difference between

expectations and perceptions!

17


18/31

Quality in Service

vs.Quality in Manufacturing

18


19/31

Customer needs and performance standards

are more difficult to identify and measure ---each customer is different and definehim/herself individually.

Services requires a higher degree ofcustomization.

Service output is intangible; manufacturing ---tangible, visible products.

19


20/31

Services --- produced and consumedsimultaneously; manufactured goods ---

produce according to consumption.

Services --- customers are often involved inactual process; manufacturing --- performed

away from the customer.

Services --- labor-intensive; manufacturing ---capital intensive

Services --- handle large numbers oftransactions

20


21/31

These differences make it difficultfor many service organizations to

apply total quality principles, and

foster misguided perceptions thatquality management cannot beeffectively accomplished in services.

21


22/31

22

Counter Services inPublic Sector


23/31

Refer to DAC no. 10/1991

Concept of counter services

- Consists of 3 components:

(i) Front line --- the customer(ii) The counter

(iii) Back-up --- Support service

23

CustomerCounterService

SupportService

Front lineThe counter Back-up


24/31

Refer to DAC no. 01/2008(Attachment) pg. 20 21

Agencies that mostly deal with the customers arerequired to enhance their counter service deliverythrough:

- Preparing adequate number of counterbased on the number of customers --- toavoid longer waiting time.

- Set up special and immediate counters --- forelderly, disabled, pregnant mothers andthose with small children, and immediate cases.

24


25/31

- Set up multi-service counters.

- Centralised all counter services in one place--- to assist the customers.

- Establishing number system and information

on waiting hours.

- Usage of announcement system --- topublicise necessary information

- Showing the queue number at appropriateplaces such as canteen, waiting lounge.

25


26/31

26

- Open up the counters during lunch timeand ensuring that all counters areavailable during peak hours.

- Lengthen the operational hours (afterworking hours / open up the countersduring weekends).


27/31

27

Client Charter


28/31

Refer to DAC no. 01/2008(Attachment) pg. 10 15

Client Charter --- A written organisationalcommitment in delivering its services throughopen, comprehensible and transparent

approach.

Scope --- Focus on organisational coreservices. Service quality standardsdepend on

capacity and capability of the organisation, aswell as customers and stakeholders needs.Also as a change driver --- to be responsive,customer centric, outcome, integrity, ethicalityand customer-friendly.

28


29/31

Characteristics --- emphasize on:

- Clarity --- clear, understandable, short

- Reliability --- according to own capacityand capability; treated as a promise

- Practicality --- practical and inline withcapacity and capability

- Specific --- accurate, measurable and

understandable- Able to be upgraded --- need to be

improved from time to time.

29


30/31

Implementation of Client Charter --- 5 steps:

- Formulation --- identifying customers, coreservices in detail; setting the standard needed;preparing client charter

- Promotion --- publicising via mass media;brochures and pamphlets; stick in the department

- Service recovery --- as mechanism ofeffectiveness and efficiency; via recovery plans

- Supervision --- ensuring that the promise given isbeing fulfilled

- Evaluation and improvisation --- need to revisedto ensure its relevancy and inline with customersexpectations

30


31/31

Q & A

Documents

Topic 4 - Service Quality