quality in services

8/3/2019 Quality in Services

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Service Quality


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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.


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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.


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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

quality in services

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