TOTAL QUALITY MANAGEMENT OF SERVICES

TABLE OF CONTENT
TQM in services concept.3 Brief about Quality..4 Differences between Goods and Services....5 Service quality.7 Eight Dimension by Garvin.9 Quality management in services.11 Components of service system Quality..12 Product Attributed Approach..18 Service Quality Model.20 SERVQUAL Scale..24

TOTAL QUALITY MANAGEMWNT IN SERVICES A CONCEPT

Today service industry dominate our country The service sector accounts for more than 70% of jobs and it is expected to reach 85% in near future. In service industries it is not enough that product meets the functional requirement of the customer, but the employee behavior must meet customers expectations The service concept is a combination of both technical and human behavioral aspects.

A BRIEF ABOUT SERVICES

Definition A social act which takes place in direct contact between the customer and representative of the service company A service might be simple as handling a complaint or as complex as a home mortgage. Many organization are pure services and there products are intangible- education, banking, insurance, defense, municipal services, welfare services, legal services, health services and so on. Other example-marketing, travelling and tours, restaurants, public utilities(electricity gas, water) and transportation.

DIFFERENCE BETWEEN GOODS AND SERVICES

Services are usually intangible as opposed to goods which are tangible. Services are often produced and consumed simultaneously Services are often unique on the other hand goods maybe standardized to meet most of the requirement of large number of requirement. Services have high customer interaction, often difficult to standardize, automate and make as efficient as we would like because customer interaction demand uniqueness.

DIFFERENCE BETWEEN MANUFACTURING AND SERVICES SECTORS

Manufacturing Sector Product is tangible. Back orders are possible. Product can be resold. Producer is the only party involved in making of the product. Service Sector Service consists of tangible and intangible components. Services can not be stored. Services can not be resold. Producer and consumer are both involved in the delivery of the services.

Customer acceptance of the product is easily quantifiable.

Customer satisfaction is difficult to Quantify.

SERVICE QUALITY
It includes both core services & facilitating services which enhances the value of core service to the customer. EXAMPLEin Banking services, a checking account is a core service value product whereas additional services provided by banks, such as automated teller services, and 24 hours telephone access to account information are facilitating services in a fast food restaurant may produce tangible goods in a form of French fries or pizzas(CORE PRODUCTS),but its distinctive feature maybe its quick service and friendliness of service

CONTD..
The definition of quality that apply to manufactured products apply equally to service product i.e. it must respond to the needs of the customers. The service must meet or exceed customer expectation.

EIGHT DIMENSIONS APPLICABLE TO SERVICES AS WELL AS MANUFACTURED GOODS Garvin

PERFORMENCE FEATURES RELAIBILITY CONFORMANCE DURABILITY SERVICEABILITY

AESTHETICS
PERCEIVED QUALITY

OTHER DIMENSIONS
TIMELINESS Will the package be delivered on time? COMPLETENESS Are all ordered items delivered? COURTESY Do frontline employee greet each customer? CONSISTENCY Are services delivered in the same fashion each time for each customer? ACCEPTABILITY AND CONVINIENCE Is the service easy to obtain? ACCURACY Is the service performed accurately the first time? RESPONSIVNESS Can service personnel react quickly to unexpected problems?

QUALITY MANAGEMENT IN SERVICES

Quality of services is more difficult measure than quality of manufactured goods. Generally a user of services has a few feature in mind as a basis of comparison among alternatives. Lack of one feature may eliminate a service firm from consideration.
RESULTS of depth interviews with consumer focus groups in USA. i. Comparison of their before expectations with their actual service experience. It is judge on weather it meets expectations or not. ii. Process of service and outcome both result in quality perception, the way the service is performed can be as important as actual service. iii. Types of service quality a. There is a quality level at which the service is delivered b. Quality level at which exceptions and problems are handled

COMPONENT OF SERVICE SYSTEM QUALITY

EMPLOYEES: i. service is primarily evaluate by quality of human contact. ii. If the job satisfaction of the employee is high the customer satisfaction is high. iii. Motto of many services companies if we take care of our employees they will take care of our customers. INFORMATION TECHNOLOGYi. It incorporates computing, data processing and various other means of converting data into useful information. ii. It increase the volume of information and intelligent use of IT leads to not only quality and productivity but also to a competitive advantage.

 CONSUMER EXPECTATION IN SERVICE-

EXPECTED SERVICE PERCEIVED SERVICE QUALITY PERCEIVED SERVICE

EXPECTED SERVICE_ Desired service-Level of service customer hopes to receive OR wished for. ii. Adequate service-Level of service customer will accept. i.

FACTORS THAT INFLUENCE CUSTOMER PERCEPTION OF SERVICE

SERVICES ENCOUNTERS SERVICE QUALITY EVIDENCE OF SERVICE

PERCEPTION S OF SERVICE VALUE CUSTOME R SATISFACT ION

IMAGE

PRICE

DIMENSIONS OF SERVICE QUALITY

Reliability Responsiveness
Assurance Empathy

SERVICE QUALITY

Tangibles

FIVE STARS OF SERVICE QUALITY

APPROACHES TO QUALITY MANAGEMENT

PRODUCT ATTRIBUTED APPROACH

Starts with company Company describes what a product(good/service) represents Company develops products based on its definition

Decreased likelihood of satisfying customers

Long term misleading of market place

CONSUMER ORIENTED APPROACH

Starts with consumer
Consumer describes what product represents

Company develops product based on consumer definition

Increased likelihood of satisfying consumers Long-term competitive edge in the market place

A MODEL FOR SERVICE QUALITY

Company culture Products & services delivered

Market segment

Image Management Company personnel motivation Physical support and technological change

Customer perception External factors

Customer participation

Supply delivery system Service

Timeliness of Services Expected quality

Core services
Customer satisfaction

peripheral services

Price of service

Actual quality

Managing the perceived service quality (Gronroos Model)

Expected service Perceived service quality Perceived Service

Traditional marketing activities(advertising, personal selling, public relations, pricing)and external influence by traditions, ideology and Word-of-mouth

Image
Attitudes Technical Knowhow Customer contact solution Accessi bility Functional quality Internal relations

Techni cal quality

Behavior

Computerize d system

Machines

Appearance

Service mindedness

SERVICE QUALITY MODEL(PZB MODEL)

Word of mouth Personal needs Past experience

Expected service Perceived value External communications to consumes

Service delivery(including pre and post contracts)

Translation of perceptions into service quality specification Management perceptions of consumer expectations

SEVEN GAPS THAT MAY LEAD TO CUSTOMER DISAPPOINTMENT

Customer needs and expectations

Management definitions of these needs

Translation into design/delivery specifications Execution of design/delivery specifications Customer perceptions of product executions Customer interpretation of marketing communications Advertising and sales promises

Customer experience relatives to expectations

THE SERVQUAL SCALE

It is to measure customer satisfaction with different aspects of service quality. It is based on perception of its services with their expectations. It contains 21 perception item and a series of expectation items reflecting the five dimensions of service quality i.e. Tangibles, Reliability, Responsiveness, Assurance and Empathy.