Professional Documents
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Service Management (5e) Operations, Strategy, Information Technology By Fitzsimmons and Fitzsimmons
6-2
Learning Objectives
Describe Use
the service quality gap model to diagnose quality problems. how Taguchi methods and poka-yoke methods are applied to quality design. service quality function deployment. a statistical process control chart.
Illustrate Perform
Perform
6-3
Moments of Truth
Each
You
have the ability to either satisfy or dissatisfy them when you contact them.
service recovery is satisfying a previously dissatisfied customer and making them a loyal customer.
6-4
Responsiveness:
Willingness to help customers promptly. Example: avoid keeping customers waiting for no apparent reason. Quick recovery, if service failure occurs
6-5
Empathy:
Ability to be approachable, caring, understanding and relating with customer needs. Example: being a good listener.
Tangibles:
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Expected service
Perceived service
Service Quality Assessment 1. Expectations exceeded ES<PS (Quality surprise) 2. Expectations met ES~PS (Satisfactory quality) 3. Expectations not met ES>PS (Unacceptable quality)
6-7
Customer Expectations
Understanding the Customer
Communication GAP 4
Service Delivery
Conformance GAP 3
Conformance
Service Standards
Service Design
6-8
Management may not understand how customers formulate their expectations from past experience, advertising, communication with friends
Improve market research Foster better communication between employees and its frontline employees Reduce the number of levels of management that distance the customer
Gap
2: Design gap
Management unable to formulate target level of service to meet customer expectations and translate them to specifications
Setting goals and standardizing service delivery tasks can close the gap
6-9
Continued.
Gap
3: Conformance gap
Actual delivery of service cannot meet the specifications set by management Lack of teamwork Poor employee selection Inadequate training Inappropriate job design
Gap
4: Communication gap
Discrepancy between service delivery and external communication Exaggerated promises in advertising Lack of information provided to contact personnel to give customers
6-10
Continued..
Gap
Customer satisfaction depends on minimizing the four gaps that are associated with service delivery Companies try to measure the gap between expected service and perceived service through the use of surveys (ex. Fig. 6.2) SERVQUAL measures the five dimensions (table 6.1)
6-11
See
6-12
6-13
facility goods
Facilitating
Explicit
services services
Implicit
6-14
Robustness
concept also applied to the manufacturing process for example using online computer to notify the cleaning staff when the room has been vacated
emphasized that quality was achieved by consistently meeting the design specifications to society of poor quality was measured by the square of the deviation from the target (see fig. 6.4 pp. 139)
Taguchi
Cost
6-15
Shingo observed that errors occurred, not because employees were incompetent, but because of interruptions in routines or lapses in attention. He advocated adoption of Poka-Yoke methods foolproof devices to prevent employee mistakes.
Example, hotel reservation employee is expected to make eyecontact with customer. So Poka-Yoke is to ask the employee to enter the eye-color of the customer.
Since
customers also play an active role in service-delivery so you need Poka-Yoke for them to prevent them from making errors.
Example, frames at airport check-in counters to help customers determine if their bag can go in overhead bin as hand luggage.
6-16
6-17
Allows to incorporate the voice of the customer into the design of the product/service by translating customer satisfaction into identifiable and measurable conformance specifications for product or service design 1. Establish the aim of the project assess Village Volvos competitive position 2. Determine customer expectations (rows) interviews etc. 3. Describe the elements of the service (columns) 4. Roof of the house - note the strength of relationship between the service elements 5. Body of the matrix relationship between service elements (columns) and customer expectations (rows) 6. Weighting the service elements rating customer expectations; getting weighted scores for each column (basement) 7. Basement service element improvement difficulty rank 8. Assessment of competition
6-18
House of Quality
Relationships
*
O O O
Informatiion
Equipment
5 2
Capacity
Training
Attitude
Relati ve
Servic e Elements Im po rta nc e 8 3 5 2
+ Volvo Dealer
1 2 3 4 5 + o o
5 9 9 7 3 6
+
o o o
+ +
3
+
o o o o o
_
127 82 4 5
63 102 1 3
65 2
6-19
5. Benchmarking
Compare
your performance with other companies known for being the best in class every quality dimension, some firm has earned the reputation for being the best in class
For
Learn
how the management has achieved to be the best in class to correct your process
6-20
Impressions about service quality are determined by both the outcome and the process (because customers are a part of service delivery) Walk through audit is a customer-focused survey to find the areas for improvement
Entire customer experience is traced from beginning to end, and a flow chart of customer interaction with service system is made
Customer is asked for his/her impressions on each of these interactions
Customers can provide anew perspective to service they can notice things easily as they are new in the system Service managers and employees can get de-sensitize to their surroundings and also may not notice marginal decreases in service levels.
6-21
Cost of Quality (Juran) Service Process Control Statistical Process Control (Deming) Unconditional Service Guarantee
6-22
1. Cost of Quality
Products can be returned or exchanged if faulty; but what recourse does customer have to faulty services?
Legal recourse for example in medical may lead to more procedures and tests and more paperwork leading to higher cost Costs associated with activities that keep failure from happening and minimize detection cost Costs incurred to ascertain the condition of a service to determine whether it conforms to safety standards
Prevention cost
Detection cost
Internal failure
External failure
6-23
6-24
Consequently, we ask customers to express their impression of service quality after the consumption by which time we are too late to avoid service failure. Instead, we try to focus on delivery process by employing SPC
6-25
Resources
Service process
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6-27
Easy
Meaningful
Easy
Easy
to collect (Manpower) should be given soon after the service lapse and after a significant time
6-28
Sets
Guarantees
Promotes
Builds
6-29
The average business only hears from 4% of their customers who are dissatisfied with their products or services. Of the 96% who do not bother to complain, 25% of them have serious problems. The 4% complainers are more likely to stay with the supplier than are the 96% non-complainers. About 60% of the complainers would stay as customers if their problem was resolved and 95% would stay if the problem was resolved quickly. A dissatisfied customer will tell between 10 and 20 other people about their problem. A customer who has had a problem resolved by a company will tell about 5 people about their situation.
6-30
6-31
Service Recovery
Disasters can be turned into loyal customers by proper and rapid service recovery Frontline workers, therefore, need to be properly trained and given the discretion to make things right. Approaches to service recovery
Case-by-case addresses each customers complaint individually but could lead to perception of unfairness. Systematic response uses a protocol to handle complaints but needs prior identification of critical failure points and continuous updating. Early intervention attempts to fix problem before the customer is affected. Substitute service allows rival firm to provide service but could lead to loss of customer.
INSPECTION
Opinion 100
percent inspection - every unit is checked; fatigue error unless automated article inspection - usually after the process is set up testing
First
Destructive Acceptance
sampling - based on statistical sampling table, the associate checks a random or stratified sample from a larger lot. If the sample is within the acceptable quality level, the lot passes inspection.
Process focus
Process
specific causes Common cause variation: random and harder to trace. This is system wide and requires management decision. Statistical Control: when a process output is free of all special cause variation, it is said to be in statistical control or simply in control. A process in control may still have common cause variation. Continuous improvement aims at constantly working to reduce common cause variation.
order to study process variation, we need process output data. This comes in two forms: variables and attributes data data result from measuring or computing the amount of or value of a quality characteristic. This data is continuous.
Variables
Attributes
data - measurement is not required, just a classifying judgment: maybe yes or no for friendly service; good or bad for a car wash; small, medium, large melons.
Grained Analysis
Check Sheet historical record of observations and represents the source of data to begin analysis and problem identfication. Histograms - display frequency data collected over a period of time. It is more structured than a check sheet, has equal-interval numeric categories on the X-axis of an X-Y graph (see figure 6.18)
Pareto Analysis (figure 6.19): helps differentiate between trivial and important causes by ordering problems by their relative frequency in a descending order focus efforts on the problem that offers the greatest potential improvement.
Process flowchart: it may show the steps that are unnecessary, or that need to be rearranged Fishbone chart (cause and effect diagram): here the team works backwards from the target for improvement on the spin bone, identifying causes down through the bone structure. The lowest level of detail may reveal root causes, which need to be worked upon. (5 whys) (figure 6.21)
continued
Fine
Grained Tools
Scatter diagram and correlation: useful for complex processes where cause-effect relationships are unclear. It visually shows the relationship between two variables (figure 6.22)
Run diagram: it is simply a running plot of a certain measured quality characteristic. It could be number of minutes each successive airplane departs late. Or number of customers visiting the complaint desk of a store each day. The company may specify the upper limit and the lower limit. ( figure 6.17).
While the run diagram plots data on every unit, the process control chart, less precisely referred to as the quality control chart, relies on sampling. The method requires plotting statistical samples of measured process output for a quality characteristic. By watching the plotted points, the observer can detect unusual process variation, which calls for some kind of corrective action.
Central line for the mean and the range charts Upper and lower control limits for the mean chart
Cp versus Cpk
QUESTIONS TO PONDER
1. What is a transformation process? How might process performance be described in terms of quality characteristics? 2. How do special-cause variation and common cause variation relate to process control and process capability? 3. What are the roles of run diagrams and process control charts in improvement programs? What are the similarities and differences?
4. In control charting for variables why use two charts (e.g. mean and range)?
5. Inspection does not necessarily lead to quality. Discuss? 6. Quality is as good as the data is. Discuss? How do variables data differ from attributes data?
6-40
do the five dimensions of service quality differ from those of product quality? is measuring service quality so difficult? the philosophies of Deming and Crosby.
Why
Compare
What
Illustrate
service.
Why
How