Transcript Service Quality - the quality Catalyst

Chapter 6
Service Quality
Learning Objectives
1.
2.
3.
4.
5.
6.
7.
8.
Describe the five dimensions of service quality.
Use the service quality gap model to diagnose
quality problems.
Illustrate how Taguchi methods and poka-yoke
methods are applied to quality design.
Perform service quality function deployment.
Construct a statistical process control chart.
Develop unconditional service guarantees.
Plan for service recovery.
Perform a walk-through audit (WtA)
Moments of Truth
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Each customer contact is called a moment of
truth.
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You have the ability to either satisfy or dissatisfy
them when you contact them.
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A service recovery is satisfying a previously
dissatisfied customer and making them a loyal
customer.
Dimensions of Service Quality
1.
2.
3.
4.
5.
Reliability
dependable over time
Responsiveness
keeping customers waiting
Assurance
reputation, credentials, confidence, track record
Empathy
Tangibles
being a good listener, putting yourself in their place
cleanliness, physical appearance
Perceived Service Quality
Word of
mouth
Service Quality
Dimensions
Reliability
Responsiveness
Assurance
Empathy
Tangibles
Personal
needs
Expected
service
Perceived
service
Past
experience
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)
Service Quality Gap Model
Customer
Perceptions
Managing the
Evidence
Customer Satisfaction
GAP 5
Customer
Expectations
Customer /
Marketing Research
GAP 1
Communication
GAP 4
Understanding
the Customer
Management
Perceptions
of Customer
Expectations
Service
Delivery
Conformance
GAP 3
Design GAP 2
Conformance
Service
Standards
Service Design
Quality Service by Design
1.
Quality Function Deployment
(House of Quality)
2.
Quality in the Service Package
3.
Taguchi Methods (Robustness)
4.
Poka-yoke (Mistake Proofing)
Voice of the Designer
Voice of the Customer
x = Design Trade-offs
Benchmarking
Reverse Engineering
Deploying the VOC
Technical
Requirements
Customer
Requirements
Product
Requirements
Technical
Requirements
Process
Requirements
Product
Requirements
Control
Requirements
Process
Requirements
The Objectives of QFD
1. Determine the voice of the customer.
2. Examine the company’s response to this
voice.
House of Quality
Relationships
*
Strong
Medium
O
Reliability
9
8
Responsiveness
7
3
Assurance
6
5
Empathy
4
Tangibles
2
Capacity
Attitude
Training
Customer Expectations
9
9
Equipment
*
*
Servic e Elements
Im
po
rta
nc
e
5
5
3
2
2
1 2 3 4 5
+ o
o
+
+
3
o
o
o
o
_
Improvement difficulty rank
+ Volvo Dealer
7
o
Weighted score
Customer Perc eptions
o Village Volvo
6
+
Comparison with Volvo Dealer
127 82
4
5
Weak
O
Informatiion
Relati ve
O
63 102
1
3
65
2
+
+
o
o
o
Benchmarking
Benchmarking is the systematic process of evaluating
the work processes of organizations that are
recognized as representing best
practices for the purpose of improving performance.
World-Class Best
Functional
Industry
Competition
Internal
(12.1)
Poka-Yoke
Poka-Yoke means mistake-proofing (fool-proofing, error-proofing)
Examples:
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The sound when dialing a telephone number ensures the user the number has been
successfully entered.
A connectors can only be inserted one way into a computer port.
Filing cabinets that only allow one drawer to be opened at a time to prevent them falling
over.
Automobile fuel tanks for unleaded gas do not allow diesel fuel nozzles to be inserted.
Handles on power tools that cut power when released.
Electrical circuit breakers that cut out when overloaded.
Spin Dryers that switch off when door is opened.
Washing machines that do not allow door to be opened if full of water.
Height board suspended at entrances to give a physical indication of height restrictions
before anything solid is encountered.
Sink overflows to prevent flooding.
Automobile interior lights that come-on when a door is opened.
Classification of Service Failures
with Poka-Yoke Opportunities
Server Errors:
Customer Errors:

Task
checklist

Preparation

Treatment
listening check

Encounter
size limitation

Tangible
clean uniform

Resolution
computer beep
survey
Quality Costs
Prevention
Appraisal
Planning
Supplier
Design
Review
Training
Process Control
Process
Improvement
System Auditing
Inspection
Internal
Failures
External
Failures
Rework
Customer
Product
Scrap
Inspecting/Checking
Product Testing
Measurement
System Validation
Product Auditing
Re-inspecting
Returns
Complaint
Adjustments
Warranty
Charges
Customer
Loss
Reputation
Loss
Re-testing
Downtime
Yield
Losses
Dispositioning
NonConformances
Costs of Service Quality
(Bank Example)
Failure costs
Detection costs
Prevention costs
External failure:
Process control
Loss of future business
Peer review
Negative word-of-mouth Supervision
Liability insurance
Customer comment card
Legal judgments
Inspection
Interest penalties
Quality planning
Training program
Quality audits
Data acquisition and analysis
Recruitment and selection
Supplier evaluation
Internal failure:
Scrapped forms
Rework
Recovery:
Expedite disruption
Labor and materials
Service Process Control
Customer
input
Service
process
Resources
Take
corrective
action
Identify reason
for
nonconformance
Service
concept
Customer
output
Monitor
conformance to
requirements
Establish
measure of
performance
Unconditional Service Guarantee:
Customer View
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Unconditional (L.L. Bean)
Easy to understand and communicate
(Bennigan’s)
Meaningful (Domino’s Pizza)
Easy to invoke (Cititravel)
Easy to collect (Manpower)
Unconditional Service Guarantee:
Management View
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Focuses on customers (British Airways)
Sets clear standards (FedEx)
Guarantees feedback (Manpower)
Promotes an understanding of the service
delivery system (Bug Killer)
Builds customer loyalty by making expectations
explicit
Customer Satisfaction
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All customers want to be satisfied.
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Customer loyalty is only due to the lack of a
better alternative

Giving customers some extra value will delight
them by exceeding their expectations and insure
their return
Customer Feedback and
Word-of-Mouth

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.
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About 60% of the complainers would stay as customers if their problem
was resolved and 95% would stay if the problem was resolved quickly.
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A dissatisfied customer will tell between 10 and 20 other people about their
problem.
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A customer who has had a problem resolved by a company will tell about 5
people about their situation.
Walk-Through-Audit
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Service delivery system should conform to
customer expectations.
Customer impression of service influenced by
use of all senses.
Service managers lose sensitivity due to
familiarity.
Need detailed service audit from a customer’s
perspective.
Severity
Of
Failure
Service
Failure
Occurs
Patronage
Perceived
Service
Quality
Psychological
-empathy
-apology
Provider
Aware of
Failure
Service
Recovery
Expectations
Customer
Loyalty
Service
Guarantee
Pre-recovery Phase
Tangible
-fair fix
-value add
Fair
Restitution
Service
Recovery
Speed of
Recovery
Psychological
-apology
-show interest
Frontline
Discretion
Immediate Recovery Phase
Follow-up
Service
Recovery
Loyalty
Satisfaction
Retention
Tangible
-small token
Follow-up Phase
Service Recovery Framework
Approaches to Service Recovery
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Case-by-case addresses each customer’s 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.