TOM 453 chapter 6 notes

TOM 453 chapter 6 notes - Chapter 6 Chapter Service Quality...

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Unformatted text preview: Chapter 6 Chapter Service Quality Chapter 6 a Skip Statistical Process Control (pages 123126) What is Quality? What “The degree of excellence of a thing” The (Webster’s dictionary) (Webster’s a “The totality of features and characteristics The that satisfy needs” (American Society for Quality) Quality) a The ability of a product or service to The consistently meet or exceed customer expectations expectations a Dimensions of Service Quality Dimensions a Reliability • Dependable, accurate a Responsiveness • Willingness to help, prompt a Assurance • Competence, courtesy a Empathy • Caring, sensitivity a Tangibles • Physical features Perceived Service Quality Perceived 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) Gaps in service quality Gaps a Gap between expected service and perceived Gap service service • Measure of customer satisfaction a Four related gaps include • • • • Understanding the customer (what they expect) Service design (translating expectations into standards) Conformance (matching delivery with standards) Managing the evidence (what they perceive) Measuring Service Quality Measuring a Contrast with measuring product quality a SERVQUAL SERVQUAL SERVQUAL SERVQUAL Tool for surveying customer satisfaction a Based on the service quality gap model a Customer expectations for a class of service Customer (e.g., budget hotels) (e.g., a Customer perceptions for a particular Customer service firm (e.g., Motel 6) service a Compute differences between ratings Compute assigned to paired expectation and perception statements perception a Could be used to track service quality trends a Quality service by design Quality Incorporate quality in the service package Incorporate (supporting facility, facilitating goods, etc.) (supporting a Taguchi methods a • Robust design (functions under adverse Robust conditions) conditions) • Quality loss function Quality a Poka-yoke methods • Mistake-proofing, fail-safing • Preventive Poka-yoke examples Poka-yoke a Visual (e.g., charts, sign boards, animal Visual footprints at the zoo, color coding) footprints a Height bars at amusement parks a Frames for carry-on luggage a Tool board with outlines (also Tool surgeon’s tools) surgeon’s a Warning light or signal a Library books shelving Poka-yoke examples Poka-yoke a Library books shelving Poka-yoke examples (contd) Poka-yoke a Use of checklists • (Jan 14, 2009) (Jan • Article about how a simple checklist cuts Article surgical deaths in half surgical Poka-yoke examples (contd) Poka-yoke a Surgical checklist • Developed by World Health Organization and Developed includes measures such as includes – Mark the part of body to be operated on – Make sure everyone knows about patient Make allergies allergies – Make sure everyone knows what their role Make will be will – Confirm that everything needed is in the Confirm room room – After surgery, make sure all instruments are After accounted for accounted Poka-yoke examples (contd) Poka-yoke a Surgical checklist • Related article – – (Jan 5, 2010) – Benchmark with Boeing (pilot’s checklist) Surgical checklist videos • (How to do it right) • (How not to do it) Quality Function Deployment Quality • Provide customer input at the design Provide stage stage • Relate customer attributes to design Relate characteristics characteristics • Include customer expectations, and Include perceptions (include perceptions about competitors) competitors) • Include assessment of competition Quality Function Deployment Quality Relationshi ps * S trong Medium * 5 Custom er Expectations Reliability 9 8 Responsiveness 7 3 A ssurance 6 5 E mpathy 4 Tangibles 2 Ca pac it y nc e A t t it ude ort a Traini ng S ervic e Elements Im p 9 Improvem ent difficulty rank 2 + V olvo Dealer 1 2 345 +o o + + 6 2 3 o o o o o 127 82 63 102 65 4 5 1 3 2 + o + 9 _ W eighted score 5 3 W eak Custom er Perc eptions o V illage Volvo 7 + Com parison with Vol vo Dealer * E quipm ent O In fo rmat iio n Rel at i ve O O o o Walk-through Audit Walk-through Tool to systematically evaluate customer’s Tool view of the service view a Customer-focused survey Customer-focused a Analysis can lead to service improvements a Designing a walk-through audit Designing a Identify major sections of the service delivery Identify process (customer interactions with the service system) system) • E.g., Arrival, check-in, baggage-handling, room E.g., service, facilities service, a Formulate as declarative sentences (for project, if Formulate you prefer, questions are also okay) you • E.g., ‘Ticket prices were reasonable’; ‘Ticket staff was E.g., friendly’ friendly’ a Five-point Likert scale to measure customer Five-point perceptions (e.g., 1 = strongly disagree to 5 = strongly agree) Walk-through audit (contd.) Walk-through Evaluate service experience from customer Evaluate perspective perspective a Evaluate gaps in perception between Evaluate customers and managers/employees customers a Same WtA administered to customers and Same managers/employees managers/employees a Gain insights from analysis of responses a Walk-through audit example Walk-through WtA for a movie theater (e.g., Edwards) a What would you include in a WtA for a What movie theater? movie a WtA for a movie theater WtA a Parking • Adequate, close, well-lit, passenger drop-off Adequate, area, security patrol area, a Ticketing • Advance purchase, adequate windows/ open Advance windows, staff friendly/knowledgeable, prices, payment options, attraction board payment WtA for a movie theater (contd.) WtA a Lobby • Size, cleanliness, entertainment, ambiance, amenities, Size, directions to proper theater directions a Concessions • Adequate counters, staff, prices, variety, quality a Theater • Size, seats (comfort, space), cleanliness, aisles (space, Size, lighting), temperature, sound quality, picture quality, punctual punctual Achieving Service Quality Achieving a Cost of Quality • • • • a internal failure external failure detection (inspection) prevention Statistical Process Control • Control charts Unconditional Service Guarantee: Customer view Guarantee: a Unconditional Unconditional • no questions • Lands’ End example a Easy to understand and communicate • customers know what to expect a Meaningful • important to customer a Easy to invoke • no hassles a Easy to collect • resolved on the spot Unconditional Service Guarantee: Management view Guarantee: a Focuses on customers • identify customers’ expectations a Sets clear standards • defines responsibilities of all employees a Guarantees feedback • customer satisfaction feedback a Promotes an understanding of service Promotes delivery system delivery • identify failure points a Builds customer loyalty • reduce customers’ risk, retain dissatisfied customers Service Recovery Service a Quick resolution to service failure • important to build customer loyalty a Turning a service failure into a service Turning delight delight • empower and train employees a Customer feedback and ‘word of mouth’ • “if you are happy with our service, please tell if your friends; if you are unhappy, please tell us” your • recovery expenses usually much less than cost recovery of adverse ‘word of mouth’ of Service Recovery (contd.) Service a ‘Making the Most of Customer Complaints’ Making from Wall Street Journal, Sep 22, 2008 from • How an organization handles complaints / How service failures is very important service • Short-term quick-fix vs. long-term process Short-term improvement improvement • Three stakeholders in service recovery – Customer – Manager – Frontline service employee WSJ Article (contd.) WSJ a Customer • • • • a Manager • • • a Fairness is biggest concern Service failure perceived as unfair treatment Recovery has to re-establish fairness Assurance that steps will be taken to prevent future Assurance failures failures Help company learn from service failures Process improvement, impact on bottom line Documentation, communication, feedback Frontline service employee • Empowerment • Management support • Have to deal with customers who hold them Have responsible even when failures are out of their control control Service Recovery Framework Service a Three phases • Pre-recovery phase Pre-recovery – includes customer expectations’ and service includes guarantee guarantee • Immediate recovery phase – speed of recovery, psychological (empathy, speed apology), tangible apology), – employee training and empowerment • Follow-up phase – psychological, tangible – encourage customer to return Approaches to Service Recovery Approaches a Case-by-case • can generate perceptions of unfairness (‘squeaky can wheel’) wheel’) a Systematic response • protocol to handle customer complaints • consistent; based on identification of failure points a Early intervention • intervene and fix problems before they affect the intervene customer customer a Substitute service recovery • capitalize on the failure of a rival e.g., overbooked capitalize hotel hotel Examples Examples a ‘Best’ service experience a ‘Worst’ service experience Cases Cases a The Complaint Letter a The Museum of Art and Design • Particularly if you choose WtA for project ...
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