Describe the five dimensions of service quality Use the service quality gap model to diagnose quality problems Illustrate how Taguchi methods and pokayoke methods are applied to quality design ID: 644214
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Service QualitySlide2
Learning Objectives
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)Slide3
Moments of Truth
Each customer contact is called a moment of truth.You have the ability to either satisfy or dissatisfy them when you contact them.A service recovery is satisfying a previously dissatisfied customer and making them a loyal customer.Slide4
Dimensions of Service Quality
Reliability: Perform promised service dependably and accurately. Example: receive mail at same time each day.Responsiveness: Willingness to help customers promptly. Example
: avoid keeping customers waiting for no apparent reason. Slide5
Dimensions of Service Quality
Assurance: Ability to convey trust and confidence. Example: being polite and showing respect for customer.Empathy: Ability to be approachable. Example
: being a good listener.
Tangibles
: Physical facilities and facilitating goods.
Example
: cleanliness. Slide6
Perceived Service Quality
Word of
mouth
Personal
needs
Past
experience
Expected
service
Perceived
service
Service Quality
Dimensions
Reliability
Responsiveness
Assurance
Empathy
Tangibles
Service Quality Assessment1. Expectations exceeded ES<PS (Quality surprise)2. Expectations met ES~PS (Satisfactory quality)3. Expectations not met ES>PS (Unacceptable quality)Slide7
Service Quality Gap Model
Service Quality Gap ModelSlide8
Quality Service by Design
Quality in the Service Package Budget Hotel exampleTaguchi Methods (Robustness) Notifying maids of rooms for cleaningPoka-yoke (fail-safing) Height bar at amusement park
Quality Function Deployment
House of Quality Slide9
Classification of Service Failureswith Poka-Yoke Opportunities
Server ErrorsTask:
Doing work incorrectly
Treatment
:
Failure to listen to customer
Tangible
:
Failure to wear clean uniform
Customer Errors
Preparation
:
Failure to bring necessary materials
Encounter
: Failure to follow system flowResolution
: Failure to signal service failureSlide10
House of QualitySlide11
Achieving Service Quality
Cost of Quality (Juran)Service Process ControlStatistical Process Control (Deming)Unconditional Service GuaranteeSlide12
Costs of Service Quality
(Bank Example) Failure costs Detection costs Prevention costs
External failure
: Process control Quality planning
Loss of future business Peer review Training program
Negative word-of-mouth Supervision Quality audits
Liability insurance Customer comment card Data acquisition and analysis
Legal judgments Inspection Recruitment and selection
Interest penalties Supplier evaluation
Internal failure:
Scrapped forms
Rework
Recovery: Expedite disruption Labor and materialsSlide13
Service Process Control
Resources
Identify reason
for
nonconformance
Establish
measure of
performance
Monitor
conformance to
requirements
Take
corrective
action
Service
concept
Customer
input
Customer output
Service
processSlide14
Control Chart of Departure Delays
expected
Lower Control Limit
1998
1999Slide15
Unconditional Service Guarantee: Customer View
Unconditional (L.L. Bean)Easy to understand and communicate (Bennigan’s)Meaningful (Domino’s Pizza)Easy to invoke (Cititravel)Easy to collect (Manpower)Slide16
Unconditional Service Guarantee: Management View
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 explicitSlide17
Customer Satisfaction
All customers want to be satisfied. Customer loyalty is only due to the lack of a better alternativeGiving customers some extra value will delight
them by exceeding their expectations
and insure their return Slide18
Customer Feedback and
Word-of-MouthThe 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.Slide19
Walk-Through-Audit
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. Slide20Slide21
Approaches to Service Recovery
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.Slide22
Topics for Discussion
How do the five dimensions of service quality differ from those of product quality?Why is measuring service quality so difficult?Compare the philosophies of Deming and Crosby.
What are the limitations of “benchmarking”.
Illustrate the four components in the cost of quality for a service.
Why do service firms hesitate to offer a service guarantee?
How can recovery from a service failure be a blessing in disguise?Slide23
Interactive Exercise
The class breaks into small groups. Each group identifies the worst service experience and the best service experience that any member has had. Return to class and discuss what has been learned about service quality.Slide24
The Complaint Letter
Briefly summarize the complaints and compliments in Dr. Loflin’s letter.Critique the letter of Gail Pearson in reply to Dr. Loflin. What are the strengths and weaknesses of the letter?
Prepare an “improved” response letter from Gail Pearson
What further action should Gail Pearson take in view of this incident?Slide25
The Museum of Art and Design
Critique the WtA gap analysis. Could there be other explanations for the gaps?Make recommendations for closing the gaps found in the WtA.
How can the servicescape help in self-selecting customers and employees?