IMPROVING SERVICE

QUALITY AND PRODUCTIVIT

Y

Presented By,Maneesha, Atul

Rajendra

WHAT IS SERVICE QUALITY ?

Product-based:

User-based:

Manufacturing-based:

Transcendent: Quality = Excellence. Recognized only through experience

Quality is precise and measurable

Quality lies in the eyes of the beholder

Quality is in conformance to the firm’s developed specifications

Value-based: Quality is a trade-off between price and value

4 KEY FACTORS THAT INFLUENCE CUSTOMER’S EXPECTATIONS

Word of mouth communications Personal needs and preferences Past Experience External Communication

COMPONENTS OF SERVICE QUALITY

Tangibles: Appearance of physical elements

Reliability: Dependable and accurate performance

Responsiveness: Promptness; helpfulness

Assurance: Competence, courtesy, credibility, security

Empathy: Easy access, good communication, understanding of customer

DIMENSIONS OF TOTAL QUALITY (SERVQUAL)

8 Dimensions of quality were identified by Garvin. Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived Quality

It measures the GAP between the customer experience and expectations.

SERVQUAL

Survey research instrument based on premise that customers evaluate firm’s service quality by comparing Their perceptions of service actually received Their prior expectations of companies in a particular

industry Poor quality

Perceived performance ratings < expectations Good quality

Perceived performance ratings > expectations

HOW CUSTOMERS MIGHT EVALUATE ONLINE BUSINESSES: SEVEN DIMENSIONS OF E-S-QUAL

Accessibility : Is site easily found?

Navigation: How easy is it to move around the site?

Design and presentation: Image projected from site?

Content and purpose: Substance and richness of site

Currency and accuracy Responsiveness: Firm’s propensity to respond to

e-mails Interactivity, customization, and personalization Reputation and security

THE GAPS MODEL—A CONCEPTUAL TOOL TO IDENTIFY AND CORRECT SERVICE QUALITY PROBLEMS

Customer experience relative to expectations

1. Knowledge Gap

2. Standards Gap

3. Delivery Gap

5. Perceptions Gap

7. Service Gap

Customer needs and expectations

6. Interpretation Gap

4. Internal Communications Gap

MANAGEMENT

CUSTOMER

4.

Customer perceptions of service execution

Management definition of these needs

Translation into design/delivery specs

Execution of design/delivery specs

Advertising and sales promises

Customer interpretation of communications

THE GAP MODEL

1. Knowledge gap: Learn what customers expect Understand customer expectations Improve communication between frontline staff

and management Turn information and insights into action

2. Standards gap: Specify SQ standards that reflect expectations Set, communicate, and reinforce customer-

oriented service standards for all work units Measure performance and provide regular

feedback Reward managers and employees

THE GAP MODEL3. Delivery gap: Ensure service performance

meets standards Clarify employee roles Train employees in priority setting and time

management Eliminate role conflict among employees Develop good reward system

4. Internal communications gap: Ensure that communications promises are realistic Seek comments from frontline employees and

operations personnel about proposed advertising campaigns

Get sales staff to involve operations staff in meetings with customers

Ensure that communications sets realistic customer expectations

THE GAP MODEL

5. Perceptions gap: Educate customers to see reality of service quality delivered Keep customers informed during service delivery

and debrief after delivery Provide physical evidence

6. Interpretation gap: Pretest communications to make sure message is clear and unambiguous Present communication materials to a sample of

customers in advance of publication

7. Service gap: Close gaps 1 to 6 to meet customer expectations consistently

MEASURING AND IMPROVING SERVICE QUALITY Soft measures—not easily observed, must be

collected by talking to customers, employees, or others Provide direction, guidance, and feedback to

employees on ways to achieve customer satisfaction Can be quantified by measuring customer perceptions

and beliefs For example: SERVQUAL, surveys, and customer advisory

panels

Hard measures—can be counted, timed, or measured through audits Typically operational processes or outcomes Standards often set with reference to percentage of

occasions on which a particular measure is achieved Control charts are useful for displaying performance

over time against specific quality standards

SOFT MEASURES OF SERVICE QUALITY Key customer-centric SQ measures include:

Total market surveys, annual surveys, transactional surveys

Service feedback cards Mystery shopping Analysis of unsolicited feedback—complaints and

compliments, focus group discussions, and service reviews

Ongoing surveys of account holders to determine satisfaction in terms of broader relationship issues

Customer advisory panels offer feedback/advice on performance

Employee surveys and panels to determine: Perceptions of the quality of service delivered to

customers on specific dimensions Barriers to better service Suggestions for improvement

HARD MEASURES OF SERVICE QUALITY

Control charts to monitor a single variable Offer a simple method of displaying performance

over time against specific quality standards Are only good if data on which they are based is

accurate Enable easy identification of trends

Service quality indexes Embrace key activities that have an impact on

customers

BLUEPRINTING Depicts sequence of front-stage interactions

experienced by customers plus supporting backstage activities

Used to identify potential fall points—where failures are most likely to appear

Shows how failures at one point may have a ripple effect later

Managers can identify points which need urgent attention Important first step in preventing service quality

problems

TOOLS TO ANALYZE AND ADDRESS SERVICE QUALITY PROBLEMS

Total Quality Management (TQM) ISO 9000

Comprises requirements, definitions, guidelines, and related standards to provide an independent assessment and certification of a firm’s quality management system

Malcolm Baldrige Model Applied to Services To promote best practices in quality management, and

recognizing, and publicizing quality achievements among U.S. firms

Six Sigma Statistically, only 3.4 defects per million opportunities

(1/294,000) Has evolved from defect-reduction approach to an

overall business-improvement approach

TQM IN A SERVICE CONTEXT: TWELVE CRITICAL DIMENSIONS FOR IMPLEMENTATION

Top management commitment and visionary leadership

Human resource management Technical system, including service process design and

process management Information and analysis system Benchmarking Continuous improvement Customer focus Employee satisfaction Union intervention and employee relations Social responsibility Service scapes Service culture

CAUSE-AND-EFFECT CHART FOR FLIGHT DEPARTURE DELAYS

Aircraft late to gate

Late food service

Late fuel

Late cabin cleaners

Poor announcement of departures

Weight and balance sheet late

Delayed Departures

Delayed check-in procedure

Acceptance of late passengers

Front-StagePersonnel

Procedures

Materials,Supplies

Customers

Gate agents cannot process fast enough

Late/unavailable airline crew

Arrive lateOversized bags

Weather Air traffic

Frontstage Personnel

Procedures

Materials, Supplies

BackstagePersonnel

Information

Customers

Other Causes

MechanicalFailures

Late pushback

Late baggage

Facilities,Equipment

WHAT IS INTERNAL & EXTERNAL CUSTOMER? The external customer is someone who signs

a check, pays our employer, and ultimately makes our paycheck possible. External customers have choice, and if they don't like your product or service they can take their business elsewhere.

An internal customer or internal service provider can be anyone in the organization. An internal customer can be a co-worker, another department, or a distributor who depends upon us to provide products or services which in turn are utilized to create a deliverable for the external customer. In general, internal customers don't have a choice.

ROLES OF EMPLOYEES AND THEIR INFLUENCE ON CUSTOMERS

MODIFIERSCONTRACTORS

ISOLATORSINFUENCERS

Periodic customer contact

Infrequent customer contact

Involved in conventional marketing mix

Not directly Involved in conventional marketing mix

Contractors: These are employees having frequent contact with customers.(Salesmen,Promotions).

Modifiers : These are employees having frequent contact with customers and also go on to build “MOMENT OF TRUTH”.(Call center personnel)

Influencers: These are senior employees who have planned and devised strategies ,but are very infrequent with customers.

Isolators: These role players perform support functions like data processing, office operations.

ROLES OF EMPLOYEES AND THEIR INFLUENCE ON CUSTOMERS

DEMAND AND SUPPLY MANAGEMENT

There are 9 different types of demand, Rising Demand : This occurs when the

service offer is in the growth stage.(Cellphone Service)

Falling Demand: This occurs when the service offer is in the decline stage.(Browsing Centers)

Zero Demand: The market may have no demand for that service.(No demand for Foreign language coaching center in rural villages)

Full Demand: Demand for service is equal to supply.

Overfull Demand: Demand exceeds supply

TYPES OF DEMAND Negative Demand: Customers may avoid

consuming a particular service.(Cosmetic Surgery)

Latent Demand: There lays a deep demand for a particular service but no service offer exists to satisfy that demand.(Good Day care centers)

Seasonal Demand(Hotel accommodation during New Years in Goa)

Unwholesome Demand : People tend to lose interest in that service due to the new ingredients in the service.

STRATEGIES FOR PRODUCTIVITY

There are three major ways in which improvement in productivity can be brought out,

Improving staff performance through training Introducing system and technology Reducing service levels Customer interactions Managing capacity by controlling supply.

THANK YOU