Gap Analysis theory

Gap AnalysisPresentation byStephen Coppola

Table of ContentsDefinition of Gap Analysis

Service Gap AnalysisSERVQUALGaps ModelDimension Model

Real World Gap AnalysisISO 9001 20002

Definition of Gap Analysis

Formal means to identify and correct gaps between desired levels and actual levels of performance

Used by organizations to analyze certain processes of any division of their company

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Service Gap AnalysisExpected level of service vs. Actual level of service provided

SERVQUAL- 5 gaps- 5 dimensions

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SERVQUAL

A gap analysis research instrument created by Parasuraman, Zeithamel, and BerryIntroduced in 19885

SERVQUAL Model6

SERVQUAL Model GapsGap 1The difference between actual customer expectations and managements idea or perception of customer expectations 7

SERVQUAL Model GapsGap 2Mismatch between managers expectations of service quality and service quality specifications8

SERVQUAL Model GapsGap 3Poor delivery of service quality9

SERVQUAL Model GapsGap 4Differences between service delivery and external communication with customer10

SERVQUAL Model GapsGap 5Differences between Expected and Perceived Quality11

Gaps Model12

Gaps ModelThere are 22 items which can be ratedi.e. modern looking equipment, prompt service, understanding of needs, etc.These items are broken up into 5 dimensions:Tangibles (Items 1-4)Reliability (Items 5-9)Responsiveness (Items 10-13)Assurance (Items 14-17)Empathy (Items 18-22)13

Gaps ModelPerceptions and Expectations are given a rating for certain dimensionsRatings scale 1 (Strongly Disagree) to 7 (Strongly Agree)Average expectation rating is then subtracted from the average perception rating

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Gaps Model

High Training needednegative = in certain rating dimension15 High Dimension is OK, positive = no training rating needed

Gaps Model ExampleFor Example:If a survey was taken which showed the averages for each dimension is as follows:Dimension Perception Average Expectation AverageTangibles 5.4 2.4Reliability 5.6 4.6Responsiveness 3.2 3.5Assurance 6.2 3.4Empathy 2.8 4.2 What dimension should be emphasized?16

Gaps Model ExamplePerception Expectation = DifferenceTangibles: 5.4 - 2.4 = 3.0Reliability:5.6 - 4.6 = 1.0Responsiveness:3.2 - 3.5 = -0.3Assurance:6.2 - 3.4 = 2.8Empathy:2.8 - 4.2 = -1.4Empathy has the lowest rating therefore it is the dimension where training should be emphasized the most. A focus should also be placed on Responsiveness because of its negative rating.17

Applications of Gap Analysis

ISO 9001 2000

Praxiom Research Group Limited

Process Approach

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ISO 9001 2000Gap Analysis Tool

Phase 1: Identify Gaps

Phase 2: Fill Gaps19


Identify Gaps:Tool lists the five sets of requirements from the ISO 9001 2000 as questionsSystematicManagementResourceRealizationAnalytical20


Identify Gaps:Three answers are possible for each question:Yes organization has met one of ISOs requirementNo points to a gapN/A question is not applicable to situation

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Identify Gaps:Each time NO is answered, there is a column to help organization identify which processes need to be fixed

22 total processes which can be fixed22


Fill Gaps:Preparation and Implementation of System Development FormsEach of the 22 processes listed in Phase One has a system development form

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Fill Gaps:These system development forms are used to prepare System Development PlansThe Gap Analysis questions are turned into action statementsThese action statements formulate remedial actions which will fill in the gaps24


Fill Gaps:Once all actions are performed and gaps are filled, the organization will have a ISO 9001 2000 compliantQuality Management System25

Summary of Gap AnalysisGaps can be found in any process of an organizations operationsTools like SERVQUAL, Two-Dimensional Analysis, and ISO 9001 2000 can all be used to perform gap analysisGap Analysis is one of the best procedures to help lead a company to not only improve their processes, but recognize which processes are in need of improvement.

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156-74-1538Gap Analysis Slide Presentation02-19-01Gaps are indicators of corrective action and improvementsIn manufacturing, it could be difference between desired and existing conformance levelsA good example where gap analysis is used for improvements in business is in the services fieldThe most popular assessment tool used in service quality is called SERVQUAL, which involves a set of the 5 most important dimensions of quality according to rankings of customersAlso involves a set of 5 gaps which represent the difference between customers expectations and perceptions

The marketing research team of Parasuraman, Zeithamel, and Berry created this service quality measuring tool in 1988Has been used in a wide range of studies including fields such as health care, banking, appliance repair, and many other professionsFive Gaps includeCustomer expectations vs. managerial perceptionsManagers expectations of quality vs. quality specsCommunication with customer at point of service or saleService delivery vs. communicationPerceived services vs. expected servicesSERVQUAL is not a measurement to compare and rank separate companies but only to provide a measure for managers to determine actions needed in their own services

Managers and employees have a very internal process-oriented view of their business, it is tough to break this view and to see things the way the customer doesThis gap of the SERVQUAL Model can help management with customer serviceTo implement a system to improve this gap, management must first understand exactly what the customer wantsIf this understanding is not present, it will be impossible for management to know whether their expectations are aligned with customer specifications.Once the specifications from gap 2 are aligned the next step is to deliver these services in a perfect mannerQuality of delivery must be perfected during the interaction with the customerThe employees that are responsible for these actions are referred to as contact personnelSome reasons for a lack of quality include poor training, communication, and preparationCustomers are influenced by what what they hear and see about a companys serviceWord-of-mouth publicity and advertising are main outlets which customers open their opinions toThe difference between what a customer hears about a companys service and what is actually delivered is represented by gap 4This gap can lead to dangerously negative customer perceptionsThis gap is directly related to everyones perception of service qualityCustomers expect certain things from certain companiesWhen someone goes into a McDonalds to order their favorite meal a Big Mac, they are expecting exactly what they are accustomed to getting (a quick, no hassle, tasty big burger with all the works). If it takes 15 minutes to get a Big Mac that doesnt even have the famous special sauce on it the customers perceived service of McDonalds is going to plummet.If gaps 1 through 4 are closed to a minimum then gap 5 should follow, if there are any gaps left in steps 1 through 4 the perceived customer service quality will be negatively affectedThe way to make sure these gaps are closed is through thorough systems design, precise communication with customers, and a well-trained workforce.Tangibles: appearance of physical facilities, equipment, personnel, and communication materials Reliability: ability to perform the promised service dependably and accurately Responsiveness: willingness to help customers and provide prompt service Assurance: knowledge and courtesy of employees and their ability to convey trust and confidence Empathy: the caring, individualized attention the firm provides its customers

Reliability is the most important dimensionTangibles is the least important dimensionThere is a shared importance between Reliability and Responsiveness

Average ratings should usually be taken from a sample size of at least 50 participants

If the average rating is negative there is a need for actionAs the rating gets lower below zero, the more stress must be placed on that processIf the average rating is above zero, the requirements have been met and no action is neededThe Praxiom Research Group Limited has a gap analysis tool offered on the internet at http://praxiom.com/iso-gap.htmThis tool helps an organization find out what they need to do to meet the new ISO 9001 2000 standardThe tool is offered in a hardcopy edition or a digital edition (either in Word or PDF format)This tool uses a process approach to service quality, not only because this approach makes the most sense but the ISO 9001 2000 makes it mandatory to do soClause 4.1 of ISO90012000 makes it very clear that organizations must identify and manage the processes that make up their Quality Management Systems

The Praxion Research Groups Gap Analysis Tools is made up of 2 phases:Identification of GapsFilling of GapsThese Phases will be broken down in the next few slidesThis list of requirements is usually in the form of statements but for this tool they are used to ask questions not to make statements

No answers reveal gaps between ISOs standard and the organizations processNo answers also tell the organization that a process needs to be modified, improved, or created22 Processes:Quality Management ProcessResource Management ProcessRegulatory Research ProcessMarket Research ProcessProduct Design ProcessPurchasing ProcessProduction ProcessService ProcessProduct Protection ProcessCustomer Needs Assessment ProcessCustomer Communications ProcessInternal Communications ProcessDocument Control ProcessRecord Keeping ProcessPlanning ProcessTraining ProcessInternal Audit ProcessManagement Review ProcessMeasuring and Monitoring ProcessNonconformance Management ProcessContinual Improvement ProcessGeneral Systemic ProcessAfter identifying the gaps and figuring out which processes need changing, the preparation and implementation of System Development Forms occurs

To develop plans from the forms, an organization must turn their gap analysis questions into remedial action statementsThese remedial actions are used to fill the gaps that are found in the identification stageThe placement of these actions into the gaps is called the System Development PlanAll remedial actions must be assigned a Remedial Action NumberThese numbers must cross reference ISO clause numbers and gap analysis questions answered earlierJob responsibilities are then given out to make sure that the remedial actions are carried out- After all remedial actions are set into motion and recorded in alignment with the ISO standards the date is recorded and after the actions take place the organizations processes are soon on their way to becoming ISO 9001 2000 compliant.BibliographyFoster, S. Thomas, Managing Quality: An Integrative Approach. Prentice Hall, 2001: pg. 132-134, 231-234.

Hiller, Steve, ARL SERVQUAL Survey Pilot. University of Washington Libraries.

Nitecki, Danuta A., SERVQUAL: Measuring Service Quality In Academic Libraries, http://arl.cni.org/newsltr/191/servqual.html.

ISO 9001 2000 Gap Analysis Tool, http://praxiom.com/iso-gap.htm.

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Gap Analysis theory