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