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Learn about Total Quality Management (TQM) principles, quality management, customer loyalty, continuous improvement, and creating a quality service culture in facilities management.
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M.Sc Facilities Management D31SQ Service Procurement and Provision Lecturer: Daniel Wong MBA, MSc, BBus
What is TQM? • ‘Total quality management (TQM) is ‘an approach for continuously improving the quality of every aspect of business life….it is a never ending process of improvement for individuals, groups of people and the whole organisation’ (Kanji and Asher 1993)
TQM emphasises…. • customer focus • management commitment • continuous improvement • increased employee involvement • teamwork • long-range thinking, employee empowerment • process management • competitive benchmarking (Ross 1993)
What is quality? • ‘The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs’ ISO 8402 - 1086
What is Quality Management? • Quality Management (QM) provides a ‘systematic way of coordinating activities to direct and control an organisation with regard to quality’ (ISO 9000 2005)
Who needs QM? • Customer loyalty • Repeat business and referral • Operational results such as revenue and market share • Flexible and fast responses to market opportunities • Costs and cycles times through effective and efficient use of resources • Alignment of processes which will best achieve desired results • Competitive advantage through improved organisational capabilities • Understanding and motivation of people towards the organisations goals and objectives • Confidence of interested parties in the effectiveness and efficiency of the organisation • Ability to create value for both the organisation and its suppliers.”
Continuous Improvement Steps • Analysing and evaluating the existing situation to identify areas of potential improvement • Establishing the objectives for improvement Search for possible solutions to achieve the objectives • Evaluate these solutions and make a selection • Implement the selected solution • Measure, analyse and evaluate the results to determine whether the objectives have been met • Formalise the changes
Unit 5 continued….What makes services different from products? • Service intangibility • Simultaneity of production, delivery and consumption • Variability of expectations: • Perishability • Participatory role of customers
Gronroos Model • functional quality (how the service is performed and delivered) • technical quality (what the consumer receives) and • the image of the service firm Functional Image Technical
What makes for a quality service? • Top management commitment • Human resource management • Technical system • Information and analysis system • Benchmarking • Continuous improvement • Customer focus • Employee satisfaction • Union intervention • Social responsibility • Servicescapes • Service culture
…so what is a desirable service culture? • Innovation • Joy • Respect • Teamwork • Social profit • Integrity • Excellence
SERVQUAL • Tangible: physical facilities, equipment, appearance of personnel, communication material. • Reliability: ability to perform the promised service dependably and accurately. • Responsiveness: willingness to help customers and provide prompt service. • Assurance: the knowledge and courtesy of employees and their ability to inspire trust and confidence • Empathy: the caring, individualised attention provided to customers.
SERVQUAL Score SERVQUAL score = Perception score – Expectation score
Why TQS? • Customer loyalty • Repeat business and referral • Operational results such as revenue and market share • Flexible and fast responses to market • Costs and cycles times • Alignment of processes • Competitive advantage • Understanding and motivation of people • Confidence of interested parties • Ability to create value
UK Motorway Service Stations • From the video establish: • functional quality (how the service is performed and delivered) • technical quality (what the consumer receives) and • the image of the service firm