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Chapter 6 Service Quality

Chapter 6 Service Quality. 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.

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Chapter 6 Service Quality

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  1. Chapter 6Service Quality

  2. 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)

  3. 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.

  4. Dimensions of Service Quality • Reliabilitydependable over time • Responsivenesskeeping customers waiting • Assurance reputation, credentials, confidence, track record • Empathybeing a good listener, putting yourself in their place • Tangiblescleanliness, physical appearance

  5. Perceived Service Quality Word of mouth Personal needs Past experience Service Quality Dimensions Reliability Responsiveness Assurance Empathy Tangibles Service Quality Assessment 1. Expectations exceeded ES<PS (Quality surprise) 2. Expectations met ES~PS (Satisfactory quality) 3. Expectations not met ES>PS (Unacceptable quality) Expected service Perceived service

  6. Service Quality Gap Model

  7. Quality Service by Design • Quality Function Deployment (House of Quality) • Quality in the Service Package • Taguchi Methods (Robustness) • Poka-yoke (Mistake Proofing)

  8. Voice of the Designer Voice of the Customer

  9. x = Design Trade-offs

  10. Benchmarking

  11. Reverse Engineering

  12. Technical Requirements Customer Requirements Product Requirements Technical Requirements Process Requirements Product Requirements Control Requirements Process Requirements Deploying the VOC

  13. The Objectives of QFD • Determine the voice of the customer. • Examine the company’s response to this voice.

  14. House of Quality

  15. Benchmarking Benchmarking is the systematic process of evaluating the work processes of organizations that are recognized as representing best practices for the purpose of improving performance. World-Class Best Functional Industry Competition Internal (12.1)

  16. Poka-Yoke Poka-Yoke means mistake-proofing (fool-proofing, error-proofing) Examples: • The sound when dialing a telephone number ensures the user the number has been successfully entered. • A connectors can only be inserted one way into a computer port. • Filing cabinets that only allow one drawer to be opened at a time to prevent them falling over. • Automobile fuel tanks for unleaded gas do not allow diesel fuel nozzles to be inserted. • Handles on power tools that cut power when released. • Electrical circuit breakers that cut out when overloaded. • Spin Dryers that switch off when door is opened. • Washing machines that do not allow door to be opened if full of water. • Height board suspended at entrances to give a physical indication of height restrictions before anything solid is encountered. • Sink overflows to prevent flooding. • Automobile interior lights that come-on when a door is opened.

  17. Server Errors: Task checklist Treatment listening check Tangible clean uniform Customer Errors: Preparation survey Encounter size limitation Resolution computer beep Classification of Service Failureswith Poka-Yoke Opportunities

  18. Quality Costs

  19. 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 materials

  20. Service Process Control Customer input Service concept Customer output Resources Service process Take corrective action Monitor conformance to requirements Establish measure of performance Identify reason for nonconformance

  21. 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)

  22. 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 explicit

  23. Customer Satisfaction • All customers want to be satisfied. • Customer loyalty is only due to the lack of a better alternative • Giving customers some extra value will delight them by exceeding their expectationsand insure their return

  24. Customer Feedback andWord-of-Mouth • The 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.

  25. 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.

  26. Approaches to Service Recovery • Case-by-caseaddresses 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.

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