Service process management and quality improvement


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Service process management and quality improvement

  1. 1. Service enterprises are organizations thatfacilitate the production and distribution ofgoods, support other firms in meeting theirgoals, and add value to our personal lives. James Fitzsimmons
  2. 2.  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. 6-3
  3. 3.  Reliability: Perform promised service dependably and accurately. Example: receive mail at same time each day. Responsiveness: Willingness to help customers promptly. Example: avoid keeping customers waiting for no apparent reason. 6-4
  4. 4.  Assurance: Ability to convey trust and confidence. Example: being polite and showing respect for customer. Empathy: Ability to be approachable. Example: being a good listener. Tangibles: Physical facilities and facilitating goods. Example: cleanliness. 6-5
  5. 5. Word of Personal Past mouth needs experienceService Quality Expected Service Quality Assessment Dimensions service 1. Expectations exceeded Reliability ES<PS (Quality surprise)Responsiveness 2. Expectations met Assurance Perceived ES~PS (Satisfactory quality) Empathy service 3. Expectations not met Tangibles ES>PS (Unacceptable quality) 6-6
  6. 6. Customer Customer Satisfaction Customer GAP 5 Perceptions ExpectationsManaging the Customer / Understanding Evidence Marketing Research the Customer Communication GAP 4 GAP 1 Management Service Perceptions Delivery of Customer Expectations Conformance Design GAP 2 GAP 3 Conformance Service Design Service Standards 6-7
  7. 7. Service Organization Control Efficiency versus versusautonomy satisfaction Contact CustomerPersonnel Perceived controlNote: Perceived control determines if a relationship or encounter is established between contact personnel and customer. 8-8
  8. 8.  Foundations of Continuous Improvement - Customer Satisfaction - Management by Facts - Respect for People Plan-Do-Check-Act (PDCA) Cycle
  9. 9. Process Improvement Step DefinitionDefine Define project objectives, internal and external customersMeasure Measure current level of performanceAnalyze Determine causes of current problemsImprove Identify how the process can be improved to eliminate the problemsControl Develop mechanisms for controlling the improved process 7-11
  10. 10.  Step 1: Define the project Step 2: Study the current situation Step 3: Analyze the potential causes Step 4: Implement a solution Step 5: Check the results Step 6: Standardize the improvement Step 7: Establish future plans
  11. 11. Satisfaction Mirror More More Familiarity with Repeat Customer Needs and Purchases Ways of Meeting Them Stronger Tendency Greater Opportunity to Complain about for Recovery Service Errors from ErrorsHigher Customer Higher EmployeeSatisfaction Satisfaction Lower Costs Higher Productivity Better Results Improved Quality of Service 8-13
  12. 12. Service Profit Chain Internal External Operating strategy and Service concept Target market service delivery system Loyalty Customers RevenueSatisfaction growth Productivity & Service Employees Satisfaction Loyalty Output valueCapability quality Profitability Service quality Customer orientation/quality emphasis Quality & productivity Attractive Value Lifetime value Allow decision-making latitude improvements yield Service designed Retention Selection and development higher service quality & delivered to Repeat Business Rewards and recognition and lower cost meet targeted Referrals Information and communication customers’ needs Provide support systems Solicit customer Foster teamwork feedback 8-14
  13. 13. MANAGING MANAGING DEMAND CAPACITY Partitioning Increasing demand customer Developing participation Sharingcomplementary capacity services Establishing Scheduling price Developing Cross- work shifts incentives reservation training systems employees Promoting Creating off-peak adjustable Using demand capacity part-time employees Yield management 11-15
  14. 14. • Full-scale launch • Post-launch review Full Launch Enablers Development • Formulation of new services objective / strategy People • Idea generation• Service design and screening and testing • Concept• Process and system development and design and testing Product testing• Marketing program design and testing• Personnel training Technology Systems• Service testing and pilot run• Test marketing Tools Design Analysis • Business analysis • Project authorization