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Service Process Management and Quality Improvement
 

Service Process Management and Quality Improvement

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    Service Process Management and Quality Improvement Service Process Management and Quality Improvement Presentation Transcript

    • Service Process ManagementandQuality Improvement
    • Service enterprises are organizations that facilitate the production and distribution of goods, support other firms in meeting their goals, and add value to our personal lives.
      James Fitzsimmons
      Definition of Service Firms
    • 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.
      Moments of Truth
      6-3
    • 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.
      Dimensions of Service Quality
      6-4
    • 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.
      Dimensions of Service Quality
      6-5
    • 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
      6-6
    • Service Quality Gap Model
      6-7
    • The Service Triangle
      Service
      Organization
      Efficiency
      versus
      satisfaction
      Control
      versus
      autonomy
      Customer
      Contact
      Personnel
      Perceived
      control
      Note: Perceived control determines if a relationship or encounter
      is established between contact personnel and customer.
      8-8
    • Open Systems View of Services
    • Foundations of Continuous Improvement
      - Customer Satisfaction - Management by Facts - Respect for People
      Plan-Do-Check-Act (PDCA) Cycle
      Quality and Productivity Improvement Process
    • Six Sigma DMAIC Process Steps
      Process Improvement
      7-11
    • 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
      The Seven-Step Method (SSM)
    • More Familiarity with Customer Needs andWays of Meeting Them
      More
      Repeat
      Purchases
      Stronger Tendency to Complain about Service Errors
      Greater Opportunity for Recovery
      from Errors
      Higher Employee
      Satisfaction
      Higher Productivity
      Lower Costs
      Better Results
      Improved Quality
      of Service
      Satisfaction Mirror
       
       
       
       
       
        
      Higher Customer Satisfaction
      8-13
    • Service Profit Chain
      Internal
      External
      Service concept
      Operating strategy and
      service delivery system
       
      Target market
      Loyalty
      Revenue
      growth
      Customers
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
       
      Satisfaction
      Productivity
      &
      Output
      quality
      Service
      value
      Employees
      Satisfaction
      Loyalty
      Capability
      Profitability
      Service
      quality
      Customer orientation/quality emphasis
      Allow decision-making latitude
      Selection and development
      Rewards and recognition
      Information and communication
      Provide support systems
      Foster teamwork
      Quality & productivity improvements yield higher service quality and lower cost
      Attractive Value 
      Service designed
      & delivered to
      meet targeted
      customers’ needs
      Solicit customer
      feedback
      Lifetime value
      Retention
      Repeat Business
      Referrals
      8-14
    • Strategies for Matching Capacity and Demand for Services
      MANAGING
      DEMAND
      MANAGING
      CAPACITY
      Partitioning
      demand
      Increasing
      customer
      participation
      Developing
      complementary
      services
      Sharing
      capacity
      Establishing
      price
      incentives
      Scheduling
      work shifts
      Cross-
      training
      employees
      Developing
      reservation
      systems
      Creating
      adjustable
      capacity
      Promoting
      off-peak
      demand
      Using
      part-time
      employees
      Yield
      management
      11-15
    • New Service Development Cycle
      • Full-scale launch
      • Post-launch review
      Full Launch
      Development
      Enablers
      • Formulation
      of new services
      objective / strategy
      • Idea generation
      and screening
      • Concept
      development and
      testing
      People
      Organizational
      Context
      Teams
      • Service design
      and testing
      • Process and system
      design and testing
      • Marketing program
      design and testing
      • Personnel training
      • Service testing and
      pilot run
      • Test marketing
      Product
      Technology
      Systems
      Tools
      Analysis
      Design
      • Business analysis
      • Project authorization