Service Process Management and Quality Improvement

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Service Process Management and Quality Improvement

  1. 1. Service Process ManagementandQuality Improvement<br />
  2. 2. 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.<br /> James Fitzsimmons<br />Definition of Service Firms<br />
  3. 3. Each customer contact is called a moment of truth.<br />You have the ability to either satisfy or dissatisfy them when you contact them.<br />A service recovery is satisfying a previously dissatisfied customer and making them a loyal customer.<br />Moments of Truth<br />6-3<br />
  4. 4. Reliability: Perform promised service dependably and accurately. Example: receive mail at same time each day.<br />Responsiveness: Willingness to help customers promptly. Example: avoid keeping customers waiting for no apparent reason. <br />Dimensions of Service Quality<br />6-4<br />
  5. 5. Assurance: Ability to convey trust and confidence. Example: being polite and showing respect for customer.<br />Empathy: Ability to be approachable. Example: being a good listener.<br />Tangibles: Physical facilities and facilitating goods. Example: cleanliness. <br />Dimensions of Service Quality<br />6-5<br />
  6. 6. Perceived Service Quality<br />Word of <br />mouth<br />Personal <br />needs<br />Past <br />experience<br />Service Quality <br />Dimensions<br />Reliability<br />Responsiveness<br />Assurance<br />Empathy<br />Tangibles<br /> Service Quality Assessment<br />1. Expectations exceeded<br /> ES<PS (Quality surprise)<br />2. Expectations met<br /> ES~PS (Satisfactory quality)<br />3. Expectations not met<br /> ES>PS (Unacceptable quality)<br />Expected<br />service<br />Perceived<br />service<br />6-6<br />
  7. 7. Service Quality Gap Model<br />6-7<br />
  8. 8. The Service Triangle<br />Service<br />Organization<br />Efficiency<br />versus<br />satisfaction<br />Control<br />versus <br />autonomy<br />Customer<br />Contact<br />Personnel<br />Perceived<br /> control<br />Note: Perceived control determines if a relationship or encounter<br /> is established between contact personnel and customer.<br />8-8<br />
  9. 9. Open Systems View of Services<br />
  10. 10. Foundations of Continuous Improvement <br /> - Customer Satisfaction - Management by Facts - Respect for People<br />Plan-Do-Check-Act (PDCA) Cycle<br />Quality and Productivity Improvement Process<br />
  11. 11. Six Sigma DMAIC Process Steps<br />Process Improvement<br />7-11<br />
  12. 12. Step 1: Define the project<br />Step 2: Study the current situation<br />Step 3: Analyze the potential causes<br />Step 4: Implement a solution<br />Step 5: Check the results<br />Step 6: Standardize the improvement<br />Step 7: Establish future plans<br />The Seven-Step Method (SSM)<br />
  13. 13. More Familiarity with Customer Needs andWays of Meeting Them<br />More<br />Repeat<br />Purchases<br />Stronger Tendency to Complain about Service Errors<br />Greater Opportunity for Recovery<br />from Errors<br />Higher Employee<br />Satisfaction<br />Higher Productivity<br />Lower Costs<br />Better Results<br />Improved Quality <br />of Service<br />Satisfaction Mirror<br /> <br /> <br /> <br /> <br /> <br />  <br />Higher Customer Satisfaction<br />8-13<br />
  14. 14. Service Profit Chain<br />Internal<br />External<br />Service concept<br /> Operating strategy and<br /> service delivery system<br /> <br />Target market<br />Loyalty<br />Revenue<br />growth<br />Customers<br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />Satisfaction<br />Productivity<br />&<br />Output<br />quality<br />Service<br />value<br />Employees<br />Satisfaction<br />Loyalty<br />Capability<br />Profitability<br />Service<br />quality<br />Customer orientation/quality emphasis<br />Allow decision-making latitude<br />Selection and development<br />Rewards and recognition<br />Information and communication<br />Provide support systems<br />Foster teamwork<br />Quality & productivity improvements yield higher service quality and lower cost<br />Attractive Value <br />Service designed<br />& delivered to<br />meet targeted<br />customers’ needs<br />Solicit customer<br />feedback<br />Lifetime value<br />Retention<br />Repeat Business<br />Referrals<br />8-14<br />
  15. 15. Strategies for Matching Capacity and Demand for Services<br />MANAGING<br />DEMAND<br />MANAGING<br />CAPACITY<br />Partitioning<br />demand<br />Increasing<br />customer<br />participation<br />Developing<br />complementary<br />services<br />Sharing<br />capacity<br />Establishing<br />price <br />incentives<br />Scheduling<br />work shifts<br />Cross-<br />training<br />employees<br />Developing<br />reservation<br />systems <br />Creating<br />adjustable<br />capacity<br />Promoting <br />off-peak<br />demand<br />Using<br />part-time<br />employees<br />Yield<br />management<br />11-15<br />
  16. 16. New Service Development Cycle<br /><ul><li> Full-scale launch
  17. 17. Post-launch review</li></ul>Full Launch<br />Development<br />Enablers<br /><ul><li> Formulation</li></ul> of new services<br /> objective / strategy<br /><ul><li> Idea generation</li></ul> and screening<br /><ul><li> Concept</li></ul> development and<br /> testing<br /> People<br />Organizational<br />Context<br />Teams<br /><ul><li> Service design</li></ul> and testing<br /><ul><li> Process and system</li></ul> design and testing<br /><ul><li> Marketing program</li></ul> design and testing<br /><ul><li> Personnel training
  18. 18. Service testing and</li></ul> pilot run<br /><ul><li> Test marketing</li></ul>Product<br />Technology<br /> Systems<br />Tools<br />Analysis<br />Design<br /><ul><li> Business analysis
  19. 19. Project authorization</li>

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