2. “IT IS NOTTHE EMPLOYER
WHO PAYS WAGES. HE
SIMPLY HANDLESTHE
MONEY. IT ISTHE
CUSTOMERSWHO PAY”
- IrisWest - Allen
3. Introduction
• All institutions, whether for manufacture, service or other purposes, face
problems of attaining quality
• Service is work performed for someone else.
• The recipient of the service (often called the client) may be
• an individual user
• an institution
• Both
• Service work may include sale of a product i.e. Sale of Food at Restaurant
• Definitions for 'service industries' usually exclude manufacture, agriculture,
mining and construction.
4. Service Industries
• Public transportation.
• Public utilities (telephone communication, energy services, sanitation services).
• Restaurants, hotels and motels.
• Marketing (retail food, apparel, automotive, wholesale trade, department stores).
• Finance (commercial banks, insurance, sales finance, investment).
• News media.
• Personal services (amusements, laundry and cleaning, barber and beauty shops).
• Professional services (physicians, lawyers).
• Government (Defence, health, education, welfare, municipal services).
5. Need for Quality in Service Industry
• Customer Centric
• Continuous Improvement
• Efficiency
• Pressure to provide best product
• Remain Competitive
• To provide understanding
• Monitor products
• Strategic Advantage
6. Principles
• Customer Focus
• Leadership
• People involvement
• Process Approach
• Systems approach to management
• Continual Improvement
• Factual Approach to Decision making
• Mutually beneficial Relations
7. Advantages
• Sets Minimum Standards
• Complete plan and Strategy
• Increased business growth
• Critical Learning Experience
• Consumer satisfaction
• Reduced Employee turnover
• Better reputation
• IncreasedTurnover
• Better ROI
8. Disadvantages
• Difficulty in valuation
• Cutbacks
• Lack of emphasis on business objectives
• Higher costs
• Any means to reach impossible levels of quality
• Can lead to Company’s failure as a whole
