Service quality analysis and improving customer satisfaction in automobile

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Service quality analysis and improving customer satisfaction in automobile

  1. 1. INTERNATIONAL JOURNAL Research and Development (IJIERD), ISSN 0976 –International Journal of Industrial Engineering OF INDUSTRIAL ENGINEERING6979(Print), ISSN 0976 – 6987(Online) Volume 4, Issue 1, January - April (2013), © IAEME RESEARCH AND DEVELOPMENT (IJIERD)ISSN 0976 – 6979 (Print)ISSN 0976 – 6987 (Online)Volume 4, Issue 1, January - April (2013), pp. 41-51 IJIERD© IAEME: www.iaeme.com/ijierd.aspJournal Impact Factor (2013): 5.1283 (Calculated by GISI) ©IAEMEwww.jifactor.com SERVICE QUALITY ANALYSIS AND IMPROVING CUSTOMERSATISFACTION IN AUTOMOBILE SERVICE INDUSTRY USING QFD Thirumanas K R1, K C Joseph2 1 Asst Professor, Deptt. Of ME, IIET Kothamangalam, India. 2 HOD, Deptt. Of ME, Mangalam, Ettumanoor, India.ABSTRACT QFD is a technique used in the Total Quality Management (TQM) field for convertingcustomer’s vague language into technical language. Service quality can be defined as thecollective effect of servicing performances which determine the degree of satisfaction of auser of the service. In other words quality is the customer’s perception of a delivered service.In the present study, the customer satisfaction/ dissatisfaction has been measured using a fivepoint Likert scale. The QFD is used as a tool. The tool comprises of the following attributesviz. customer needs (What), technical requirements (How), Relationship matrix, Ranking ofcustomer language, Ranking of technical language and Correlation matrix. Analysis of datarevealed that the present study helps in the organization to measure their service performance,to guide and expedite the development of innovative services through the identification ofweak attributes which are crucial to customers. In many service development processes, theresource and time allocation are wasted because of the lack of proper estimation servicequality attributes.Keywords: Quality Function Deployment; QFD, Service quality analysis, Total QualityManagement (TQM) House of quality, Surveys Paper type Case study.1. INTRODUCTION The subject of service quality has aroused considerable recent interest among businesspeople and academics. Of course, buyers have always been concerned with quality, butthe increasing competitive market for many services has led consumers to become moreselective in the services they choose. Conceptualizing the quality for services is morecomplex than for goods. A service is an act or performance offered by one partyto another .In this competitive era, for any organization such as Automobile service 41
  2. 2. International Journal of Industrial Engineering Research and Development (IJIERD), ISSN 0976 –6979(Print), ISSN 0976 – 6987(Online) Volume 4, Issue 1, January - April (2013), © IAEMEindustries it is necessary to provide quality service to retain their customers’. Service qualityhas major influence on customer satisfaction as customers buy products or services and onwhether they continue to do so. With the aim of sustaining long term relationships with theircustomers, many businesses have changed their strategic focus to emphasize customerretention (Peng and Wang 2006). Preserving their long term customer relationships requiresthat these businesses both measure and appropriately adjust the quality of their customer’sservice.2. SERVICE INDUSTRY Indian service industries form the backbone of social and economic development ofthe country. Service sector in India today accounts for more than half of India’s GDP. Indiastands out for the side and dynamism of its service sector. The contribution of the servicesector to the Indian economy has been manifold. It has a share of 55.2 % in gross domesticproduct (GDP) and is growing by 10% annually.3. SERVICE QUALITY Quality is an extremely difficult concept to define in a few words. At its most basic,quality has been defined as conforming to requirements .This implies that organizations mustestablish requirements and specifications; once established, the quality goal of the variousfunction of an organization is to comply strictly with these specifications. Many analyses ofservice quality have attempted to distinguish between objective measures of quality andmeasures which are based on the more subjective perceptions of customers.4. BACK GROUND Due to the absence of tangible manifestations, measuring service quality can bedifficult but there are possible research approaches... It is not sufficient for companies to setquality standards in accordance with misguided assumptions of customers’ expectations. Afurther problem in defining service quality lies in the importance which customers oftenattach to the quality if the service provider is distinct from its service offers – the two cannotbe separated as readily as in case of goods Because of the intangible characteristics of service, the measurement and evaluation isquite difficult. Also there exists a non-linear relationship between the customer satisfactionand the perception of the service. Being this is the scenario; a country like India who has amajor GDP share from the service firms, the service quality issues should be well addressed.5. KANO MODEL OF CUSTOMER SATISFACTION The Kano Model of Customer (Consumer) Satisfaction classifies product attributesbased on how they are perceived by customers and their effect on customer satisfaction.These classifications are useful for guiding design decisions in that they indicate when goodis good enough, and when more is better. The Kano Model of Customer satisfaction (Figure1) divides product attributes into three categories: threshold, performance, and excitement. Acompetitive product meets basic attributes, maximizes performances attributes, and includesas many “excitement” attributes as possible at a cost the market can bear. 42
  3. 3. International Journal of Industrial Engineering Research and Development (IJIERD), ISSN 0976 –6979(Print), ISSN 0976 – 6987(Online) Volume 4, Issue 1, January - April (2013), © IAEME Kano model6. QUALITY FUNCTION DEPLOYMENT The origin of QFD is traced to the quality tables that were developed in KoboShipyard, Japan in the year 1960. The formal appearance of QFD as the TQM technique wasmade possible through the works of Yoji Akao in the year 1972 (Akao and Mazur, 2003).Thereafter, the popularity of QFD spread across the world. Also, a large number of casestudies reporting QFD’s successful implementation and its benefits appeared in literature(Chan and Wu, 2002). A few researchers have brought out different definitions (Zairi andYoussef, 1995), leading to the proposition that QFD is a technique used for convertingcustomers’ vague languages into technical languages. Therefore QFD facilitates deploymentof customers’ voices in the practising environment. In this era of increasing competition,QFD is supposed to reveal the hidden and open voices of customers and support theorganizational managers in meeting market requirements. The implementation of QFDprogresses through the development of a composite matrix known as House of Quality(HOQ). The conceptual features of HOQ are shown in Figure 1. As shown, HOQ consists ofsix main sub matrices (Kumar and Midha, 2001; Han et al., 2001). The construction of HOQbegins by developing a customer language matrix, whose inputs are vague customer voices.Consequently, the second matrix titled ‘ranking of customer languages’ is developed. Thevalues indicating the ranks of the customer languages are determined by considering thecompetitors’ performance and companies’ affordability in fulfilling the customer languages.The third matrix, consisting of the technical languages corresponding to the customerlanguages, is developed. The fourth matrix is constructed by entering values to represent thedegree of relationships between customers and technical languages. The fifth matrix,consisting of values representing the ranking of technical languages, is then formed. Thesixth and last major sub matrix of HOQ is the correlation matrix, which is constructed byentering the values to represent the correlation among the technical languages. All thematrices developed are joined to construct HOQ. The construction of HOQ requires theinvolvement of personnel with adequate theoretical and practical knowledge about thecustomers’ voices that are under consideration. Following the development of HOQ, the 43
  4. 4. International Journal of Industrial Engineering Research and Development (IJIERD), ISSN 0976 –6979(Print), ISSN 0976 – 6987(Online) Volume 4, Issue 1, January - April (2013), © IAEMEengineers and production managers are required to study the completed QFD’s contents anddevelop target values and process plans. Thus the customer voices are translated intotechnical languages through the development of HOQ, which penetrates into the field ofpractice. Initially, QFD was used as a product development (Lockamy and Khurana, 1995)technique. However, during recent times, it has proven to be a feasible technique for severalapplications where customer voices are required to be translated into technical languages(Chan and Wu, 2002; Sahney et al., 2003; Sahney et al., 2004)7. HOUSE OF QUALITY The house of quality converts the customer requirements into design requirementsthat meet specific target values and matches that against how an organization will meet thoserequirements. Figure 1: House of Quality8. CASE STUDY In order to examine the aspects of QFD in a service Quality, a case study was carriedout in a maintenance intensive automobile service station. The present study focuses on themeasurement of current service quality of a typical automobile dealership in an Indian city. 44
  5. 5. International Journal of Industrial Engineering Research and Development (IJIERD), ISSN 0976 –6979(Print), ISSN 0976 – 6987(Online) Volume 4, Issue 1, January - April (2013), © IAEMEThe main objectives of the present study are to test the reliability of the developed data and todevelop, propose a QFD for service quality improvement. Here the investigator administeredQFD from a sample of 71 customers in automobile service industry, i.e. a representativesurvey of respondents, owners of one of the Branded vehicles. The reliability of tools waschecked using Cronbach’s alpha method and there by standardized. QFD process utilizes a set of matrix diagrams which are related to one another. TheQFD matrix (house of quality) is the basis for all future matrices needed for the QFDmethod. The number of matrices is depends on the scope of the project. The processcontinues until each objective is refined to an actionable level (Besterticld, 2006). Butresearchers give priority to the initial house of quality matrices (Park and Kirn, 1998; Tanand Pawitra, 2001, 2003: Min and Kirn. 2008; Birdogan et a/, 2009), Through this matrix,action plans are developed to improve the service quality. Identifying basic customer needsnamed "Whats" constitutes the starting point of the HoQ and stand on the left of the house. Itfollows defining the customer priority level of these needs by translating them into numericvalues.8.1 Defining customer needs and customer priority level As stated in the conceptual background, defining customer needs constitutes the firststep of the QFD model (Matzler and Hintehubcr, 1998). In the process of definingimportance, the 71 respondents were asked to mark the importance of attributes according toa five point Likert scale. The left extreme of the scale is marked as least important and theright extreme as the most important (Besterfield, 2006). The scale reliability analysis wasconducted. The Cronbachs alpha value was got as 0.991, which is in an acceptable level (DeVellis, 1991). An arithmetic mean score for every service attributes was computed. Theresults implied that the most important servicequality attribute in the category is the error freevehicle service, followed by vehicle - delivery at the promised time, providingfast services,willingness of staffs to help throughout and enough number of staff. priority level for all items Customer Needs Priority Value On time delivery 144 Charge fairness 141 Accident Repair 137 Roadside assistance 131 After service cleanliness 127 Handover timing 126 Schedule flexibility 121 Comfortness of waiting area 117 Friendliness of service advisor 115 Explanations of service advisor 114 Responsiveness of service advisor 114 Rectification 110 Arranging service visit 98 Cleanliness of service station 89 45
  6. 6. International Journal of Industrial Engineering Research and Development (IJIERD), ISSN 0976 –6979(Print), ISSN 0976 – 6987(Online) Volume 4, Issue 1, January - April (2013), © IAEME8.2 Defining technical requirements After defining customer needs and priority levels, technical requirements are defined bythe QFD team. The QFD team involves five service managers, two general managers, onecustomer relation manager and the researcher Error tree vehicle servicing and no-delay indelivery are found to be the critical faaoi affecting customers1 satisfaction. The major reasonsresponsible for delay in delivery are the following.a) Delay at spare parts counter.b) Delay at washing station.c) Delay due to overloading at technical repair station. The QFD process identified the need of "express service and two-tech bay", "pick anddrop" facility, "post service follow up" (PSF), "on road services" (OS), enough parking space,work completion-status monitoring, single window service, proper scheduling for washing andtechnical repair etc. Finally, eighteen technical requirements were scrutinized. The technicaldesign requirements are • Improve the recourses • Open on weekends • Regular Audit by Manager • Modern Equipment’s • Trained service advisors • Offering road test to customer • Online service booking • Availability of Spare Parts • Provide Maintenance Tips • well trained field technicians • Pre Assigning of service advisor • Periodic servicing • Washing & final check up • Pricing policy • Soft skill behavioral training • Pre entering of vehicle details • Fixed cleaning schedule • Entertainment facilities8.3 Constituting the relationship matrix Thus, the choice of a relationship rating scheme is critical in QFD applications. The study of Park and Kirn (1998) revealed thai most of the QFD works used a Ratingscale of 1-3-9 format, Other scales are 1-3-5, 1-5-9, 1-2-4, and 1-6-9 (Park and Kirn, 1998). Noneof the applications provided an explicit justification for the choice of such a rating scale.“There isno scientific basis for any of the choices” added Cohen (1995). Being the fact that a rating scaleof l-3-9 is used by most of the researchers (Park and Kirn, 1998), this work is also adopting a 1-3-9 rating scale. In this matrix, 1 shows weak relation while "3" implies medium relation and 9" impliesstrong relation; An empty cell in the matrix implies that there is no relationship between thecustomer need and technical requirement. The survey of five service managers conducted forcompleting the matrix. The relationship level between customer needs and technical requirementscan be seen in HOQ table. 46
  7. 7. International Journal of Industrial Engineering Research and Development (IJIERD), ISSN 0976 –6979(Print), ISSN 0976 – 6987(Online) Volume 4, Issue 1, January - April (2013), © IAEME HOUSE OF QUALITY8.4. Performance score Determining the target value of design requirement is a complicated process becauseof the complexity in quantification (Iranmanesh, 2008). The current work follows the methodlisted out by Besterfield (2006). In creating target values, first of all technical requirementsare evaluated based on current performance. The current technical performance is evaluatedin a 5 point scale (1for very low performance and 5 for very high performance) by the servicemanager. 47
  8. 8. International Journal of Industrial Engineering Research and Development (IJIERD), ISSN 0976 –6979(Print), ISSN 0976 – 6987(Online) Volume 4, Issue 1, January - April (2013), © IAEME A target value for each technical descriptor is included in the HOQ matrix. This is anobjective measure that defines values that must be obtained to achieve the technicaldescriptor. How much it takes to meet or exceed the customers expectation is answered byevaluating all the information entered into the house of quality and selecting the targetvalues.8.5 Degree of difficulty Many users of the house of quality add the degree of technical difficulty forimplementing each technical descriptor. The scale range from I (very low difficult] to 5 (veryhigh difficult). The degree of technical difficulty, when used, helps to evaluate the ability toimplement certain quality improvement (Bestertield, 2006). TECHNICAL DESCRIPTORS & THEIR COMPUTED SCORES CORRELATED NORMALISEDSl TECHNICAL CTI % NORMALIZED WEIGHTAGE OF VALUE OF PRIOROTYNo DESCRIPTION SCORE VALUE OF CTI TECHNICAL CORRELATED VALUE LANGUAGE WEIGHTAGE 1 2 3 4 2+4 1 Online service booking 2490 4.857 9 6.522 11.379 2 Periodic servicing 1923 3.751 7 5.072 8.823 3 Improve the recourses 6493 12.665 24 17.391 30.056 Pre entering of vehicle 4 details 2034 3.967 1 0.725 4.692 Pre Assigning of 5 service advisor 2463 4.804 7 5.072 9.877 Soft skill behavioural 6 training 1759 3.431 4 2.899 6.330 Trained service 7 advisors 6443 12.567 3 2.174 14.741 Regular Audit by 8 Manager 3585 6.993 12 8.696 15.688 Fixed cleaning 9 schedule 1533 2.990 0 0.000 2.99010 Entertainment facilities 1320 2.575 0 0.000 2.575 Availability of Spare11 Parts 3447 6.723 6 4.348 11.07112 Modern Equipment’s 5424 10.580 7 5.072 15.65213 Pricing policy 1296 2.528 6 4.348 6.876 Offering road test to14 customer 1851 3.610 12 8.696 12.306 Washing & final check15 up 2556 4.986 3 2.174 7.159 Provide Maintenance16 Tips 1825 3.560 10 7.246 10.806 well trained field17 technicians 2412 4.705 8 5.797 10.50218 Open on weekends 2414 4.709 19 13.768 18.477 48
  9. 9. International Journal of Industrial Engineering Research and Development (IJIERD), ISSN 0976 –6979(Print), ISSN 0976 – 6987(Online) Volume 4, Issue 1, January - April (2013), © IAEMECustomer Technical Interactive score= ∑ (Relationship values between customer voice and technical languages )* (Expected value of customer voice).Eg: Customer Technical Interactive score for ‘Availability of spare parts’ = .(3*121)+(9*141)+(3*144)+(9*110)+(3*131) = 3447Percentage normalized value of customers Customer Technical Interactive score *100 technical interactive score sum of Customer Technical Interactive scoreEg: Percentage normalized value of customers Technical interactive score of availability ofspare parts = (3447 / 51268) = 6.733 Percentage normalized value of Correlated weightage of Technical language*100 correlated weightage Sum of correlated weightageEg: Percentage normalized correlated weightage against technical parameter ‘Availabilityof spare parts’ = (4/138) * 100 = 4.34Priority value = (Percentage normalized value of customers Technical interactive score ) +(Percentage normalized correlated weightage)Eg: Priority value of ‘Availability of spare parts’ = 6.733 + 4.34 = 11.0758.6 Technical importance levels Finally, technical importance levels were computed. For each customer need, thescore defining the relationship between customer need and technical requirements wasmultiplied by the customer priority level in that row and these values are summarized foreach technical requirement (Birdoganet tit, 2009). For the ease of comparison, technicalimportance levels were presented as percentages in the last row of the target values matrix. TECHNICAL DESCRIPTION Priority Value Improve the recourses 30.056 Open on weekends 18.477 Regular Audit by Manager 15.668 Modern Equipment’s 15.652 Trained service advisors 14.741 Offering road test to customer 12.306 Online service booking 11.379 Availability of Spare Parts 11.071 Provide Maintenance Tips 10.806 well trained field technicians 10.502 Pre Assigning of service advisor 9.877 Periodic servicing 8.23 Washing & final check up 7.159 Pricing policy 6.876 Soft skill behavioural training 6.33 Pre entering of vehicle details 4.692 Fixed cleaning schedule 2.99 Entertainment facilities 2.575 49
  10. 10. International Journal of Industrial Engineering Research and Development (IJIERD), ISSN 0976 –6979(Print), ISSN 0976 – 6987(Online) Volume 4, Issue 1, January - April (2013), © IAEME9. SUMMARY OF THE RESULT The results of the study indicate that the proposed methodology could make avaluable contribution by enhancing the understanding of the perceived service quality ofservice firm.. After filtering out the specific customer needs, HOQ frame work was used tomap the design requirements. The degree of technical difficulty and technical importancelevel were also documented. In a technical importance point of view, the first three designrequirements are-"recruiting skilled employees", "technical training to workers" and"availability of spares". Once the critical design requirements are more clearly known andunderstood, the service providers will be in a better position to anticipate customerrequirements rather man to react to customer dissatisfaction.10. CONCLUSION The role of service quality has become critical to the success of organizations.Therefore, it is important to use an effective approach to deal with service quality. The majorcontribution to this work is the adoption of a more comprehensive approach to investigatingthe service quality items tool (QFD). From a methodological perspective, it can be concludedthat the ability of designing services upon customer satisfaction make this approach apowerful tool for service sectors. QFD is a good system to be implemented in organization or industry, which can beseen from the examples mentioned above. QFD does not design to replace the existingorganization design process by any means, but rather support the organization’s designprocess. And it also helps bring the customer’s voice into the service process to reduce theunnecessary cost. Cutting service time is also very beneficial to the companies. QFD forcesthe entire organization to constantly be aware of the customer requirements. QFD chart is aresult of the original customer requirements that are not lost misinterpretations or lack ofcommunication. Marketing benefits because specific sales points that have been identified bythe customer can be stressed. Most importantly, implementing QFD results in a satisfiedcustomer.11. REFRENCES[1] V R Pramod , S R Devadasan V P Jagathy Raj (2006) Customer voice adoption forMaintanance Quality Improvement through MQFD and its receptivity analysis, Int journal ofManagement practice , Vol.2 N0.2,pp.83-108.[2]V R Pramod& V P Jagadiraj(2006) Integrating TPM and QFD for improving quality inmaintenance Engg. Emerald Journal of Quality in Maintenance Engineering Vol.12-pp 150-171.[3] V R Pramod , S R Devadasan V P Jagathy Raj (2006) Methodology and theoryIntegrating TPM and QFD for improving quality in maintenance engineering, Journal ofQuality in Maintenance engineering Vol 12 No.2 pp 150-171.[4]Lokamy a Aand Khaura A (1995), “Quality function deployment: total qualitymanagement for new product design “International journal of Quality and reliabilitymanagement, Vol 12 No.6 pp 73-84.[5] Chao, L P and Ishii K (2004) “Project quality function deployment “, International journalof quality & Reliability Management” V R Pramod, S R Devadasan V P Jagathy Raj (2006ol21 No.9 pp 933-58. 50
  11. 11. International Journal of Industrial Engineering Research and Development (IJIERD), ISSN 0976 –6979(Print), ISSN 0976 – 6987(Online) Volume 4, Issue 1, January - April (2013), © IAEME[6] Da Silva, F..L.R and dedni FG (2004) “Combined application of QFD and other tools inthe product design process” ,International Journal of Quality & Reliability Management, Vol21. No.2, pp231-52[7] C RKothari , (2003) Research Methodology, PHI Learning , New Delhi[8] Baba MdDeros&Ahmed Husain Said (2009) Application of QFD to study Critical ServiceQuality Characteristics and performance measures European Journal of ScientificResearchVol.33-pp398-410[9] Baba MdDeros&Ahmed Husain Said (2009) Application of QFD to study Critical ServiceQuality Characteristics and performance measures European Journal of ScientificResearchVol.33-pp398-410[10] Bridogan,Cigdem and ZuhailCilingir (2009), An application of integrating SERVQALand KAnos model into QFD for logistics services, Vol 21 Iss: 1,pp.106-126[11] Charls Berger , Rchter.R and Robert Blauth(1999), Kanos methods for understandingcustomer defined quality, The centre for Quality Management Journal,Vol.2 No.4,pp.3-36[12] Gupta A and Chen (1995), service quality : implications for management development,International Journal of Quality Reliability Management , Vol.44,pp 104-110[13] Service Sector , Economic survey 2010-2011, Govt. of India pp, 237-25758[14] Teas. K R (1993),” Expectations, performance evaluation, and consumers‟s perceptionof quality”{ Journal of Marketing, pp.18-34.[15] Paneerselvam R, (2003) Research Methodology, PHI Learning, New Delhi[16] Dillibabu.R, Krishnaiah.K and Baskaran.R, “Development and Application of SQFDModel for an Innovative Embedded Software Product – A Case Study” International Journalof Industrial Engineering Research and Development (IJIERD), Volume 2, Issue 1, 2011,pp. 15 - 45, ISSN Online: 0976 - 6979, ISSN Print: 0976 – 6987.[17] Satyendra Sharma and Dr.Jayant Negi, “Prioritization of Voice of Customers by UsingKano Questionnaire and Data Envelopment Analysis”, International Journal of IndustrialEngineering Research and Development (IJIERD), Volume 4, Issue 1, 2013, pp. 1 - 9, ISSNOnline: 0976 - 6979, ISSN Print: 0976 – 6987. 51

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