stephen.geach@gmail.com         TQM in Service Organizations1
Service Quality     Agenda:       1. A definition of TQM       2. The different roles of our people       3. Service Quali...
Service Quality    TQM can be explained as follows:    If quality is to satisfy customer‟s requirements    continually…the...
Service Quality      Different Roles of our People                                                    Not directly involve...
Service Quality     Agenda:       1. What is meant by a „Service‟       2. What is meant by a „Service Package‟       3. W...
Service Quality    So, what is a Service?    A service can be defined as an essentially    intangible set of benefits prov...
Service Quality                                                            Nature of Service Offering                     ...
Service QualityWhat is the difference between Service and Product (1)1. Services are produced and consumed simultaneously....
Service QualityWhat is the difference between Service and Product (2)3. Services are transitory by nature,    Products are...
Service Quality     Service Packages?     However, services can be made more tangible by     „productizing‟ them.     Exam...
Service Quality      Service Delivery Levels                                First Class                Business Class     ...
Service Quality      Service Delivery Levels                                First Class                Business Class     ...
Service Quality      Service Delivery Levels                                First Class                Business Class     ...
Service Quality      Service Delivery Levels                                First Class                Business Class     ...
Service Quality       Service Delivery Levels                                 First Class                 Business Class  ...
Service Quality        Service Delivery Levels                       First Class         Business Class       expected    ...
Service Quality        Service Delivery Levels are on           an escalator of change                      First Class   ...
Service Quality     But perhaps more simply…..     Quality is the word used to describe how well a     product or service ...
Service Quality Hotel scenario Expected     Those taken for granted: Bed, light, clean, space for clothes Wanted       Tho...
Service Quality     Definition of Service Quality     Service Quality can be defined as the difference     between custome...
Service Quality     So, how do we measure Service Quality?     The most often used approach for determining     or measuri...
Service Quality                           Customer                   Manager’s                          Expectation   Gap ...
Service Quality     The 5 dimensions of Service Quality          1. Tangibles          2. Reliability          3. Responsi...
Service Quality     The 5 dimensions of Service Quality (1)     1. Tangibles: Physical facilities, equipment and        ap...
Service Quality     The 5 dimensions of Service Quality (2)     4. Assurance (including competence, courtesy,       credib...
Service Quality     The Customer as a Service participant     Engage the customer as a service participant, rather     tha...
Service Quality     The 5 dimensions of Service Quality     So, Service Quality is not just about customer     expectation...
Thank You28
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Mr. terje tonsberg tqm in service organizations

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  • Given that there are more definitions of TQM than there are quality guru’s, there is not much value in offering another definition. However, the following definition, as taken from the University of Winchester Quality and Customer Care course module, is worthy of note.They define TQM as: A management philosophy focusing on customers’ expectations, preventing problems, building commitment to best practice in the entire workforce, and promoting open decision making. A process of individual and organisational development and change, the purpose of which is to increase the level of satisfaction of all those concerned with the organisation. Its primary focus is to gain an understanding of customer needs and to meet or exceed them. It also embraces a philosophy which stresses that quality is “every” employee’s concern.We can regard the strength of this definition is in the emphasis of TQM as being a management philosophy and a process. However, the it could be argued that it lacks of reference to ‘lowest cost’, and for some would raise this as an issue. For this reason, we should compare and discuss the differences between the University of Winchester’s definition with the definition of Professor Kanji, from Sheffield City Polytechnic - now known as Sheffield Hallam University.In general TQM can be defined as follows: Quality is to satisfy customer’s requirements continually Total Quality is to achieve quality at low cost Total Quality management is to obtain total quality by involving everyone’s daily commitment
  • PeopleWhen viewing people as an element of the marketing mix, it is important to understand how different people relate to the customer, and to what extent they have an impact on the marketing mix. In applying the tool shown above, we are able to segment our people and focus on service provision and training to ensure service quality. By classifying the employee frequency of contact with the Customer as being; Contactors, Modifiers, InfluencersIsoteds, the appropriate selection, rewards, performance, and training requirements can be identified. The slide is an application of Judd ‘s classification of people.Did you know?In reviewing the causes of customer migration, Tom Peters argues that 75% of customers migrate because of the human side of doing business with their prior provider of the product or service.
  • A hair cut is a service, the benefits are hard to describe, they are a bit vague, the benefits I receive from a haircut may not be the benefits you receive.
  • Services can be structured in different ways depending on the complexity of the service.From this slide we can see some services are simply ‘take it or leave it’, if is not on the menu you can not have it.However, other services are more complicated, where a how can we help you’ service offering is provided.Some services can be categorized as ‘repair service’ where symptoms are diagnosed before the problem can be fixed.Others services can be categorized as ‘professional services’, this is normally where we sit with the customer and understand their needs and deliver the required service.(Buzacott, as cited by Johansson et al, no date)
  • We can all recognize the difference between first class, business class and economy class on a aircraft. These can be regarded as different service packages, where services have been productized into 3 different classes.Ultimately we are all receiving one basic service, we are being flown from one place to another, so we can say this is taken for granted, it is expected, and we also expect in-flight service (food, entertainment) to be available.However, we may want more, and if we do then we have to pay extra for it.The first class passenger requires access to the best lounge, a very personal almost one-on-one service, a comfortable seat, a choice of menus, a choice of films etc. The business class passenger also requires access to a lounge and more choices than he would get if flying economy. In all these cases we can recognize that when we discuss levels of service package (class), we are of course implying expense. The customer who pays more for the first class seat, will have a different set of expected and wanted requirements than business class, like wise the business class will have a different set of expected and wanted requirements than economy class.
  • In delivering these services, we can say the customer should expect the services he has purchased, as per his contract.In this case, we should not say that the service quality provided to a bronze customer is poor, it is what he has asked for (his wanted requirement).If we are able to provide a reliable service( at the class / grade as purchased by the customer) we can say we provide service quality.
  • However, there may be a good reason to over deliver.For example, one airline introduced back of seat monitors with active selections in economy class.
  • And customers were (initially) be delighted and it gave the airline a competitive edge.
  • However what delights the customer today will become an expectation tomorrow– what airline does not have back of seat monitors with active selection in economy?
  • However, let us be aware of another dimension. Given that our competitors are there, and that our customers expectations will change, we are actually on an escalator of change of expectations, with the customer expecting more and more for his $. To give an example of this is, let’s go back to the airline scenario.Some airlines give no choice of film selections to economy class, others give access to films that can start before take off. So now, this service improvement (this competition) has changed my expectation and may influence my choice of service provider.
  • However, let us be aware of another dimension. Given that our competitors are there, and that our customers expectations will change, we are actually on an escalator of change of expectations, with the customer expecting more and more for his $. To give an example of this is, let’s go back to the airline scenario.Some airlines give no choice of film selections to economy class, others give access to films that can start before take off. So now, this service improvement (this competition) has changed my expectation and may influence my choice of service provider.
  • Requirements can be classified at different levels as described on the next page .
  • So:Where does a customer state his wanted requirements? Answer: In the request for proposal, in the business requirements specification, in change orders etc. Does a request for proposal give the expected requirements?Answer: Not usually, it is normal for the customer to write his RFP with the expected requirements being assumed as required. If I ask for a bundle of software with a PC (my wanted/stated requirement), I would expect it all to be installed!How can we identify the expected requirements? Answer: By asking questions to understand where the customer is coming from and to confirm our assumptions
  • Perhaps we should ask why should service quality be measured? Measurement allows for comparison before and after changes, for the location of quality related problems, and for the establishment of clear standards for service delivery. Some argue that analysis and measurement is the starting point in developing quality in services.
  • Luk et al (2002) cites the work of PZB in identifying the following 5 service gaps that need to be controlled and closed, and in doing so Luk et al offers two ‘qualification’ gaps to Gap 1 which are shown as gaps 1a and 1b,: Gap 1 is the difference between customer expectations and the management perceptions of customer expectations Gap 1a is the significant differences between customer expectations on service delivery and management’s perceptions of those expectations Gap 1b is the significant differences between customer expectations on service delivery and front line service providers understanding of such expectationsGap 2 is difference between management perceptions and the customer expectations and service quality specifications Gap 3 is difference between service quality specifications and the actual service delivered.Gap 4 is difference between service delivery and what is communicated about the service to the customer.Gap 5 is discrepancy between customer expectations on the service and their perception of the service performance. As such, this gap is a function of the other 4 gaps. Shahin (2004) cites Luk et al in explaining that gaps 1, 1b and 5 are most important as they have a direct relationship with the customer.
  • In the service industry, SERVQUAL has been the predominant method used to measure consumers’ perceptions of service quality. It has five generic dimensions or factors.
  • A customer satisfaction perspective:In reviewing the causes of customer migration, Tom Peters is recorded as saying 75% of customers migrate because of the human side of doing business with their prior provider of the product or service. Customer satisfaction may be influenced by many factors including the company’s relationship with the customers that helps build trust, confidence, and loyalty.
  • Blind, K. (2006). A Taxonomy of Standards in the Service Sector: Theoretical Discussion and Empirical Test. The service Industries Journal, Vol. 26, No. 4, pp. 397-420. Connor, P. E. (1997). Total Quality Management: a Selective Commentary on Its Human Dimensions, Public Administration Review, November/December, Vol. 57, No. 6, pp. 501-509.  Govender, K.K. (1998). Managing Service Quality by Managing the Service Customer. South African Journal of Business Management, Vol. 29, No. 3, pp. 89-99. Johansson, P. and Olhager, J. (No Date). Industrial Service profiling: Linking Service Operations to Manufacturing Strategy. URL: http://www2.ipe.liu.se/rwg/igls/igls2002/Paper081.pdf [June 2007] Jones, T.O. and Sasser, W.E. (1995). Why Satisfied Customers Defect. Harvard Business Review, November-December, pp. 88-99. Kaplan, R.S. and Norton, D.P. (1996). The Balanced Scorecard: translating strategy into action. Harvard Business School Press: Boston. Kaplan, R.S. and Norton, D.P. (1996). Translating Strategy into Action: The Balanced Scorecard. HBS Press: Boston.  Luk, S.T.K. and Layton, R. (2002). Perception Gaps in Customer Expectations: managers versus Service Providers and Customers. The Service Industry Journal, Vol. 22, No. 2, pp. 109-128., Parasuraman et al. 1988. ‘SERVQUAL: A Multiple-item Scale for Measuring Consumer Perceptions of Service Quality’, Journal of Retailing, Vol.64, No.1, pp.12–40. Shahin, A. (2004) SERQUAL and Model of Service Quality Gaps: A Framework for Determining and Prioritizing Critical Factors in Delivering Quality Services. Delivered to the 4th International Conference on Quality Management. URL: http://www.qmconf.com/Docs/0077.pdf. [June, 2007]. Clark - Cranfield School of Management. (2000). Marketing Management: A RelationshipMarketing Perspective, Palgrave: Basingstoke and New York. Ryals- Cranfield School of Management. (2000). Marketing Management: A RelationshipMarketing Perspective, Palgrave: Basingstoke and New York.
  • Mr. terje tonsberg tqm in service organizations

    1. 1. stephen.geach@gmail.com TQM in Service Organizations1
    2. 2. Service Quality Agenda: 1. A definition of TQM 2. The different roles of our people 3. Service Quality a. Service b. Service packages c. Service quality d. Measuring service quality2
    3. 3. Service Quality TQM can be explained as follows: If quality is to satisfy customer‟s requirements continually…then Total Quality is to achieve quality at low cost…then Total Quality Management is to obtain total quality by involving everyone‟s daily commitment Kanji3
    4. 4. Service Quality Different Roles of our People Not directly involved with the Involved with the marketing mix marketing mixFrequent Contactors: Sales and Marketing, Modifiers: Switchboard Operator,or BSD, PSG, and Customer Service. HD Coordinators, Dept Secretaries.periodicCustomer Responsible for building relation- No direct contact with customer butcontact ships. Need personality to be still needs to be responsive to responsive to customers. customer. Influencers: Product Groups, Isoteds: Finance, HR, IT, Quality.Infrequent Development Groups.or no No direct contact with customers,Customer No direct contact with customers but but as support providers theircontact are often involved with traditional contribution is crucial to the elements of marketing mix. organization. Employee Influence on Customers: which should influence the appropriate Employee selection, rewards, performance, and training requirements.4
    5. 5. Service Quality Agenda: 1. What is meant by a „Service‟ 2. What is meant by a „Service Package‟ 3. What is „Service Quality‟ 4. How can we measure „Service Quality‟5
    6. 6. Service Quality So, what is a Service? A service can be defined as an essentially intangible set of benefits provided by one party to another. Examples of a service:  Having a haircut  Receiving waiter service at a café  Getting support from a call centre etc.6
    7. 7. Service Quality Nature of Service Offering Standard Complex Simple Complex Service Service Diagnosis Diagnosis “Take it or leave it” “Menu” “How can we help you” Series Cafeteria Service System Structure Fast Parallel Food Outlet Bank Specialized Branch IncMg Repair Bottom-Up Services Not a meaningful choice Prof’ IT Top-Down Services Services7
    8. 8. Service QualityWhat is the difference between Service and Product (1)1. Services are produced and consumed simultaneously. The use of products can be separated from the production of products.2. Product delivery results in a transfer of ownership, Service delivery does not.8
    9. 9. Service QualityWhat is the difference between Service and Product (2)3. Services are transitory by nature, Products are not. (Hence services can not be easily held in stock)4. Services are largely intangible, Products are largely tangible.9
    10. 10. Service Quality Service Packages? However, services can be made more tangible by „productizing‟ them. Examples of productized services include: Support services graded as Platinum, Gold, Silver and Bronze. Airline passenger services graded a First class, Business class, word class traveller plus, world class traveller.10
    11. 11. Service Quality Service Delivery Levels First Class Business Class Economy basic11
    12. 12. Service Quality Service Delivery Levels First Class Business Class Economy expected not expected12
    13. 13. Service Quality Service Delivery Levels First Class Business Class Economy expected not expected13
    14. 14. Service Quality Service Delivery Levels First Class Business Class Economy + expected not expected14
    15. 15. Service Quality Service Delivery Levels First Class Business Class Economy + expected Economy not expected15
    16. 16. Service Quality Service Delivery Levels First Class Business Class expected Economy + not expected16
    17. 17. Service Quality Service Delivery Levels are on an escalator of change First Class Business Class expected Economy + not expected17
    18. 18. Service Quality But perhaps more simply….. Quality is the word used to describe how well a product or service satisfies a Customer‟s requirements. Where requirements are classified as: •Expected •Wanted •Excitement18
    19. 19. Service Quality Hotel scenario Expected Those taken for granted: Bed, light, clean, space for clothes Wanted Those asked for: Non-smoking room, room service, a view Excitement Those unlikely to be asked for but delighted to find: Free flowers, chocolates Business scenario Expected Those taken for granted: Business knowledge, tech specification, regulatory or statutory regulations Wanted Those asked for: To be identified through consultation with the customer, may allow for some element of negotiation Excitement Those unlikely to be asked for but delighted to find:19 Innovative and imaginative ideas
    20. 20. Service Quality Definition of Service Quality Service Quality can be defined as the difference between customer expectations of service and perceived service. If expectations are greater than performance, then perceived quality is less than satisfactory and hence customer dissatisfaction20
    21. 21. Service Quality So, how do we measure Service Quality? The most often used approach for determining or measuring service quality is to compare a customer‟s expectations before a service encounter with their perceptions of the actual service delivered.21
    22. 22. Service Quality Customer Manager’s Expectation Gap 1 Perception of Customer Communicated Expectation Service Delivery Manager’s Gap 4 Perception and Customer Expectation Gap 3 Actual Service Service Quality Delivered22 Specification
    23. 23. Service Quality The 5 dimensions of Service Quality 1. Tangibles 2. Reliability 3. Responsiveness 4. Assurance 5. Empathy23
    24. 24. Service Quality The 5 dimensions of Service Quality (1) 1. Tangibles: Physical facilities, equipment and appearance of personnel. 2. Reliability: Ability to perform the promised service dependably and accurately. this is the most important dimension 3. Responsiveness: Willingness to help customers and provide prompt service.24
    25. 25. Service Quality The 5 dimensions of Service Quality (2) 4. Assurance (including competence, courtesy, credibility and security): Knowledge and courtesy of employees and their ability to inspire trust and confidence. 5. Empathy (including access, communication, understanding the customer): Caring and individualized attention that the firm provides to its customers.25
    26. 26. Service Quality The Customer as a Service participant Engage the customer as a service participant, rather than customer contact, which emphasizes the dynamic role customers play in service encounters . By regarding a customer as being a „partial employee‟, we can apply organizational socialization tactics, and leverage this relationship change consumer behaviour and expectations with the aim of increasing productivity.26
    27. 27. Service Quality The 5 dimensions of Service Quality So, Service Quality is not just about customer expectations and service performance. It is also about you interacting with the customer, and his perception of you!!!27
    28. 28. Thank You28

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