1. QUALMAN K33
3rdSY2015āØ
QUIZ #3 REVIEWER
I. SERVICE QUALITY
Service Quality
1. The extent of discrepancy (gap) between the
customerās exception and their perceptions
ES < PS: Quality Surprise
ES = PS: Satisfactory Quality
ES > PS: Unacceptable Quality
Expected Service (ES)
1. Customers expectations that are inļ¬uenced by:
a. word of mouth
b. past experience
c. personal needs
d. external communications (ex.marketing)
Perceived Service (PS)
1. Perceptions formed as a customer experiences the
service process
SERVQUAL
1. A gap analysis technique that compares the
companyās service performance V.S. customerās
service quality needs
2. It is a FEEDBACK about the organizationās ability to
provide quality service
Measuring Service Quality: SERVQUAL MODEL.
a) Reliability
b) Responsiveness
c) Assurance
d) Empathy
e) Tangibles
5 SERVQUAL DIMENSIONS
1. Tangibles ā Physical facilities, equipment and
appearance of personnel. Firmās ability to manage
its tangibles
ā¢ Physical Evidence
2. Reliability ā Ability to perform the promised service
dependably and accurately. Reļ¬ects the consistency
and dependability of the ļ¬rmās performance.
ā¢ Dependability
ā¢ Delivering on promises
ā¢ Accuracy
ā¢ Consistency
3. Responsiveness ā Willingness to help customers
and provide prompt service.
ā¢ Promptness
ā¢ Helpfulness
4. Assurance ā (including competence, courtesy,
credibility and security). Knowledge and courtesy of
employees and their ability to inspire trust and
conļ¬dence. Reļ¬ects the competence of the ļ¬rm, the
courtesy extended to its customers, and the security
of its operations.
ā¢ Competence
ā¢ Courtesy
ā¢ Credibility
ā¢ Security
5. Empathy ā (including access, communication,
understanding the customer). Caring and
individualized attention that the ļ¬rm provides to its
customers.The ability to experience anotherās
feelings as oneās own
ā¢ Easy Access
ā¢ Good Communication
ā¢ Customer Understanding
ā¢ Personalized Attention
SERVQUAL INSTRUMENT
Multi - item scale survey used to measure FEEDBACK
(customer perceptions of service quality).
A seven-point scale ranging from āStrongly Agreeā (7)
to āStrongly Disagreeā (1)
The Gaps Model of SERVQUAL
Where are the things going WRONG?
GAP 5: Expected VS Perceived Service
ā¢ Customer did not experience their
EXPECTED service.
ā¢ Reality does not meet expectations.
GAP 4: External Communications VS Service
Delivered
ā¢ Service delivered did not meet the
communicated service quality that marketing
promised.
GAP 3: Service Delivered VS Translation of
Perceptions into Service Quality Speciļ¬cations
ā¢ Service delivered did not meet the standards
made.
GAP 2: Translation of Perceptions into Service
Quality Speciļ¬cations VS Management
Perception on Consumerās Expectation
ā¢ Standards made by Management is incorrect.
GAP 1: Management Perception VS Consumerās
Expectations
ā¢ Management doesnāt understand customer.
RESONS THAT CAN CAUSE THE GAPS
GAP 5:
ā¢ Not knowing what customers expect
ā¢ Not selecting the right service standards and designs
ā¢ Not delivering to service standards
ā¢ Not matching performance to promised
2. GAP 4:
ā Lack of integration of marketing communications
ā Inadequate management of customer expectations
ā Over promising
GAP 3:
ā Poor human resource policies
ā Failure to match supply and demand
ā Customer not fulļ¬lling their roles
ā Problems with service intermediaries
GAP 2:
ā Poor service design
ā Absence of customer-deļ¬ned service standards
ā Inappropriate physical evidence and service scape
GAP 1:
ā¢ Inadequate marketing research orientation
ā¢ Lack of upward communication
ā¢ Insufļ¬cient relationship focus
ā¢ Inadequate service recovery
CLOSING GAPS
Gap 1: Learn what customers expect
ā¢ Use research, complaint analysis, customer panels
ā¢ Increase direct interactions between managers and
customers
ā¢ Improve upward communications
ā¢ Act on information and insights
Gap 2: Establish the right service quality standards
ā¢ Top management commitment to providing service
quality
ā¢ Set, communicate, and reinforce customer-oriented
service standards
ā¢ Establish challenging and realistic service quality
goals
ā¢ Train managers to be service quality leaders
ā¢ Be receptive to new ways to deliver service quality
ā¢ Standardize repetitive tasks
ā¢ Prioritize tasks
ā¢ Gain employee acceptance of goals and priorities
ā¢ Measure performance of service standards and
provide regular feedback
ā¢ Reward managers and employees for achievement
of quality goals
Gap 3: Ensure that service performance meets standards
ā¢ Attract the best employees
ā¢ Select the right employees
ā¢ Develop and support employees
- train employees
- provide appropriate technology & equipment
- encourage and build teamwork
- empower employees
- internal marketing
ā¢ Retain good employees
- measure and reward service quality achievements
- develop equitable and simple reward systems
Gap 4: Ensure that delivery matches promises
ā¢ Retain good employees
- measure and reward service quality achievements
- develop equitable and simple reward systems
ā¢ In advertising, focus on service characteristics that are
important to customers
ā¢ Manage customerās expectations
- What are realistic expectations?
- Explain industry realities
ā¢ Tiered service options
- Offer different levels of service - user pays
Service Satisfaction Information System
ā¢ Customer Complaints
ā¢ Surveys
ā¢ Employee Surveys
ā¢ Focus Groups
ā¢ āMystery shoppingā research
ā¢ Competitive market surveys - benchmark
Measuring Satisfaction
ā¢ Qualitative Research
ā¢ Understand key drivers / determinants
ā¢ Questionnaire design
ā¢ Data analysis
ā¢ Service performance index (SPI)
ā¢ Importance - performance analysis
SERVQUAL QUASTIONAIRE
ā¢ Expectations Section
Contains 22 statements to ascertain the general
expectations of customers concerning a service
that would relate to an "excellent" company
ā¢ Perceptions Section
Contains a matching set of 22 statements to
measure customersā assessment of a speciļ¬c
ļ¬rm within the service category
ā¢ Five Feature Ranking
Assessment of the relative importance of the ļ¬ve
dimensions
II. PROJECT MANAGEMENT
What is Project?
ā¢ A unique venture with a beginning and end, conducted
by people to meet established goals within parameters
of cost, schedule and quality.
ā¢ Goal-oriented
ā¢ Temporary endeavor
Project Management
1. overseeing all its processes
2. ensure goals are accomplished on time
3. within the limits of a budget
4. using assigned resources
5. while addressing risks, managing changes and
satisfying stakeholders
ScorenExpectatio-ScorePerceptionScoreSERVQUAL =
3. Project Life Cycle
1. Initiating Process
2. Planning Process
3. Monitoring and Controlling Process
4. Executing Process
5. Closing Process
Develop Project Charter
ā¢ a document that formally recognizes the existence of
a project
ā¢ provides direction on the projectās objectives and
management
The Project Charter
ā¢ A charter is an agreement between management and
the team about what is expected.
ā¢ The charter:
- Clariļ¬es what is expected of the team.
- Keeps the team focused.
- Keeps the team aligned with organizational
priorities.
- Transfers the project from the champion(s) to the
project team.
The Business Case
ā¢ Why is this project important?
ā¢ Has anyone else (internal or external to the
organization) attempted to solve this problem or a
similar one before?
ā¢ If so, what ļ¬ndings are useful for the success of the
project?
ā¢ Make sure that the project is linked to key business
goals and objectives.
ā¢ What business indices will be improved by the project?
ā¢ What are the projected cost savings/opportunities on
this project?
Deliverables (Project Beneļ¬ts)
ā¢ Business Results
ā¢ Customer Beneļ¬ts
ā¢ Safety, Environmental and Other Impacts
Project Metrics
ā¢ What will be the primary measure of success?
ā¢ How will these be measured and tracked?
ā¢ What is the target (speciļ¬cations) for the measures?
ā¢ What defects will you be tracking?
Elements of a Team Charter
ā¢ Team Demographics
ā¢ Business Case
ā¢ Project Scope (focus and direction)
ā¢ Project Measures (indicators)
ā¢ Deliverables (Customer Beneļ¬ts and Business
Results)
ā¢ Resources accessible to the team
ā¢ Project Plan
Team Size Consideration
ā¢ Ideal team size: 5- 8
ā¢ Smaller Team Size: 3 to 4 ->work faster
ā¢ Teams greater than 8 require additional facilitation and
often require sub-teams.
- Unavoidable when greater functional
representation is needed.
- Given resource constraints, members are often
part-time.
Types of Cost Savings
a. Cost Reduction (Savings)
b. Cost Avoidance (Threats)
Types of Business Impact
a. Potential Improvement
- Reduce inventory levels
- reduce time to market
- reduce equipment downtime
- reduce rejects/rework
- speed up delivery time
b. Potential Impact
- Reduce capital investment in inventory
- increase revenues through increased sales
- increase capacity
- decrease material cost; greater ROI
- increase revenues
Project Scope
ā¢ What process is involved?
ā¢ What is the start and end (boundaries) of the process?
ā¢ What is the period of the study?
ā¢ What is not within scope?
ā¢ Is the project scope manageable?
ā¢ What are the existing constraints that might affect the
execution of the project?
ā¢ Is the problem reļ¬ned enough?
- Avoid āboiling the oceanā
- Make sure scope is appropriate and manageable
ā¢ Use Pareto Analysis to reļ¬ne the scope
Developing Milestones
ā¢ Project plans often start with identifying key
milestones.
ā¢ Milestones represent important decision points. The
completion of each step in the PPDM process is
usually a milestone.
ā¢ The whole team should participate in deļ¬ning and
establishing dates for milestones. There should be
about 10-15 milestones.
ā¢ Once milestones are deļ¬ned, group them into logical
sequences.
a) DEFINE MILESTONES
b) GROUP THEM INTO LOGICAL SEQUENCE
ā¢ Use tools such as GANTT Charts, PERT Charts, or
Network Diagrams to show the relationship between
milestones.
Roadmap/Milestones
ā¢ Start date? Target completion date?
ā¢ What are the highlights for the completion of the
project and its respective estimated dates of
completion?
ā¢ When will each phase (D, M, A, I, and C) be
completed?
4. Resources and Schedules
ā What are the critical resources needed to pursue this
project?
- Support Functions,
- People and Talent,
- Time,
- SMEs,
- Budget,
- etc?
Project Approval
ā Completion of the project would be ļ¬nalized when
approval signatures have been secured from the
sponsor, ļ¬nance, quality, and technical.
ā This ensures that project has delivered the beneļ¬ts.
III. PROJECT MANAGEMENT PLAN
Work Breakdown Structure (WBS)
The tool for breaking down a project into its components
parts. A foundation document that provides the basis for:
a. planning
b. managing project schedules
c. costs
d. resources
e. changes
Guide Questions for WBS:
1. Do you require two or more intermediate activities to
produce this deliverable?
2. Can you accurately estimate the resources you will
need to perform the work to produce this deliverable?
3. Can you accurately estimate how long it will take to
produce this deliverable?
4. If you have to assign the work to produce this
deliverable to someone else, are you conļ¬dent that
person will understand exactly what to do?
Work Breakdown Structure
ā There are two (2) kinds of tasks on a WBS:
1. SUMMARY TASKS ā is not actually executed, it
is a summarization of the subordinate work
package.
2. WORK PACKAGES ā are actually executed.
ā¢ Decomposition is subdividing project deliverables into
smaller pieces
ā¢ A work package is a task at the lowest level of the
WBS
- Representing a collection of work actions
necessary to create a speciļ¬c result
Building a Work Breakdown Structure
WBS Step 1: Begin at the Top
A WBS breaks down a project into descending levels of
details, naming all the tasks required to create the
deliverables.
Begin the breakdown process by:
1. List the major deliverables/high level tasks from
the scope statement
2. Use continuous improvement to assess > analyze >
act
WBS Step 2: Name All the Tasks Required to
Produce Deliverables
A task name describes an activity that produces a
product. The next step is to break down each task into
the lower-level, detailed tasks required to produce the
product.
WBS Step 3: How to Organize the WBS
Place work packages under different summary task
headings. The overall project will remain the same even
though the work packages are grouped differently.
Group the various components of a product or major
phases of the product release.
Summary Tasks
- Open-ended tasks ā a task with no hard products
being produced, these are activities that could go
on indeļ¬nitely.
- Open-ended activities - a task with no action
required.
WBS Step 4: Identify Task Relationship
1. Deļ¬ne task relationship only between work
packages
2. Task relationships should reļ¬ect only sequence
constraints between work packages, not resource
constraints.
Type of Dependancies
1. Finish-to-start: This most common type of
dependency link accounts for more than 90 percent of
the dependencies you create. In this relationship, the
predecessor task must be completed before the
successor task can start. When you create a
dependency, the default setting is ļ¬nish-to-start.
2. Start-to-start: The start of one task is dependent on
the start of another. In this dependency type, two tasks
can start simultaneously, or one task might have to
start before another task can start.
3. Finish-to-ļ¬nish: In a ļ¬nish-to-ļ¬nish relationship, one
task (you guessed it) must ļ¬nish before or at the
same time as another task.
4. Start-to-ļ¬nish: In a start-to-ļ¬nish dependency, the
predecessor task can ļ¬nish only after the successor
task has started. If the successor is delayed, the
5. predecessor task cannot ļ¬nish. Of course, this type of
relationship is abbreviated as SF.
WBS Step 5: Milestones are Useful Markers
Milestones are markings of signiļ¬cant events in the life of
a project, with zero duration. Three reasons:
1. Project start and ļ¬nish milestones are useful anchors
for the network.
2. Task relationships should reļ¬ect only sequence
constraints between work packages, not resource
constraints.
3. A milestone can represent signiļ¬cant events that are
not already represented by a work passage or
summary of task.
IV. PROJECT RISK MANAGEMENT
What is Risk?
- The possibility of loss, injury, disadvantage or
destruction
- The chance of something happening that will have an
impact on objectives
Risk Management
The art and science of identifying, analyzing, and
responding to risk throughout the life of a project and in
the best interests of meeting project objectives
Strategies for Negative Risks or Threats
1. Avoidance
2. Transfer
3. Mitigate
4. Accept
Identify Risks
Possible sources:
ā¢Technical ā Project or Environment
ā¢ Business Case
ā¢Planning
ā¢Organizational
ā¢External
Technical Risks
Project
āEffect of Product/Service Failure, Safety Impact?
āComplex Product/Process Functions?
āComplex or Hazardous Design Elements (Materials, Fit,
Sequence, IT, Human, etc.)?
āComplex Interaction with Existing Processes?
āUnclear Requirements, Speciļ¬cations
āPackage Solutions (IT):
āŖ Available Packages Not or Poorly Evaluated?
āŖ Functional Capability Requirements
Mismatch?
Environmental
āInappropriate Development Tools/ Methods?
āNew/Unfamiliar Technology?
āUnstable Development Team?
āLow Project Team Knowledge of Business Area?
āLow/Inadequate Project Team Skills?
āPoor Development Method/Project Approach?
Business Risks
ā Major Increase in Costs Possible?
ā Evolving Business/Customer Requirements?
ā Incomplete Deļ¬nition of Scope/Requirements?
ā Poorly Deļ¬ned Beneļ¬ts?
ā Excessive Lead Time for Return on Investment?
ā Mission Critical System?
ā Fundamental to Business Strategy?
ā Business Commitment to Development?
Planning Risks
ā Complex Project Task Dependencies?
ā Critical Implementation Date?
ā Informal Project Control Procedures?
ā High Ratio: Development Person/ Years to
Development Calendar Years?
ā High Number of Major New Functions to Design?
ā Unrealistic Target Dates?
ā Low Commitment to Targets by Team?
ā Low Experience of Project Manager?
ā Resources Available to Resources Required
Mismatch?
Organizational Risks
ā Large Number of Decision Makers?
ā Multiple Geographic Locations (Design, Production)?
ā Unrealistic Expectations by Customers, Users,
Stakeholders?
ā Impacted Departments/Company of Large Size?
ā Inappropriate Level of Sponsorship?
ā Unavailability of Key Users, Internal Customers?
ā Signiļ¬cant Changes Required by Organization?
ā Resistance to Change by Current Organization?
ā Extensive Education of Users/Internal Customers
Required?
External Risks
ā Multiple Vendors, Contractors, Consultants?
ā Poor Vendor Support?
ā Project Critically Dependent on External Suppliers?
ā Large Number of Inter-Project Dependencies?
ā Overlapping Scope with Other Projects?
ā Extensive Recruitment of External Resources to Staff
New Processes?
STEPS TO RISK MANAGEMENT
STEP 1: RISK IDENTIFICATION ā Identify
potential problems of your solutions
STEP 2: RISK ASSESSMENT ā Determine the
likelihood of their occurrence
STEP 3: RESPONSE STRATEGY ā Take steps
to avoid or deal with the likely problems in order
to have higher chance of success