chap 06 quality

8/3/2019 Chap 06 Quality

1/28


2/28

Learning ObjectivesLearning Objectives

1.1. Describe the five dimensions of service quality.Describe the five dimensions of service quality.

2.2. Use the service quality gap model to diagnoseUse the service quality gap model to diagnosequality problems.quality problems.

3.3. Illustrate how Taguchi methods and pokaIllustrate how Taguchi methods and poka--yokeyokemethods are applied to quality design.methods are applied to quality design.

4.4. Perform service quality function deployment.Perform service quality function deployment.

5.5. Construct a statistical process control chart.Construct a statistical process control chart.

6.6. Develop unconditional service guarantees.Develop unconditional service guarantees.

7.7. Plan for service recovery.Plan for service recovery.

8.8. Perform a walkPerform a walk--through audit (WtA)through audit (WtA)


3/28

Moments ofTruthMoments ofTruth

Each customer contact is called a moment ofEach customer contact is called a moment oftruth.truth.

You have the ability to either satisfy or dissatisfyYou have the ability to either satisfy or dissatisfythem when you contact them.them when you contact them.

AA service recoveryservice recoveryis satisfying a previouslyis satisfying a previouslydissatisfied customer and making them a loyaldissatisfied customer and making them a loyal

customer.customer.


4/28

Dimensions ofService QualityDimensions ofService Quality

1.1. ReliabilityReliability dependable over timedependable over time

2.2. ResponsivenessResponsiveness keeping customers waitingkeeping customers waiting

3.3. AssuranceAssurance reputation, credentials, confidence, track recordreputation, credentials, confidence, track record

4.4. EmpathyEmpathy being a good listener, putting yourself in their placebeing a good listener, putting yourself in their place

5.5. TangiblesTangibles cleanliness, physical appearancecleanliness, physical appearance


5/28

Perceived Service QualityPerceived Service Quality

Word of

mouth

Personal

needs

Past

experience

Expected

service

Perceived

service

Service Quality

Dimensions

Reliability

Responsiveness

Assurance

EmpathyTangibles

Service Quality Assessment

1. Expectations exceeded

ESPS (Unacceptable quality)


6/28

Service Quality Gap ModelService Quality Gap Model

Customer

Perceptions

Customer

Expectations

Service

Delivery

Service

Standards

Management

Perceptions

of Customer

Expectations

Managing theEvidence

Conformance Service Design

Understanding

the Customer

Customer Satisfaction

GAP 5

Customer /Marketing Research

GAP 1

Conformance

GAP 3

Communication

GAP 4

Design GAP 2


7/28

Quality Service by DesignQuality Service by Design

1.1. Quality Function DeploymentQuality Function Deployment(House of Quality)(House of Quality)

2.2. Quality in the Service PackageQuality in the Service Package

3.3. Taguchi Methods (Robustness)Taguchi Methods (Robustness)

4.4. PokaPoka--yoke (Mistake Proofing)yoke (Mistake Proofing)


8/28


9/28

Voice of the Customer

Voice of the Designer


10/28

x = Design Trade-offs


11/28

Benchmarking


12/28

Reverse Engineering


13/28

Deploying the VOCDeploying the VOC

Technical

Requirements

Customer

Requirements

Product

Requirements

Technical

Requirements

Process

Requirements

Product

Requirements

Control

Requirements

Process

Requirements


14/28

The Objectives ofQFDThe Objectives ofQFD

1.1. Determine the voice of the customer.Determine the voice of the customer.

2.2. Examine the companys response to thisExamine the companys response to thisvoice.voice.


15/28

House ofQualityHouse ofQuality

Importance

Re la tiv e

1 2 3 4 5Customer Expectations

Reliability

Responsiveness

Assurance

Empathy

Tangibles

Comparison with Volvo Dealer

Weighted score

Improvement difficulty rank

O O

O Weak

Medium

* Strong

9

9

9

Training

Attitude

Capacity

I

nformatiio

n

Equipment

8

7

7

6 6

5 5

5

5

4

4

3 3

3

3

2

2 2

2

+

_

+

Customer Perceptions

o

+

++

o

o

oo

+

o

o

o

o

o

o Village Volvo

+ Volvo Dealer

Service Elements

Relationships

127 82 63 102 65

1

* *


16/28

BenchmarkingBenchmarking

Benchmarking is the systematic process of evaluatingthe work processes of organizations that are

recognized as representing best

practices for the purpose of improving performance.

World-ClassBest

Functional

Internal

Industry

Competition

(12.1)


17/28

PokaPoka--YokeYoke

PokaPoka--Yoke means mistakeYoke means mistake--proofing (foolproofing (fool--proofing, errorproofing, error--proofing)proofing)

Examples:Examples: The sound when dialing a telephone number ensures the user the number has beenThe sound when dialing a telephone number ensures the user the number has been

successfully entered.successfully entered.

A connectors can only be inserted one way into a computer port.A connectors can only be inserted one way into a computer port.

Filing cabinets that only allow one drawer to be opened at a time to prevent them falling

Filing cabinets that only allow one drawer to be opened at a time to prevent them fallingover.over.

Automobile fuel tanks for unleaded gas do not allow diesel fuel nozzles to be inserted.Automobile fuel tanks for unleaded gas do not allow diesel fuel nozzles to be inserted.

Handles on power tools that cut power when released.Handles on power tools that cut power when released.

Electrical circuit breakers that cut out when overloaded.Electrical circuit breakers that cut out when overloaded.

Spin Dryers that switch off when door is opened.Spin Dryers that switch off when door is opened.

Washing machines that do not allow door to be opened if full of water.Washing machines that do not allow door to be opened if full of water.

Height board suspended at entrances to give a physical indication of height restrictionsHeight board suspended at entrances to give a physical indication of height restrictionsbefore anything solid is encountered.before anything solid is encountered.

Sink overflows to prevent flooding.Sink overflows to prevent flooding.

Automobile interior lights that comeAutomobile interior lights that come--on when a door is opened.on when a door is opened.


18/28

Classification ofService FailuresClassification ofService Failures

withPo

kawithPo

ka--Yo

ke Oppo

rtunitiesYo

ke Oppo

rtunitiesServer Errors:Server Errors:

TaskTask checklistchecklist

TreatmentTreatment listening checklistening check

TangibleTangible clean uniformclean uniform

Customer Errors:Customer Errors:

PreparationPreparation surveysurvey

EncounterEncounter size limitationsize limitation

ResolutionResolution computer beepcomputer beep


19/28

Quality CostsQuality Costs

Preventio

nPreventio

n Appraisal Appraisal InternalInternalFailuresFailures

ExternalExternalFailuresFailures

PlanningPlanning

Design ReviewDesign ReviewTrainingTraining

Process ControlProcess Control

ProcessProcess

ImprovementImprovement

System AuditingSystem Auditing

Supplier InspectionSupplier Inspection

ProductProductInspecting/CheckingInspecting/Checking

Product TestingProduct Testing

MeasurementMeasurement

System ValidationSystem Validation

Product AuditingProduct Auditing

ReworkRework

ScrapScrapReRe--inspectinginspecting

ReRe--testingtesting

DowntimeDowntime

Yield LossesYield Losses

DispositioningDispositioning

NonNon--

ConformancesConformances

CustomerCustomer

ReturnsReturnsComplaintComplaint

AdjustmentsAdjustments

WarrantyWarranty

ChargesCharges

CustomerCustomerLossLoss

ReputationReputation

LossLoss


20/28

Costs ofService QualityCosts ofService Quality(Bank Example)(Bank Example)

Failure costs Detection costs Prevention costsFailure costs Detection costs Prevention costs

External failureExternal failure: Process control Quality planning: Process control Quality planning

Loss of future business Peer review Training programLoss of future business Peer review Training program

Negative wordNegative word--ofof--mouth Supervision Quality auditsmouth Supervision Quality audits

Liability insurance Customer comment cardD

ata acquisition and analysisLiability insurance Customer comment cardD

ata acquisition and analysisLegal judgments InspectionLegal judgments Inspection Recruitment and selectionRecruitment and selection

Interest penalties Supplier evaluationInterest penalties Supplier evaluation

Internal failure:Internal failure:

Scrapped formsScrapped forms

ReworkRework

Recovery:Recovery:

Expedite disruptionExpedite disruption

Labor and materialsLabor and materials


21/28

Service Process ControlService Process Control

Resources

Identify reason

for

nonconformance

Establish

measure of

performance

Monitor

conformance to

requirements

Take

corrective

action

Service

concept

Customer

input

CustomeroutputServiceprocess


22/28

Unconditional Service Guarantee:Unconditional Service Guarantee:

Customer ViewCustomer View

Unconditional (L.L. Bean)Unconditional (L.L. Bean)

Easy to understand and communicateEasy to understand and communicate

(Bennigans)(Bennigans) Meaningful (Dominos Pizza)Meaningful (Dominos Pizza)

Easy to invoke (Cititravel)Easy to invoke (Cititravel)

Easy to collect (Manpower)Easy to collect (Manpower)


23/28

Unconditional Service Guarantee:Unconditional Service Guarantee:

Management ViewManagement View

Focuses on customers (British Airways)Focuses on customers (British Airways)

Sets clear standards (FedEx)Sets clear standards (FedEx)

Guarantees feedback (Manpower)Guarantees feedback (Manpower) Promotes an understanding of the servicePromotes an understanding of the service

delivery system (Bug Killer)delivery system (Bug Killer)

Builds customer loyalty by making expectationsBuilds customer loyalty by making expectationsexplicitexplicit


24/28

Customer SatisfactionCustomer Satisfaction

All customers want to be satisfied.All customers want to be satisfied.

Customer loyalty is only due to the lack of aCustomer loyalty is only due to the lack of abetter alternativebetter alternative

Giving customers some extra value willGiving customers some extra value will delightdelight

them by exceeding their expectationsthem by exceeding their expectations and insureand insure

their returntheir return


25/28

Customer Feedback andCustomer Feedback and

WordWord--ofof--MouthMouth The average business only hears from 4% of their customers who areThe average business only hears from 4% of their customers who are

dissatisfied with their products or services. Of the 96% who do not botherdissatisfied with their products or services. Of the 96% who do not botherto complain, 25% of them have serious problems.to complain, 25% of them have serious problems.

The 4% complainers are more likely to stay with the supplier than are theThe 4% complainers are more likely to stay with the supplier than are the

96% non96% non--complainers.complainers.

About 60% of the complainers would stay as customers if their problem wasAbout 60% of the complainers would stay as customers if their problem wasresolved and 95% would stay if the problem was resolved quickly.resolved and 95% would stay if the problem was resolved quickly.

A dissatisfied customer will tell between10 and

20 other people about theirA dissatisfied customer will tell between

10 and

20 other people about theirproblem.problem.

A customer who has had a problem resolved by a company will tell about 5A customer who has had a problem resolved by a company will tell about 5people about their situation.people about their situation.


26/28

WalkWalk--ThroughThrough--AuditAudit

Service delivery system should conform toService delivery system should conform tocustomer expectations.customer expectations.

Customer impression of service influenced byCustomer impression of service influenced byuse of all senses.use of all senses.

Service managers lose sensitivity due toService managers lose sensitivity due tofamiliarity.familiarity.

Need detailed service audit from a customersNeed detailed service audit from a customersperspective.perspective.


27/28

Patronage

Loyalty

Satisfaction

Retention

Severity

Of

Failure

Perceived

Service

Quality

Psychological

-empathy

-apology

Tangible

-fair fix

-value add

Psychological

-apology

-show interest

Follow-up

Service

Recovery

Tangible

-small token

Service

Recovery

Expectations

Service

Recovery

Customer

Loyalty

Service

GuaranteeSpeed of

RecoveryFrontline

Discretion

ServiceFailure

Occurs

ProviderAware of

Failure

Fair

Restitution

Pre-recovery Phase Immediate Recovery Phase Follow-up Phase

Service Recovery Framework


28/28

Approaches to Service RecoveryApproaches to Service Recovery

CaseCase--byby--casecase addresses each customers complaintaddresses each customers complaint

individually but could lead to perception ofindividually but could lead to perception of

unfairness.unfairness.

Systematic responseSystematic response uses a protocol to handleuses a protocol to handlecomplaints but needs prior identification of criticalcomplaints but needs prior identification of critical

failure points and continuous updating.failure points and continuous updating.

Early interventionEarly intervention attempts to fix problem beforeattempts to fix problem before

the customer is affected.the customer is affected.

Substitute serviceSubstitute service allows rival firm to provideallows rival firm to provide

service but could lead to loss of customer.service but could lead to loss of customer.

chap 06 quality

Documents