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8/3/2019 Somm Final

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Amity Business School

SERVICE OPERATIONS

MANGEMENT

Presented BY:-

Rahul Nassa

Vikalp Tomar

Rohit Dhar Ankit Malik

Manvesh Singh

Rahul Rana

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Topics To Be Covered

Total Quality Systems

Tools and Technique for Total Quality and

Continuous Improvement

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Quality is defined as:

The totality of features and characteristics of aproduct or service that bears on its ability to

satisfy given needs

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WHY QUALITY IS SOIMPORTANT

Higher Customer Loyalty

Higher Market Share

Higher Return To Investors

Loyal Employees

Lower Costs

Lower Vulnerability To Price Competition

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Dimensions Of Service QualityGarvin identified 8 dimensions of quality that help develop a more

precise understanding of quality:-

Performance

e.g. no. of seconds it takes a car to reach 60 miles per hour can beconsidered a performance measure for an automobile

Features

e.g. ABS system in a car

Reliability

Refers to the probability that a product will perform its intended function

for a specified period of time under specified environmental conditions

Conformance

It is the degree to which a product meets design specification such as

actual no. of miles per gallon (mpg) as compared to the mpg design

specifications.

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Durability

Amount of use a consumer gets from the product before it becomes

physically deteriorates .

Aesthetics

Includes subjective traits such as how a product looks, feels, sonds,

tastes or smells

Perceived Quality

Perceptions that have been formed in the consumer¶s mind as a result

of advertising, brand promotions, word of mouth etc.

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Definition of Gap Analysis Formal means to identify and correct gaps

between desired levels and actual levelsof performance

Used by organizations to analyze certainprocesses of any division of their company

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6

SERVQUAL Model

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ManagementPerceptions

of Customer Expectations

ExpectedService

7

SERVQUAL Model Gaps

Gap 1

± The difference between actual customer

expectations and management¶s idea or

perception of customer expectations

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Service

Quality

Specifications

Management

Perceptions

of Customer

Expectations 8

SERVQUAL Model Gaps

Gap 2

± Mismatch between manager¶s expectations of

service quality and service quality

specifications

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ServiceDelivery

ServiceQuality

Specifications

9

SERVQUAL Model Gaps

Gap 3

± Poor delivery of service quality

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Service

Delivery

External

Communicationsto Customers

10

SERVQUAL Model Gaps

Gap 4

± Differences between service delivery and

external communication with customer

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ExpectedService

PerceivedService

11

SERVQUAL Model Gaps

Gap 5

± Differences between Expected and Perceived

Quality

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Amity Business SchoolPrinciples Of Quality and

Continious Improvement Focus on customer Satisfaction

Leadership

Commitment To Training and Education

Participation, Empowerment, Teamwork and

Recognition

Benchmarking

Fast Response

Management by fact: Measurement and analysis

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Other Approaches to AchieveService Quality

ISO 9000 standards

Are designed to define and implementmanagement systems by which

organizations design, produce and deliver

and support their products An organizations may adopt one of ISO

9001,9002 or 9003

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ISO 9001

Provides a model appropriate for an

organization engaged in design,production, development, installation and

servicing a product. Although it applies to

manufacturing, it can also apply to

services such as construction ,architecture and engineering

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ISO 9002

Includes everything covered by ISO 9001

except the design function ISO 9003

Least comprehensive and is appropriate for

organizations whose quality of goods andservices can be judged primarily by

inspection and testing

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Amity Business SchoolThe Malcom Baldrige National

Quality Award Program Established by US congress in 1987

Award has been established to help:

Stimulate American companies to improve

quality and productivity Recognize the achievement of those companies

that improve the quality of their goods andservice

Establish the guidelines and criteria Provide specific guidance for other American

organizations

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MBNQA are based upon a set of core values and concepts:-

Leadership

Strategic Planning

Customer and market focus

Measurement , analysis and Knowledge Management

Human Resource focus

Process Management

Business/organizational performance results

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Amity Business SchoolService Recovery Paradox

³A good recovery can turn angry, frustrated customersinto loyal ones. ..can, in fact, create more goodwill than if things had gone smoothly in the first place.´ (Hart et al.)

HOWEVER: ± only a small percent of customers complain

± service recovery must be SUPERLATIVE

only with responsiveness, redress, and empathy/courtesy

only with tangible rewards

± even though service recovery can improve satisfaction, it has not

been found to increase purchase intentions or perceptions of thebrand

± service recovery is expensive

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The service recovery paradox is more likely to occur when: ± the failure is not considered by the customer to be severe

± the customer has not experienced prior failures with the firm

± the cause of the failure is viewed as unstable by the customer ± the customer perceives that the company had little control over

the cause of the failure

Conditions must be just right in order for the recovery

paradox to be present!

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Why Customers Switch Service Providers?

- High/Unfair/Deceptive Pricing

- Inconvenience (of location, appointment, excessive wait)

- Core service failure (service mistakes, billing errors,

catastrophe)

- Service encounter failure

- Poor response to service failure

- Competition (customer discovers better alternatives)

- Ethical problems (cheat, hard sell, unsafe)

- Involuntary switching (customer moved, provider closed)

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Service Recovery Approahes

Measure The Costs

Listen Closely For Complaints

Anticipate need for recovery Act Fast

Train Employees

Empower the front line Close the loop

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Amity Business SchoolService Guarantees

guarantee = an assurance of the fulfillment

of a condition (Webster¶s Dictionary)

in a business context, it is a pledge or

assurance that a product offered by a firm

will perform as promised and, if not, then

some form of reparation will be undertakenby the firm

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for tangible products, a guarantee is often

done in the form of a warranty

services are often not guaranteed

± cannot return the service

± service experience is intangible (so what do

you guarantee?)

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Amity Business SchoolCharacteristics of an Effective

Service Guarantee

Unconditional

± the guarantee should make its promise

unconditionally ± no strings attached

Meaningful

± the firm should guarantee elements of the

service that are important to the customer

± the payout should cover fully the customer¶sdissatisfaction

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Easy to Understand and Communicate

± customers need to understand what to expect

± employees need to understand what to do Easy to Invoke and Collect

± the firm should eliminate hoops or red tape in

the way of accessing or collecting on the

guarantee

Easy To Understand and Communicate

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Tools and techniques of TQM

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Amity Business SchoolThe Deming Cycle

Plan: study current situation

Do: implement plan on trial basis

Study: determine if trial is working

correctly

Act: standardize improvements

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TQM tools:-

Histograms

Flowcharts Checksheets

Pareto Diagrams

Scatter Diagrams

Cause and effect diagram

Control Charts

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Histograms A Histogram is a graphic summary of variation in a set of data. It

enables us to see patterns that are difficult to see in a simple table

of numbers. Can be analysed to draw conclusions about the data

set. A histogram is a graph in which the continuous variable is

clustered into categories and the value of each cluster is plotted to

give a series of bars.

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Are diagrams consisting of pictorial symbols connected by directed line

segment

Their purpose is to show the sequencing of activities , operations,tasks, materials flow ,data flow, logic flow etc.

E.g. Service blueprint

Flowcharts

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Check Sheets A Check Sheet is a data recording form that has been

designed to readily interpret results from the form itself. It

needs to be designed for the specific data it is to gather.Used for the collection of quantitative or qualitative

repetitive data. Adaptable to different data gathering

situations. Minimal interpretation of results required.

Easy and quick to use. No control for various forms of

bias - exclusion, interaction, perception, operational,

non-response, estimation.

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Amity Business SchoolPareto Diagrams

A pareto diagram is an ordered form of a

histogram that attempts to isolate the few

dominant factors affecting a situation from

the many insignificant one

The rectangles are arranged from tallest on

left to hortest

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Amity Business SchoolScatter Diagrams

Are used to provide a quick check if a

relationship exist between two variables

E.g. A quality improvement team may want

to know if the no. of underbaked pizza is

related to no. of orders per day

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Amity Business SchoolCause and Effect Diagram

The cause-and-effect diagram is a method for analysingprocess dispersion. The diagram's purpose is to relatecauses and effects.

Three basic types: Dispersion analysis, Process

classification and cause enumeration. Effect = problem to be resolved, opportunity to be

grasped, result to be achieved. Excellent for capturingteam brainstorming output and for filling in from the 'widepicture'. Helps organise and relate factors, providing a

sequential view. Deals with time direction but notquantity. Can become very complex. Can be difficult toidentify or demonstrate interrelationships.

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Amity Business SchoolControl Charts

Control charts are a method of Statistical Process Control,SPC. (Control system for production processes). Theyenable the control of distribution of variation rather thanattempting to control each individual variation. Upper and

lower control and tolerance limits are calculated for aprocess and sampled measures are regularly plottedabout a central line between the two sets of limits. Theplotted line corresponds to the stability/trend of theprocess. Action can be taken based on trend rather than

on individual variation. This prevents over-correction/compensation for random variation, whichwould lead to many rejects.

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Thank You

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