QUALITY SERVICE

IMPROVEME

NTPrepared by:ALYSSA JANE T. MAGKALAS

Service Quality

Measuring and improving quality is more difficult for services than for products Unsatisfactory service cannot be

replaced or repaired Intangible and temporary nature

Defining Service Quality

Specifications Company: Standard operating procedures Customer: Personal expectations Misalignment of company and customer

specifications can lead to dissatisfaction, even if the service is delivered as designed Effective communication is key in eliminating

misalignment

Measuring Service Quality

ReliabilityResponsivenessAssuranceEmpathyTangibles

Quality: Profit or Cost

Both! Improving quality does require a company to

incur costs Return on quality storyline:

ImprovedServicePerformance

IncreasedMarketShare

ImprovedCustomerSatisfaction

IncreasedProfitability

ImprovedCustomerRetention

Deming’s 14 Points

1. Create constancy of purpose2. Adopt philosophy of prevention3. Cease mass inspection4. Select a few suppliers based on

quality5. Constantly improve system and

workers

6. Institute worker training7. Instill leadership among

supervisors8. Eliminate fear among employees9. Eliminate barriers between

departments10. Eliminate slogans

Deming’s 14 Points (cont.)

11. Remove numerical quotas12. Enhance worker pride13. Institute vigorous training and

education programs14. Develop a commitment from top

management to implement above 13 points

Deming’s 14 Points (cont.)

Deming Wheel: PDCA Cycle

1. PlanIdentify problem and develop plan for improvement.

2. DoImplement plan on a test basis.

3. Study/CheckAssess plan; is it working?

4. ActInstitutionalize improvement; continue cycle.

Quality Improvement and Role of Employees

Participative problem solving

employees involved in quality management

every employee has undergone extensive training to provide quality service to Disney’s guests

SERVQUAL Model

Compares customer expectations with their experience of the service that was actually delivered Discrepancies are “gaps” in service quality

SERVQUAL ModelPersonal Needs

Service QualitySpecifications

Management Perceptions ofCustomer Expectations

Expected Service

Past Experience

External Communications

to Customers

Perceived Service

Service Delivery

Word-of-MouthCommunicatio

ns

Customer

Provider

Gap 1

Gap 5

Gap 4

Gap 3

Gap 2

Gaps in Service QualityGap Problem Cause(s)

1. Consumer expectation – mgmt. perception

The service features offered don’t meet customer needs

Lack of marketing research; inadequate upward communication; too many levels between contact personnel and management

2. Management perception – service quality specification

The service specifications defined do not meet management’s perceptions of customer expectations

Resource constraints; management indifference; poor service design

3. Service quality specification – service delivery

Specifications for service meet customer needs but service delivery is not consistent with those specifications

Employee performance is not standardized; customer perceptions are not uniform

4. Service delivery – external communication

The service does not meet customer expectations, which have been influenced by external communication

Marketing message is not consistent with actual service offering; promising more than can be delivered

5. Expected service – perceived service

Customer judgments of high/low quality based on expectations vs. actual service

A function of the magnitude and direction of the gap between expected service and perceived service

Service Quality Design

Poka-Yoke: Fool proofing mechanisms Prevent inevitable mistakes from turning into

defects Example: Repeating back order at Starbucks

before giving you a cup of coffee Conceived of by Shigeo Shingo, “Mr.

Improvement”

Quality Attributes in Service

Benchmark “best” level of quality

achievement one company or companies seek to achieve

Timeliness how quickly a service

is provided “quickest, friendliest, most accurate service

available.”