Service Quality 2 : Service Quality 2 Designing and Achieving Service Quality Objectives : Objectives After this session you

will be able to; Discuss the scope of service quality Illustrate methods applied to design quality in Services Describe tools used in achieving Service Quality Use a fishbone chart in a cause and effect analysis Scope of Service Quality : Scope of Service Quality Fitzsimmons proposes viewing quality from five perspectives Content Are standard procedures being followed? Process Is the sequence of events in the service process appropriate? Structure Are the physical facilities and organisational design adequate for the service? Outcome What change in status has the service effected? Impact What is the long range effect of the service on the consumer? Quality Service by Design : Quality Service by Design Incorporation of Quality in the Service Package Supporting facility Facilitating goods Explicit services Implicit services Table 10.4 (text pp 281) : Table 10.4 (text pp 281) Service Package Feature Attribute or Requirement Measurement Nonconformance Corrective action Definition of Quality : Definition of Quality By using a quality system to maintain conformance to the design requirements which definitional approach to quality is being used? Definition of Quality : Definition of Quality Crosby defines quality as conformance to requirementsThis means defining explicitly in measurable terms what constitutes conformance to requirements Quality is seen as an action-oriented activity requiring corrective measures when non-conformance occurs Quality Service by Design : Quality Service by Design Methods Taguchi methods Robust design to ensure proper functioning under adverse conditions Poka-yoke Checklists or devises that do not let the employee make a mistake Quality Function Deployment House of quality Central belief that products should be designed to reflect the customers desires and tastes thereby coordinating design, manufacturing and marketing Achieving Service Quality : Achieving Service Quality Cost of Quality Prevention Detection Internal failure External failure Prevention : Prevention Costs associated with operations or activities that keep failure from happening and minimise detection costs Examples Quality planning Recruitment and selection Training programmes Quality improvement projects Detection : Detection Costs incurred to ascertain the condition of a service to determine whether it conforms to quality standards Examples Periodic inspection Process control Collecting quality data Internal failure : Internal failure Costs incurred to correct nonconforming work before delivery to the customer Examples Scrapped reports and forms Rework Downtime External failure : External failure Costs incurred to correct nonconforming work after delivery to the customer or to correct work that did not satisfy a customers specified needs Examples Negative word of mouth Loss of future business Investigation time Slide 14: In manufacturing companies external and internal failure costs together accounted for 50% to 80% of the total cost of quality Juran suggests that $1 invested in prevention is worth $100 in detection costs and $10,000 in failure costs Tools for Achieving Service Quality : Tools for Achieving Service Quality Service Process Control Statistical Process Control

Service Process Control : Service Process Control The manufacturing based approach to quality focuses on conformance to internally developed specifications. The control of quality is viewed as a feedback control system comparing output with a standard The next overhead shows the basic control cycle as applied to service control process Service Process Control : Service Process Control Resources Identify reason for nonconformance Establish measure of performance Monitor conformance to requirements Take corrective action Service concept Customer input Customer output Service process Difficulties in implementation : Difficulties in implementation Defining service performance measures Intangibility of services Simultaneous production and consumption Customers are asked to evaluate the service after the factBy focusing on the delivery process itself these difficulties may be overcome statistical process control Statistical Process Control : Statistical Process Control What should happen if the process is not performing as expected? An investigation to identify the cause and to suggest corrective action Could the variance be a result of random occurrences and not a process failure? Is change necessary? Constructing and Using a Quality Control Chart : Constructing and Using a Quality Control Chart Decide on some measure of service system performance Collect representative historical data form which estimates of population mean and variance for the system performance can be made Decide on a sample size and calculate +/-3 standard deviation control limits Graph the control chart as a function of sample mean values versus time Constructing and Using a Quality Control Chart : Constructing and Using a Quality Control Chart Plot sample means collected at random on the chart Process in control (sample mean falls within control limits Process out of control (sample mean falls outside control limits, therefore; Evaluate the situation Take corrective action Check results of action Update the control chart and incorporate new data Control Charts : Control Charts Two types based on the type of performance measure Variable control charts record measurements that permit fractional values e.g. length, weight, time Attribute control charts record discrete data e.g. the number of errors as a percentage of the total Slide 23: Fishbone Chart Equipment Personnel Procedure Material Other Delayed Flight Departure Fishbone analysis (Ishikawa chart) : Fishbone analysis (Ishikawa chart) The analysis begins with the problem at the head and traces the major categories of causes along the spine Usual causes Personnel Procedure Equipment Material Other Fishbone Analysis : Fishbone Analysis Causes are eliminated through discussion and consensus and remaining causes targeted for additional data gathering See Midway example pp 293 in text Control Chart of Departure Delays : Control Chart of Departure Delays 1983 target 1983 lower limit 1982 1983 Flight Departure Delay Fishbone Chart : Flight Departure Delay Fishbone Chart Equipment Personnel Procedure Material Other Aircraft late to gate Late arrival Gate occupied Mechanical failures Late pushback tug Weather Air traffic Late food service Late fuel Late baggage to aircraft Gate agents cannot process passengers quickly enough Too few agents Agents undertrained Agents undermotivated Agents arrive at gate late Late cabin cleaners Late or unavailable cockpit crews Late or unavailable cabin crews Poor announcement of departures Weight an balance sheet late Delayed checkin procedure Confused seat selection Passengers bypass checkin counter Checking oversize baggage Issuance of boarding pass Acceptance of late passengers Cutoff too close to departure time Desire to protect late passengers Desire to help companys income Poor gate locations Delayed Flight Departure Pareto Analysis :

Pareto Analysis Data is arranged so that causes of a problem are ordered in descending frequency of occurrence 80/20 rule Apply the rule to the Midway example Pareto Analysis of Flight Departure Delay : Pareto Analysis of Flight Departure Delay All stations, except hub Newark Washington(national) Percentage Percentage Percentage of Cumulative of Cumulative of Cumulative incidences percentage incidences percentage incidences percentage Late 53.3 53.3 Late 23.1 23.1 Late 33.3 33.3 passengers passengers passengers Waiting for 15.0 68.3 Waiting for 23.1 46.2 Waiting for 33.3 66.6 pushback pushback pushback Waiting for 11.3 79.6 Waiting for 23.1 69.3 Late weight 19.0 85.6 fueling fueling and balance sheet Late weight 8.7 88.3 Cabin 15.4 84.7 Waiting for 9.5 95.1 and balance cleaning and fueling sheet supplies Summary : Summary In this session we Discussed the scope of service quality Illustrated methods applied to design quality in Services Described tools used in achieving Service Quality Used a fishbone chart in a cause and effect analysis Essay : Essay Customer loyalty is only due to the lack of a better alternativeDiscuss