QM0020-solved

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Q 1 Discuss the Capability Maturity Model Integration(CMMI) Explanation of CMMI CMMI constellations CMMI maturity levels Q.2 Explain the five dimensions of Service Quality given by Parasuraman, Zeithaml and Berry, to evaluate the service gap. Definition of Service quality service quality relates to providing a total experience rather than only basic services. Service quality is a comparison of expectations with performance. A business with high service quality will meet customer needs whilst remaining economically competitive. Improved service quality may increase economic competitiveness.

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Transcript of QM0020-solved

Q 1

Q 1 Discuss the Capability Maturity Model Integration(CMMI)Explanation of CMMI

CMMI constellations

CMMI maturity levels

Q.2 Explain the five dimensions of Service Quality given by Parasuraman, Zeithaml and Berry, to evaluate the service gap.Definition of Service quality

service quality relates to providing a total experience rather than only basic services. Service quality is a comparison of expectations with performance. A business with high service quality will meet customer needs whilst remaining economically competitive. Improved service quality may increase economic competitiveness.

An assessment of how well a delivered service conforms to the client's expectations. Service business operators often assess the service quality provided to their customers in order to improve their service, to quickly identify problems, and to better assess client satisfaction.

In most generalized way the Quality term can be defined as The inclusion of all specified features and characteristics as defined for product or service and its ability to satisfy the given needs as per the requirement of user while using it.11 A predictable degree of uniformity & dependability to low cost and suited to the market (By Dr. Edward Deming)12 . Quality is conformance to requirements. (Philips Crosby)12 Quality is a degree to which a set of inherent characteristics fulfills the requirements. [ ISO 9000]1

As per Parasuraman, Zeithaml & Berry the service quality13 is defined as : Service Quality = Perception Expectation

Service quality is nothing but the difference between the service expectation & service actually received by the customer.

Explanation of five dimensions of Service quality

According to Parasuraman, Zeithaml and Berry, there are ten

determinants that may have a considerable impact on determining the

service gap or difference. These dimensions are shown in Figure 2.1:

Competence: This refers to the possession of the essential skills and

understanding required to perform any service. Competence is one aspect

that creates a large difference between two similar services. For example,

competence of employees in handling customers at retail stores, especially

in adverse situations like customer grievance, may help the store maintain

its image and retain the customer. Lack of competence may not only affect

the business negatively but also harm the organisations market position

and image. An organisation may develop competence in several areas,

including knowledge and skill of employees, operational support system and

research abilities of the organisation.

Courtesy: This consists of politeness, consideration and friendliness of

service personnel towards customers. In addition, it also covers the

attention paid by service providers to customers assets and belongings. All

these aspects create a feeling of courtesy in the minds of customers and

provide an experience of high service quality.

Here are some examples:

When customers visit a retail store, they expect that there will be proper

parking arrangements for their vehicles. In such a case, the store

security guard at the gate should help customers by making proper

parking arrangements and ensuring a hassle-free parking system.

When customers enter the store, the sales staff should greet them

enthusiastically and provide a warm welcome.

Credibility: This includes factors like reliability, trust and honesty. In other

words, customers consider a service provider credible if it treats customers

best interests as high priority. A customer may associate the credibility

factor with the name of the organisation or brand, reputation of the

organisation and the characteristics of the employees. For example,

Microsoft Corporation is an American multi-national software corporation

that develops, manufactures, licenses and supports a variety of products

and services related to computing. It is also one of the world's most credible

organisations.

Security: It refers to the customers feeling of being free from danger, risk

or doubt. In other words, it includes physical safety, financial security and

confidentiality that a service provider provides to a customer. It enhances

the trust of customers. For example, no customer would like to deal with an

insurance company that cannot guarantee the safety and security of the

monetary possessions of its customers. For example, Life Insurance

Corporation of India (LIC) is the largest insurance and investment company

in India that offers life insurance services. The slogan of LIC is

"Yogakshemam Vahamyaham" which means "Your welfare is our

responsibility".

Access: This refers to the service providers approachability and ease of

contact with the customer. Access includes suitable office operation hours

and locations. There are various situations when a customer needs to get

assistance from service providers. For example, suppose you buy a new

Sony smartphone. However, you find it difficult to operate the handset. In

such a situation, you may try to find a Sony service centre that can help in

solving your problem. Now, if you do not get access to such a service

centre, it would create a poor impression in your mind about the service

quality. To improve accessibility and company brand image, most

organisations provide 24 x 7 services through their customer-care centres.

Communication: Communication as a dimension of service quality refers

to informing customers in a language they are able to understand, listening

to them carefully and providing them required solutions. For example,

various business process outsourcing (BPO) units adjust their languages to

the varying needs of their customers. Service organisations may need to

communicate with customers on various points, including explanation of the

service, its cost and assurances to manage any problem that may arise.

Knowing the customer: This refers to paying heed to customer needs,

knowing them by their names and providing them undivided attention. This

is a part of exceeding customer expectations. Today, many organisations

working in the hospitality industry focus more on this aspect of service to

maintain and improve service quality.

Tangible/Physical Evidence: It encompasses all the tangibles involved in

the process of service delivery. It is mainly provided at the location where

service is delivered to customers. Physical evidence allows customers to

make judgments about an organisation. There are certain expectations

regarding physical evidence. For example, customers want a clean, friendly

environment in a restaurant. Or in the business class section on an airplane,

customers expect enough room to lie down.

Reliability: It is earned when the service performance is as per the

promises made and in a responsible manner. While determining the

reliability of any service organisation, performance accuracy, updated

records and properly-followed schedules are taken into account. Therefore,

you can say that reliability is the ability to perform the promised service in a

precise manner. For example, Domino's Pizza, an international franchise

pizza-delivery corporation, is associated with the credibility of delivering

pizzas in 30 minutes. In case a delivery is late, the product is provided freeof-

charge.

Responsiveness: It refers to the eagerness and enthusiasm of service

personnel, which result in customers getting prompt and timely services. For example, McDonalds is not only known for its speed of service, but the

employees at McDonalds are also trained to deal with customers in a

friendly and professional manner.

To summarise, according to Parasuraman, Zeithaml and Berry, service

quality is determined by customers using various criteria like credibility,

security, access, communication, tangibles, responsiveness, competence

and reliability. After accounting for similarities across some of the criteria,

the authors have consolidated them into five dimensions as shown in

Figure 2.2:

Let us now discuss these criteria.

Tangibles: While the nature of services is intangible, there are certain

aspects of services that customers can measure. For example, customers

may assess service by the equipment used to provide the service, the

premises within which the service is offered and the employees who provide

the service. Therefore, service providers need to ensure that they provide

the right ambience and infrastructure to customers and that their smart and pleasant employees offer high-quality service. Managing tangibles like these

enables organisations to make a positive impression on not only existing

customers but also on prospective and first-time customers. For example,

Barista Lavazza, a coffee cafe chain and restaurant, manages its tangibles

by maintaining a clean and hygienic shop-floor, an attractive decor,

premium-quality cutlery, soothing music, comfortable seating arrangements

and friendly staff. Reliability: The service offered by an organisation needs to meet the

expectations of customers consistently. It is only then that a customer

considers the service reliable and the organisation dependable. Services

should be tested for their consistency before they are launched. They

should be monitored closely after their launch and management should take

immediate steps if any unexpected service failures are observed. In

addition, the organisation should provide suitable infrastructure for error-free

services. For example, if Domino's fails to deliver pizzas to customers within

30 minutes, as promised by the company, it would be a case of unreliable

service delivery. Similarly, IndiGo Airlines, a domestic and international

Indian airline, offers reliability to its customers by being on time and

providing affordable, on time and hassle-free operations.

Responsiveness: Service personnel should be prompt in attending to

customers and serving their requirements. Service personnel should appear

enthusiastic and responsive to customers while being served by them. The personnel should be especially attentive during problem situations when the

customer has complaints with service. Employees should be empowered by

management to do all they can to help a customer in trouble. Employees

who work with commitment and customer orientation should be rewarded to

encourage similar behaviour among all the employees. The claim that an

LG service personnel will attend to a complaint within 24 hours of a

complaint being launched is a good example of responsiveness. Assurance: Service personnel should have a thorough knowledge of the

service they are providing to customers. For example, sales executives

selling mutual funds should have complete information regarding the

expected returns and the tax implications of the investment. They should be

able to provide useful and timely advice to customers. Their knowledge and

confidence should also assure customers that the companys service is

dependable and trustworthy. Thus, assurance specifies the knowledge and

friendliness of employees and how they convey competence, courtesy,

credibility and security to customers. For example, 1,423 cities covered by

Maruti Suzuki service centres assure hassle-free service anywhere in India.

Empathy: The service personnel of an organisation should be accessible

and open to communication. They should empathise with customers who

report problems and work quickly to resolve them. For example, when a

customer calls up a bank complaining that he/she has a problem with

his/her balance amount and needs to get it resolved immediately, the

customer care executive should understand the problem, ask relevant

questions and assure the customer of immediate action. He/she should also

ensure that the problem is resolved at the earliest. Service personnel should

consider customer complaints as an opportunity to interact with customers,

understand their needs and improve the service offering.

Empathy includes criteria like access, communication and knowledge about

customers. For example, Jabong.com, an Indian fashion and lifestyle ecommerce

portal, has a well-structured 24x7 customer care department that

customers can contact regarding their order status, queries related to a

product, complaints, or feedback to the company. Today, in terms of

customer satisfaction, Jabong is among the top three e-commerce

companies in India.

SelfQ.3 SERVQUAL is a diagnostic tool that uncovers a firms broad weaknesses and strengths in the area of service quality. It is very useful in measuring quality in service sectors. Discuss the SERVQUAL concept in detail. Definition of SERVQUAL

Explanation of SERVQUAL concept

Q.4 Explain the various reasons for Service failure and also the two types of service failure. Explanation of service failure and its two types

Reasons for service failure

Q.5 Give reasons why providing high-quality service depends on efficient co-ordination between different functional areas/departments of an organisation.Explanation of the role of different departments in managing service qualitySteps in providing high-service quality Q.6 Explain the various services provided by retailers. Also explain the various approaches to service quality in retailing. Services Provided by retailers Approaches to service quality in retailing