Total Quality Management CII Institute of Logistics Total Quality Management.
Total Quality Management - Quaity Service
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Transcript of Total Quality Management - Quaity Service
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
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”