mr. terje tonsberg tqm in service organizations

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TQM in Service Organizations

stephen.geach@gmail.com

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Service Quality

Agenda:

1. A definition of TQM

2. The different roles of our people

3. Service Quality

a. Service

b. Service packages

c. Service quality

d. Measuring service quality

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Service Quality

TQM can be explained as follows:

If quality is to satisfy customer’s requirements continually…then

Total Quality is to achieve quality at low cost…then

Total Quality Management is to obtain total quality by involving everyone’s daily commitment

Kanji

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Service Quality

Different Roles of our People

Employee Influence on Customers: which should influence the appropriate Employee selection, rewards,

performance, and training requirements.

Isoteds: Finance, HR, IT, Quality.

No direct contact with customers, but as support providers their contribution is crucial to the organization.

Influencers: Product Groups, Development Groups.

No direct contact with customers but are often involved with traditional elements of marketing mix.

Infrequent or no Customer contact

Modifiers: Switchboard Operator, HD Coordinators, Dept Secretaries.

No direct contact with customer but still needs to be responsive to customer.

Contactors: Sales and Marketing, BSD, PSG, and Customer Service. Responsible for building relation-ships. Need personality to be responsive to customers.

Frequent or periodic Customer contact

Not directly involved with the marketing mix

Involved with the marketing mix

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Service Quality

Agenda:

1. What is meant by a ‘Service’

2. What is meant by a ‘Service Package’

3. What is ‘Service Quality’

4. How can we measure ‘Service Quality’

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Service Quality

So, what is a Service?

A service can be defined as an essentially intangible set of benefits provided by one party to another.

Examples of a service:

Having a haircut

Receiving waiter service at a café

Getting support from a call centre etc.

IT Services

Prof’Services

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Service Quality

“Take it or leave it”

Top-Down

Bottom-Up

Specialized

Parallel

Series

StandardService

ComplexService

Simple Diagnosis

ComplexDiagnosis

“How can we help you”“Menu”

Not a meaningful choice

Cafeteria

Bank Branch

FastFoodOutlet

Ser

vice

S

yste

m S

tru

ctu

reNature of Service Offering

IncMg ServicesRepair

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Service Quality

What is the difference between Service and Product (1) 1. Services are produced and consumed simultaneously.

The use of products can be separated from the production of products.

2. Product delivery results in a transfer of ownership,

Service delivery does not.

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Service Quality

What is the difference between Service and Product (2)

3. Services are transitory by nature,

Products are not. (Hence services can not be easily held in stock)

4. Services are largely intangible,

Products are largely tangible.

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Service Quality

Service Packages?

However, services can be made more tangible by ‘productizing’ them.

Examples of productized services include:

Support services graded as Platinum, Gold, Silver and Bronze.

Airline passenger services graded a First class, Business class, word class traveller plus, world class traveller.

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Service Quality

basicEconomy

Business Class

First Class

Service Delivery Levels

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Service Quality

Economy

Business Class

First Class

Service Delivery Levels

not expected

expected

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Service Quality

Economy

Business Class

First Class

Service Delivery Levels

not expected

expected

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Service Quality

Economy +

Business Class

First Class

Service Delivery Levels

not expected

expected

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Service Quality

Economy +

Business Class

First Class

Service Delivery Levels

not expected

expected

Economy

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Service Quality

Economy +

Business Class

First Class

not expected

expected

Service Delivery Levels

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Service Quality

Economy +

Business Class

First Class

Service Delivery Levels are on

not expected

expected

an escalator of change

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Service Quality

But perhaps more simply….. Quality is the word used to describe how well a product or service satisfies a Customer’s requirements.

Where requirements are classified as:

• Expected• Wanted• Excitement

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Service Quality

Hotel scenarioExpected Those taken for granted: Bed, light, clean, space for clothes

WantedThose asked for: Non-smoking room, room service, a view

Excitement Those unlikely to be asked for but delighted to find: Free flowers, chocolates

Business scenarioExpected Those taken for granted: Business knowledge, tech

specification, regulatory or statutory regulations

WantedThose asked for: To be identified through consultation with the customer, may allow for some element of negotiation

Excitement Those unlikely to be asked for but delighted to find: Innovative and imaginative ideas

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Service Quality

Definition of Service Quality

Service Quality can be defined as the difference between customer expectations of service and perceived service.

If expectations are greater than performance, then perceived quality is less than satisfactory and hence customer dissatisfaction

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Service Quality

So, how do we measure Service Quality?

The most often used approach for determining or measuring service quality is to compare a customer’s expectations before a service encounter with their perceptions of the actual service delivered.

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Service Quality

CustomerExpectation

Manager’s Perception

of Customer

Expectation

Service Quality Specification

Gap 1

Gap 3Gap 2

Actual ServiceDelivered

CommunicatedService Delivery

Gap

4 Manager’s Perception

and Customer

Expectation

Gap 5

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Service Quality

The 5 dimensions of Service Quality

1. Tangibles

2. Reliability

3. Responsiveness

4. Assurance

5. Empathy

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Service Quality

The 5 dimensions of Service Quality (1)

1. Tangibles: Physical facilities, equipment and appearance of personnel.

2. Reliability: Ability to perform the promised service dependably and accurately.this is the most important dimension

3. Responsiveness: Willingness to help customers and provide prompt service.

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Service Quality

The 5 dimensions of Service Quality (2)

4. Assurance (including competence, courtesy, credibility and security):

Knowledge and courtesy of employees and their ability to inspire trust and confidence.

5. Empathy (including access, communication, understanding the customer):

Caring and individualized attention that the firm provides to its customers.

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The Customer as a Service participant

Engage the customer as a service participant, rather than customer contact, which emphasizes the dynamic role customers play in service encounters .

By regarding a customer as being a ‘partial employee’, we can apply organizational socialization tactics, and leverage this relationship change consumer behaviour and expectations with the aim of increasing productivity.

Service Quality

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Service Quality

The 5 dimensions of Service Quality

So, Service Quality is not just about customer expectations and service performance.

It is also about you interacting with the customer, and his perception of you!!!

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Thank You