total quality management of services

7/30/2019 Total Quality Management of Services

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TOTAL QUALITY MANAGEMENT OF

SERVICES


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TABLE OF CONTENT

TQM in services concept.3

Brief about Quality..4

Differences between Goods and Services....5

Service quality.7

Eight Dimension by Garvin.9

Quality management in services.11

Components of service system Quality..12

Product Attributed Approach..18

Service Quality Model

.20 SERVQUAL Scale..24


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TOTAL QUALITY MANAGEMWNT IN SERVICES

A CONCEPT

Today service industry dominate our country

The service sector accounts for more than 70% of jobs and

it is expected to reach 85% in near future.

In service industries it is not enough that product meetsthe functional requirement of the customer, but the

employee behavior must meetcustomers expectations

The service concept is a combination of both technical and

human behavioral aspects.


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A BRIEF ABOUT SERVICES

Definition

A social act which takes place in direct contact between thecustomer and representative of the service company

A service might be simple as handling a complaint or as

complex as a home mortgage. Many organization are pure services and there products

are intangible- education, banking, insurance, defense,municipal services, welfare services, legal services, health

services and so on. Other example-marketing, travelling and tours,

restaurants, public utilities(electricity gas, water) andtransportation.


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DIFFERENCE BETWEEN GOODS AND SERVICES

Services are usually intangible as opposed to goods which

are tangible.

Services are often produced and consumed simultaneously

Services are often unique on the other hand goods maybestandardized to meet most of the requirement of large

number of requirement.

Services have high customer interaction, often difficult to

standardize, automate and make as efficient as we would

like because customer interaction demand uniqueness.


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DIFFERENCE BETWEEN MANUFACTURING AND

SERVICES SECTORS

Manufacturing Sector Service Sector

Product is tangible. Service consists of tangible and intangible

components.

Back orders are possible. Services can not be stored.

Product can be resold. Services can not be resold.

Producer is the only party involved in

making of the product.

Producer and consumer are both involved

in the delivery of the services.

Customer acceptance of the product is

easily quantifiable.

Customer satisfaction is difficult to

Quantify.


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SERVICE QUALITY

It includes both core services & facilitating services which

enhances the value of core service to the customer.

EXAMPLE-

in Banking services, a checking account is a core service value

product whereas additional services provided by banks, such asautomated teller services, and 24 hours telephone access to

account information are facilitating services

in a fast food restaurant may produce tangible goods in a form ofFrench fries or pizzas(CORE PRODUCTS),but its distinctive

feature maybe its quick service and friendliness of service


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CONTD..

The definition of quality that apply to manufactured

products apply equally to service product i.e. it must

respond to the needs of the customers.

The service must meet or exceed customer expectation.


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EIGHT DIMENSIONS APPLICABLE TO SERVICES AS

WELL AS MANUFACTURED GOODS

Garvin

PERFORMENCE

FEATURES

RELAIBILITYCONFORMANCE

DURABILITY

SERVICEABILITY

AESTHETICS

PERCEIVED QUALITY


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OTHER DIMENSIONS

Will the package be delivered on time?

TIMELINESS

Are all ordered items delivered?

COMPLETENESS

Do frontline employee greet each customer?

COURTESY

Are services delivered in the same fashion each time for each customer?

CONSISTENCY

Is the service easy to obtain?

ACCEPTABILITY AND CONVINIENCE

Is the service performed accurately the first time?

ACCURACY

Can service personnel react quickly to unexpected problems?

RESPONSIVNESS


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QUALITY MANAGEMENT IN SERVICES

Quality of services is more difficult measure than quality of

manufactured goods. Generally a user of services has a few feature in mind as a

basis of comparison among alternatives.

Lack of one feature may eliminate a service firm from

consideration.

RESULTS of depth interviews with consumer focus groups in USA.

i. Comparison of their before expectations with their actual serviceexperience. It is judge on weather it meets expectations or not.

ii. Process of service and outcome both result in quality perception, theway the service is performed can be as important as actual service.

iii. Types of service quality

a. There is a quality level at which the service is delivered

b. Quality level at which exceptions and problems are handled


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COMPONENT OF SERVICE SYSTEM QUALITY

EMPLOYEES:i. service is primarily evaluate by quality of human contact.

ii. If the job satisfaction of the employee is high the customersatisfaction is high.

iii. Motto of many services companies if we take care of our

employees they will take care of ourcustomers.

INFORMATION TECHNOLOGY-

i. It incorporates computing, data processing and various othermeans of converting data into useful information.

ii. It increase the volume of information and intelligent use of ITleads to not only quality and productivity but also to acompetitive advantage.


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CONSUMER EXPECTATION IN SERVICE-

EXPECTED SERVICE_

i. Desired service-Level of service customer hopes toreceive OR wishedfor.

ii. Adequate service-Level of service customer will accept.

PERCEIVED

SERVICE

QUALITY

EXPECTED SERVICE

PERCEIVED SERVICE


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FACTORS THAT INFLUENCE CUSTOMER

PERCEPTION OF SERVICE

PERCEPTIONS

OF SERVICE

SERVICEQUALITY

CUSTOME

RSATISFACT

ION

VALUE

EVIDENCE

OF

SERVICE

SERVICES

ENCOUNTERS

PRICEIMAGE


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DIMENSIONS OF SERVICE QUALITY

SERVICE QUALITY

Reliability

Responsiveness

Assurance

Empathy

Tangibles


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FIVE STARS OF SERVICE QUALITY


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APPROACHES TO QUALITYMANAGEMENT


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PRODUCT ATTRIBUTED APPROACH

Long term misleading of market place

Decreased likelihood of satisfying customers

Company develops products based on its definition

Company describes what a product(good/service) represents

Starts with company


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CONSUMER ORIENTED APPROACH

Long-term competitive edge in the market place

Increased likelihood of satisfying consumers

Company develops product based on consumer definition

Consumer describes what product represents

Starts with consumer


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A MODEL FOR SERVICE QUALITY

Company cultureProducts & services

delivered

Market

segment

Image Management

Customer

perception

Customer

participation

Companypersonnel

motivation

Physical supportand technological

change

External

factors

Supply delivery system

Service

Timeliness of

ServicesCore services

peripheral

services

Price of

service

Actual qualityExpectedquality Customersatisfaction


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Managing the perceived service quality

(Gronroos Model)

Perceived service qualityExpected servicePerceived

Service

Traditional marketing

activities(advertising,

personal selling,

public relations,

pricing)and external

influence by

traditions, ideology

and Word-of-mouth

Image

Technical

quality

Technical

solution

Machines

Computerize

d system

Know-how Functional

quality

Attitudes

Internalrelations

Behavior

Service

mindednessAppearance

Accessibility

Customercontact


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SERVICE QUALITY MODEL(PZB MODEL)

Word of mouth Personal needs Past experience

Expected service

Perceived value

Service delivery(including pre

and post contracts)

Translation of perceptions into service

quality specification

Management perceptions of consumer

expectations

External

communications to

consumes


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SEVEN GAPS THAT MAY LEAD TO

CUSTOMER DISAPPOINTMENTCustomer needs and

expectations

Management definitions of

these needs

Translation into design/deliveryspecifications

Execution of design/delivery

specifications

Customer perceptions of

product executions

Customer experience relatives to

expectations

Advertising and sales

promises

Customer interpretation ofmarketing communications


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THE SERVQUAL SCALE

It is to measure customer satisfaction with different

aspects of service quality.

It is based on perception of its services with their

expectations. It contains 21 perception item and a series of

expectation items reflecting the five dimensions of

service quality i.e. Tangibles, Reliability,

Responsiveness, Assurance and Empathy.


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total quality management of services

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