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Service Quality and Productivity

Service Quality and Productivity

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Published by Heavy Gunner

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Published by: Heavy Gunner on Apr 06, 2009
Copyright:Attribution Non-commercial


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Service Quality and Productivity

Service Productivity
• Productivity measures the amount of
output produced relative to the amount of inputs used. • So improvement in productivity requires an increase in ratio of outputs to inputs. • It can be achieved either through cutting the resources required to create a given volume of output or by increasing output obtained from a given level of inputs. nature of service • Intangibility performances makes it more difficult to measure the productivity of services.

• Measuring productivity is difficult in

services when output is hard to define. • Major problem in measuring service productivity is variability.

Improving productivity
• Generic productivity improvement
strategies: Careful control of costs at every step in process Efforts to reduce wasteful use of materials Matching productivity capacity to average levels of demand Replacement of workers by automated machines Providing equipment to workers for fast work

• Customer driven approaches: Changing the timing of customer

demand Involve customers more in production and service delivery-ATMs Ask customers to use third parties

Prescriptions for closing Quality Gaps
• Gap 1: what service provider believe
customers expect & customers’ actual expectations • Gap 2: difference between managements’ prescription of customers’ expectations & quality standards established for service delivery • Gap 3: difference between specified delivery standards & service provider’s actual performance on these standards • Gap 4: difference between what company think about its service quality & what the company is actually able to deliver

Gap 1: Prescription-learn what customers expect
• Understand customer expectations
through research, complaint analysis etc • Increase direct interactions between managers & customers to improve understanding • Improve upward communication from contact personnel to management • Turn information & insights into action

Gap 2:Prescription-establish the right service quality standards
• • • •

• Ensure the top management displays ongoing

commitment to quality as defined by customers Set, communicate & reinforce customer oriented service standards Train managers in the skills needed to lead employees to deliver quality service Become receptive to new ways of doing business that overcome barriers to deliver quality service Standardize repetitive work tasks to ensure consistency & reliability by substituting hard technology for human contact & improving work methods.

• Establish clear service quality goals

that are challenging, realistic & explicitly designed to meet customer expectations • Clarify which job tasks have the biggest impact on quality & should receive the highest priority

Gap 3:Prescription-ensure that service performance meets standards
• Clarify employee roles • Ensure that all employees understand how their • • • • •
jobs contribute to customer satisfaction Match employees to jobs by selecting for the abilities & skills needed to perform each job well Provide employees with the technical training needed to perform their assigned tasks effectively Develop innovative recruitment & retention methods to attract the best people & build loyalty Enhance performance by selecting the most appropriate & reliable technology & equipment Teach employees about customer expectations, perceptions & problems

• Train employees in inter personnel skills,

especially for dealing with customers under stressful conditions • Eliminate role conflict among employees by involving them in the process of setting standards • Train employees in time management • Measure employee performance & tie compensation & recognition to delivery of quality service

Gap 4:Prescription-ensure that communication promises are realistic
• • • •

• Seek inputs from operations personnel when new

advertising programs are being created Develop advertising that features real employees performing their jobs Allow service providers to preview advertisements before customers are exposed to them Get sales staff to involve operations staff in face to face meetings with customers Develop internal educational, motivational & advertising campaigns to strengthen links among marketing, operations & human resource departments

• Ensure that consistent standards of

services are delivered across multiple locations • Ensure that advertising content accurately reflects those service characteristics that are most important to customers in their encounters with the organization • Manage customers’ expectations by letting them know what is & what is not possible& the reasons why

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