TOTAL

QUALITY
MANAGEMENT
IN “SERVICES”
Prince Cabrera
11/9/2023 2

Introduction
TQM IN SERVICES

Total Quality Management

Definitions of Service
Service Characteristics
Categories of Services
Service System
Factors of TQM
Implementation of TQM
 Introduction TQM IN SERVICES

In the present era of rapid changes in

market and economic development
characterized by phenomenon such as
globalization, deregulation of markets,
advancement in technology and intense
competition, total quality management
(TQM) becomes utmost important not
only in manufacturing sector but also in
service sector.

11/9/2023 3
 TOTAL
QUALITY
MANAGEMENT
Total Quality Management TQM IN SERVICES

TQM systems are intended to prevent

poor quality from occurring.
It expands the traditional view of
quality—looking only at the quality of
the final product or services—to
looking at the quality of every aspect
of the process that produces the
product or service.
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 Total Quality Management

TQM IN SERVICES
• refers to a quest for quality in an
organization.
• three key philosophies in this approach.
One is a never-ending push to improve,
which is referred to as continuous
improvement; the second is the
involvement of everyone in the
organization; and the third is a goal of
customer satisfaction, which means
meeting or exceeding customer
expectations.
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Total Quality Management TQM IN SERVICES

• seeks to integrate all organizational

functions to focus on meeting and
surpassing customers’ requirements
and organizational objectives
• empowers every member of the
organization and offers the
opportunity to participate,
contribute and develop a sense of
ownership

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 Total Quality Management

TQM IN SERVICES
•intended to promote
continuous, sustained
and long-term
improvement in quality
and productivity, and
eliminate employees’
fear of change
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DEFINITIONS
OF
SERVICE
 Activities, benefits or
satisfactions, which are offered
for sale or are provided in
connection with the sale of
goods (Cowell, 1984)

Services It includes all economic activities

whose output is not physical product
or construction, is generally
consumed at the time it is produced
and provides added value in forms
that are essentially intangible (Quinn
et al.,1987)
 • A package made up of
a set of tangible and
intangible elements
(Karwan and
Markland, 2006)
Services
• Services are a non-
material equivalent of
a goods (Bygstad and
Lanestedt, 2009)
 SERVICE
CHARACTERISTICS
 Distinct Descriptions Example
Characteristics

Intangibility Service has no physical doctor should provide a

attributes and as a result favorable experience to
impossible for a customer to a patient.
taste, feel, hear or smell
before they buy it

Inconsistency inconsistent in nature and beauty parlor services

must be exclusively
performed by the service
provider every time
 Distinct Descriptions Example
Characteristics

Inseparability • production and

consumption of services
are inseparable as they
co-occur
• consumed as and when
they are produced.
Inventory • we cannot store them for an airplane ticket can be
future use stored but the journey is
• perishable in nature only experienced when the
• one cannot store the airlines provide it to the
service itself but can customer
store some associated
goods to the service for
future use
 Distinct Descriptions Example
Characteristics

Involvement the customer is the massage service cannot be

recipient of the service, provided if the customer is
their participation at the not present or does not
time-of-service delivery is a participate.
must
CATEGORIES
OF
SERVICES
 Categories Description Examples

Service industries Whose core product is • hotels (lodging)

and companies a service • railways (transportation)
• banks (financial services)
• education

Services as Range of intangible • information technology (IT)

product product offerings that consulting services offered
customers value and by Accenture, IBM
pay for in the • telecommunication services
marketplace • training services
• shipping services
 Categories Description Examples

Customer Service Service provided in • maintenance of equipment

support of a • installation of machine
company’s core • on-site and off-site services
product • customer care centers

Derived Service Value derived from • razor provides barbering

physical goods services
• computer provides
information and data
manipulation services
• drugs and medicines
provide medical services
FACTORS OF
TQM
 Employee
Engagement
• staff members are
knowledgeable about
client wants and
expectations
• have the abilities
needed to deliver
high-quality service.
 Customer
Comments
• Customers' comments can
give businesses insight
into areas that need
development
• as well as what the public
thinks of their products
and services.
• This enables businesses
to modify their goods or
services to better satisfy
client needs.
 Process
Development
Process
improvement
entails evaluating
current practices and
making
adjustments that
boost effectiveness
and lower errors.
SERVICE SYSTEM
 Service System

TQM IN SERVICES
• another element in the
general queuing
structure
• The queuing system
refers to the process
wherein the customer
enters the queue, wait
to avail the service and
finally leaves the system
after getting the service.
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 Structure of
Service System

TQM IN SERVICES
• Single Service Facility
• Multiple, Parallel
Facilities with Single
Queue
• Multiple, Parallel
facilities with multiple
queues
• Service Facilities in a
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Series 25
 Single Service Facility

This is called a single service model,

wherein the customers arrive and are
served by a single server
 TQM IN SERVICES
Examples:
Library Counters
Hotel Reception
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 Multiple, Parallel Facilities with
Single Queue

A facility that has more than one

server, which renders the same
type of service is said to have used
a multiple, parallel service structure
 TQM IN SERVICES
Example:
McDonalds
drive thru
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 Multiple, Parallel facilities with
multiple queues

This means, there is more than one

server, performing the same type
of a task and despite a single line
there are multiple customer lines
 TQM IN SERVICES
Example:
Cashiers at
Supermarkets
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 Service Facilities in a Series

customer enters the first service station gets

the portion of a service there, then moves on
to the second station, get some service and
then again move on to the third station and
so on
 TQM IN SERVICES
Example:
Cafeteria/Canteen

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IMPLEMENTATION
OF
TQM
First Step

Formulation of Service Quality

Strategy

A well-defined aim, patience, and

discipline are required to achieve
comprehensive service quality.
 Analysis of customer expectations,
feedback mechanisms, and
assessment

Formulation
Based on the results of this analysis,
of Service a quality improvement strategy
Quality should be created
Strategy
Set of performance standards
comparisons can be made
Second Step
Analysis of Service Process and
Formulation of Quality
Measures

To ensure proper implementation

and evaluation, the method by
which service functions operate
must be accurately identified
 Elaborate flow process diagrams for
inputs, process activities, and
outputs must be created
Analysis of
Service consider how long it takes to
Process and complete a service, how much it
Formulation costs to satisfy the consumer, and
how many mistakes are made
of Quality
Measures
incorporate feedback from
customers
Third Step

Establishment of A Control
System

Process controls must be established

to continuously monitor the service
process
Establishment
of a Control Analyzing the current process to
System identify critical performance
areas, gathering data, and
creating a trial control system

Understanding what must be

monitored and regulated to
satisfy consumer demands
should be the main goal
Fourth Step
Identifying Gaps and
Setting Measures for
Improvement

Focuses on identifying internal process

issues that affect customer satisfaction
and expenses and exploring the
potential for process improvement.
 accomplished by gathering and
Identifying analyzing data on process
Gaps and performance
Setting
Measures for Drawing cause-and-effect diagrams
Improvement will help you pinpoint the origins of
waste

Assists in identifying persistent

problem areas, considering options
for improvement, and selecting
improvement projects.
Fifth Step

Improvement in The Overall

Service Quality

A new level of process performance must

be attained and maintained during the
involvement stage.
 necessitates regular reviews of
quality management performance
and possibilities for quality
improvement with all personnel

Improvement
in The Overall establish action plans, test them,
and put them into practice
Service
Quality
method must put a strong emphasis
on sustaining widespread
management participation and
involvement
PERFORMANCE
AND
EXPECTATIONS
 Introduction TQM IN SERVICES

One way to think about quality is the

degree to which performance of a
product or service meets or exceeds
customer expectations. The difference
between these two, that is
Performance—Expectations, is of great
interest.
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Introduction TQM IN SERVICES

If these two measures are equal, the

difference is zero, and expectations
have been met. If the difference is
negative, expectations have not been
met, whereas if the difference is
positive, performance has exceeded
customer expectations.
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 Introduction TQM IN SERVICES

Customer expectations can be broken

down into several categories, or
dimensions, that customers use to
judge the quality of a product or
service. Understanding these helps
organizations in their efforts to meet
or exceed customer expectations.
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DIMENSIONS OF
QUALITY IN
SERVICES
TQM IN SERVICES
Dimensions of Services
• Convenience—the availability and
accessibility of the service
• Reliability—the ability to perform a
service dependably, consistently,
and accurately
• Responsiveness—the willingness
of service providers to help
customers in unusual situations and
to deal with problems
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Dimensions of Services
TQM IN SERVICES

• Time—the speed with which service

is delivered
• Assurance—the knowledge exhibited
by personnel who meet a customer
and their ability to convey trust and
confidence
• Courtesy—the way customers are
treated by employees who meet them
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Dimensions of Services
TQM IN SERVICES

• Tangibles—the physical appearance

of facilities, equipment, personnel,
and communication materials
• Consistency—the ability to provide
the same level of good quality
repeatedly
• Expectations—meet (or exceed)
customer expectations
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ASSESSING
SERVICE
QUALITY
SERVQUAL
• widely used tool for
assessing service quality
is SERVQUAL
• an instrument designed to
obtain feedback on an
organization’s ability to
provide quality service to
customers
 Reliability Service
Expectation
Assurance
Received Customer
Service
Tangibles Satisfaction
Quality

Empathy Service
Performance
Responsiveness
SERVQUAL
• There may be discrepancies (gap) between:
1. Actual customer expectations and management
perceptions of those expectations
2. Management perceptions of customer expectations
and service-quality specifications
3. Service quality and service delivered
4. Service delivered and what is communicated about
the service to customers
5. Customers’ expectations of the service provider and
their perceptions of provider delivery
11/9/2023 57

THANK
TQM IN SERVICES

YOU