SERVICES

QUALITY • Liberal definitions by organisations • Key goal for the organisation • Continued quality improvement • Preset QC techniques till 1980’s • Defects were unavoidable and acceptable by both manufacturers and customers • Dissatisfaction and claims by customers • Rejection and rework involved high costs

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OUALITY • Japanese contribution to Automobile and Electronic industries • Defect reduction to defect elimination • Zero defect production • Concept applied to Services • Focus on TQM and Quality Circles

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TOTAL OUALITY MANAGEMENT • Quality Management of the entire organisation so that there is continuous improvement in all dimensions of process, product and services that are important to the customer • Involves all employees at all levels • Involves all resources at the disposal • Every employee action has impact on quality improvement

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TOTAL OUALITY MANAGEMENT

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TOTAL OUALITY MANAGEMENT • Apply the above concept to any service that you have experienced • Efficiency to meet customer requirement is very vital to TQM • TQM is not high cost of production and high price • Customer wants better quality at lower price than before

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TOTAL QUALITY MANAGEMENT • TQM involves reduction in wastage, that increases cost and adds no value for both producer and customer • TQM - Reduction can be in time also • TQM is for both external and internal customers, dependent departments or organisations • TQM fails in many organisations

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TOTAL OUALITY MANAGEMENT • TQM failure - Reasons • Lack of management commitment for quality culture • Lack of quality initiatives, support and follow-through actions • More focus on organisation process than customer perceptions of quality • More focus on cost savings than long term value creation

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TOTAL QUALITY MANAGEMENT • TQM is unending. Needs continuous and study improvement in quality • TQM focus areas Customer driven quality standards Addressing both external and internal customer needs Empowerment of every employee as quality inspector Top management commitment

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QUALITY CIRCLES • Kaoru Ishikawa developed the concept in 1972 • Quality circles are groups of nonsupervisors and work leaders in a department who volunteer to conduct group activities in order to improve effectiveness of the work in their respective departments Developed Fishbone diagrams that help to identify the problem – more valid for services

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QUALITY CIRCLES • Role of every employee is very crucial to quality of services and in production • Importance is more in service industry as services are mostly delivered by persons • Employee needs to be convinced that his job depends upon quality of the service and customer satisfaction • Employee will contribute to quality upon his conviction

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QUALITY CIRCLES • Small teams in units at grass root level can contribute more than the managers • Small teams can bring about changes and help to improve the quality • Grass root level workers understand the difficulties better than the managers • Delivery of service will improve with the help of small teams

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TECHNOLOGY AND SERVICES • Technology helped to develop the products and productivity • Technology brought in comforts to the mankind Improvement in existing products New products • Helped manufacturers due to computers and reduction in labour hours • Replacement of humans by robot

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TECHNOLOGY AND SERVICES • Production of service and quality did not have same impact as physical products • Impact of technology was noticed by service industry late last century Definition of service Process of service production & delivery Mass communication Promotion

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TECHNOLOGY AND SERVICES • Personal touch in service delivery • Human element reason for inconsistent quality in delivery of service • Variation in quality of delivery is a major problem • Can human touch be replaced? • Role of automation Cost reduction Greater customer satisfaction

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TECHNOLOGY AND SERVICES • Pilot training simulators Reduced investments Reduced running cost Safety for all concerned Standardisation and time reduction Objective assessment of skills Real life simulation, emergencies etc. Superior to manual training

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TECHNOLOGY AND SERVICES • ATM Large number of transaction points ensures accessibility, reduction travel time and convenience Customer satisfaction, service precise and accurate Many banking and other operations possible, save efforts and time for the customer

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TECHNOLOGY AND SERVICES • ATM Saves time for the customer and open 24x7 Monitoring the customer, data mining Win - Win situation for banks and the customers Reduction in cost and real estate requirements

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TECHNOLOGY AND SERVICES • EXPERT SERVICES www Wikipedia, Google On line solutions Expert medical and surgical advise Legal systems, customs, taxation Match makers Consumer forum – online complaints

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TECHNOLOGY AND SERVICES • OFFICE AUTOMATION MS Office Accounting software Photocopiers Tea / coffee machines, water coolers www for references, emails Accurate, time saving, cost reduction EPABX

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TECHNOLOGY AND SERVICES • TRAVEL RESERVATIONS Railways Airlines e tickets Automated check ins Validation machines Time and cost savings Convenience and comfort

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TECHNOLOGY AND SERVICES • RETAIL AND E COMMERCE Wider choice and faster billing RFID SCM ebay, amazon.com, rediff shopping Virtual, better product selection Better prices Quick and assured delivery Return and exchange policies

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TECHNOLOGY AND SERVICES • CRM Formation and nurturing long term relationship with individual attention Customer retention rather than new customer creation Lesser cost to retain customer Satisfied customer is best advertisement Major focus on long term relationship

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TECHNOLOGY AND SERVICES • NEW SERVICES Post independence scenario Socialism Protectionism CPE and market economies Mixed economies Government role and ideologies License Raj

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TECHNOLOGY AND SERVICES • NEW SERVICES – POST LIBERASATION Airlines Banks Insurance Healthcare Education Hospitality and tourism Telecom and infrastructure

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