Service Process Improvement

Sachin Modgil IMI-K

 Foundations of Continuous
Improvement W. Edwards Deming.
The philosophy of
continuous improvement
• Three principles:
Customer first
- Customer SatisfactionData gathering and analysis
- Management by FactsEmployee participation
- Respect for People
"In God we trust; all others must bring data."
• Plan-Do-Check-Act (PDCA) Cycle
The focus is on continuous improvement based on
productivity and quality initiatives

Continuous improvement is a way of thinking. It is also a

worker-empowered program

The main goal of Continuous improvement is eliminating the

ROOT CAUSE of problems so they do not recur 7-2
PDCA Cycle
Checking or inspecting for quality is TOO LATE.
Focus on the process instead

Check the results of

the change
Implement the
solution

Standardize the
solution
Select and analyze
the problem

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 Problem Solving
• Step 1: Recognizing the problem & establishing priorities
• Step 2: Forming quality improvement teams
• Step 3: Defining the problem
• Step 4: Developing performance measures
• Step 5: Analyzing the problem/process
• Step 6: Determining possible causes
• Step 7: Selecting and implementing the solution
• Step 8: Evaluating the solution: the follow-up
• Step 9: Ensuring permanence
• Step 10: Continuous improvement
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 Quality Tools for Analysis and Problem
Solving
Tools aid in data analysis
• Check Sheet and provide foundation
for decision making
• Run Chart
• Histogram
• Pareto Chart
• Flowchart
• Cause-and-Effect Diagram
• Scatter Diagram
• Control Chart
• Benchmarking

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Check Sheet of Problems faced by an Airline
Problems

Month Lost Departure Mechanical Overbooked Other

Luggage Delay
January 1 2 3 3 1
February 3 3 0 1 0
March 2 5 3 2 3
April 5 4 4 0 2
May 4 7 2 3 0
June 3 8 1 1 1
July 6 6 3 0 2
August 7 9 0 3 0
September 4 7 3 0 2
October 3 11 2 3 0
November 2 10 1 0 0
December 4 12 2 0 1

Total 44 84 24 16 12

7-6
Run Chart of Departure Delays

14

12

10
Departure Delays

0
1 2 3 4 5 6 7 8 9 10 11 12
Months

7-7
Histogram of Lost Luggage

3.5

2.5
Frequency

1.5

0.5

0
1 2 3 4 5 6 7
Occurrences per Month

7-8
 Pareto Chart of Problems

Number of Problems

90
80
70
60
50
40
30
20
10
0
Departure Lost Mech. Over- Other
Delay Luggage booked
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 10

Flowchart at Departure Gate

7-10
Cause-and-Effect Chart for Flight Departure
Delay (Fishbone Chart)

7-11
 Pareto Analysis of Flight Departure Delay
Causes

Cause Percentage of Incidents Cumulative Percentage

Late passengers 53.3 53.3

Waiting for pushback 15.0 68.3

Waiting for fuel 11.3 79.6

Late weight and balance 8.7 88.3

sheet

7-12
Scatter Diagram of Departure Delay vs Late
Passengers

12

10

8
Departure Delays

Strong correlation
2

0
0 1 2 3 4 5 6 7
Late Passengers
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Control Chart of Departure Delays

7-14
 Quality Improvement Programs

• Benchmarking
• Deming’s 14 Point Program
• Baldrige National Quality Award
• ISO 9000
• Six-Sigma
• Lean Service

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 Deming’s 14-point Program
1. Create constancy of purpose for improvements of product and service.
2. Adopt the new philosophy.
3. Cease dependence on mass inspection.
4. End the practice of awarding business on price tag alone.
5. Constantly and forever improve the system of production and service.
6. Institute modern methods of training on the job.
7. Institute modern methods of supervising.
8. Drive out fear.
9. Break down barriers between departments.
10. Eliminate numerical goals for the workforce.
11. Eliminate work standards and numerical quotas.
12. Remove barriers that hinder hourly workers.
13. Institute a vigorous program of education and training.
14. Create a structure in top management that will push every day on the above
13 points.
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Baldrige Award: 7 Criteria
Created by the U.S. congress to recognize companies
that excel in quality achievement and management.

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Question to you
What are the other awards given for service
quality improvement ?

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 ISO 9000
Quality management system that ensures
consistency of output quality.
“Say what you do and do what you say”

1. Planning: to ensure that goals, authority, and

responsibility
2. Control: to ensure that specified requirements at all
levels are met, problems are anticipated and
averted, and corrective actions are planned and
carried out
3. Documentation: to ensure an understanding of
quality objectives and methods, smooth interaction
within the organization, feedback for the planning
cycle, and to serve as objective evidence of quality
system performance
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 Six Sigma
• Developed by Motorola in the mid 1980s
• Quality levels are reported in defects per million of output
• Motorola documented $16 BN in savings (not revenue!)
• Hundreds of firms have adopted six sigma
• GE is the best current example
• Six sigma is a way of doing business, a vision, a
philosophy, a symbol, a methodology, a goal.
• The goal of 6σ is to reduce/eliminate variation in
performance to such degree that six standard deviations
fit within the limits defined by the customers expectations
 Six Sigma (cont.)

• It is a rigorous and disciplined methodology

that uses data and statistical analysis to
measure and improve a company’s
operational performance by identifying and
eliminating defects to enhance quality, and
thus customer satisfaction.
Six Sigma Objective for Airline Arrival

7-22
 Six Sigma DMAIC Process Steps
Step Definition

Define Define project objectives, internal and external

customers.
Measure Measure current level of performance.

Analyze Determine causes of current problems.

Improve Identify how the process can be improved to

eliminate the problems.
Control Develop mechanisms for controlling the
improved process.

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