Amity Business School

SERVICE OPERATIONS MANGEMENT

Presented BY:Rahul Nassa Vikalp Tomar Rohit Dhar Ankit Malik Manvesh Singh Rahul Rana

Amity Business School

Topics To Be Covered

Total Quality Systems

Tools and Technique for Total Quality and Continuous Improvement

Amity Business School

Quality is defined as:

The totality of features and characteristics of a product or service that bears on its ability to satisfy given needs

Amity Business School

WHY QUALITY IS SO IMPORTANT

Higher Customer Loyalty Higher Market Share Higher Return To Investors Loyal Employees Lower Costs Lower Vulnerability To Price Competition

Amity Business School

Dimensions Of Service Quality

Garvin identified 8 dimensions of quality that help develop a more precise understanding of quality:Performance e.g. no. of seconds it takes a car to reach 60 miles per hour can be considered a performance measure for an automobile Features e.g. ABS system in a car Reliability Refers to the probability that a product will perform its intended function for a specified period of time under specified environmental conditions Conformance It is the degree to which a product meets design specification such as actual no. of miles per gallon (mpg) as compared to the mpg design specifications.

Amity Business School

Durability Amount of use a consumer gets from the product before it becomes physically deteriorates . Aesthetics Includes subjective traits such as how a product looks, feels, sonds, tastes or smells Perceived Quality Perceptions that have been formed in the consumers mind as a result of advertising, brand promotions, word of mouth etc.

Amity Business School

Definition of Gap Analysis

Formal means to identify and correct gaps between desired levels and actual levels of performance Used by organizations to analyze certain processes of any division of their company

SERVQUAL Model

Amity Business School

SERVQUAL Model Gaps

Gap 1
The difference between actual customer expectations and managements idea or perception of customer expectations

Amity Business School

Management Perceptions of Customer Expectations

Expected Service

SERVQUAL Model Gaps

Gap 2

Amity Business School

Mismatch between managers expectations of service quality and service quality specifications

Service Quality Specifications

Management Perceptions of Customer Expectations

SERVQUAL Model Gaps

Gap 3
Poor delivery of service quality

Amity Business School

Service Delivery

Service Quality Specifications

9

SERVQUAL Model Gaps

Gap 4
Differences between service delivery and external communication with customer

Amity Business School

Service Delivery

External Communications to Customers

10

SERVQUAL Model Gaps

Gap 5

Amity Business School

Differences between Expected and Perceived Quality

Expected Service

Perceived Service
11

Principles Of Quality and Continious Improvement

Amity Business School

Focus on customer Satisfaction Leadership Commitment To Training and Education Participation, Empowerment, Teamwork and Recognition Benchmarking Fast Response Management by fact: Measurement and analysis

Amity Business School

Other Approaches to Achieve Service Quality

ISO 9000 standards Are designed to define and implement management systems by which organizations design, produce and deliver and support their products An organizations may adopt one of ISO 9001,9002 or 9003

Amity Business School

ISO 9001 Provides a model appropriate for an organization engaged in design, production, development, installation and servicing a product. Although it applies to manufacturing, it can also apply to services such as construction , architecture and engineering

Amity Business School

ISO 9002 Includes everything covered by ISO 9001 except the design function ISO 9003 Least comprehensive and is appropriate for organizations whose quality of goods and services can be judged primarily by inspection and testing

The Malcom Baldrige National Quality Award Program

Amity Business School

Established by US congress in 1987 Award has been established to help: Stimulate American companies to improve quality and productivity Recognize the achievement of those companies that improve the quality of their goods and service Establish the guidelines and criteria Provide specific guidance for other American organizations

Amity Business School

MBNQA are based upon a set of core values and concepts: Leadership Strategic Planning Customer and market focus Measurement , analysis and Knowledge Management Human Resource focus Process Management Business/organizational performance results

Service Recovery Paradox

Amity Business School

A good recovery can turn angry, frustrated customers into loyal ones. ..can, in fact, create more goodwill than if things had gone smoothly in the first place. (Hart et al.) HOWEVER:
only a small percent of customers complain service recovery must be SUPERLATIVE
only with responsiveness, redress, and empathy/courtesy only with tangible rewards

even though service recovery can improve satisfaction, it has not been found to increase purchase intentions or perceptions of the brand service recovery is expensive

Amity Business School

The service recovery paradox is more likely to occur when:

the failure is not considered by the customer to be severe the customer has not experienced prior failures with the firm the cause of the failure is viewed as unstable by the customer the customer perceives that the company had little control over the cause of the failure

Conditions must be just right in order for the recovery paradox to be present!

Amity Business School

Why Customers Switch Service Providers?

- High/Unfair/Deceptive Pricing - Inconvenience (of location, appointment, excessive wait) - Core service failure (service mistakes, billing errors,
catastrophe)

- Service encounter failure - Poor response to service failure - Competition (customer discovers better alternatives) - Ethical problems (cheat, hard sell, unsafe) - Involuntary switching (customer moved, provider closed)

Amity Business School

Service Recovery Approahes

Measure The Costs Listen Closely For Complaints Anticipate need for recovery Act Fast Train Employees Empower the front line Close the loop

Service Guarantees

Amity Business School

guarantee = an assurance of the fulfillment of a condition (Websters Dictionary) in a business context, it is a pledge or assurance that a product offered by a firm will perform as promised and, if not, then some form of reparation will be undertaken by the firm

Amity Business School

for tangible products, a guarantee is often done in the form of a warranty services are often not guaranteed
cannot return the service service experience is intangible (so what do you guarantee?)

Characteristics of an Effective Amity Business School Service Guarantee Unconditional

the guarantee should make its promise unconditionally no strings attached

Meaningful
the firm should guarantee elements of the service that are important to the customer the payout should cover fully the customers dissatisfaction

Amity Business School

Easy to Understand and Communicate

customers need to understand what to expect employees need to understand what to do

Easy to Invoke and Collect

the firm should eliminate hoops or red tape in the way of accessing or collecting on the guarantee

Easy To Understand and Communicate

Amity Business School

Tools and techniques of TQM

The Deming Cycle

Amity Business School

Plan: study current situation Do: implement plan on trial basis Study: determine if trial is working correctly Act: standardize improvements

Amity Business School

TQM tools: Histograms Flowcharts Checksheets Pareto Diagrams Scatter Diagrams Cause and effect diagram Control Charts

Amity Business School

Histograms
A Histogram is a graphic summary of variation in a set of data. It enables us to see patterns that are difficult to see in a simple table of numbers. Can be analysed to draw conclusions about the data set. A histogram is a graph in which the continuous variable is clustered into categories and the value of each cluster is plotted to give a series of bars.

Amity Business School

Flowcharts
Are diagrams consisting of pictorial symbols connected by directed line segment Their purpose is to show the sequencing of activities , operations, tasks, materials flow ,data flow, logic flow etc. E.g. Service blueprint

Amity Business School

Amity Business School

Check Sheets
A Check Sheet is a data recording form that has been designed to readily interpret results from the form itself. It needs to be designed for the specific data it is to gather. Used for the collection of quantitative or qualitative repetitive data. Adaptable to different data gathering situations. Minimal interpretation of results required. Easy and quick to use. No control for various forms of bias - exclusion, interaction, perception, operational, non-response, estimation.

Pareto Diagrams

Amity Business School

A pareto diagram is an ordered form of a histogram that attempts to isolate the few dominant factors affecting a situation from the many insignificant one The rectangles are arranged from tallest on left to hortest

Scatter Diagrams

Amity Business School

Are used to provide a quick check if a relationship exist between two variables E.g. A quality improvement team may want to know if the no. of underbaked pizza is related to no. of orders per day

Cause and Effect Diagram

Amity Business School

The cause-and-effect diagram is a method for analysing process dispersion. The diagram's purpose is to relate causes and effects. Three basic types: Dispersion analysis, Process classification and cause enumeration. Effect = problem to be resolved, opportunity to be grasped, result to be achieved. Excellent for capturing team brainstorming output and for filling in from the 'wide picture'. Helps organise and relate factors, providing a sequential view. Deals with time direction but not quantity. Can become very complex. Can be difficult to identify or demonstrate interrelationships.

Amity Business School

Control Charts

Amity Business School

Control charts are a method of Statistical Process Control, SPC. (Control system for production processes). They enable the control of distribution of variation rather than attempting to control each individual variation. Upper and lower control and tolerance limits are calculated for a process and sampled measures are regularly plotted about a central line between the two sets of limits. The plotted line corresponds to the stability/trend of the process. Action can be taken based on trend rather than on individual variation. This prevents overcorrection/compensation for random variation, which would lead to many rejects.

Amity Business School

Amity Business School

Thank You