December 2001Service Quality Leadership1 Understanding and attaining world-class service quality. By Anshuman Tiwari Business Leader, Qimpro

December 2001Service Quality Leadership2 Quality management World-class quality Service quality Agenda

December 2001Service Quality Leadership3 Quality Management History of quality Quality Total quality Total quality management

December 2001Service Quality Leadership4 History of Quality Craftsman Industrialization – F W Taylor, Henry Fayol World Wars – shortage of labour Inspection to control to assurance International standards Quality management

December 2001Service Quality Leadership5 History of Quality Japanese dominance –1950s Junk quality, Emperor convenes meeting –J M Juran, W E Deming –1960s to 70s Copycats –Oil crisis, small cars –American restrictions, Japan invest in America –Buys real estate, studios, entertainment –1985 onwards, American resurgence

December 2001Service Quality Leadership6 Quality Quality Defined –Fitness for purpose –Conformance to requirements –Fitness for purpose. Quality as Better Features and Reduced Defects Better Feature – Why you buy. Reduced Defects – Post purchase opinion.

December 2001Service Quality Leadership7 Quality Quality is Customer Delight Product Features Defect Free Premium Pricing Premium Pricing Market Share Market Share Cycle Time Cycle Time Warranty Waste Revenue Costs Profit Customer SatisfactionCustomer Dissatisfaction Higher Quality Costs MoreHigher Quality Costs Less

December 2001Service Quality Leadership8 Total Quality –All Products (Hardware, Software, Service) –All Functions (Manufacturing, Non-manufacturing) –All Customers (External, Internal, Hidden) –All Industries (Profit, Not-for-profit) Supplier, Organization, Customer.

December 2001Service Quality Leadership9 Total Quality Management Financial Management –Financial Planning – Budget –Financial Control – Cost Control –Financial Improvement – Cost Cutting. Quality Management –Quality Planning – QFD, FMEA –Quality Control – SPC –Quality Improvement – CQI, Six Sigma.

December 2001Service Quality Leadership10 Total Quality Management Delighted Customers Empowered Employees Higher Revenue Lower Cost Results Processes Infrastructure Foundation

December 2001Service Quality Leadership11 Total Quality Management Quality Planning Quality Control Quality Improvement Results Processes Infrastructure Foundation

December 2001Service Quality Leadership12 Total Quality Management

December 2001Service Quality Leadership13 Total Quality Management Quality planning –Verify the Goal –Identify Customers –Determine Customer Needs –Develop Product –Develop Process –Prove Process Capability –Transfer to Operations

December 2001Service Quality Leadership14 Total Quality Management Quality control –Establish Standards –Measure Actual Performance –Compare to Standards –Regulate Process

December 2001Service Quality Leadership15 Total Quality Management Quality improvement –Identify a Project –Establish the Project –Diagnose the Cause –Remedy the Cause –Hold the Gains –Replicate Results –Nominate New Projects

December 2001Service Quality Leadership16 Total Quality Management Total Quality System Customer-Supplier Chain Organization-Wide Involvement Measurement and Information Education and Training Results Processes Infrastructure Foundation

December 2001Service Quality Leadership17 Total Quality Management 1. Leadership and strategic planning Management Support 2.Company-wide communication 3.Human resource management 4.Quality management system 5.Cost control Core Processes 6.Customer interaction management 7.Research, design, and development 8.Supplier interaction management 9.Operations management and maintenance 10.Stores, distribution, and service management 11.Inspection and measurement 12.Corrective and preventive action 13.Continual quality improvement 14.Quality audits 15. Stakeholder satisfaction Feed back / Feed forward

December 2001Service Quality Leadership18 Total Quality Management Strategic Quality Planning Executive Leadership Customer Focus Results Processes Infrastructure Foundation

December 2001Service Quality Leadership19 World-Class Quality Exercise –Based on your individual perception name three world-class companies –For each of the above identify three world-class features.

December 2001Service Quality Leadership20 World-Class Quality Models International –Malcolm Baldrige National Quality Award – USA –European Quality Award – Europe –Deming Prize – Japan India –CII-Exim Business Excellence Award –IMC Ramkrishna Bajaj National Quality Award.

December 2001Service Quality Leadership21 Service Quality What is different –Services are acts, efforts or performances that cannot be handled or examined prior to purchase and that are exchanged from producer to user without ownership rights. –Service is work done for others – Dr J M Juran –Customer is part of process

December 2001Service Quality Leadership22 Service Quality: Spirit Look at our balance sheet. On the asset side, you can see so-and-so many aircraft worth so-and-so many billions. But its wrong. We are fooling ourselves. What we should put on the assets side is, last years SAS carried so-and-so many happy passengers. Because thats the only asset weve got, people who are happy with our service and willing to come back and pay for it again. Jan Carlson, CEO SAS

December 2001Service Quality Leadership23 Service Quality: Model People Processes Client Offerings Client Offerings Customer Behaviour Customer Behaviour Business Results Business Results 6. Customer and Market Focus 2. Information and Analysis 4. HR Focus 5. Process Mgt. 3. Strategic Planning 1. Leadership 7. Business Results 1. Leadership

December 2001Service Quality Leadership24 Service Quality: Measures Capability Alignment Reliability Empowerment Satisfaction Capability Alignment Reliability Empowerment Satisfaction Time Accuracy Cost Throughput Impact Consequences Time Accuracy Cost Throughput Impact Consequences Suitability Performance Expectations Competitiveness Satisfaction Suitability Performance Expectations Competitiveness Satisfaction Price sensitivity Complaints Judgment Repurchase Initial Purchase Goodwill Price sensitivity Complaints Judgment Repurchase Initial Purchase Goodwill Market dominance Asset accumulation Growth Image Wealth creation Market dominance Asset accumulation Growth Image Wealth creation

December 2001Service Quality Leadership25 Service Quality: Measures Lifetime value Relationship marketing Customer satisfaction Customer commitment Customer complaints

December 2001Service Quality Leadership26 Service Quality: Measures Word of mouthPersonal needsPast experience Expected service Perceived service Service delivery Translation of perception into service quality specifications Management perceptions External communication GAP 1 Marketer Customer GAP 2 GAP 3 GAP 4 GAP 5

December 2001Service Quality Leadership27 Service Quality –Tangible 11 –Reliability 32 –Responsiveness 22 –Assurance 19 –Empathy 16 NB : The above proportions will vary by different service sectors. However, the importance of Reliability will always be apparent.

December 2001Service Quality Leadership28 Service Quality: Conversion AverageShallowConvertibleAvailableAmbivalentWeaklyStronglyEntrenched Unavailable CUSTOMERS NON- CUSTOMERS

December 2001Service Quality Leadership29 Agenda Bias for action Employees come first Customers come second Abolish bureaucracy Act like an owner Abolish fear of failure Talk to customers Speed

December 2001Service Quality Leadership30 Agenda Learn – train and educate for skills Planning ?? Under commit – over deliver Hire for attitude and values