1. Designing Quality Services
Chapter 8
Designing Quality Services

2. Strategic Quality Planning Designing Quality Services Chapter 8
Differences between services and manufacturing
What do services customers want?
SERVQUAL
Designing and improving the services transaction
The customer benefits package

3. Strategic Quality Planning Designing Quality Services Chapter 8
Service Transaction Analysis
Improving Customer Service in government
Quality in Health Care
Supply Chain Quality in Services
A Theory for Service Quality Management

4. Strategic Quality Planning Designing Quality Services Chapter 8
Power of satisfied customers
Profit Growth over Time

5. Strategic Quality Planning Designing Quality Services Differences between Services and Manufacturing
Many service attributes are intangible
Output of service are heterogeneous
Customer contact
Customer coproduction
Internal versus external services
Voluntary versus involuntary services

6. Strategic Quality Planning Designing Quality Services Differences between Services and Manufacturing
How service quality issues different from those of manufacturing?
In manufacturing, dimensions are available for measurement
In services, such measurable dimensions are often unavailable
Simultaneous production and consumption means you have to get it right the first time
Product liability

7. Strategic Quality Planning Designing Quality Services Differences between Services and Manufacturing
How service quality issues similar to those of manufacturing?
For both, the customer is the core of the business
By focusing on the customer many manufacturers and services firms have come to view themselves as service providers

8. Strategic Quality Planning Designing Quality Services What do Services Customers want?
Chapter 1 listed dimensions of quality:
Tangibles
Reliability
Responsiveness
Assurance
Empathy

9. Strategic Quality Planning Designing Quality Services SERVQUAL
Developed for assessing services quality.
An off-the-shelf approach that can be used in many service situations

10. Strategic Quality Planning Designing Quality Services SERVQUAL
Advantages are:
It is accepted as a standard for assessing different dimensions of services quality
It has been shown to be valid for a number of service situations

11. Strategic Quality Planning Designing Quality Services SERVQUAL
Advantages are:
It has been demonstrated to be reliable
It is parsimonious in that it only has 22 items
It has a standardized analysis procedure

12. Strategic Quality Planning Designing Quality Services SERVQUAL
The SERVQUAL survey has two parts:
Customer expectations
Customer perceptions
If we understand them both, we can assess the gap in these areas

13. Strategic Quality Planning Designing Quality Services SERVQUAL
The SERVQUAL survey has 22 questions:
Tangibles – Questions 1 – 4
Reliability – Questions 5 – 9
Responsiveness – Questions 10 – 13
Assurance – Questions 14 – 17
Empathy – Questions 18 – 22

14. SERVQUAL Expectations Survey

15. SERVQUAL Perceptions Survey

16. Strategic Quality Planning Designing Quality Services SERVQUAL
The SERVQUAL survey is useful for gap analysis
Gaps in communication and understanding between employees and customers have a serious negative effect on the perceptions of service quality.

17. Strategic Quality Planning Designing Quality Services SERVQUAL
The SERVQUAL survey is useful for gap analysis – Gap 1
Difference between actual customer expectations and management’s idea or perception of customer expectations

18. Strategic Quality Planning Designing Quality Services SERVQUAL
The SERVQUAL survey is useful for gap analysis – Gap 2
Managers’ expectations of service quality may not match service quality specifications

19. Strategic Quality Planning Designing Quality Services SERVQUAL
The SERVQUAL survey is useful for gap analysis – Gap 3
Service delivery
and
Service quality expectations

20. Strategic Quality Planning Designing Quality Services SERVQUAL
The SERVQUAL survey is useful for gap analysis – Gap 4
Service delivery
and
External communications to customers

21. Strategic Quality Planning Designing Quality Services SERVQUAL
The SERVQUAL survey is useful for gap analysis – Gap 5
Expected service
and
Perceived service

22. Strategic Quality Planning Designing Quality Services SERVQUAL
The SERVQUAL survey is useful for gap analysis
The key to closing gap 5 is to first close gaps 1 through 4

23. Strategic Quality Planning Designing Quality Services SERVQUAL

24. Strategic Quality Planning Designing Quality Services SERVQUAL
The SERVQUAL survey is useful for gap analysis
By averaging the difference between Perception and expectation a two dimensional map can be created identifying strengths and weaknesses

25. Strategic Quality Planning Designing Quality Services SERVQUAL
Two-Dimensional Differencing Plane

26. Strategic Quality Planning Designing Quality Services Designing and improving the services transaction
One way to improve perceptions of quality …Improve the process of delivery of the service
Services Blueprinting
Moments-of-truth Concept
Poka-yoke

27. Strategic Quality Planning Designing Quality Services Designing and improving the services transaction
Services Blueprinting
Identify processes
Isolate fail points
Establish a time frame
Analyze profits

28. Strategic Quality Planning Designing Quality Services Designing and improving the services transaction
Services Blueprinting Example in a Hair Salon

29. Strategic Quality Planning Designing Quality Services Designing and improving the services transaction
Moments-of-truth Concept
Fail Points .. Moments of truth.
These are times at which the customer expects something to happen.

30. Strategic Quality Planning Designing Quality Services Designing and improving the services transaction
Poka-yoke
Fail safe devices
Warning methods
Physical contact methods
Visual contact methods

31. Strategic Quality Planning Designing Quality Services Designing and improving the services transaction
Poka-yoke
Fail safe devices – “The Three T’s”
Tasks to be performed
Treatment provided to customer
Tangibles provided to customer

32. Strategic Quality Planning Designing Quality Services The Customer Benefits Package
Customer benefits packages (CBP)
Tangibles that define the service
Intangibles that make up the service

33. Strategic Quality Planning Designing Quality Services The Customer Benefits Package
Customer benefits packages (CBP)
Four stages of the service benefit package…
Idea/concept generation
The definition of a service package
Process definition and selection
Facilities requirements definition

34. Strategic Quality Planning Designing Quality Services The Customer Benefits Package
CBP Design Process

35. Strategic Quality Planning Designing Quality Services The Customer Benefits Package
Customer benefits packages (CBP)
Objectives…
Make sure the final CBP attributes you are using are the correct ones

36. Strategic Quality Planning Designing Quality Services The Customer Benefits Package
Customer benefits packages (CBP)
Objectives…
Evaluate the relative importance of each attribute in the customers mind

37. Strategic Quality Planning Designing Quality Services The Customer Benefits Package
Customer benefits packages (CBP)
Objectives…
Evaluate each attribute in terms of process and service encounter capability

38. Strategic Quality Planning Designing Quality Services The Customer Benefits Package
Customer benefits packages (CBP)
Objectives…
Figure out how to best segment the market and position CBP’s in each market

39. Strategic Quality Planning Designing Quality Services The Customer Benefits Package
Customer benefits packages (CBP)
Objectives…
Avoid CBP duplication and proliferation

40. Strategic Quality Planning Designing Quality Services The Customer Benefits Package
Customer benefits packages (CBP)
Objectives…
Bring each CBP, and associated process and service encounters, to market as quickly as possible. Use the CBP framework and final attributes to design facilities, processes, equipment, jobs, and service encounters.

41. Strategic Quality Planning Designing Quality Services The Customer Benefits Package
Customer benefits packages (CBP)
Objectives…
Maximize customer satisfaction and profits.

42. Strategic Quality Planning Designing Quality Services The Customer Benefits Package
Services Package
Unique services package
Selective services package
Restricted services package
Generic services package

43. Strategic Quality Planning Designing Quality Services Service Transaction Analysis
Method of identifying service transactions and evaluating them from the customer’s perspective to determine if there is a gap between service design and what the customer perceives as the service

45. Strategic Quality Planning Designing Quality Services Improving Customer Service in Government
The government established a searchable list of 4,000 customer service standards for 570 federal departments and agencies

46. Strategic Quality Planning Designing Quality Services Improving Customer Service in Government
32 states have established quality award programs

47. Strategic Quality Planning Designing Quality Services Improving Customer Service in Government
Several factors driving this change:
People want and desire to do good work

48. Strategic Quality Planning Designing Quality Services Improving Customer Service in Government
Several factors driving this change:
Quality management is associated with improved employee satisfaction

49. Strategic Quality Planning Designing Quality Services Improving Customer Service in Government
Several factors driving this change:
Government leaders are mandating standards, strategic plans and new levels of performance

50. Strategic Quality Planning Designing Quality Services Improving Customer Service in Government
Several factors driving this change:
Demand for government services is growing at a faster rate than funding for them

51. Strategic Quality Planning Designing Quality Services Improving Customer Service in Government
Several factors driving this change:
Threat of privatization in government has led to an improvement in service

52. Strategic Quality Planning Designing Quality Services Quality in Health Care
Health care is facing the same “cost squeeze” that government is facing
A move to HMO’s is causing hospitals to streamline operations
There is increased diversity in health care

53. Strategic Quality Planning Designing Quality Services Supply Chain Quality in Services
Bi-directional Services Supply Chain

54. Strategic Quality Planning Designing Quality Services A theory for Service Quality Management
Proposition 1: Unified services theory
Proposition 2: The unreliable supplier dilemma
Proposition 3: Capricious Labor
Proposition 4. Everyone presumes to be an expert

55. Strategic Quality Planning Designing Quality Services Summary
Because services involve intangibles they are different from manufacturing
Lack of hard measures, statistical Quality Control techniques are not always successful
The bottom line is a satisfied customer

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Printed in the United States of America.