Mod E

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Questions and Answers

What is the primary purpose of complaint/compliment analysis?

To assess financial profitability

To determine the best marketing strategies

To track employee performance

To identify recurring customer feedback themes (correct)

How does a walk-through audit provide insights into customer experiences?

By relying solely on customer surveys

By simulating the customer experience using mystery shoppers (correct)

Through automated customer feedback systems

By conducting employee performance reviews

Which of the following best describes prevention costs?

Expenses for promotional marketing activities

Costs related to fixing service failures after they occur

Costs associated with customer feedback surveys

Investments made to ensure high service quality and avoid errors (correct)

What role do detection costs play in service quality management?

They assess and monitor service to find potential failures Signup and view all the answers

Which example illustrates the concept of poka-yoke in service quality?

Implementation of a checklist at ATMs for transaction guidance Signup and view all the answers

What might a restaurant perform to avoid tangible errors in food preparation?

Quality audits on food preparation and cleanliness Signup and view all the answers

Which statement is true about the Cost of Quality (COQ)?

It can be divided into proactive and reactive costs Signup and view all the answers

What is one possible outcome of conducting mystery shopper evaluations?

A better understanding of service delivery from the customer's viewpoint Signup and view all the answers

What can influence a customer's expectations of service quality?

All of the above Signup and view all the answers

What is a primary goal of measuring service quality?

To understand how well a service meets customer expectations Signup and view all the answers

Which method involves gathering a small group of customers to discuss their experiences?

Focus Groups Signup and view all the answers

What type of surveys are designed for customers who have recently stopped using a service?

Lost Customer Surveys Signup and view all the answers

How do customer satisfaction surveys typically gather feedback?

Using rating scales and open-ended questions Signup and view all the answers

What is one expected aspect of service quality in a boutique clothing store?

Proactive assistance from sales associates Signup and view all the answers

Why might customers perceive service as overwhelming even if it meets company standards?

Based on their experiences shopping at other stores Signup and view all the answers

What is the purpose of customer advisory panels?

To engage customers for long-term feedback on improvements Signup and view all the answers

What is the primary reason for the Quality Gap 1?

Management's incomplete understanding of customer expectations Signup and view all the answers

Which of the following strategies is NOT recommended for closing Quality Gap 2?

Maximizing employee hiring numbers Signup and view all the answers

What causes Quality Gap 3 in service delivery?

Poor employee selection and inadequate training Signup and view all the answers

Quality Gap 4 is primarily concerned with what aspect of service?

The accuracy of service advertising Signup and view all the answers

What is the main focus of Quality Gap 5?

The disparity between expected and perceived service quality Signup and view all the answers

Which of the following could potentially improve Quality Gap 1?

Enhancing market research techniques Signup and view all the answers

What might management do to address Quality Gap 3 in a call center environment?

Provide additional training for employee skills Signup and view all the answers

Which of the following is a possible cause of Quality Gap 2?

Lack of management commitment to service quality Signup and view all the answers

What is a primary goal of Six Sigma in service management?

To reduce variability in service processes Signup and view all the answers

How do the Upper Specification Limit (USL) and Lower Specification Limit (LSL) relate to customer expectations?

They provide a range for acceptable service performance Signup and view all the answers

What does the Voice of the Process (VOP) represent?

The internal performance metrics of a process Signup and view all the answers

Why can relying solely on averages be misleading in service management?

Averages mask underlying variations that affect service quality Signup and view all the answers

What is an example of a common customer expectation in a service setting as per Six Sigma principles?

Consistent service quality aligning with expectations Signup and view all the answers

In a customer support scenario, what does the USL typically represent?

The maximum acceptable wait time on hold Signup and view all the answers

What is one way that a restaurant can address customer errors with service expectations?

By using a personalized checklist for customer reminders Signup and view all the answers

What does the term 'design width' refer to in the context of Six Sigma?

The span of acceptable outcomes that align with customer expectations Signup and view all the answers

What is the primary focus of the Control phase in the DMAIC approach?

Standardizing improvements and monitoring performance over time Signup and view all the answers

During which phase do teams generate and test solutions to address root causes?

Improve phase Signup and view all the answers

What tool is utilized in the Measure phase to record specific cancellation reasons?

Check Sheet Signup and view all the answers

What is one of the goals set in the Define phase for the Bright Smiles Dental Clinic project?

To reduce the cancellation rate from 20% to 10% Signup and view all the answers

How do teams better understand the cancellation process in the Define phase?

By mapping process steps from both patient and clinic perspectives Signup and view all the answers

What visual tool is created in the Measure phase to compare cancellation reasons?

Bar Chart Signup and view all the answers

What is meant by the term 'backstage technology' in the context of appointment cancellations?

Internal systems like scheduling and reminder systems that manage appointments Signup and view all the answers

What is the purpose of the Data Collection Plan in the Measure phase?

To systematically track information related to cancellations Signup and view all the answers

Which type of waste involves mistakes made during service provision that require correction?

Errors Signup and view all the answers

In a service context, which type of waste relates to inefficient transfers of information or work between departments?

Handover Signup and view all the answers

What is the primary focus of Lean Six Sigma in service processes?

Reducing waste and minimizing variability Signup and view all the answers

Which of the following best describes overproduction in a service context?

Delivering more services than necessary Signup and view all the answers

Which type of waste is characterized by time spent searching for information or materials due to poor organization?

Searches/Movement Signup and view all the answers

What does backlog refer to in a service context?

Unprocessed work waiting to be addressed Signup and view all the answers

What is meant by overprocessing in service delivery?

Delivering reports with excessive information Signup and view all the answers

What defines the waiting waste in service processes?

Delays while one step awaits the completion of another Signup and view all the answers

Study Notes

Module E: Service Quality

Service Quality is a measure of how well a service matches customer expectations.
Expectations are pre-conceived beliefs about service value.
Perceptions are how customers interpret the service.
RATER expectations encompass: Reliability, Assurance, Tangibles, Empathy, and Responsiveness.

What is Service Quality?

Expectations are shaped by past experiences, word-of-mouth, marketing, and reputation.
Perceptions are how customers interpret the service provided.
Setting low expectations can lead to "Pleasant Surprise" or "Confirm Low Quality"
Setting high expectations can lead to "Confirm High Quality" or "Disappointment"

RATER Expectations

Reliability means dependable and accurate services (e.g., healthcare appointments).
Assurance instills confidence and security in the service (e.g., financial advisor knowledge).
Tangibles are the physical aspects (e.g., hotel cleanliness, appearance of staff).
Empathy is understanding and responding to individual needs (e.g., dietary requirements).
Responsiveness is the willingness to help quickly (e.g., IT support, student emails).

Service Encounter

The service encounter triad involves Customer, Service Provider (Front-line Employee), and Service Organization.
Customer-Frontline Service Provider interaction is direct.
Frontline Service Provider-Firm interaction is organizational support.
Customer-Firm interaction is the wider relationship with the organization.
Interactions are characterized by tensions between autonomy vs. control and expectations vs. delivery.

Role of Service Organization in the Triad

The organization designs the service structure (standardized or customizable).
It provides resources (technology, training, and infrastructure).
Training and development ensure quality service delivery.
Organizations set realistic expectations and provide feedback.
Organizations empower employees using belief, boundary, diagnostic, and interactive systems.

Technology's Involvement in the Service Encounter Triad

Technology's role can range from completely absent (Tech-Free) to automation (Tech-Generated).
Technology-Assisted services involve technology supporting the service provider during service delivery.
In Tech-Mediated services, both customer and service provider utilize technology to interact.
In Tech-Generated services, customer interacts mostly with technology (e.g., online banking, self-service checkouts).

How to Measure Service Quality?

Customer satisfaction surveys assess customer satisfaction with services.
Focus groups and customer advisory panels gather qualitative data about customer experiences.
New/Lost Customer Surveys focus on the start and end of customer relationships to track perceptions.
Complaint/Compliment Analysis tracks feedback from various sources (reviews, comments, surveys).
Walk-Through Audits assess service from a customer perspective using mystery shoppers.

Cost of Quality

Cost of Good Quality (proactive costs to ensure high service quality).
Cost of Poor Quality (reactive costs to address service failures).
Prevention costs prevent failures (e.g., training, poka-yoke).
Detection (Appraisal) costs evaluate processes (e.g., surveys, quality audits).
Internal Failure costs correct issues before customer interaction.
External Failure costs correct issues after customer interaction.

Service Failures & Fail-safing

Service failures occur when quality expectations are not met (committed by service provider or customer).
Fail-safing (Poka-Yoke) prevents failures by designing processes to eliminate common errors.
Service provider failures involve Task Errors (service delivery), Treatment Errors (customer treatment) and Tangible Errors (environment).

Six Sigma

Six Sigma aims to reduce variability in processes to meet customer expectations.
Performance measures focus on average & variations around the target value to assess service quality.
Customer expectations are identified through the Voice of the Customer (VOC), represented by Upper (USL)/Lower (LSL) specification limits.
Process capability indexes (Cp and Cpk) measure the process's ability to meet specification limits and whether the process is centered.

Achieving a Six-Sigma Level Process

A Sigma level reflects defects per million opportunities.
Achieving Six Sigma is a high level of performance and efficiency for any process.
Six Sigma methods help analyze, measure, improve, control processes (DMAIC principle)

DMAIC Methodology

Define: Clearly define the problem, setting goals.
Measure: Collect data to understand the current performance levels.
Analyze: Identify root causes of the issue.
Improve: Implement effective solutions.
Control: Ensure improvements are sustained.

Case Study: Reducing Appointment Cancellations at a Dental Clinic

The Case Study is about implementing the DMAIC methodology to address appointment cancellations at a Dental Clinic.
The Methodology steps used were; Define, Measure, Analyze, Improve, and Control.

Lean Philosophy and its Application in Service Quality

Lean methodology focuses on waste elimination in service processes to improve efficiency and quality.
Lean methodologies include; Transport, Inventory, Motion, Waiting, Overproduction, Overprocessing, Defects.
Lean principles are applied to service processes to identify & eliminate non-value-adding activities (waste) and increase efficiency and quality.

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