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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?

<p>They assess and monitor service to find potential failures (B)</p> Signup and view all the answers

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

<p>Implementation of a checklist at ATMs for transaction guidance (C)</p> Signup and view all the answers

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

<p>Quality audits on food preparation and cleanliness (B)</p> Signup and view all the answers

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

<p>It can be divided into proactive and reactive costs (D)</p> Signup and view all the answers

What is one possible outcome of conducting mystery shopper evaluations?

<p>A better understanding of service delivery from the customer's viewpoint (A)</p> Signup and view all the answers

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

<p>All of the above (D)</p> Signup and view all the answers

What is a primary goal of measuring service quality?

<p>To understand how well a service meets customer expectations (C)</p> Signup and view all the answers

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

<p>Focus Groups (B)</p> Signup and view all the answers

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

<p>Lost Customer Surveys (C)</p> Signup and view all the answers

How do customer satisfaction surveys typically gather feedback?

<p>Using rating scales and open-ended questions (C)</p> Signup and view all the answers

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

<p>Proactive assistance from sales associates (A)</p> Signup and view all the answers

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

<p>Based on their experiences shopping at other stores (D)</p> Signup and view all the answers

What is the purpose of customer advisory panels?

<p>To engage customers for long-term feedback on improvements (D)</p> Signup and view all the answers

What is the primary reason for the Quality Gap 1?

<p>Management's incomplete understanding of customer expectations (D)</p> Signup and view all the answers

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

<p>Maximizing employee hiring numbers (C)</p> Signup and view all the answers

What causes Quality Gap 3 in service delivery?

<p>Poor employee selection and inadequate training (D)</p> Signup and view all the answers

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

<p>The accuracy of service advertising (A)</p> Signup and view all the answers

What is the main focus of Quality Gap 5?

<p>The disparity between expected and perceived service quality (A)</p> Signup and view all the answers

Which of the following could potentially improve Quality Gap 1?

<p>Enhancing market research techniques (A)</p> Signup and view all the answers

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

<p>Provide additional training for employee skills (D)</p> Signup and view all the answers

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

<p>Lack of management commitment to service quality (D)</p> Signup and view all the answers

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

<p>To reduce variability in service processes (A)</p> Signup and view all the answers

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

<p>They provide a range for acceptable service performance (D)</p> Signup and view all the answers

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

<p>The internal performance metrics of a process (D)</p> Signup and view all the answers

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

<p>Averages mask underlying variations that affect service quality (A)</p> Signup and view all the answers

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

<p>Consistent service quality aligning with expectations (A)</p> Signup and view all the answers

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

<p>The maximum acceptable wait time on hold (C)</p> Signup and view all the answers

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

<p>By using a personalized checklist for customer reminders (A)</p> Signup and view all the answers

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

<p>The span of acceptable outcomes that align with customer expectations (D)</p> Signup and view all the answers

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

<p>Standardizing improvements and monitoring performance over time (B)</p> Signup and view all the answers

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

<p>Improve phase (D)</p> Signup and view all the answers

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

<p>Check Sheet (D)</p> Signup and view all the answers

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

<p>To reduce the cancellation rate from 20% to 10% (B)</p> Signup and view all the answers

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

<p>By mapping process steps from both patient and clinic perspectives (D)</p> Signup and view all the answers

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

<p>Bar Chart (A)</p> Signup and view all the answers

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

<p>Internal systems like scheduling and reminder systems that manage appointments (B)</p> Signup and view all the answers

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

<p>To systematically track information related to cancellations (A)</p> Signup and view all the answers

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

<p>Errors (B)</p> Signup and view all the answers

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

<p>Handover (D)</p> Signup and view all the answers

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

<p>Reducing waste and minimizing variability (B)</p> Signup and view all the answers

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

<p>Delivering more services than necessary (B)</p> Signup and view all the answers

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

<p>Searches/Movement (C)</p> Signup and view all the answers

What does backlog refer to in a service context?

<p>Unprocessed work waiting to be addressed (C)</p> Signup and view all the answers

What is meant by overprocessing in service delivery?

<p>Delivering reports with excessive information (A)</p> Signup and view all the answers

What defines the waiting waste in service processes?

<p>Delays while one step awaits the completion of another (A)</p> Signup and view all the answers

Flashcards

Quality Gap 1

The difference between customer expectations and management's perception of those expectations.

Closing Quality Gap 1

Strategies to close this gap include improved market research, better communication between management and employees, and reducing management levels.

Quality Gap 2: Policy Gap

The difference between management's perception of customer expectations and the service standards established.

Closing Quality Gap 2

Setting SMART goals and standardizing service delivery tasks can close this gap.

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Quality Gap 3: Delivery Gap

The difference between established service standards and the actual service delivered.

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Closing Quality Gap 3

Addressing this gap requires teamwork, proper employee selection, adequate training, and suitable job design.

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Quality Gap 4: Communication Gap

The difference between the service a company promises and the service it actually delivers.

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Quality Gap 5: Perception Gap

The difference between the service customers expect and the service they perceive.

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Customer Perception

How customers interpret and evaluate a company's service based on their personal experiences and expectations.

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Service Quality Measurement

The process of assessing how well a service meets or exceeds customer expectations, helping businesses understand their strengths and identify areas for improvement.

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Customer Satisfaction Surveys

Questionnaires designed to gauge customer satisfaction with different aspects of a service, often using rating scales and open-ended questions.

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Focus Groups

Small group discussions with customers, facilitated by a moderator, to gather insights into their experiences and perceptions of a service.

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Customer Advisory Panels

Long-term groups of customers, like frequent flyers, who provide regular feedback to a company on service improvements.

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New/Lost Customer Surveys

Surveys specifically targeted at customers who have recently started or stopped doing business with a company, understanding reasons for engagement or churn.

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Qualitative Feedback

Open-ended, descriptive responses from customers, providing detailed insights into their experiences and opinions.

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Quantitative Data

Numerical data collected from customer feedback, such as ratings and scores, providing measurable information on service quality.

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Six Sigma

A quality management philosophy that focuses on reducing variability in service processes to consistently meet customer expectations.

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Voice of the Customer (VOC)

Customer expectations for a service, expressed as a range between the Upper Specification Limit (USL) and Lower Specification Limit (LSL).

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Upper Specification Limit (USL)

The maximum acceptable level of service performance to meet customer expectations.

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Lower Specification Limit (LSL)

The minimum acceptable level of service performance to meet customer expectations.

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Voice of the Process (VOP)

The actual performance of a service process, influenced by customer and internal factors.

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Process Variation

The difference between the Voice of the Customer (VOC) and the Voice of the Process (VOP).

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What can errors in service lead to?

Customer dissatisfaction, repeat errors, and potentially negative perception of the brand.

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How can we effectively address customer expectations?

By capturing their requirements (VOC) and defining service performance limits (USL and LSL) within the service design.

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Complaint/Compliment Analysis

This method uses customer feedback, like complaints and compliments, to find common themes. It helps businesses improve their service by addressing common issues and recognizing strengths.

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Walk-Through Audits (WTA)

Walk-through audits simulate the customer experience by having "mystery shoppers" assess services without staff knowing they're being evaluated. This provides an authentic perspective on service delivery.

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Cost of Quality (COQ)

The cost of delivering quality service. It includes both proactive costs for preventing service failures and reactive costs for addressing failures after they occur.

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Prevention Costs

Costs incurred to prevent service failures from happening in the first place. This includes training staff, designing error-proof processes, and using poka-yoke mechanisms.

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Poka-Yoke

A Japanese term for error-proofing, this involves designing processes or tools that make mistakes impossible or easily detectable. It reduces the likelihood of service failures.

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Detection (Appraisal) Costs

Costs associated with evaluating and monitoring service processes to identify potential failures before they impact the customer. This includes conducting surveys, using mystery shoppers, and performing quality audits.

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Quality Audits

Regular checks of the service process to ensure quality standards are met. This helps prevent tangible errors, such as poor food preparation in a restaurant.

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Surveys and Mystery Shoppers

These methods are used to gather information from customers and assess service quality. They help identify potential service failures and ensure the company meets its standards.

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What are 'Defects' in a service context?

Errors or faults in service delivery that require rework or repair, leading to customer dissatisfaction and added costs. For example, a misdiagnosis by a doctor requiring additional tests and procedures.

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Handover (Service Waste)

Inefficient transfer of information or tasks between individuals or departments, causing delays, errors, and frustration for customers. Example: A patient needing multiple hospital transfers for tests, increasing wait times and risking information loss.

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Backlog (Service Waste)

Accumulated work waiting to be processed, often causing delays and impacting customer satisfaction. Example: A software development team with a long list of unresolved bugs delaying new feature releases.

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Search/Movement (Service Waste)

Time and effort spent searching for information, materials, or people due to poor organization, leading to inefficiency and customer dissatisfaction. Example: A lawyer spending hours searching for a specific document due to disorganized filing practices.

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Waiting (Service Waste)

Delays that occur when one step in the service process is waiting for the completion of another step, impacting customer satisfaction and efficiency. Example: A customer waiting on hold while a customer service representative gathers information.

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Overproduction (Service Waste)

Providing more service or information than the customer needs or values, causing waste and inefficiency. Example: A consulting firm delivering a 100-page report when the client only wanted a summary of key findings.

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What is Overprocessing?

Performing more work or providing a higher level of service than the customer values or requires, leading to inefficiencies. Example: A car rental company thoroughly washes and details every vehicle between rentals, despite customers only needing a basic clean.

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Errors (Service Waste)

Mistakes made during service provision that require correction, leading to additional time, costs, and customer frustration. Example: A bank teller processing a deposit with the wrong amount, requiring a correction transaction.

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DMAIC

A structured problem-solving method used for process improvement. It consists of five phases: Define, Measure, Analyze, Improve, and Control.

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Define Phase

The first phase of DMAIC, where the problem is clearly defined, the scope is determined, and the project goals are set.

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Process Map

A visual representation of the steps involved in a process, showing the flow of information and resources.

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Measure Phase

The second phase of DMAIC where data is collected and analyzed to quantify the problem.

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Data Collection Plan

A structured approach to gathering relevant data for the Measure phase, ensuring consistency and accuracy.

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Check Sheet

A tool used to collect and organize data, often in a table format, making it easy to identify trends or patterns.

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Bar Chart

A graphical representation of data using bars, visually comparing different categories or variables.

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Control Phase

The final phase of DMAIC where improvements are standardized, monitored, and sustained to prevent the problem from recurring.

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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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