Week 6 - BOM Service Quality PDF

SERVICE QUALITY WEEK 6 - BOM At the end of this lesson, you are expected to: 1. Describe and illustrate the five dimensions of service quality; 2. Use the service quality gap model to diagnose quality problems; 3. Construct a statistical process control chart for a service operation. ...

SERVICE QUALITY WEEK 6 - BOM At the end of this lesson, you are expected to: 1. Describe and illustrate the five dimensions of service quality; 2. Use the service quality gap model to diagnose quality problems; 3. Construct a statistical process control chart for a service operation.  SERVICE QUALITY For services, the assessment of quality is made during the service delivery process. Each customer contact is referred to as a moment of truth, an opportunity to satisfy or dissatisfy the customer. Customer satisfaction with a service can be defined by comparing perceptions of service received with expectations of service desired. When expectations are exceeded, service is perceived to be of exceptional quality – and also to be a pleasant surprise. When expectations are not met, however, service quality is deemed unacceptable. When expectations are confirmed by perceived service, quality is satisfactory. Dimensions of Service Quality 1. Reliability - Perform promised service dependably and accurately Example: receive mail at the same time each day.  Dimensions of Service Quality 2. Responsiveness - Willingness to help customers promptly. Example: avoid keeping customers waiting for no apparent reason 3. Assurance - Ability to convey trust and confidence. Example: being polite and showing respect for the customer  Dimensions of Service Quality 4. Empathy - Ability to be approachable Example: being a good listener 5. Tangibles - Physical facilities and facilitating goods Example: cleanliness Prescriptions for Closing Service Quality Gaps Knowledge: Internal communications: Learn what customers expect —conduct research, dialogue, Ensure performance levels feedback match marketing promises Standards: Perceptions: Specify SQ standards that Educate customers to see reflect expectations reality of service delivery Delivery: Interpretation: Ensure service performance matches specs-- consider Pretest communications to roles of employees, equipment, make sure the message is customers clear. Hard and Soft Measures of Service Quality Hard Measures - refer to standards and measures that can be counted, timed, or measured through audits typically operational processes or outcomes e.g. how many trains arrived late? Soft measures - refer to standards and measures that cannot easily be observed and must be collected by talking to customers, employees, or others e.g. Surveys, and customer advisory panels  Control charts - are useful for displaying performance over time against specific quality standards Return on Quality (ROQ) ROQ approach is based on four assumptions: Quality is an investment Quality efforts must be financially accountable It’s possible to spend too much on quality Not all quality expenditures are equally valid Implication - Quality improvement efforts may benefit from being related to productivity improvement programs  Quality Service by Design Quality can neither be inspected into a product nor somehow added on, and this same observation applies to services. A concern for quality begins with the design of the service delivery system. How can quality be designed into a service? One approach is to focus on the four dimensions of the service package Incorporation of quality in the service package 1. Supporting Facility Architecturally, the building is designed to be constructed of materials that are maintenance–free, such as concrete blocks. The grounds are watered by an automated underground sprinkler system. The air-conditioning and heating system is decentralized by using individual room units to confine any failure to one room only.  Quality Service by Design 2. Facility goods Room furnishings are durable and easy to clean (e.g. beside tables are supported from the wall to facilitate carpet cleaning). Disposable plastic cups are used instead of glass, which is more expensive, requires cleaning, and, thus, would detract from the budget image.  Quality Service by Design 3. Information An online computer tracks guest billing, reservations, and registration processing. Keeping a record of a customer’s prior stay speeds future check-in, avoids billing errors, and anticipates needs (e.g. non – smoking room). This system allows guests to check out quickly and automatically notifies the cleaning staff when a room is free to be cleaned. Noting the time of check–out allows for scheduling early maid service and inventory of available rooms for early arrivals.  Quality Service by Design 4. Explicit Services Maids are trained to clean and make up rooms in a standard manner. Every room has the same appearance, including such “trivial” matters as the opening of the drapes. 5. Implicit Services Individuals with a pleasant appearance and good interpersonal skills are recruited as desk clerks. Training in standard operating procedures (SOP) ensures uniform and predictable treatment for all guests.  Achieving Service Quality Services are difficult for customers to evaluate before the fact. As we have already noted, they are intangible and consumed simultaneously with production. This presents a challenge to the service manager because quality– inspection intervention between the customer and the contact employee is not an option as in manufacturing. Costs of Quality for Services  Service Recovery Even with the best quality intentions, service failures do occur. What to do then? The table contains some statistics on the behavior of dissatisfied customers that suggest a quick resolution to service failure is an important way to create loyal customers. Service Recovery  Service Recovery A service failure can be turned into a service delight by empowering frontline employees with the discretion to “make things right.” For example, when an airplane full of anxious passengers is delayed for some minor mechanical problem, it’s time to break out complimentary drinks. Approaches to Service Recovery 1. The case-by-case approach It addresses each customer’s complaint individually. This inexpensive approach is easy to implement, but it can be unsystematic. The most persistent or aggressive complainers, for example, often receive satisfactory responses while more “reasonable” complainers do not. The haphazardness of this approach can generate perceptions of unfairness. Approaches to Service Recovery 2. The systematic response approach uses a protocol to handle customer complaints. This technique is more reliable than the case- by-case approach because it is a planned response based on the identification of critical failure points prior determination of appropriate recovery data. As long as the response guidelines are continuously updated, this approach can be very beneficial because it offers a consistent and timely response. Approaches to Service Recovery 3. Early intervention approach It adds another component to the systematic – response approach by attempting to intervene and fix service–process problems before they affect the customer. A shipper who realizes that a shipment is being held up by a truck breakdown, for example, can choose to notify the customer immediately so the customer can develop an alternative plan if necessary. Approaches to Service Recovery 4. An alternative approach It capitalizes on the failure of a rival to win the competitor’s customer by providing a substitute service recovery. At times the rival firm may support this approach. A desk person at an overbooked hotel, for example, might send a customer to a rival hotel. The rival hotel then might be able to capitalize on such an opportunity if it can provide a timely and quality service. This approach is difficult to implement because information about a competitor’s service failures usually is closely guarded.  Complaint Handling Policy A customer complaint should be treated as a gift. A complaining customer is volunteering her time to make the firm aware of an error because she cares. This opportunity should be seized upon not just to satisfy the customer but also to create a relationship with someone who will become an advocate for the firm. A complaint–handling policy should be incorporated into the training of all customer– contact employees.  Complaint Handling Policy An example policy might include the following features: Every complaint is treated as a gift. We welcome complaints. We encourage customers to complain. We make it easy to complain. We handle complaints fast. We treat complaints in a fair manner. We empower our employees to handle complaints. \We have customer – and employee–friendly systems to handle complaints. We reward employees who handle complaints well. We keep records of complaints and learn from them.  SEATWORK Identify the type of service gap for the given example. (Choose from: knowledge gap, standards gap, delivery gap, communication gap, perceptions gap, interpretation gap) 1. A new restaurant opens in a neighborhood known for its vegan population. However, the restaurant's management, unaware of this demographic detail, offers a menu primarily focused on meat dishes. As a result, they fail to attract local clients.  SEATWORK Identify the type of service gap for the given example. (Choose from: knowledge gap, standards gap, delivery gap, communication gap, perceptions gap, interpretation gap) 2. A hotel chain's corporate office sets a standard for room cleanliness that involves changing bed linens and towels daily. However, the individual hotel locations, aiming to cut costs, instruct their housekeeping staff to change linens only every third day. This inconsistency leads to guest dissatisfaction.  SEATWORK Identify the type of service gap for the given example. (Choose from: knowledge gap, standards gap, delivery gap, communication gap, perceptions gap, interpretation gap) 3. A tech support company promises 24/7 customer support with a maximum wait time of 5 minutes. However, due to insufficient staffing during peak hours, customers often wait for 20 minutes or more to get assistance, causing frustration and complaints.  SEATWORK Identify the type of service gap for the given example. (Choose from: knowledge gap, standards gap, delivery gap, communication gap, perceptions gap, interpretation gap) 4. An airline advertises that they have spacious seating and extra legroom in economy class. However, when passengers board the flight, they find that the seats are standard size with no extra legroom. This discrepancy between what was promised and what is delivered leads to customer disappointment.  SEATWORK Identify the type of service gap for the given example. (Choose from: knowledge gap, standards gap, delivery gap, communication gap, perceptions gap, interpretation gap) 4. An airline advertises that they have spacious seating and extra legroom in economy class. However, when passengers board the flight, they find that the seats are standard size with no extra legroom. This discrepancy between what was promised and what is delivered leads to customer disappointment.  SEATWORK Identify the type of service gap for the given example. (Choose from: knowledge gap, standards gap, delivery gap, communication gap, perceptions gap, interpretation gap) 5. A mobile phone service provider offers an "unlimited data" plan, which customers interpret as truly unlimited usage without any restrictions. However, the fine print reveals that after a certain data usage threshold, the internet speed is significantly throttled. This difference in interpretation results in customer dissatisfaction and complaints.  ASSIGNMENT Research on the following topic: Process Improvement Please include the reference/s of your research  QUIZ ON SCHOOLOGY 10 ITEMS MULTIPLE CHOICE 10 ITEMS MATCHING TYPE  REFLECTIVE JOURNAL Answer the following questions based on your understanding about the recent discussion. Explain your answer in detail. 1. What were the two or three main idea/concepts I found useful in today’s session, and why? 2. What beliefs of mine have changed about teaching and learning as a result of this session? 3. One thing I learned in this session that I may be able to use in the future is… 4. Issues that interested me a lot, and that I would like to study in more detail 5. I am still unsure about...? 6. What did we not cover that I expected we should? 7. What strategies have I used in the past were reinforced by this session; Have I been discouraged from any others? 8. Miscellaneous interesting facts I learned in this session… SOURCES Suggested Readings and References A. Books/eBooks: 1. Dr. Yanga’s Colleges, Inc. Student Handbook 2. DYCHBOM313 Course Syllabus 3. Matias, A. R; Magpantay, Don M; Vizconde A.M. L. (2021) Operations Management in Tourism and Hospitality Industry. 4. Hodge, R. (2021). How Efficiency Changes the Game: Developing Lean Operations for Competitive Advantage (1st ed.). Business Expert Press. 5. Sheppardson, C., & Drozdz, I. (2021). Hospitality: A New Dawn in Sustainability and Service (1st ed.). Studien Zum Physik- und Chemielernen Series. Business Expert Press. 6. Field, J. M. (2020). Designing Service Processes to Unlock Value, Third Edition (1st ed.). 7. Liberatore, M. J., & Miller, T. (2021). Supply Chain Planning: Practical Frameworks for Superior Performance (2nd ed.). 8. Boussard, S. (2021). Food and Beverage Management in the Luxury Hotel Industry (1st ed.). Business Expert Press. 9. Tuominen, K., Kai, L., & Moisio, J. (2021). Managing Processes in Your Professional Service Enterprise: Improvement Guide (1st ed.). 10. Liberatore, M. J., & Miller, T. (2021). Supply Chain Planning: Practical Frameworks for Superior Performance (2nd ed.) 11. Cornelis, A. de Kluyver, & Pearce II, J. A. (2021). Global Business Strategy (2nd ed.). 12. Procurement and Supply Chain Management by Kenneth Lysons and Brian Farrington (2020) B. Web Page: 1. Service Economy: Definition, Characteristics, Pros and Cons (February 8, 2023) Article Retrieved from: https://www.masterclass.com/articles/service-economy 2. Mirarchi, C., Pavan, A., De Marco, F., Wang, X., & Song, Y. (2018). Supporting Facility Management Processes through End-Users’ Integration and Coordinated BIM-GIS Technologies. retrieved from https://www.researchgate.net/publication/325200794_Supporting_Facility_Management_Processes_through_End- Users'_Integration_and_Coordinated_BIM-GIS_Technologies 3. Capacity Planning Strategies (2024) https://www.xola.com/articles/3-types-of-capacity-planning-strategies-with-examples/ C. Media: 1. Strategy Management – Service Strategy (2024) retrieved from https://www.youtube.com/watch?v=0OrhyH4Q9Ko 2. Services Marketing – New Service Development (2021) retrieved from https://www.youtube.com/watch?v=7kkv47NjZpk 3. Operations & Supply Chain Management: Facility & Work Design (2021) retrieved from https://www.youtube.com/watch?v=hLRfrkX-SYw 4. Service Quality (2022) retrieved from https://www.youtube.com/watch?v=VJigYkC4aSo 5. PROCESS IMPROVEMENT TIPS: from a business operations specialist (2021) retrieved from https://www.youtube.com/watch?v=g3-6Ua7ee-c 6. Capacity Management (2021) retrieved from https://www.youtube.com/watch?v=BW-kGwrp-PE 7. Queuing Theory (2022) retrieved from https://www.youtube.com/watch?v=-Kza-8JmqHU 8. Operations & Supply Chain Management: Forecasting & Demand Planning (2021) retrieved from https://www.youtube.com/watch?v=gKG50ePysQQ SERVICE QUALITY WEEK 6 - BOM PREPARED BY: NOEL M. MUNSAYAC, CHMP PRINCESS CONCORDIA V. DE JESUS, MBA, LPT, CHMP