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Service quality. Unit 11 & Chapter 6. Ever wonder what 99.9% meant?. Is a goal of 99.9% good enough? 1 hour of unsafe drinking water every month 2 unsafe plane landings per day at O’Hare Airport in Chicago 16,000 pieces of mail lost by the U.S. Post Office every hour.

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service quality

Service quality

Unit 11 & Chapter 6

ever wonder what 99 9 meant

Ever wonder what 99.9% meant?

Is a goal of 99.9% good enough?

1 hour of unsafe drinking water every month

2 unsafe plane landings per day at O’Hare Airport in Chicago

16,000 pieces of mail lost by the U.S. Post Office every hour.

ever wonder what 99 9 meant3

Ever wonder what 99.9% meant?

20,000 incorrect prescriptions every year

500 incorrect operations each week

50 babies dropped at birth every day

22,000 checks deducted from the wrong bank account each hour

32,000 missed heart beats per person each year

what is service quality
What is Service Quality?
  • Identify a “quality” service
  • Discuss why it is high quality
garvin s 8 dimensions of quality
Garvin’s 8 Dimensions of Quality
  • Performance
  • features
  • Reliability
  • Conformance
  • Durability
  • Serviceability
  • Aesthetics
  • Perceived Quality
schonberger s additional 4 dimensions of quality
Schonberger’s Additional 4 Dimensions of Quality
  • Quick Response
  • Quick change expertise
  • Humanity
  • Value
quality toolbox no shortage of topics for mgt 667
Quality toolbox (no shortage of topics for MGT 667)

1992 Baldrige winner’s Texas Instruments DSEG (now Raytheon TI Systems)

quality management tool box
Quality Management Tool Box

Complexity

Process Mapping,

Design for Manufacturability & assembly,

Root cause analysis, FMEA, Fault trees, Quality Function Deployment, Focused factories, Group technology, Smart simple design, 5s, visual systems

Culture

Quality awareness, Teams, Autonomous work groups, Baldrige quality award, ISO 9000, Deming, PDCA, Policy Deployment (Hoshin Kanri), Supplier Mgt & certification, Six sigma, Metrics/scorecards/ dashboards, Benchmarking, JIT/Lean mfg. Corrective action program, Kaizen events, Total Productive Maintenance (TPM), cost of quality, zero defects, ISO1400, EMS, Servqual (gap analysis)

VariationSPC (control charts), Process capability (Cpk), Design of Experiments, Taguchi, acceptance sampling, Gauge R&R, other statistical tools

Mistakes mistake-proofing (poka-yoke), Just culture, Standardization

Ergonomics, Human factors engineering

service quality model
Service Quality Model
  • Financial Services -- focus group based
  • A.K.A. Gap Analysis, SERVQUAL
  • Compares customer perceptions with customer expectations (Gap #5)
  • Gap #5 = function of Gaps #1, #2, #3, #4

Here’s how the looks...

slide12

Word-of-mouth

communications

Personal needs

Past Experience

Expected service

Gap #5

Perceived Service

provider

Gap #4

External

Communication

to Customers

Service Delivery

Gap #3

Gap #1

Service Quality

Specifications

Gap #2

Management

Perceptions of

Customer Expectations

customer

slide13

GAPS #1 and #2

Gap #1: Lack of market research

Inadequate upward communication

Too many levels of management

Gap #2: Inadequate management communication of service quality

Perception of infeasibility

Inadequate task standardization

Absence of goal setting

slide14

GAPS #3 and #4

Gap #3:

1) Role ambiguity and conflict

2) Poor employee or technology job fit

3) inappropriate control systems

4) Lack of perceived control

5) Lack of teamwork

Gap #4: 1) Inadequate horizontal communication

2) Propensity to overpromise

change the design by mistake proofing
Change the design by mistake-proofing

Mistake-proofing is the use of process design features to facilitate correct actions, prevent simple errors, or mitigate the negative impact of errors.

if it is worthwhile to mistake proof yo yos
If it is worthwhile to mistake-proof yo-yos…

…What else would it be worth mistake-proofing?

exercise
Exercise:

Can you think of examples of mistake-proofing in your car?

applications to services

1998, John R. Grout

Applications to Services
  • Server and customer errors impact service quality and must be managed
  • Focus on “front-office” customer interaction
  • “Back-office” important but more similar to manufacturing

Source: make your service fail-safe. Chase, R. B., And D. M. Stewart. 1994. Sloan management review (spring): 35-44.

1/3 of customer complaints relate to

problems caused by the customer themselves

server poka yokes
Server Poka-yokes

Task

Treatment

Tangibles

  • Task poka-yokes:
    • Doing work incorrectly, not requested, wrong order, too slowly
  • Treatment poka-yokes:
    • Lack of courteous, professional behavior
  • Tangible poka-yokes:
    • Errors in physical elements of service
examples
Examples

Task

Treatment

Tangibles

  • Task poka-yokes:
    • Cash register buttons labeled by item (instead of price)
    • Tags to indicate order of arrival
  • Treatment poka-yokes:
    • Bell on shop door
    • Record eye color on bank transaction form (insure eye contact)
  • Tangible poka-yokes:
    • Paper strips around towels (indicate clean linens)
    • Envelope windows
customer poka yokes

Preparation

Encounter

Resolution

Customer Poka-yokes
  • Preparation poka-yokes:
    • Failure to bring necessary materials, understand role, or engage correct service
  • Encounter poka-yokes:
    • Inattention, misunderstanding, or memory lapses
  • Resolution poka-yokes:
    • Failure to signal service failure, provide feedback, learn what to expect
examples23
Examples

Preparation

Encounter

  • Preparation poka-yokes:
    • Appointment reminder calls
    • Student degree requirement checklist
  • Encounter poka-yokes:
    • Height bar in amusement park
    • ATM using card swipe instead of insertion
  • Resolution poka-yokes:
    • Provide premium for completed survey

Resolution

have you ever
Have you ever…
  • Shot a rifle?
  • Played darts?
  • Shot a round of golf?
  • Played basketball?

Emmett

Jake

Who is the better shot?

variability

Even very rare

outcomes are

possible

(probability > 0)

Even very rare

outcomes are

possible

(probability > 0)

Fewer

in the

“tails”

(upper)

Fewer

in the

“tails”

(lower)

Most outcomes

occur in the

middle

Variability

The world tends to be bell-shaped

variability26
Variability

Here is why:

Even outcomes that are equally likely (like dice), when you add them up, become bell shaped

normal bell shaped curve
“Normal” bell shaped curve

Add up about 30 of most things

and you start to be “normal”

Normal distributions are divide up

into 3 standard deviations on

each side of the mean

Once your that, you

know a lot about

what is going on

?

And that is what a standard deviation

is good for

setting up control charts calculating the limits
Setting up control charts:Calculating the limits
  • Find A2 on table (A2 times R estimates 3σ)
  • Use formula to find limits for x-bar chart:
  • Use formulas to find limits for R chart:
limits
Limits
  • Process and Control limits:
    • Statistical
    • Process limits are used for individual items
    • Control limits are used with averages
    • Limits = μ ± 3σ
    • Define usual (common causes) & unusual (special causes)
  • Specification limits:
    • Engineered
    • Limits = target ± tolerance
    • Define acceptable & unacceptable
process capability cpk
Process capability (Cpk)

Good quality: defects are rare (Cpk>1)

μ

target

Poor quality: defects are common (Cpk<1)

μ

target

Cpk measures “Process Capability”

If process limits and control limits are at the same location, Cpk = 1. Cpk≥ 2 is exceptional.