December 2001Service Quality Leadership1 Understanding and attaining world-class service quality. By Anshuman Tiwari Business Leader, Qimpro.

December 2001 Service Quality Leadership 1

Service Quality Leadership

Understanding and attainingworld-class service quality.

By

Anshuman TiwariBusiness Leader, Qimpro


Service Quality Leadership

• Quality management• World-class quality• Service quality• Agenda


Quality Management

• History of quality• Quality• Total quality • Total quality management


History of Quality

• Craftsman• Industrialization – F W Taylor, Henry Fayol• World Wars – shortage of labour• Inspection to control to assurance• International standards• Quality management


History of Quality

• Japanese dominance– 1950s Junk quality, Emperor convenes meeting– J M Juran, W E Deming– 1960s to 70s Copycats– Oil crisis, small cars– American restrictions, Japan invest in America– Buys real estate, studios, entertainment– 1985 onwards, American resurgence


Quality

• Quality Defined– Fitness for purpose– Conformance to requirements– Fitness for purpose.

• Quality as Better Features and Reduced Defects• Better Feature – Why you buy.• Reduced Defects – Post purchase opinion.


QualityQuality is Customer DelightQuality is Customer Delight

Product FeaturesProduct Features Defect FreeDefect Free

PremiumPricing

PremiumPricing

MarketShareMarketShare

CycleTimeCycleTime WarrantyWarranty WasteWaste

RevenueRevenue CostsCosts

ProfitProfit

Customer Satisfaction Customer Dissatisfaction

Higher Quality Costs More Higher Quality Costs Less


Total Quality

• Total Quality– All Products (Hardware, Software, Service)– All Functions (Manufacturing, Non-manufacturing)– All Customers (External, Internal, Hidden)– All Industries (Profit, Not-for-profit)

• Supplier, Organization, Customer.


Total Quality Management

• Financial Management– Financial Planning – Budget– Financial Control – Cost Control– Financial Improvement – Cost Cutting.

• Quality Management– Quality Planning – QFD, FMEA– Quality Control – SPC– Quality Improvement – CQI, Six Sigma.



• Delighted Customers • Empowered Employees • Higher Revenue • Lower Cost

Results

Processes

Infrastructure

Foundation



• Quality Planning• Quality Control• Quality Improvement

Results

Processes

Infrastructure

Foundation





• Quality planning– Verify the Goal– Identify Customers– Determine Customer Needs– Develop Product– Develop Process– Prove Process Capability– Transfer to Operations



• Quality control– Establish Standards– Measure Actual Performance– Compare to Standards– Regulate Process



• Quality improvement – Identify a Project– Establish the Project– Diagnose the Cause– Remedy the Cause– Hold the Gains– Replicate Results– Nominate New Projects



• Total Quality System • Customer-Supplier Chain• Organization-Wide

Involvement• Measurement and

Information • Education and Training

Results

Processes

Infrastructure

Foundation


Total Quality Management1.

Lea

der

ship

an

d s

trat

egic

pla

nn

ing

Management Support

2. Company-wide communication

3. Human resource management

4. Quality management system

5. Cost control

Core Processes

6. Customer interaction management

7. Research, design, and development

8. Supplier interaction management

9. Operations management and maintenance

10. Stores, distribution, and service management

11. Inspection and measurement12. Corrective and preventive action13. Continual quality improvement14. Quality audits

15.

Sta

keh

old

er s

atis

fact

ion

Feed back / Feed forward



• Strategic Quality Planning

• Executive Leadership • Customer Focus

Results

Processes

Infrastructure

Foundation


World-Class Quality

• Exercise – Based on your individual perception name three

world-class companies– For each of the above identify three world-class

features.


World-Class Quality Models

• International – Malcolm Baldrige National Quality Award – USA – European Quality Award – Europe – Deming Prize – Japan

• India – CII-Exim Business Excellence Award – IMC Ramkrishna Bajaj National Quality Award.


Service Quality

• What is different– Services are acts, efforts or performances that

cannot be handled or examined prior to purchase and that are exchanged from producer to user without ownership rights.

– Service is work done for others – Dr J M Juran– Customer is part of process


Service Quality: Spirit

“Look at our balance sheet. On the asset side, you can see so-and-so many aircraft worth so-and-so

many billions. But it’s wrong. We are fooling ourselves. What we should put on the assets side is, last years SAS carried so-and-so many happy passengers. Because that’s the only asset we’ve got, people who are happy with our service and

willing to come back and pay for it again.”Jan Carlson, CEO SAS


Service Quality: Model

PeoplePeople

ProcessesProcesses

ClientOfferings

ClientOfferings

Customer Behaviour

Customer Behaviour

BusinessResults

BusinessResults

6. Customer and Market Focus

2. Information and Analysis

4. H

R F

ocus

5. P

roce

ss M

gt.

3. S

trat

egic

Pla

nnin

g

1. Leadership

7. Business Results

1. Leadership


Service Quality: Measures

•Capability•Alignment•Reliability•Empowerment•Satisfaction

•Capability•Alignment•Reliability•Empowerment•Satisfaction

•Time•Accuracy•Cost•Throughput•Impact•Consequences

•Time•Accuracy•Cost•Throughput•Impact•Consequences

•Suitability•Performance•Expectations•Competitiveness•Satisfaction

•Suitability•Performance•Expectations•Competitiveness•Satisfaction

•Price sensitivity•Complaints•Judgment•Repurchase•Initial Purchase•Goodwill

•Price sensitivity•Complaints•Judgment•Repurchase•Initial Purchase•Goodwill

•Market dominance•Asset accumulation•Growth•Image•Wealth creation

•Market dominance•Asset accumulation•Growth•Image•Wealth creation


Service Quality: Measures

Lifetime value

Relationship marketing

Customer satisfaction

Customer commitment

Customer complaints


Service Quality: MeasuresWord of mouth Personal needs Past experience

Expected service

Perceived service

Service delivery

Translation of perception into service quality specifications

Management perceptions

External communication

GAP 1

Marketer

Customer

GAP 2

GAP 3 GAP 4

GAP 5


Service Quality

• Service Quality– Tangible 11– Reliability 32– Responsiveness 22– Assurance 19– Empathy 16

NB : The above proportions will vary by different service sectors. However, the importance of “Reliability” will always be apparent.


Service Quality: Conversion

Average Shallow Convertible Available Ambivalent Weakly StronglyEntrenched

Unavailable

CUSTOMERS NON- CUSTOMERS


Agenda

• Bias for action• Employees come first• Customers come second• Abolish bureaucracy• Act like an owner• Abolish fear of failure• Talk to customers• Speed


Agenda

• Learn – train and educate for skills• Planning ??• Under commit – over deliver• Hire for attitude and values

December 2001Service Quality Leadership1 Understanding and attaining world-class service quality. By Anshuman Tiwari Business Leader, Qimpro.

Documents

quality audits

worldclass service quality

quality management system

continual quality improvement

s junk quality

service management

process slide

operations management