Matakuliah Tahun : Perancangan Manajemen Mutu : 2009 Managing Supplayer Quality in the Supply Chain Pertemuan 15-16 Chapter 8 Designing Quality Services S. Thomas Foster, Jr. Boise State University PowerPoint prepared by Dave Magee University of Kentucky Lexington Community College Bina Nusantara University ©2004 Prentice-Hall 3 Chapter Overview • • • • • • • • • Differences between Services and Manufacturing What Do Services Customers Want? SERVQUAL Designing and Improving the Services Transaction The Customer Benefits Package The Globalization of Services Improving Customer Service in Government Quality in Health Care A Theory for Service Quality Management Bina Nusantara University 4 Differences Between Services and Manufacturing The output of Services are Unique Attributes of Services services is intangible heterogeneous Customers are more involved in the production of services than they are in manufacturing Bina Nusantara University The production and consumption of services often occur simultaneously 5 Differences Between Services and Manufacturing • Intangible – Many service attributes are intangible. This means that they cannot be inventoried or carried in stock over long periods of time. • Heterogeneous – This means that for many companies, no two services are exactly the same. • Simultaneous Production and Consumption • Customer Contact – Customers tend to be more involved in the production of services than they are in manufacturing. Bina Nusantara University 6 Differences Between Services and Manufacturing • Internal Versus External Services – External services are those whose customers pay the bills. – Internal services are in-house services such as data processing, printing, and mail. • Voluntary Versus Involuntary Services – Voluntary services are those services that we actively seek out and employ of our own accord. – The essential example of an involuntary service is a prison. Other involuntary services include hospitals, the IRS, and the fire department. Bina Nusantara University 7 How Are Service Quality Issues Different from Those of Manufacturing? • Availability of Data • Simultaneous Production and Consumption • Customer Contact • Design of Services • Product Liability Bina Nusantara University 8 How Are Service Quality Issues Different from Those of Manufacturing? • Availability of Data – Because services attributes are often intangible, it is sometimes difficult to obtain hard data relating to services. • Simultaneous Production and Consumption – Service must be done right the first time. • Customer Contact – Leads to an increase in the variability in the service, a high degree of customization and great variability in the time required to perform the service. Bina Nusantara University 9 How Are Service Quality Issues Different from Those of Manufacturing? • Design of Services – Must take into account variables such as customer moods and feelings. • Product Liability – In services, liability issues often relate to malpractice, whereas in manufacturing liability issues typically relate to safety concerns. Bina Nusantara University 10 How Are Service Quality Issues Similar to Those of Manufacturing? For both manufacturing and service firms, the customer is the core of the business, and customer needs provide the major input to design. Bina Nusantara University 11 What Do Services Customers Want? Zeithamel, Parasuraman, and Berry’s List of the Dimensions of Service Quality Tangibles Reliability Responsiveness Assurance Empathy Bina Nusantara University 12 What Do Services Customers Want? Attributes of Effective Leaders in Service Industries Service Vision High Standards In-the-Field Leadership Style Bina Nusantara University 13 SERVQUAL Instrument • SERVQUAL – A survey instrument for assessing quality along five service dimensions • Tangibles • Reliability • Responsiveness • Assurance • Empathy – The SERVQUAL survey has been used by many firms and is an offthe-shelf approach that can be used in many service settings. Bina Nusantara University 14 SERVQUAL Instrument • Advantages of SERVQUAL – Accepted as a standard for assessing different dimensions of services quality. – Shown to be valid for a number of different service situations. – Demonstrated to be reliable, meaning that different readers interpret the questions similarly. – Only has 22 items making it economical. It can be filled out quickly by customers and employees. – Has a standardized analysis procedure to aid interpretation and results. Bina Nusantara University 15 SERVQUAL Instrument • SERVQUAL survey has two parts – Customer expectations – Customer perceptions • Gap Analysis – The SERVQUAL instrument is used to perform gap analysis. – Gaps in communication and understanding between employees and customers have a serious negative affect on the perceptions of services quality. Bina Nusantara University 16 SERVQUAL Instrument SERVQUAL Items and Dimensions Dimension Tangibles Items 1-4 Reliability 5-9 Responsiveness 10-13 Assurance 14-17 Empathy 18-22 Bina Nusantara University 17 SERVQUAL Instrument Word-of-mouth communication Personal needs Past experience Expected service Gap 5 Perceived service CUSTOMER PROVIDER Service delivery Gap 3 Service quality specifications Gap 1 Gap 2 Management perceptions of customer expectations Bina Nusantara University Gap 4 External communications to customers Gaps Model Figure 8.4 18 SERVQUAL Instrument (Gap Models) Management perceptions of customer expectations Gap 1 Figure 8.5 Expected service Gap 1 shows that there can be a difference between actual customer expectations and management’s idea or perception of customer expectations. Bina Nusantara University 19 SERVQUAL Instrument (Gap Models) Service quality specifications Gap 2 Management perceptions of customer expectations Figure 8.6 Manager’s expectations of service quality may not match service quality specifications. This mismatch is demonstrated in gap 2. Bina Nusantara University 20 SERVQUAL Instrument (Gap Models) Figure 8.7 Service delivery Gap 3 Service quality specifications Inadequate training, communication, and preparation of employees who interact with the customer, referred to as contact personnel, can lower the quality of service delivered. This mismatch is represented as Gap 3. Bina Nusantara University 21 SERVQUAL Instrument (Gap Models) Figure 8.8 Service delivery Gap 4 External communications to customers Gap 4 shows the differences between services delivery and external communications with the customer. Bina Nusantara University 22 SERVQUAL Instrument (Gap Models) Expected service Gap 5 Figure 8.9 Perceived service Gap 5 is the difference between perceived and expected services. The key to closing this gap is to first close gaps 1 through 4 through thoughtful system design, careful communication with the customer, and a workforce trained to provide consistently outstanding customer service. Bina Nusantara University 23 SERVQUAL Instrument • Differencing Technique – The differencing technique is used to assess the differences between expectations and perceptions. • Simple Differencing – The averages for each dimension of service quality is computed by averaging the items pertaining to each dimension and then computing the difference. • Two-Dimensional Differencing – Very useful for evaluating responses when there is enough variation in different dimensions. – The vertical axis reflects the expectations score and the horizontal axis relates to the perceptions score. Bina Nusantara University 24 SERVQUAL Instrument Two-Dimensional Differencing Plane Figure 6.10 EXPECTATIONS 7 Reliability Empathy . . Tangibles 6 . 5 PERCEPTIONS 4 1 2 3 3 2 5 6 7 . Assurance . Responsiveness 1 Bina Nusantara University 25 Designing & Improving the Services Transaction • Services Blueprinting – A services blueprint is a flowchart that isolates potential fail points in a process. – Steps to developing a service blueprint. 1. Identify processes 2. Isolate fail points 3. Establish a time frame 4. Analyze profits Bina Nusantara University 26 Designing & Improving the Services Transaction (Services Blueprinting)Figure 8.11 Services Blueprinting Example Standard execution time 2 minutes Total acceptable execution time 5 minutes Apply polish Brush shoes 30 seconds 30 seconds Fail point Seen by customer Clean shoes Buff 45 seconds Wrong color wax Collect payment 15 seconds Materials (e.g., polish, cloth) 45 seconds Line of visibility Bina Nusantara University Not seen by customer but necessary to performance Select and purchase supplies 27 Designing & Improving the Services Transaction (Services Blueprinting) • Steps in Developing a Service Blueprint – Step 1: Identify processes. Processes are flowcharted so that the bounds of the process are identified. – Step 2: Isolate fail points. What can happen here? What could go wrong. Mistakes can be expensive. – Step 3: Establish a time frame. Time can be a major determinant of profitability. Those steps that lose time result in lost income. Time standards should be established for each step in the process. – Step 4: Analyze profits. As errors occur in the process, the service provider becomes liable. Because delays and errors affect profitability, the provide could lose money. Bina Nusantara University 28 Designing & Improving the Services Transaction • Line of Visibility – Identifies the point beyond which activities are not seen by the customer, but still influence performance. • Moments of Truth – The fail points in the service blueprint are also referred to as moments of truth. – These are times at which the customer expects something to happen. • Poka-Yoke – The idea behind poka-yoke (or fail-safing) is to ensure that certain errors will never occur. Bina Nusantara University 29 Designing & Improving the Services Transaction Fail Safe Methods Can Also Be Described as the Three Ts Task Treatment Tangibles Figure 8.12 Bina Nusantara University 30 The Customer Benefits Package • Customer Benefits Package (CBP) – A customer benefits package consists of both tangibles that define the service and intangibles that make up the service. – Tangibles are known as goods-content. – Intangibles are referred to as service-content. • Stages of Service Design Process 1. Idea/concept generation 2. The definition of a services package 3. Process definition and selection 4. Facilities requirement definition Bina Nusantara University 31 The Customer Benefits Package Slide 2 of 3 CBP Design Process Figure 8.13 Idea/concept generation Define CBP Select and define process Define facility requirements Bina Nusantara University 32 The Customer Benefits Package Slide 3 of 3 Process/CBP Matrix Service Process Structure Expert service Service shop Service factory Bina Nusantara University Figure 8.14 Unique service Selective service Restricted service Generic service package package package package Consulting Higher Education Package Delivery 33 Globalization of Services •The trend toward globalization the way we manage service quality. •Eastern European and Eastern Asian countries are following the lead of the United States by transferring labor and GDP into the services sector. •The implication is that service competition will increase on a global scale, as has been the case in manufacturing for the past 40 years. Bina Nusantara University 34 Improving Customer Service In Government If customer service is the battlefield for business leading into the twenty-first century, then government is probably the last frontier. There are some evidences of improvement in several aspects of government service. Bina Nusantara University 35 Quality in Health Care • Several factors have contributed to increased attention in the area of health care – Health care is facing the same “cost squeeze” that government is facing. – A move toward HMO’s is causing hospitals to streamline operations. – There is increasing diversity in health care. – Calls for a nationalized health care system threaten the status quo an provide the competitive pressures that spur the impetus to improve. Bina Nusantara University 36 A Theory For Service Quality Management Slide 1 of 5 • • • • Proposition 1: The Unified Services Theory Proposition 2: The Unreliable Supplier Dilemma Proposition 3: Capricious Labor Proposition 4: Everyone Presumes to be An Expert Bina Nusantara University 37 A Theory For Service Quality Management Slide 2 of 5 Proposition 1: The Unified Services Theory “With services, the customer provides significant inputs into the production process. With manufacturing, groups of customers may contribute ideas to the design of the product; however, individual customers’ only part in the actual process is to select and consume the output. Nearly all other managerial themes unique to services are founded in this distinction. Bina Nusantara University 38 A Theory For Service Quality Management Slide 3 of 5 Proposition 2: The Unreliable Supplier Dilemma “With services, the customer-suppliers often provide unreliable inputs.” Bina Nusantara University 39 A Theory For Service Quality Management Slide 4 of 5 Proposition 3: Capricious Labor “With services, customer-labor may ignore, avoid, or reject technologies or process improvements which are intended to increase quality and productivity. As a result, customer buy-in to process changes must be carefully addressed.” Bina Nusantara University 40 A Theory For Service Quality Management Slide 5 of 5 Proposition 4: Everyone Presumes to be An Expert “With services, the customer often provides product specifications (what to make) and process design (how to make it), often without the invitation of the service provider.” Bina Nusantara University 41 Summary • • • • • • • • • Differences between Services and Manufacturing What Do Services Customers Want? SERVQUAL Designing and Improving the Services Transaction The Customer Benefits Package The Globalization of Services Improving Customer Service in Government Quality in Health Care A Theory for Service Quality Management Bina Nusantara University 42 HAZARD ANALYSIS By: – S.L. Pfleeger – et.al. Bina Nusantara University 43 Hazard Analysis • General phrase for describing the caution used to make sure that we understand – How – When – Why our software systems may fail. Bina Nusantara University 44 Hazard Analysis • İs a set of systematic but informal techniques intended to expose potentially hazardous system states. • What if scenarios are triggered Bina Nusantara University 45 • FMEA and HAZOP are used • FTA is also utilized Bina Nusantara University 46 HAZOP • Hazard and Operability studies – İs a structured analysis technique that anticipates system hazards and suggest a mean to avoid them. Bina Nusantara University 47 Fault Tree Analysis • Develope in 1961 to evaluate U.S.M. Missile launch control system. • Fault trees display the logical path from effect to cause. • In 1994, Fenelon adapted hazard analysis to software situations. Bina Nusantara University 48 Failure Mode and Effect Analysis • FMEA uses inductive reasoning to determine how the failure of a component including software instructions affects the system when it is in a particular mode. Bina Nusantara University 49 • Failure Modes • Consequences and Probability Bina Nusantara University 50 Risk Assessment Severity Probability Catastrophic Critical Marginal Negligible Freuent 1 3 7 13 Probable 2 5 9 16 Occasional 4 6 11 18 Remote 8 10 14 19 Improbable 12 15 17 20 Bina Nusantara University 51 When are you done? • Hazard analysis is an open-ended process, so how can you ever know that you are done? • Budget and time Bina Nusantara University 52 • • • • SOLID SOFWARE S.L. Pfleeger Les Hatton Charles C. Howell Bina Nusantara University 53