Quality Management in Service Industries

Quality Management
Chapter 3 QUALITY MANAGEMENT IN SERVICE INDUSTRIES
OBJECTIVES
-
Explore quality management in service sectors. - Understand the elements that impact service deliveries of service sector companies
3.1 QUALITY DEFINED IN SERVICE INDUSTRIES

Every
enterprise is a service company. Hotels, fast-food restaurants, insurance companies, and consulting firms. Takes into account of the following dimensions. ! Reliability ! Responsiveness ! Assurance ! Empathy ! Tangibles
Activity 3.1
Choose
a service sector company, identify a service and give your opinions on how you deem to be either good or bad.
3.2 ELEMENTS THAT IMPACT SERVICE DELIVERIES OF SERVICE SECTOR COMPANIES

5 elements impact on service delivery. Employee Satisfaction Management Skills Information Access Process Management and Improvement Metrics and Relation to Performance Empowerment and Authority to Act
A) Employee Satisfaction
(Addresses
the link between employee and customer satisfaction) An subjective emotional component Both for employee satisfaction and for customer satisfaction Researches have shown that there is a correlation between employee satisfaction and customer satisfaction.
A) Employee Satisfaction
Use
surveys and other systems for testing the level of employee satisfaction as an early warning system for the levels of customer satisfaction. Critical to address the reward and recognition system for individuals and teams
B) Management Skills
Ability
of managers to effectively manage service environment is import. Program and process management training and skill are essential for managers. Critical that managers have a process orientation and act as shock absorbers for their direct reports. Managers need to take responsibility for finetuning the system while allowing the employees to concentrate on dealing with each unusual case.
C) Information Access (addresses insufficient data)

(Addresses
insufficient data) Up-to-date information is key to the individual employee's ability to manage the customer's needs. A reliable information infrastructure is critical and companies should be prepared to invest resources for the greatest payback.
C) Information Access (addresses insufficient data)

Include
the use of a Notes-type database Information should be available to all employees regardless of the point of customer contact.
D) Process Management and Improvement

(Addresses
insufficient staffing and inadequate knowledge of processes) A variety of TQM methodologies could be applied in many different ways to good effect A company could get customers to help define the service and could involve internal stakeholders who might otherwise sabotage the process.

An
organization could use ISO certification to enforce a process orientation and to begin process definition and documentation. Anticipate staffing needs and could offer ways to handle the exceptional as well as the steady state.

Study
new structures as a step toward creating effective and efficient processes. It is also important for service sector companies to have real-time feedback loops and data gathering to improve service in their service processes.
E) Metrics and Relation to Performance

(Addresses
lack of accountability and responsibility) Confronted by the universal experience that developing metrics in a service environment can be very difficult, using ISO certification as a discipline could speed up the development of standards. The voice of the customer is an important tool for testing the relevance of metrics that are selected.
F) Empowerment and Authority to Act

(Addresses
constraints) Given the here-and-now quality of many service operations, top management and CEO initiatives are critical to mobilize change efforts. Employee behavior change, and training of management to inspire the new behaviors, should help create the correct mindset for service.
policy and regulatory
F) Empowerment and Authority to Act

Chartering,
building, and training of teams are also essential ingredients in a service environment. The goal would be to engender in employees the ability to feeland beempowered, in such a way that all employees would take the authority and responsibility for satisfying the customer at the same time that they would enhance their own sense of satisfaction.
Activity 3.2

Make a list of the most frequently experience quality failures (in service sectors). What is the cost of those service failures? Talk about some of the worst service failures. Discuss failures you were involved in personally (which might have come from a previous job), as well as failures for your current company or division. For each failure, discuss: What were the causes of the failure? How could they have been prevented? What has the company or the people involved learned from the experience? What methods or systems are now in place that should help prevent them from happening?
Conclusion
1.
Quality management in service sectors takes into account of the following dimensions reliability, responsiveness, assurance, empathy and tangibles. Specific elements that have an impact on service delivery include employee satisfaction, management skills, information access, process management and improvement, metrics and relation to performance & empowerment and authority to act.
2.

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Quality Management

Chapter 3 QUALITY MANAGEMENT IN SERVICE INDUSTRIES

3.1 QUALITY DEFINED IN SERVICE INDUSTRIES

3.2 ELEMENTS THAT IMPACT SERVICE DELIVERIES OF SERVICE SECTOR COMPANIES

C) Information Access (addresses insufficient data)

C) Information Access (addresses insufficient data)

D) Process Management and Improvement

D) Process Management and Improvement

D) Process Management and Improvement

E) Metrics and Relation to Performance

F) Empowerment and Authority to Act

policy and regulatory

F) Empowerment and Authority to Act

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