SERVICES

QUALITY
• Liberal definitions by organisations
• Key goal for the organisation
• Continued quality improvement
• Preset QC techniques till 1980’s
• Defects were unavoidable and acceptable by
both manufacturers and customers
• Dissatisfaction and claims by customers
• Rejection and rework involved high costs
 SERVICES
OUALITY
• Japanese contribution to Automobile and
Electronic industries
• Defect reduction to defect elimination
• Zero defect production
• Concept applied to Services
• Focus on TQM and Quality Circles
 SERVICES
TOTAL OUALITY MANAGEMENT
• Quality Management of the entire organisation
so that there is continuous improvement in all
dimensions of process, product and services
that are important to the customer
• Involves all employees at all levels
• Involves all resources at the disposal
• Every employee action has impact on quality
improvement
 SERVICES
TOTAL OUALITY MANAGEMENT

P h y s i c a l S u p p o r t

T e c h n i c a l O t h e r
C u s t o m e r
C o r e C u s t o m e r

C o n t a c t P e r s o n n e l

B a c k s t a gF er o n t S t a g e
( I n v i s i (b V l e i s ) i b l e t o C u s t o m e r )
 SERVICES
TOTAL OUALITY MANAGEMENT
• Apply the above concept to any service that you have
experienced
• Efficiency to meet customer requirement is very vital to
TQM
• TQM is not high cost of production and high price
• Customer wants better quality at lower price than before
 SERVICES
TOTAL QUALITY MANAGEMENT
• TQM involves reduction in wastage, that increases cost
and adds no value for both producer and customer
• TQM - Reduction can be in time also
• TQM is for both external and internal customers,
dependent departments or organisations
• TQM fails in many organisations
 SERVICES
TOTAL OUALITY MANAGEMENT
• TQM failure - Reasons
• Lack of management commitment for quality culture
• Lack of quality initiatives, support and follow-through
actions
• More focus on organisation process than customer
perceptions of quality
• More focus on cost savings than long term value
creation
 SERVICES
TOTAL QUALITY MANAGEMENT
• TQM is unending. Needs continuous and study
improvement in quality
• TQM focus areas
Customer driven quality standards
Addressing both external and internal customer needs
Empowerment of every employee as quality inspector
Top management commitment
 SERVICES
QUALITY CIRCLES
• Kaoru Ishikawa developed the concept in
1972
• Quality circles are groups of non-
supervisors and work leaders in a
department who volunteer to conduct
group activities in order to improve
effectiveness of the work in their
respective departments
Developed Fishbone diagrams that help
to identify the problem – more valid for
services
 SERVICES
QUALITY CIRCLES
• Role of every employee is very crucial to
quality of services and in production
• Importance is more in service industry as
services are mostly delivered by persons
• Employee needs to be convinced that his
job depends upon quality of the service
and customer satisfaction
• Employee will contribute to quality upon
his conviction
 SERVICES
QUALITY CIRCLES
• Small teams in units at grass root level
can contribute more than the managers
• Small teams can bring about changes and
help to improve the quality
• Grass root level workers understand the
difficulties better than the managers
• Delivery of service will improve with the
help of small teams
 SERVICES
TECHNOLOGY AND SERVICES
• Technology helped to develop the
products and productivity
• Technology brought in comforts to the
mankind
Improvement in existing products
New products
• Helped manufacturers due to computers
and reduction in labour hours
• Replacement of humans by robot
 SERVICES
TECHNOLOGY AND SERVICES
• Production of service and quality did not
have same impact as physical products
• Impact of technology was noticed by
service industry late last century
Definition of service
Process of service production & delivery
Mass communication
Promotion
 SERVICES
TECHNOLOGY AND SERVICES
• Personal touch in service delivery
• Human element reason for inconsistent
quality in delivery of service
• Variation in quality of delivery is a major
problem
• Can human touch be replaced?
• Role of automation
Cost reduction
Greater customer satisfaction
 SERVICES
TECHNOLOGY AND SERVICES
• Pilot training simulators
Reduced investments
Reduced running cost
Safety for all concerned
Standardisation and time reduction
Objective assessment of skills
Real life simulation, emergencies etc.
Superior to manual training
 SERVICES
TECHNOLOGY AND SERVICES
• ATM
Large number of transaction points
ensures accessibility, reduction travel
time and convenience
Customer satisfaction, service precise
and accurate
Many banking and other operations
possible, save efforts and time for the
customer
 SERVICES
TECHNOLOGY AND SERVICES
• ATM
Saves time for the customer and open
24x7
Monitoring the customer, data mining
Win - Win situation for banks and the
customers
Reduction in cost and real estate
requirements
 SERVICES
TECHNOLOGY AND SERVICES
• EXPERT SERVICES
www
Wikipedia, Google
On line solutions
Expert medical and surgical advise
Legal systems, customs, taxation
Match makers
Consumer forum – online complaints
 SERVICES
TECHNOLOGY AND SERVICES
• OFFICE AUTOMATION
MS Office
Accounting software
Photocopiers
Tea / coffee machines, water coolers
www for references, emails
Accurate, time saving, cost reduction
EPABX
 SERVICES
TECHNOLOGY AND SERVICES
• TRAVEL RESERVATIONS
Railways
Airlines
e tickets
Automated check ins
Validation machines
Time and cost savings
Convenience and comfort
 SERVICES
TECHNOLOGY AND SERVICES
• RETAIL AND E COMMERCE
Wider choice and faster billing
RFID
SCM
ebay, amazon.com, rediff shopping
Virtual, better product selection
Better prices
Quick and assured delivery
Return and exchange policies
 SERVICES
TECHNOLOGY AND SERVICES
• CRM
Formation and nurturing long term
relationship with individual attention
Customer retention rather than new
customer creation
Lesser cost to retain customer
Satisfied customer is best advertisement
Major focus on long term relationship
 SERVICES
TECHNOLOGY AND SERVICES
• NEW SERVICES
Post independence scenario
Socialism
Protectionism
CPE and market economies
Mixed economies
Government role and ideologies
License Raj
 SERVICES
TECHNOLOGY AND SERVICES
• NEW SERVICES – POST LIBERASATION
Airlines
Banks
Insurance
Healthcare
Education
Hospitality and tourism
Telecom and infrastructure