quiz 2 (chapter 6+7) Flashcards

(40 cards)

1
Q

whats chapter 6 about

A

service quality

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2
Q

what is quality?

A

quality is what the customer deems to be good or bad.

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3
Q

how does one differentiates oneself?

A

through value

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4
Q

define service quality,, whats the survey instrument that measures service quality, for services when is the assessment of quality made?

A

-a complex topic
-includes 5 dimensions (RATER)
-these 5 dimensions are used to introduce the concept of a service quality gap
-SERVQUAL measures service quality, which is based on implementing the service quality gap concept(servqual:A customer survey instrument used to measure service quality gaps.)

  • the assessment of quality is made during the service delivery process
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5
Q

whats the Moment of Truth

A

1st interaction your employee has with a customer. They represent as you to a customer
Service recovery is you will lose customers, but its cheaper to keep customer than gain customer, if u do lose recover that customer(email,rewards)

-Each customer contact is referred to as a moment of truth, an opportunity to satisfy or dissatisfy the customer.

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6
Q

define the concept of SPC, who created it? what’s spc (his example and definition)

A
  • its a statistical process control
    -Statistical process control:The use of a control chart to monitor a process performance measure that signals when intervention is needed.
  • its used to monitor variation in service performance metrics and signal when intervention is necessary

(u want to control a critical variable of your process), u chart it and see trends and if its increasing something is wrong(ex: high time fries are frying), its used to control variation of critical control

-deming created it!

-( graph white board chart of his weight/weight v week days)
-statistical process control: the use of a control chart to monitor process performance measure that signals when intervention is needed.

-“Statistical process control is the use of a control chart to monitor a process performance measure that signals when intervention is needed. A visual display called a control chart is used to plot average values of a measure of performance (e.g., ambulance response time) over time to determine if the process remains in control (i.e., the performance mean and variance have not changed).”

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7
Q

what introduces the service quality gap,what measures service quality

A
  • RATER dimensions introduce this concept of service quality gap
    -this gap is based on the difference between a customer’s expectations of a service and the perceptions of the service that is delivered

–SERVQUAL measures service quality, which is based on implementing the service quality gap concept
(servqual:A customer survey instrument used to measure service quality gaps.)

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8
Q

whats a walk through audit ; whats its purpose->focus->process-features?
what’s recommended to use no matter the size in service? what does a auditor look at and why? how should a service delivery system conform to? why are auditors useful? and from who’s pov should a detailed audit be created for?

A

Walk-through audit: A process-oriented survey given to customers, employees, and managers to evaluate the perception of the customer service experience.

-its a customer satisfaction survey instrument
-its built on the premise that each customer is a participant in the service process

  • purpose: to conduct a systematic assessment of the entire customer service from beginning to end
    -focus: to measure customer perceptions of effectiveness of each stage of service delivery process
    -process: flowchart the service delivery process from customers POV, design test and administer questionaire to a sample f customers management personnel and customers at benchmark orgs, summarize and analyze survey results with emphasis on low rating relative to benchmark firms and gaps between management and customers, determine deficiencies and implement improvements, repeat
    -features:questionaire completed by customers during or after service,comprehensive audit of customers total service experience of service package, its conducted by a operations person,emphasis is placed on the customers evaluation of each stage of service delivery process

-a walkthrough audit is an opportunity to evaluate the service experience and its gaps from a customer’s POV cuz employees might overlook cues.

Depending on size of service, always use a 3rd party to manage it. this is because service managers lose sensitivity due to familiarity.

Auditor should look at it in the eyes of customer (which is why its better to have a 3rd eye)
Important for quality standards

  • Service delivery system should conform to customer
    expectations.
  • Customer impression of service influenced by use of all
    senses.
  • Service managers lose sensitivity due
    to familiarity.
  • Need detailed service audit from a customer’s perspective.
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9
Q

what are the 5 dimensions of service quality? what are the 5 dimensions for?

A
  • (RATER)
    -these 5 dimensions are used to introduce the concept of a service quality gap

-these dimensions are used by customers to judge service quality

-customers use these to form their judgements of service quality, which are based on comparing the expected vs perceived service.

RATER:
- Reliability:Perform promised service dependably and
accurately. Example: receive mail at same time each

“Reliability relates to the ability to perform the promised service both dependably and accurately. Reliable service performance is a customer expectation and means that the service is accomplished on time, in the same manner, and without errors every time. For example, consider your expectation of a pizza delivered to your home. Reliability also extends into the back office, where accuracy in record keeping and billing is expected.”

-Assurance:Ability to convey trust and confidence.
Example: being polite and showing respect for customer.

“Assurance relates to the knowledge and courtesy of employees as well as their ability to convey trust and confidence. The assurance dimension includes the following features: competence to perform the service, politeness and respect for the customer, effective communication with the customer, and the general attitude that the server has the customer’s best interests at heart.”

-Tangibles:Physical facilities and facilitating goods.condition of physical surroundings
Example: cleanliness. cleanliness, his rule of thumb, he goes to look at restrooms to see if they’re well maintained

“Tangibles relates to the appearance of physical facilities, equipment, personnel, and communication materials. The condition of the physical surroundings (e.g., cleanliness) is tangible evidence of the care and attention to detail that are exhibited by the service provider. This assessment dimension also can extend to the conduct of other customers in the service (e.g., a noisy guest in the next room at a hotel).”

-Empathy:Ability to be approachable. Example: being a good listener. bill clinton”i feel your pain” - he would always say that to try to be empathetic. As a employee show empathy

” Empathy relates to the provision of caring for and individualized attention to customers. Empathy includes the following features: approachability, sensitivity, and effort to understand the customer’s needs. One example of empathy is the ability of an airline gate attendant to make a customer’s missed connection the attendant’s own problem and to find a solution.”

-Responsiveness:Willingness to help customers promptly.Example: avoid keeping customers waiting for no apparent
reason.

:Responsiveness relates to the willingness to help customers and to provide prompt service. Keeping customers waiting, particularly for no apparent reason, creates unnecessary negative perceptions of quality. If a service failure occurs, the ability to recover quickly and with professionalism can create very positive perceptions of quality. For example, serving complimentary drinks on a delayed flight can turn a potentially poor customer experience into one that is remembered favorably.*”

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10
Q

how is quality service design built (3) whats the question asked?

A

how can quality be designed into a service?-1. incorporation of quality in the service package (example: hotel’s supporting facility, information, facilitating goods, supporting facility, explicit services and implicit services)

  1. Poka-Yoke (failsafing)
  2. Quality function deployment

-ideally the design quality is built to not have service failures which is what leads to customer satisfaction.

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11
Q

describe poka yoke

A

A “foolproof” device or checklist to assist employees in avoiding a mistake.
- this concept is applied to the design of service delivery systems
- its also #2 in how quality can be created in a service design
-Poka-yoke methods use checklists or manual devices that do not let the employee make a mistake.

  • this method addresses service errors that can originate from either server or customer
    server errors
    ask: Doing work incorrectly
    Treatment: Failure to listen
    to customer
    Tangible: Failure to wear
    clean uniform

customer errors
Preparation: Failure to bring
necessary materials
Encounter: Failure to follow
system flow
Resolution: Failure to signal
service failure

google answer”Poka-yoke focuses on designing processes and systems in a way that prevents errors from occurring in the first place or, if they do occur, makes them immediately detectable”

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12
Q

unconditional service guaranteed, what are 5 important features used to make it effective?

A

-Unconditional service guarantee: A service warranty that provides a customer focus for the firm.

-However, service failures do occur and the use of an unconditional service guarantee might be offered as the equivalent of a product warranty.

-warranty to guarantee its performance is expected can’t be done with services but it’s made by businesses to say their service is superior/ marketing appeal/sets quality standards

features: unconditional, easy to understand, meaningful, easy to invoke, easy to collect

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13
Q

whats customer satisfaction within a service, what 2 things are compared?what 3 things customer expectation in the first place?

A

Customer satisfaction with a service can be defined by comparing expectations of service desired with perceptions of service received. When expectations are exceeded, service is perceived to be of exceptional quality—and also to be a pleasant surprise. When expectations are confirmed by perceived service, quality is satisfactory.

When expectations are not met, however, service quality is deemed unacceptable.

As shown in Figure 6.1, these expectations are based on several sources, including word of mouth, personal needs, and past experience.

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14
Q

customer feedback and word of mouth:

A

a dissatisfied customer will tell 10-20 ppl, meanwhile 5 ppl f theyre satisfied

If u dont satisfy they may talk bad about u. Customers are always right, treat customers royally, its more expensive to get new customer than keep them

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15
Q

whats chapter 7 about

A

process improvement

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16
Q

whats process

A

step by step system to accomplish something

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17
Q

how do u measure improvement?

A

measuring time, reducing resources used also is improvement
Ex: starbucks is cutting their menu, got rid of 20%. Innout is known to have a basic menu

18
Q

whats customer satisfaction

A

delighting customer, making sure what they receive is what they ordered. Always satisfy your customer

19
Q

whats management by facts

A

see reality as it is, dont fool yourself. (ex:general electric obtained alot of financial records. See reality as it is and not as what u like it to be. Are u losing customers, are ur suppliers demanding more, are sales declining, dont sugarcoat it)

Facts are unshakable. Face the facts. If ur losing customer and not making money face it. Why are ur employees leaving? Maybe a poorly trained supervisor that doesnt respect employees so u need to face the issues

20
Q

whats Plan Do Check Act ( PDCA ) cycle? what are its 4 steps

A

-demings approach is represented by a wheel. it has 4 steps
1. Plan:select and analyze the problem
2Do:implement the solution
3.check:the results of the change
4.act: to standardize the solution and reflect on the learning
These 4 steps are called the PDCA cycle

-The circle is moving up and moving clockwise
-As it rises, quality will improve overtime
-U solve it by bringing people together and do it and see if it actually works

-if u have a problem plan, plan it execute do it execute to increase quality

-a plan do check diagram: y-quality, wheel is moving clockwise up, y and x axis, direction of the wheel, clockwise

PDCA cycle: A process of continuous improvement consisting of four steps: plan, do, check, and act.

21
Q

whats a quality guru

A

expert in their particular field( michael porter, deming, juran,taguchi,isgikawa)

22
Q

whats Benchmarking? what are the 5 steps of benchmarking process?

A

Benchmarking The practice of comparing one’s performance with that of other firms that are known as “best in class.”

comparative analysis; u learn from the best and taking the best and applying it to the process/service . u are copying and assimilating to apply to your own business.

Concept is u bench mark the best performers in any industry

-adopting/copying the best practices (can be a competitor or the expert)

-example: fedex has reputation for a consistent overnight delivery, nordstrom have attentive salespersons

5 steps:
(1) select a critical process that needs improvement; (2) identify an organization that excels in the process; (3) contact the benchmark firm, make a visit, and study the process; (4) analyze the findings; and (5) improve your process accordingly.

23
Q

whats a pareto chart? how is it used? Hes only going to ask about the top 3 errors;Define pareto chart and physical walking pareto, lay it out

A

Pareto chart Presents problems in a bar graph by their relative frequency in descending order.

A Pareto chart orders problems by their relative frequency in a descending bar graph to focus efforts on the problem that offers the greatest potential improvement.

-Pareto used histograms to identify mistakes
-Only work at top 3
-Control systems are essentials
-he said he would have quality people to physically lay out the top3 errors on the floor and brought his staff to all look at the errors.

-80/20 rule;80 percent of a retailer’s sales are generated by 20 percent of the customers

physical pareto:
Lay out the problem, why are the watches not being assembled
Laying out the problems to designated teams to solve it. If problem cant be seen , u need a bigger team

a histogram

24
Q

Whats baldrige national quality award?:whats ISO 9001 and its 3 component cycle?

A

fr edward deming after ww2 the US govt sent him to japan to rebuild japan. He taught the japanese spc. US companies or unis compete to win quality standard

ISO 9001: ISO 9001 An international program that certifies a firm as having a quality management system to ensure consistent output quality.generic guidelines, requirement for doing business in many industries. “say what you do and do what you say”.
3: planning,controlling,documentation

25
whats six sigma, what happens to companies that use it? what does it use?what are its goals? what are the 6 roles?
Six Sigma A rigorous and disciplined methodology to improve a firm’s operational performance by eliminating process defects. is a set of techniques and tools for process improvement. -Six sigma is 6 steps to minimize errors, do more with less. -Dont obtain more than 3.4 errors, dont create a million car with 3.4 defects -By nature theres variation on everything -Companies who implement do much more effective -it uses DMAIC -* To reduce process variation: only 3.4 defects per million by a process that involves a high volume of manufactured units or service transactions on a continuous basis. * Provide a framework & methodologies to analyze and evaluate business processes & reduce waste. -"Six Sigma is a rigorous and disciplined methodology that uses data and statistical analysis to measure and improve a company’s operational performance by identifying and eliminating defects to enhance customer satisfaction. Six Sigma requires that an organization adopt a culture whereby everyone at all levels embraces a passion for continuous improvement with the ultimate aim of achieving virtual perfection equal to 3.4 errors per million customer encounters. " 6 roles: executive, project member, green belts, black belts, master black belt, champion
26
define DMAIC
Define measure analyzie improve control Define: Define project objectives, internal, and external customers. Measure: Measure current level of performance. Analyze: Determine causes of current problems. Improve: Identify how the process can be improved to eliminate the problems. Control: Develop mechanisms for controlling the improved process.
27
What are the foundations of continuous improvement (CI) who made it?
1.Customer satisfaction; Focusing on satisfying customers’ needs should be paramount in workers’ minds. This requires an attitude of putting the customer first and a belief that this principle is the object of one’s work. 2.Management by fact: To encourage scientific thinking, objective data must be collected and presented to management for decision making. This approach requires formal data gathering and statistical analysis of the data by the quality improvement teams. 3.Respect for people:A companywide quality-improvement program assumes that all employees have a capacity for self-motivation and for creative thought. Employees are given support, and their ideas are solicited in an environment of mutual respect. continuous improvement is captured in the plan-do-check-act (PDCA) cycle proposed by W. Edwards Deming At the corporate level, organizations embrace continuous improvement through personnel development programs, competing for the Baldrige National Quality Award, adopting process quality captured in ISO 9000 standards, and adopting programs such as Six Sigma and Lean Service.
28
Quality tools for analysis and problem solving; what do quality improvement teams use?what are the dif charts used?
quality improvement teams use many tools in the PDCA process.they provide a foundation for decision making check sheet:historical record of observations and represents the source of data to begin the analysis and problem identification.usually seen on excel now to facilitate data interpretation run chart:tracks change in an important process variable over time to detect trends,shifts, or cycles in performance.easy to interpret and useful in predicting trends,teams can use it to compare performance measure before/after implementation of a solution histogram:presents data collected over a period of time as a frequency distribution chart is formed pareto chart,flowchart,cause and effect diagram,scatter diagram, control chart
29
describe Cause and effect diagram( Ishikawa), whats its purpose(address and solve problems)? can u define each 6 spines, know the concept, whats its shape?how are causes uncovered?
Cause-and-effect analysis A process using a chart shaped like a fishbone to discover the root cause of a service quality problem. he said all problems can be solved with the Ishikawa diagram; plane delays can be caused by weather -offers structured approach for a team to identify,explore, and display graphically,in creasing detail, all of the possible causes related to a problem in order to discover the root cause -also known as fishbone chart 6 categories: information,customers,material,procedures,personnel.equipment -can be used to eliminate the causes of delayed departure through the process of discussion and consensus -causes are uncovered by asking who what when where why and how
30
whats the purpose of a process flow diagram? elaborate. flowchart/process: what are its symbols?
used to see bottle necks to visually improve -to visually see it and identify bottleneck -visual representations of the process and help team members identify points where problems might occur or intervention points for solution symbols: diamonds: decision points/question rectangle: activities/operation ovals: beginning and ending points arrows: all symbols are connected with arrows to represent the sequence of activities
31
How do u face profitability in a business?why is cash flow important, what is queen?
Financial statements ; 3 statements: income statement (profit/loss,balance sheet(assets+liability),statement of cashflow ) red means youre losing money. If ur pnl is positive+ if ur balance sheet is not balance, can u still go bankrupt? Yes because u may not have a cashflow. If u dont have the cashflow to pay shortterm obligations u can go broke. Cash is king.you must have a cashflow to sustain short term obligations. Credit is queen. Respect for people is critical.
32
Because the customer is present during service delivery, _____
service recovery strategies can be planned in anticipation of a service failure.
33
whats the measure of service quality? whats satisfaction?
Customers use these five dimensions to form their judgments of service quality, which are based on a comparison between expected and perceived service. The gap between expected and perceived service is a measure of service quality; satisfaction is either negative or positive.
34
describe the service quality gap model, what are the 5 gaps,what are the 5 boxes in yellow?
gap1: market research gap; is the discrepancy between customer expectations and management perceptions of these expectations. GAP 1 (Market Research) arises from management’s lack of full understanding about how customers formulate their expectations on the basis of a number of sources: advertising, past experience with the firm and its competitors, personal needs, and communications with friends. Strategies for closing this gap include improving market research, fostering better communication between management and its contact employees, and reducing the number of levels of management. gap2:design gap;results from management’s inability to formulate a service design that meets perceptions of customer expectations and translates these into workable service standards. GAP 2 (Design) might result from a lack of management commitment to service quality or a perception of the practicality of meeting customers’ expectations; however, setting goals and standardizing service delivery tasks can close this gap. gap3:conformance gap; occurs because actual delivery of the service does not meet the service standards set by management. GAP 3 (Conformance) can arise for a number of reasons, including lack of teamwork, poor employee selection, inadequate training, and inappropriate job design. gap4:communication gap;results when customer perceptions are at odds with the intended service delivery. GAP 4 (Communication) results when operations management fails to manage the evidence (all the aspects of what the customer experiences) at the point of service delivery. GAP 4 (Communication) may result from lack of controls or poor employee training. gap5:customer satisfaction; is dependent on the outcomes of GAPs 1 through 4. there are also arrows that go from "customer perceptions,customer expectations, management perceptions of customer expectations, service standards, service delivery"
35
define the cost of quality, what are the 4 things that cost to make it a quality service? what are the 4 categories of costs, what 2 of these categories account for 50-80% of total cost of quality?
- its used to achieve service quality 1.internal failure costs (from defects discovered before shipment)Costs incurred to correct nonconforming work prior to delivery to the customer. 2.external failure costs (from defects discovered after shipment) Costs incurred to correct nonconforming work after delivery to the customer or to correct work that did not satisfy a customer’s special needs. 3.detection costs (for inspection of purchased materials and during manufacture)Costs incurred to ascertain the condition of a service to determine whether it conforms to safety standards. 4.prevention costs (for keeping defects from occurring in the first place)Costs associated with operations or activities that keep failure from happening and minimize detection costs. -external and internal failure costs together accounted for 50 to 80 percent of the total cost of quality. so more attention should be paid to prevent the total cost -$1 invested in prevention is worth $100 in detection costs and $10,000 in failure costs.
36
whats service recovery?elaborate, what are its 3 phases?what are the approaches to service recovery?
-Service recovery is satisfying a previously dissatisfied customer and making them a loyal customer. You will lose customers, but it's cheaper to keep customer than gain customer, if u do lose recover that customer (email, rewards) -Service recovery: Converting a previously dissatisfied customer into a loyal customer. -provides quick resolutions to service failures -service recovery techniques can turn a potential disaster into a loyal customer 3 phases: prerecovery phase, immediate recovery phase, followup phase approaches: case by case approach, systematic response approach, early intervention approach, substitute service recovery approach
37
what 3 things are used to achieve service quality?
-Cost of Quality (Juran). -Statistical Process Control (Deming). -Unconditional Service Guarantee. (are all in different flashcards)
38
whats demings 14-point program
Management needed to refocus attention on meeting customer needs and on continuous improvement to stay ahead of the competition. His philosophy is captured in a 14-point program here are some examples: - drive out fear -institute vigorous program of education and training -breakdown barriers between departments -cease dependance on mass inspection
39
what a lean service?example? what are its 3 principle
Lean Service A process improvement philosophy based on eliminating non-value-added activities. doing more with less, accomplishing with less, accomplishing with less access -move extra employees to another division The lean philosophy has three guiding principles: 1Satisfy the needs of the customer by performing only those activities that add value in the eyes of the customer. 2.Define the “value stream” by flowcharting the process to identify both value-added and non-value-added activities. 3.Eliminate waste. Waste in the value stream is any activity for which the customer is not willing to pay.
40
whats quality function deployment
Quality function deployment A process in which a “house of quality” is constructed to incorporate customer needs into the design of a service process. “a structured methodology used to translate customer needs and expectations into specific product or service characteristics and design features, ensuring customer satisfaction and alignment throughout the development proces”