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Be able to investigate quality issues
Transcript of Be able to investigate quality issues
Quality goes far beyond the product itself to the relationship between the company and its suppliers and customers. Concepts and techniques of quality management that can be found and work in factories can also be used to improve the quality of service delivery systems.
Quality systems and techniques
Customer value chain
It is a business concept that represents the creation of value for a customer. It is similar to the Supply Chain.
Charts the various stages of production and supply from raw materials to the sale of the final good to the end user.
Often measures costs
Is based on the increase in value to the ends user
Customer Value Chain
What is it?
Value Chain Analysis is useful for working out how you can create the greatest possible value for your customers.
We are paid to take raw inputs, "add value" by turning them into something of worth.
Manufacture "adds value" by taking a raw material of little use by itself and converting it into something that people are willing to pay money for.
for the Goods
Transform Raw Good
This idea is just as important in the service industry. Where people use inputs of time, knowledge, equipment and systems to create services of real value to the person being served – the customer.
Person Being Served
Where to create value?
Customer value chain involves breaking down every step that contributes towards the end satisfaction of the customer. A company can analyse all the incidences when activities contribute towards satisfaction.
There are two ways to improve their positions of better satisfaction: (1) improve existing incidences to create better satisfaction, and (2) finding new incidences where it could contribute to satisfaction.
Value Chain Analysis Tool
Value Chain Analysis helps you identify the ways in which you create value for your customers, and then helps you think through how you can maximize this value: whether through superb products, great services, or jobs well done.
How to use this tool
Value chain analysis consists of three-steps
Evaluation and Planning
First, you identify the activities you undertake to deliver your product or service
Second, for each activity, you think through what you would do to add the greatest value for your customers
Thirdly, you evaluate whether it is worth making changes, and then plan for action.
Evaluation and Planning
Fishbone Analysis 'Ishikawa'
Diagnosing Critical Service Issues
Best to be done by the people involved in the work process being reviewed. First step may include task forces that work between departments and include people in the 'lines of flow'.
When to Use a Fishbone Diagram
When identifying possible causes for a problem
Especially when a team thinking tends to fall into ruts
Fishbone Diagram Procedure
Agree on a problem statement. Write it at the centre right on the diagram. Draw a box around it and draw a horizontal arrow running to it.
Brain storm the major categories of the causes of the problem. If this is difficult then generic headings will do (as below).
Write the categories of causes as branches from the main arrow.
Brainstorm all the possible causes of the problem. Ask: "Why does this happen?" As each idea given, the facilitator writes it as a branch from the appropriate category. Causes can be written in several places if they relate to several categories.
Again ask "why does this happen?" about each cause. Write sub-causes branching off the causes. Continue to ask why generating a deeper level of causes.
When the group runs out of ideas, focus attention to places on the chart where ideas are few.
Gap analysis is a managerial tool used to compare a company’s performance or customer expectations with current outcomes. It is used both in product MANAGEMENT and SERVICES marketing to evaluate and improve business performance.
Marketers use service gap analysis to measure the difference between expectations and perceived outcomes.
One potential gap is the difference between management perceptions of consumer expectations and actual consumer expectations.
A third potential gap can exist between service quality standards set by management and the actual service quality delivered. Just because managers set a standard does not mean it will be attained or maintained.
Second potential gap can be the difference between managers’ perceptions of consumer expectations and the service quality specifications that managers create. Service quality includes timeliness, accuracy, friendliness, and attentiveness. Managers who emphasize fast service may miss consumers’ need for friendliness or attentiveness.
Another service quality gap can exist between what is provided and what is promised.
Communications gaps are a common problem between all levels of organizations.
An additional service quality gap can exist between received service and expected service.