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Assignment - 2

Quality in Technical Concerns

Special Issues Regarding Quality in Service

By Muhammad Aatif Saif Khan FA-11/M.Sc.E.M/018 Instructor Dr.Daniel Saeed Pirzada

Fa-2011/M. Sc. EM/018


QITC Introduction

Assignment - 2

1. The global services market is becoming more competitive every day. Companies continually search for new ways to gain an edge over their competitors around the globe. The top management faces a special challenge: Meeting customer needs while remaining economically competitive. Automated processes can make an impact, but services are still labour-intensive. There can be no substitute for high-quality personal interaction between service employees and customers. It envisages the need for continuously assessing and addressing the special issues in services industry for making it a better experience for the customers. What is a Service 2. Service can be defined as any primary or complementary activity that does not directly produce a physical product that is, the non-goods part of the transaction between buyer (customer) and seller (provider)1. Basic Components of Service 3. Services have three basic components2: a. Physical facilities, processes, and procedures; b. Employees behavior; and c. Employees professional judgment. Designing a service essentially involves determining an effective balance of these components. The goal is to provide a service whose elements are internally consistent and directed at meeting the needs of a specific target market segment. Too much or too little emphasis on one component will lead to problems and poor customer perceptions. Important Dimensions of Service Quality 4. The most important dimensions of service quality are the following: a. Time: How much time must a customer wait? b. Timeliness: Will a service be performed when promised? c. Completeness: Are all items in the order included? d. Courtesy: Do frontline employees greet each customer cheerfully? e. Consistency: Are services delivered in the same fashion for every customer, and every time for the same customer? f. Accessibility and Convenience: Is the service easy to obtain? g. Accuracy: Is the service performed right the first time? Special Issues in Services 5. The services industry is much different compared to the manufacturing in which product is designed and produced away from the customer. The key identified issues are:a. Customer needs and performance standards are more difficult to identify and measure. b. Services require a higher degree of customization. c. Output is intangible. Fa-2011/M. Sc. EM/018 Page1

QITC d. Services are produced and consumed simultaneously. e. Customers are often involved in actual process. f. Services are more labor-intensive than manufacturing. g. Services handle large numbers of transactions. Addressing Special Issues in Services

Assignment - 2

6. Since, 1945, globally, there has been an exponential growth in the services sector. The special issues in the services demand optimal quality standards adoption. Few key areas that can be effectively employed to improving the returns on investment (ROI) are :a. Voice of the customer (VOC) shall be prime focus in improving the quality of services. Pro-active identification of the customer expectation through feedback forms, market surveys, secret shoppers etc. is important for defining Performance Standards. b. Trail the mistakes committed and find sound solutions to improving the service quality. c. Invest in the training of the employees; it shall help in improving returns. d. Employ Quality Circles as defined by Deming in 1950 and Ishikawa. It shall ensure interactive involvement of the employees for finding mistakes and also suggesting solutions for improving the service processes. e. Empowerment and cross functional teams should be judiciously employed. f. Effective use of information technology (IT) for quick response to customer queries / requests. g. Employ the concept of Lean Thinking to reduce waste to improve business performance. h. Embracing quality at all levels of hierarchy (both management and workers). Conclusion 7. The people in services industry have to embrace the face that Satisfaction is an attitude; loyalty is a behavior. Improving the core business processes, helps in improving customer satisfaction, and improving employee satisfaction translates into increase in profits.


Evans R. James, Lindsay W. William. Foundations of Quality Management in The Management and Control of Quality,

6 ed., India: Thomson South Western, 2005, pp. 58.


Evans R. James. Tools and Techniques for Quality Design and Control in Quality and Performance Excellence, 6th ed., USA: South Western Cengage Learning, 2011, pp. 111.

Fa-2011/M. Sc. EM/018