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Unit 5 Total Quality Service

M.Sc Facilities Management D31SQ Service Procurement and Provision Lecturer: Daniel Wong MBA, MSc, BBus. Unit 5 Total Quality Service. What is TQM?.

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Unit 5 Total Quality Service

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  1. M.Sc Facilities Management D31SQ Service Procurement and Provision Lecturer: Daniel Wong MBA, MSc, BBus

  2. Unit 5Total Quality Service

  3. What is TQM? • ‘Total quality management (TQM) is ‘an approach for continuously improving the quality of every aspect of business life….it is a never ending process of improvement for individuals, groups of people and the whole organisation’ (Kanji and Asher 1993)

  4. TQM emphasises…. • customer focus • management commitment • continuous improvement • increased employee involvement • teamwork • long-range thinking, employee empowerment • process management • competitive benchmarking (Ross 1993)

  5. What is quality? • ‘The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs’ ISO 8402 - 1086

  6. What is Quality Management? • Quality Management (QM) provides a ‘systematic way of coordinating activities to direct and control an organisation with regard to quality’ (ISO 9000 2005)

  7. Who needs QM? • Customer loyalty • Repeat business and referral • Operational results such as revenue and market share • Flexible and fast responses to market opportunities • Costs and cycles times through effective and efficient use of resources • Alignment of processes which will best achieve desired results • Competitive advantage through improved organisational capabilities • Understanding and motivation of people towards the organisations goals and objectives • Confidence of interested parties in the effectiveness and efficiency of the organisation • Ability to create value for both the organisation and its suppliers.”

  8. Eight Principles of QM

  9. Continuous Improvement

  10. Continuous Improvement Steps • Analysing and evaluating the existing situation to identify areas of potential improvement • Establishing the objectives for improvement Search for possible solutions to achieve the objectives • Evaluate these solutions and make a selection • Implement the selected solution • Measure, analyse and evaluate the results to determine whether the objectives have been met • Formalise the changes

  11. Unit 5 continued….What makes services different from products? • Service intangibility • Simultaneity of production, delivery and consumption • Variability of expectations: • Perishability • Participatory role of customers

  12. Gronroos Model • functional quality (how the service is performed and delivered) • technical quality (what the consumer receives) and • the image of the service firm Functional Image Technical

  13. What makes for a quality service? • Top management commitment • Human resource management • Technical system • Information and analysis system • Benchmarking • Continuous improvement • Customer focus • Employee satisfaction • Union intervention • Social responsibility • Servicescapes • Service culture

  14. …so what is a desirable service culture? • Innovation • Joy • Respect • Teamwork • Social profit • Integrity • Excellence

  15. SERVQUAL • Tangible: physical facilities, equipment, appearance of personnel, communication material. • Reliability: ability to perform the promised service dependably and accurately. • Responsiveness: willingness to help customers and provide prompt service. • Assurance: the knowledge and courtesy of employees and their ability to inspire trust and confidence • Empathy: the caring, individualised attention provided to customers.

  16. SERVQUAL Score SERVQUAL score = Perception score – Expectation score

  17. The big picture

  18. Why TQS? • Customer loyalty • Repeat business and referral • Operational results such as revenue and market share • Flexible and fast responses to market • Costs and cycles times • Alignment of processes • Competitive advantage • Understanding and motivation of people • Confidence of interested parties • Ability to create value

  19. UK Motorway Service Stations • From the video establish: • functional quality (how the service is performed and delivered) • technical quality (what the consumer receives) and • the image of the service firm

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