Managing Quality

Business

Quiz 8 :
Designing Quality Services

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Quiz 8 :
Designing Quality Services

"Service is unique when compared with the manufactured goods". Justification: • Services are intangible. • Services are not pulled out and stored in stock over a period of time. • But Products have specific physical attributes. • Services are heterogeneous. That is, any 2 services are not equal. Each event of a service has some degree unique. • The consumption and production of a service occurs frequently. • Customers are more involved in the making of a service as the opposite of a manufactured product. • The manufacturers do not have a direct communication with the customers. • And sometimes, the feedback from the customer does not reach the manufacturers. • Thus, developing a quality manufactured goods is not achievable due to the lack of communication. • A company provides good quality service by understanding the needs of the customer. • A service provider gets comments about their service from the customer, and they rectify their mistake and provide better quality service to the clients. • A client and the company are communicating their needs and feedbacks through online services. • Thus, managing service quality is achieved by getting feedback from customers. Hence, due to the above reasons, "service is unique when compared with the manufactured goods".

Consider the following data and find the profit margin: A national electronics retail chain charges $350 for a service contract. The company sends $120 to an insurer. Find the profit margin (excluding taxes) using the following formula: img …… (1) Here, the income is $350, and the expenditure is $120. Substitute 350 for income and 120 for expenditure in Equation (1) to find profit margin. img Thus, the profit margin excluding the taxes is img

Customer coproduction: Customer coproduction refers to a situation, where the service provider, and client work to produce the service. Example for customer coproduction: A beautician bleaches Ms. X's face. Here, Ms. X is involved in the service by giving information about the type of whitener used for bleach. Merits of customer coproduction for service supplier: • The main advantage of customer coproduction is, the service supplier fulfills the needs of the client due to the direct link between the service provider and client. Demerits of customer coproduction: • The demerits of customer coproduction faced by service supplier are listed as follows. • Changes in work practice • Different view of service demands • Sanitation • Cleanliness Thus, the example for customer coproduction, and the merits, and demerits of customer coproduction are described.

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