# Service Management

## Quiz 6 :Service Quality

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In Example 6.1, Village Volvo wants to test the results of the QFD exercise for sensitivity to changes in the relative importance of customer expectations. Recalculate the weighted scores for the QFD exercise when customer expectations are given equal relative importance (e.g., five). Has this changed the previous recommendation to focus on training?
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Training remains the most important service element.

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The time to make beds at a motel should fall into an agreed-on range of times. A sample of four maids was selected, and the time needed to make a bed was observed on three different occasions: a. Determine the upper and lower control limits for an X -chart and an R -chart with a sample size of four. b. After the control chart was established, a sample of four observations had the following times in seconds: 185, 150, 192, and 178. Is corrective action needed?
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a.
The service time taken by four maids in order to make beds in a motel, noted on three occasions is shown in the table given below:
Mean for sample 1 can be calculated as given below:
Range for sample 1 can be calculated as given below:
Similarly mean values and ranges for all the sample values can be calculated and are given in the table as shown below:
Now, calculate the mean of the means as shown in the table given above:
Calculate the mean of the ranges calculated in the table given above:
R-chart is generally constructed prior to constructing
-chart, so that it could be insured that the variability of the process is in control.
The formulas as given below are used to construct the control chart for range.
Upper Control Limit (UCL) =
…… (1)
Lower Control Limit (LCL) =
…… (2)
Where,
= Estimate of the population range.
= UCL value from the table of variable control charts constants.
= LCL value from the table of variable control charts constants.
Now, calculate the control limits for range by using the formulas as given in equations 1 and 2 as given below:
The formulas as given below are used to calculate the control limits for
-chart.
…… (3)
…… (4)
The value of the constant
can be calculated from variable control charts constants.
Now, calculate the control limits for
-chart by using the formulas as given in equations 3 and 4 as given below:
Thus, the upper and lower control limits for
-chart and R-chart are calculated as given above.
b.
A sample with observations 185, 150, 192 and 178 is taken after establishing of the control chart.
The mean of the given observations is calculated as shown below:
The range of the given sample will be equal to 42.
Thus, the given sample would not disturb the process as the mean calculated is within the limits of the
-chart and the range is also within the limits of R-chart as calculated in part a.

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How do the five dimensions of service quality differ from those of product quality ?
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Before attempting to understand service quality and product quality and their differences, it's important to understand the meaning of quality. The term quality can be defined as a product or service that is suited for its intended purpose and satisfy customer needs. Whether its services or products, quality plays an important part in customer loyalty towards a particular brand.
Product quality means inculcating features in a product which fulfills customer need and expectations. The product must be free of defect or deficiencies and if required suitable modifications must be done to satisfy customers. On the other hand, service quality is a complex subject and is a comparison of customer expectation and actual delivery of service. It involves five dimensions of assurance, reliability, responsiveness, tangibles and empathy.
The five dimensions of service quality can be described as follows:
Assurance - Knowledge of employees and courtesy towards customers play an important part in gaining customer trust. This dimension of service quality involves not just competence to perform but respect and politeness towards the customer, and an attitude of the customer's best interest.
Reliability - Reliability involves capacity to perform assured service accurately and dependably. Reliable service involves meeting customer needs every time in the same way without errors. For example, accuracy in billing services is expected every time by the customer.
Responsiveness - Responsiveness involves enthusiasm to help and provide prompt service. Keeping customers on wait for a long time without reason creates a negative opinion about service quality. If there's a service failure, recovering quickly creates a positive perception.
Tangibles - Tangibles involve appearance of personnel, equipment, communication material, and physical facilities. The state of physical surroundings is a tangible proof of care exhibited towards service quality.
Empathy - Caring and attention to customer needs is another important aspect of service quality. Empathy involves taking efforts to understand customer needs, sensitivity and approachability.
These five dimensions are used by customers to judge service quality and are based on customer expectation and actual service delivery.
Service quality differs from product quality in the sense that product quality can be measured in terms of volume, diameter, thickness, height, weight, appearance, strength, size, color and shape. They can be physically checked and defects eliminated. The five major aspects of product quality are:
Design quality - Customers prefer design and appearance as per their requirements, and hence items should be designed as per requirement.
Conformance quality - A product is made as per certain specifications, which must be adhered to all the time without any defects. Finished goods must match the specifications of product design.
Safety - While handling finished products, no harm should be caused to customers and should be safe to handle.
Reliability - Products must not become non-functional or break down easily. They should be dependable and reliable. To be called a reliable product they must be in operation for a long time.
Proper storage - Once a product is made, it must be stored and packed properly. Until expiry, the product quality should be maintained.
Thus, the five dimensions of product quality and service quality differ as product quality is something tangible and can be seen, while service quality is something which can only be felt. Feelings can vary from person to person, hence measuring service quality is a complex phenomena.

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Prepare an -chart and R-chart for complaints, and plot the average complaints per building for each crew during the 9-month period. Do the same for the performance ratings. What does this analysis reveal about the service quality of CSI's crews ?
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Illustrate the four components in the cost of quality for a service of your choice.
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The management of the Diners Delight franchised restaurant chain is in the process of establishing quality-control charts for the time that its service people give to each customer. Management thinks the length of time that each customer is given should remain within certain limits to enhance service quality. A sample of six service people was selected, and the customer service they provided was observed four times. The activities that the service people were performing were identified, and the time to service one customer was recorded as noted below: a. Determine the upper and lower control limits for an and an R -chart with a sample size of 6. b. After the control chart was established, a sample of six service personnel was observed, and the following customer service times in seconds were recorded: 180, 125, 110, 98, 156, and 190. Is corrective action called for?
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Several complaints recently have been sent to the Gotham City police department regarding the increasing incidence of congestion on the city's streets. The complaints attribute the cause of these traffic tie-ups to a lack of synchronization of the traffic lights. The lights are controlled by a main computer system, and adjusting this program is costly. Therefore, the controllers are reluctant to change the situation unless a clear need is shown. During the past year, the police department has collected data at 1,000 intersections. The data were compiled on a monthly basis as shown below: a. Construct a p -chart based on the above data. b. Should the system be modified if, during the next 3 months, reports of congestion at these 1,000 intersections indicate the following:
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Why is measuring service quality so difficult ?
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What further action should Gail Pearson take in view of this incident ?
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Critique the WtA gap analysis. Could there be other explanations for the gaps?
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Prepare an "improved" response letter from Gail Pearson.
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Briefly summarize the complaints and compliments in Dr. Loflin's letter.
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Make recommendations for closing the gaps found in the WtA.
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Discuss possible ways to improve service quality.
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Describe some potential strategies for reducing CSI's staffing problems.
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How can the recovery from a service failure be a blessing in disguise ?
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Why do service firms hesitate to offer a service guarantee ?
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After becoming familiar with their jobs, the sorting machine operators of Example 6.3 now average only two address errors per 100 parcels sorted. Prepare a p -chart for experienced sorting operators.
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