Quality Issues - Continuous Improvement
Go to the Continuous Improvement Module, for the reading associated with this section. It includes a description of a Team Project which I may allow as alternative to the Electronic Journal Article (Activity Two) under certain conditions, which are spelled out there. You must receive prior approval, based a proposal you must submit, in order to do this. If all conditions I set are not met, than I will still expect an EJA from each person.
Continuous Improvement documents are associated with Continuous Improvement Module,
Quality-costs can be organized into four major categories:
Quality of services is more difficult to measure than quality of manufactured goods. Generally though, a user of a service has a few characteristics and attributes in mind that he or she uses as a basis for comparison among alternatives. Lack of one attribute may eliminate a specific service firm from consideration. Quality also may be perceived as a whole bundle of attributes where many lesser characteristics are superior to those of competitors.
Determinants of Service Quality
Professors Berry, Zeithaml, and Parasuraman conducted extensive, in-depth interviews with 12 consumer focus groups to try to identify general attributes or determinants of service quality. Table 1 describes their ten determinants of service quality. The same professors also drew the following conclusions from their study:
1. Consumers' perceptions of service quality result from a comparison of their expectations before they receive their actual experience with the service. In other words, service quality is judged on the basis of whether it meets expectations.
2. Quality perceptions are derived from the service process as well as from the service outcome. The way the service is performed can be a crucial component of the service from the consumer's point of view.
3. Service quality is of two types, normal and exceptional. First, there is the quality level at which the regular service is delivered, such as the bank teller's handling of a transaction. Second, there is the quality level at which "exceptions" or "problems" are handled. This implies that a quality control system must recognize and have prepared a set of "plan Bs" for less-than-optimal operating conditions. In addition, when a problem occurs, the low-contact firm may suddenly become a high-contact firm. Thus good customer relations are important in maintaining quality, regardless of the type of service.
As a result of the study's conclusions and subsequent follow-up interviews
with service managers, Berry and his colleagues suggest that service quality
can be measured by how effectively a service can close the gaps between
expectations and the service provided.
Table 1. Determinants of Service Quality
Source: Adapted from A. Parasuraman, Valerie A. Zeithaml, and Leonard L. Berry, "A Conceptual Model of Service Quality and Its Implications for Future Research," Journal of Marketing (Fall 1985): 44.
Reliability involves consistency of performance and dependability. It means that the firm performs the service right the first time and also means that the firm honors its promises.
Examples:
Quik Trip Corporation
http://www.quiktrip.com/aboutqt/aboutqt.html
Service Quality issue: Reliability
Reliability involves consitensy of performance and dependability --
providing a service right the first time. Quik Trip is
dedicated to making each trip to their store an enjoyable one for the customer.
They demonstrate this commitment through:
A commitment to Quality ...
Making you feel special when you come to a Quik Trip - their
employees are friendly and helpful and the stores are clean and well lit.
A commitment to Do Things Right.....
Each of their 325 stores are focused on getting things right
everytime.
They Guarantee their service and product....
"Our promise to our customers is simple: everything we do or
sell is guaranteed. If your not completely satisfied, we'll refund
your money" They back this up with a stronger statement concerning
fuel -- "if your car has a fuel - related problem, bring us the receipt
from your mechnaic and we'll pay for the repair."
Quality in their Facilites....
Promise to maintain a quality appearance through new stores and remodeling
of old ones.
Quality in their employees....
They hire good people, train them well, and pay good wages -- in return
they ask for them to meet their demanding standards.
Qualtiy in their Management....
Managment want's their employees to succeed.
Quality in their Precautions....
They care about the security of their customers -- by providing bright
lighting and video cameras and a raised check out.
Quality in Community Support
They pay an average of $750.000 in state and local taxes each year,
they don't sell alchohol or tobacco to minors and finally they are supporters
of fundraising campaigns.
Deborah Freeman
Responsiveness concerns the willingness of readiness of employees to provide service. It involves timeliness of service.
Examples:
Delta Airlines: Delta Customer Commitment
http://www.delta-air.com/care/service_plan/index.js
Service Quality at issue: Responsiveness
In response to the tremendous growth of air travel and the demanding
need
for excellence in service, Delta Airlines has outlined 12 promises,
which
they call their Delta Commitment.
One of those issues deals with responsiveness. In order to improve
the
responsiveness to customer's complaints, concerns, and suggestions,
Delta
Airlines promises to respond to complaints within 30 days exceeding
the
60-day response standard adopted by the ATA member airlines. Customers
can
express their travel comments by:
- calling 1-800-221-1212
or using member services number
- mailing them
via Delta's postage-paid Customer Comment card
- e-mail
- mailing them
to Delta Air Lines, P.O. Box 20980,
Atlanta, GA 30320-2980
Michelle Zillmann
Eddie Bauer
URL: www.eddiebauer.com
Quality Gap: Security and Responsiveness
Eddie Bauer on line retail service has addressed
many of the
different quality issues discussed in our class. I have chosen
to talk
about two of the main concerns that Eddie Bauer has addressed.
Security when shopping on-line is probably the
biggest concern of
the buyer. Is my credit card number being looked at by people
that do
not have a reason to be looking at the number? Eddie Bauer
on-line
service holds your security at a high standard and understanding
of the
dangers of transmitting secure information over the net. The
safety and
confiedentiality of the transfer is held to the highest of standards.
Orders placed on eddiebauer.com are encrypted using SSL technology.
Responsiveness is another issue that concerns
the people at
eddiebauer.com. It is there moto to sell only top quality
apparel at an
affordable price. The return policy is one of the best in
the
industry. All one has to do is send the clothing back and
you will be
refunded the full price that was spent on the apparel.
Flynn Harvey
Competence means possession of the required skills and knowledge to perform the service.
Examples:
EMSL
http://www.emsl.com/index.html
Competence, Credibility
EMSL is an organization that provides services to analyze and
improve
air and environmental conditions. They are leaders in asbestos, lead,
environmental chemistry, mold and indoor air quality. EMSL provides
environmental laboratory testing with experienced experts in environmental.
They are focused on providing clients with reliable, fast, cost effective
environmental analysis. EMSL have 20 NVLAP accredited laboratories
spread
throughout the U.S. and they also have mobile labs to better serve
customers'
needs. They have a wide range of accreditations. This ensure that their
labs
meet the highest standard of quality. With the never ending concerns
about
air quality and the increase of air-born allergy problems, EMSL has
the
knowledge and experience to combat against such concerns.
Kevin Hanlin
Ford Motor Company
http://www.ford.com/
Quality in their products and service to their customer
is the main focus
of the Ford Motor Company. Ford strives to be the best in all
areas but as I
see it they excel in two areas, competence and security.
Competence in the area of auto repair stands out
as number one. Ford
dealers have factory trained technicians who know more about your Ford
car or
truck than the average repair shop. They have the latest equipment
specifically designed to be used on Ford vehicles. Ford dealers
also have
access to information about the cars and trucks that is not available
to
repair facilities outside the Ford dealer network. This gives
them a great
advantage in repairing Ford vehicles which means you will probably
get your
car or truck repaired right the first time you bring it to them.
Security after you purchase a new Ford also stands
out. Along with the
standard warranty ford offers an extended warranty which protects the
buyer
after the standard warranty has expired. These warrantys give
you the
security of knowing that you will not be hit with big repair bills
while
under this umbrella of protection. Ford also gives the buyer
Roadside
Assistance to help if you break down on the road. Roadside Assistance
is
free while under the warranty period but can still be used after warranty
period for a fee. To use Roadside Assistence all you need to
do is call an
800 number and they send someone to help fix whatever is wrong with
your
vehicle.
These two areas are very important to the buyer
and add value to their
purchase of a new vehicle.
Ken Ramsey
Title: About LCMC
URL: http://www.lcmc.com
Issues: Competence
Credibility
The services provided by
trained specialists at LCMC help prevent or
minimize gaps. The Labette County Medical Center has a family
of
well-trained doctors and nurses that are clearly competent in their
duties.
They do possess the required skills and knowledge to perform services
for
customers. Also, the well-trained specialists continually make
the best
possible decisions for their customers. Credibility involves
trustworthiness and honesty. The doctors and nurses at LCMC do
have the
customer's best interest at heart.
Mandy Swayze
Hewlett Packard about the corporations commitment to satisfaction.
http://www.hp.com/abouthp/corpobj.html#customers
This site tell us how HP is aware that customer satisfaction is the
bread and butter of their business.
Chuck Boyce
Access involves approachability and ease of contact.
Examples:
The Block
URL- www.kagi.com/mennigmann/security.html
Quality gap at issue- security, access
This is a high quality computer security that uses
a unique way to
prevent people from gaining access to your computer. The screens
are set up
so that when you are logging on to your computer it looks as though
you are
actually logging off. This is used to confuse unauthorized users.
This
system also does not expect 'real passwords.'
The access is disguised by requiring the use of two passwords instead
of one
as used by most computers.
Angie Chilcott
Time Warner Inc.
http://www.timewarner.com
Quality gap at issue: Credibility
At Time Warner, we share a bond of trust with our customers and the
communities--local and global--of which we are a part. This tells
me that
they are part of my community and that they will do anything to make
me
satisfied. I can call them at any time if I had a question.
Second Quality gap at issue: Access
This is an outline that Time Warner provides for those that are having
problems with their cable.
If you have a comment or question regarding your cable service, please
contact your local Time Warner Cable service provider at the number
on your
bill, or fill out the form below to send an email message.
First Name:*
Last Name:*
Street Address:*
Address 2:
City:*
State:*
Zip:*
Daytime Phone:
Email Address:
Your Local Service Provider:
Subject:
Comments or Questions:
*Information is required
This gives you the exact information to use for direct access to their
service. Remember that this is a brand new company with all sorts
of
promises, so they need all the support from consumers that they can
get.
There is no reason for them not to make it easy for us.
David Adden
American Express
http://www.americanexpress.com
Security, Access
American Express is concerned about customer privacy. They collect
customer
information that is needed and tell customers how they will use the
information. American Express gives customers choices about how
their data
will be used and they ensure information quality by using information
security safeguards. The company limits the release of customer
information. They are responsive to customers' request for explanations.
For example, they explain why customers are denied credit. American
Express
extends these privacy principles to their business relationships by
assisting and providing services to customers, supplying information
for
identifying prospective customers and give the opportunity to send
mailings
to approved American Express customer lists. They hold all their
employees
responsible for privacy policies.
Customers can access this company by phone and the Internet. Access
to
customer data is limited to those who specifically need it to conduct
business responsibilities.
Cherie Dixon
Children Now
http://www.childrennow.org/
The quality gaps at issue: Access and responsiveness
This is a non-profit organization that is working to bridge the gap
between
insureed and uninsured children. The other hope of the service
is to create
a improved responsiveness to childhood illness claims in the medical
insurance industry. The service they provide is used to find
ways of meeting
access needs to medical coverage for children and acts as a advocate
for
children. The reason this particular organization would be more
appealing
than another such organization or government-sponsered organization
is that
it is primarily presented though the internet with easily accessed
information. The other service quality gap not discussed would
be the
understanding that the service provides through its expert power.
Maria Johnston
Amazon.com
<http://www.amazon.com/exec/obidos/subst/help/desk.html/ref=gw_m_b_he/102-5977069-8994553>
Service Quality at Issue: Access
The ability to contact persons at Amazon is wonderful. They respond quickly through email, but not by phone. The help site is a great place for finding answers to some questions, but if in doubt email them,. They answer questions that need to be answered. The communication aspect is also covered here. Although they do not answer by telephone, they still answer questions and communicate with their customers.
Amazon is strictly an internet company so the advertising and public
appeal is what draws customers to the site. In the beginning, people
were some what afraid of the internet but by being open to answering questions
from their customers. By answering all of the questions in a timely
manner Amaxon reassured its customers on the security of the site, and
all other aspects of internet shopping.
Courtesy involves politeness, respect, consideration, and friendliness of contact personnel (including receptionists, telephone operators, etc.)
Examples:
The Courtesy Group
http://www.motorcoach.u-net.com/tcg1.htm
Courtesy & Understanding
The Courtesy Group is a company specializing
in ensuring a customers
satisfaction in executive traveling. No matter what the circumstances,
they will make your traveling experience as satisifying and comfortable
as
possible. They assure to give you the best attention when it
comes to
dealing with them. They can help you with other things as well.
They can
help you arrange any extracurricular activities that you may want to
enjoy
while on your trip. If you have any special business arrangements,
they
can assist you with those as well. I believe that the Courtesy
Group to
be a company that deals with the understanding and courtesy quality
issues
of service management.
Ashley Baldwin
Southwest Airlines
www.southwest.com
Quality Gap: Courtesy
The mission of Southwest Airlines is dedication to the highest quality
of customer service delivered with a sense of warmth, friendliness, individual
pride, and company spirit. I personally have flown on Southwest Airlines
many times, and have found them to be the friendliest of any other airline
I have flown. This is a quality that Southwest Airlines is known
by, and prides themselves on.
Shannon Shuman
Communication means keeping customers informed in language they can understand and listening to them. It may mean that the company has to adjust its language for different consumer - increasing the level of sophistication with a well-educated customer and speaking simply and plainly with a novice.
Examples:
The Kansas Fireworks Association
http://www.kansas.net/~davidb/kfa.html
Communication, Responsiveness
The Kansas Firework Association communicates
laws, rules,
restrictions and regulations set forth by the State of Kansas to
the
public and people who sell fireworks in the state of Kansas.
They try
to collect all pertinent information on safety issues and how to
keep
Kansans from breaking the law while using fireworks.
The KFA has established programs to distribute
information to the
public and to the members of the association. They also hold
meetings,
and publish information to distribute through the Kansas Fireworks
Safety Committee, volunteer and municipal fire departments and through
other media like radio, tv & newspapers.
Brian Winsor
Title of the Site: General Motors
URL: http://www.gm.com/
Quality Gap: 1. Communication and 2. Security
1. GM has developed a comprehensive Web site, which displays all
its
products and provides information about dealers, prices, including
monthly
payments, and the cost of leasing. It is possible to look at a specific
model and configure the exact automobile you desire.
2. General Motors has long been a world leader in developing safer
and more
environmentally friendly vehicles. By introducing the GM family
of
earth-friendly vehicles, they are taking major steps in creating
the next
generation of automotive transportation to improve the driving experience,
by producing vehicles such as GM EV1. It's a vehicle that
doesn't have an
engine, or a transmission, or even spark plugs. It's noiseless,
odorless,
and free of all emissions. EV1 is the world's first modern
production
electric car.
Romao Varela
Water District # 1 of Johnson County
Quality gap at issue, Reliability and Communication
This local utility states in their mission statement .."to provide a
safe and reliable supply of water to our customers at a
reasonable cost". Their customers trust the Water District
to provide quality drinking water, and the utility continuously tests
and monitors the local water supply to ensure the best. Customers
can count on a supply of water without interruptions and
should have no worries about fire protection.
Customer Service representatives must be able to communicate with all
types of clients, from the very knowledgeable to the
less experienced person with their first home. The web site has
many frequently asked questions and also explains about the
water charges, including a comparison with a Kansas City water bill.
Vicki McQuain
Credibility involves trustworthiness, believability, honesty. It involves having the customer's best interests at heart.
Examples:
Commerce Q
http://www.commerce-q.com
Quality gap: Security & Credibility
Commerce Q is a very unique online company dealing within both financial
and e-commerce aspects. The total purpose behind Commerce Q is to
make transactions between online merchants, suppliers, and customers safer.
Credit card processing for those involved is extremely fast, 5-10 seconds.
Even though the processing is fast, each transaction is put through a variety
of authentication levels. One anti-fraud analysis cross- references
card id numbers and sign up data with 150 variables based upon millions
of past transactions.
This same e-company exhibits a great deal of credibility as well!
One service they provide, “Q-Partnerz,” allows web owners to host advertisements,
and be assured that they will be paid the proper commission. It also
enables an individual website owner to advertise on hundreds of sites without
the having to tabulate commissions for each site. Commerce Q tracks
all partnered sites, counting all sales related to those external links.
Agreed upon commission rates are then used to determine what is owed by
one site to another. On every predetermined pay-out date, Commerce
Q will automatically transfer earned commission to the correct accounts.
Commerce Q’s credibility with assured payment has also helped their member’s
credibility.
Eric W. Smith
Saturn
http://www.saturn.com/company/faq.html
Service Quality Issues: Reliability & Creditability
Since day one Saturn has worked a little differently than most
other car companies. The employees at Saturn don't punch time clocks.
Labor and Management share the same cafeteria; in fact, there is not even
"Labor" and "Management." Everyone's simply called a "Team Member."
These team members are a group of smart, dedicated folks working together.
Making decisions on how to run a company. Their company.
Saturn has strong values and a powerful mission statement.
Their values are commitment to customer enthusiasm, commitment to excel,
teamwork, trust and respect to the individual, and continuous improvement.
The Saturn mission statement is stated as: Earn the loyalty of Saturn owners
and grow our family by developing and marketing U.S. manufactured vehicles
that are world leaders in quality, cost, and customer enthusiasm through
the integration of people, technology, and business systems.
Jaime Cales
Deere and Company
http://www.deere.com
Quality Gap: Credibility and Competence
The Deere and Company is the world's leading producer of agricultural
equipment and a leader in the production and manufacturing of equipment
for construction, forestry, off-highway industry as well as lawn and turf
care. It also provides products and services in credit, health care,
and special technologies.
John Deere's growth and prosperity are due to the "long-standing relationship
with those who work and shape the land" as well as the commitment to provide
"Genuine Value".product quality, customer service, business integrity,
and high regard for individual contribution. The company's focus
has been on providing the best solutions and value in equipment, services,
and support effectively and efficiently since 1837.
The Deere and Company has benefited from its tradition of integrity
and teamwork, the advanced skills and training of employees and the long
existing relationship between the company and its customers, employees,
dealers, and business partners around the world. It has developed
equipment, technology and service businesses that serve customers through
a network of well-equipped, well-trained, independent dealers supported
by the major marketing organization. Product engineering activities
are conducted worldwide to ensure the company's ability to meet customer
needs in diverse markets. Over $1.5 million is invested each working
day in product research and development. Therefore, John Deere will continue
to concentrate on improving human resources (employee satisfaction and
training), increasing the customer focus (loyalty, support, and service),
and updating and refining the business processes (productivity, quality,
cost, environment, and technology).
Stephen Page
Security is the freedom from danger, risk, or doubt.
Examples:
The WWW Security FAQ
URL- www.w3.org
Quality gap at issue- security, access
This internet service provider has come up
with a device to help
protect home and work computers from various bugs and server issues.
They
have a high quality of security provided to their customers.
The access is
limited to the customers as a way to increase the amount of security
offered. If any of my family members were looking for computer
security I
would recommend this service provider, based on the many options of
security
offered. This internet service provider seems to have a great
deal of
credibility. They began as a small business and have grown over
time.
Melissa Sims
Cisco Systems
http://www.cisco.com/public/sw-center/internet/netsonar.shtml
Quality gap at issue - security, credibility
This website offers products from the Cisco Systems Company. This
page in particular talks about it's secure scanner. This product
allows for better security as networks increase within
organizations. This scanner works throughout the network looking
for possible security breaches and potential problems with in the
network systems. This product also produces credibility to it's
purchaseor by allowing their networked systems to run efficiently
and cut overall costs and repairs within the systems.
Charles Schneickert
Citicorp
http://www.citicorp.com
Security, Access
Citicorp wants to ensure security for it's customers. They safeguard
according to strict standards of security and confidentiality, any
information their customers share with them. They limit the collection
and
use of customer information to the minimum that is required to deliver
superior service to their customers, which includes advising their
customers
about products, services and other opportunities. They permit
only
authorized employees, who are trained in the proper handling of customer
information, to have access to the information. Anyone who violates
privacy
promise will be subject to normal disciplinary processes. Citicorp
will not
reveal customer information to any external organization, unless the
customer agrees to the release of their information. The company
also tells
their customers at least once annually how they may remove their names
from
marketing lists. Any organizations that are hired to provide
support
services are required to conform to privacy standards and may be audited
for
compliance.
Customers may access their accounts in person, over the phone, or by
using
the Internet. Citicorp attempts to keep customer files complete,
up-to-date, and accurate. Customers are told how and where they
can
conveniently access their account information.
Jessica Steckler
PepsiCo
http://pepsico.com/
Quality Gap at Issue: Security
PepsiCo. Inc. is the second largest beverage distributor in
the world.
They have many service expectations, environmental security being one
of
them. Consumers want PepsiCo to act responsibly.
Being a consumer products company, PepsiCo does not have the
environmental
problems of heavy industry. However, they are faced with the
challenge of
effectively packaging and distributing the product. To meet this
safeguard
requirement while meeting consumers' demands, PepsiCo recycles their
packaging products whenever possible. PepsiCo does everything
they can to
close the gap between environmental expectations and an effective packaging
and distribution process.
Chad Patton
Understanding/knowing the customer involves making the effort to understand the customer's needs.
Examples:
Sodexho Marriott Services: Schools
http://www.sodexhomarriott.com/schools/index.htm
Service Quality at issue: Understanding
Sodexho Marriott Services provides food to hundreds of schools across
America. SMS has tried to minimize the gap by trying to understand
what
foods best appeal to different ages. They have tailored their nutrition
programs to customer ages.
They have found that young children delight in their bright posters
and
classroom materials promoting nutrition awareness, while teenagers
customers
appreciate the diversity of food presentations. In order to diversify
the
food presentation, SMS created food stations, which include: soup,
salad,
grill, desserts, drinks, deli, pizza, ice cream, lean cuisine,
and many
others.
SMS President of school services says, "The goal in each school is to
provide primary customers-the students-with high-quality, good-tasting,
nutritious meals, and a cleaner, safer learning environment".
Michelle Zillman
Mountain Energy Corporation
www.mtnenergy.com
Quality Gap: Understanding
Mountain Energy Corporation is a locally owned, full-service natural
gas marketing company. Mountain Energy is committed to superior customer
service and efficient administrative systems to support the long term need
of their clients. As a result of the deregulation of sales, the natural
gas business is becoming more and more competitive. With that competition
customer can buy their natural gas through Mountain Energy and significantly
reduce their energy costs.
Shannon Shuman
Tangibles include the physical evidence of the service.
Examples:
Consistent with the concept of employee empowerment, individual employees
self-check their work and that of the employee preceding them. This type
of "source" inspection may be assisted by the use of controls such as a
fail-safe device called a poka-yoke, a foolproof
device or technique that ensures production of good units every time. It
uses checklists or special devices to avoid errors, and provides quick
feedback of problems. The idea is to treat the next step in the process
as the customer, ensuring delivery of a good product to the next "customer"
in the production process.
Evans [32] says a poka-yoke is a device that permanently prevents the recurrence of the defect it is designed to eliminate. One example is installing a device on a drill that counts the number of holes drilled in a work piece; a buzzer sounds if the work piece is removed before the correct number of holes have been drilled. Similarly, to ensure that critical bolts are tightened on vehicles in a Toyota plant, the wrenches used are kept in a bucket of dye; when a bolt has been missed, it lacks the highly visible color. Poka-yoke epitomizes worker involvement in quality assurance. Because the workers best understand the causes of defects as well as the processes, they are likely to propose the most ingenious solutions.
Identify and report one web site that relates to one of the different quality issues from Table 1. These are potential gaps in services, that is, these are services that can close the gaps between expectations and the service provided. Your site should demonstrate how a particular organization is providing a service that prevents, or minimizes, that particular gap. [See Assignment 2-3, also]
Format in email message:
Title of site,
URL,
quality gap at issue,
short explanation (long paragraph).
These will be posted to this page.
Send your comments to the instructor, subject: MG 476 2-1
Discuss briefly a poka-a-yoke or fail-safe device you have used or seen used. Remember, this may be a very simple, every-day device, if it meets the criteria described.
This should take one or two paragraphs of explanation.
Send your comments to
the instructor, subject: MG 476 2-2
As you are searching for sites to use in Assignment 2-1, where you can only use one of the Quality Issues, you probably came across one or more sites that represent two or three Quality issues at a time. Now, choose one of them, and create a Quality Issues web page, using one of those companies and explain, briefly, how that company or orgainzation addresses each of these two or more Quality Issues. On your web page, use (at least one, no more than three) images and at least two links to external sites. This is primarily a web page creation exercise; content is important, but, secondary to practice at the web page construction, from scratch, on a theme.
Send your web page as an HTML (.htm or .html) file, along with your
image files, as attachments to an e-mail message to the instructor
as MG 476 2-3.
William
L. Smith Teacher Home PageService
Management Home Page
Emporia
State University