Quality level Productivity and Quality Improvement Check Act

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Quality level Productivity and Quality Improvement Check Act Time Do Plan

Quality level Productivity and Quality Improvement Check Act Time Do Plan

Four Stages in Service Firm Competitiveness 1. Available for service 2. Journeyman 3. Distinctive

Four Stages in Service Firm Competitiveness 1. Available for service 2. Journeyman 3. Distinctive competence 4. World-class service delivery Customers patronize service firm for reasons other than performance. Customers neither seek out nor avoid the firm. Customers seek out the firm on the basis of its sustained reputation for meeting customer expectations The company’s name is synonymous with service excellence. Its service doesn’t just satisfy customers; it delights them and thereby expands customer expectations to levels its competitors are unable to fulfill. Operations is reactive, at best. Operations functions in a mediocre, uninspired fashion. Operations continually excels, reinforced by personnel management and systems that support an intense customer focus. Operations is a quick learner and fast innovator; it masters every step of the service delivery process and provides capabilities that are superior to competitors. Meets some customer expectations; consistent on one or two key dimensions. Exceeds customer expectations; consistent on multiple dimensions. Raises customer expectations and seeks challenge; improves continuously. SERVICE QUALITY Is subsidiary to cost, highly variable.

Four Stages in Service Firm Competitiveness (cont. ) 1. Available for service BACK OFFICE

Four Stages in Service Firm Competitiveness (cont. ) 1. Available for service BACK OFFICE Counting room. 2. Journeyman Contributes to service, plays an important role in the total service, is given attention, but is still a separate role. CUSTOMER Unspecified, to be A market segment whose satisfied at minimum cost. basic needs are understood. INTRODUCTION OF NEW TECHNOLOGY When necessary for When justified by cost survival, under duress. savings. WORKFORCE Negative constraint. 3. Distinctive competence 4. World-class service delivery Is equally valued with front office; plays integral role. Is proactive, develops its own capabilities, and generates opportunities. A collection of individuals whose variation in needs is understood. A source of stimulation, ideas, and opportunity. When promises to enhance service. Efficient resource; disciplined; Permitted to select among follows procedures. alternative procedures. FRONT-LINE MANAGEMENT Controls workers. Controls the process. Listens to customers; coaches and facilitates workers to enhance their career. Source of first-mover advantages, creating ability to do things your competitors can’t do. Innovative; creates procedures. Is listened to by top management as a source of new ideas. Mentors

Continual Improvement as a Competitive Strategy ä Analogy with Just-in-Time Manufacturing ä Inventory and

Continual Improvement as a Competitive Strategy ä Analogy with Just-in-Time Manufacturing ä Inventory and Waiting Line Analogy ä Continual Improvement as a Service Organization Culture ä Management Implications

Inventory and Waiting Line Analogy Feature Inventory Waiting line Costs Space Quality Decoupling Opportunity

Inventory and Waiting Line Analogy Feature Inventory Waiting line Costs Space Quality Decoupling Opportunity cost of capital Warehouse Poor quality hidden Promotes independence of production stages Work in process keeps machines busy Detailed scheduling not necessary Opportunity cost of time Waiting area Negative impression Allow division of labor and specialization Waiting customers keep servers busy Avoids matching supply and demand Utilization Coordination

Traditional vs World-Class Service Organizations Dimension Traditional World-class System assumption Job design premise Structure

Traditional vs World-Class Service Organizations Dimension Traditional World-class System assumption Job design premise Structure Relation to others Employee orientation Management Technology Information Closed system Division of labor Rigid Individual Task Supervisor Replace human effort Efficiency Open system Flexibility Fluid Team player Customer Coach and facilitator Assist service delivery Effectiveness

Deming’s Foundations of Quality Improvement Program ä Customer Satisfaction ä Management by Facts ä

Deming’s Foundations of Quality Improvement Program ä Customer Satisfaction ä Management by Facts ä Deming’s Wheel ä Respect for People

Mega Bytes Restaurant ä How is the Seven Step Method (SSM) different from Deming’s

Mega Bytes Restaurant ä How is the Seven Step Method (SSM) different from Deming’s PDCA cycle? ä Prepare a cause-and-effect diagram for “Why customers have lone waits for coffee” ä How would you resolve the difficulties that study teams have experienced when applying SSM?