Professor José-Luis Guerrero-Cusumano

Transcription

1 GEORGETOWN UNIVERSITY SCHOOL OF BUSINESS ADMINISTRATION TENTATIVE SPRING 2000 Quality in Service Operations MGMT-603 Professor José-Luis Guerrero-Cusumano Office: Old North 203 Telephone; Meeting Times: Wednesday 11:40AM - 02:10PM CBN 202 Office Hours: And by appointment. To be determined -1-

2 Quality in Service Operations Introduction: The service sector has seen rapid growth since World War II as many nations shift from a manufacturing -based economy to a service economy. A major stimulus in this shift was the movement to an information age spurred by the invention of the computer and advancement in telecommunications. Industrialized nations use the gross national product (GDP) as a measure of output. In recent years the total American GDP was over $6.62 trillion, of which services accounted for over 53.2%. In terms of jobs, services account for over 71% of total employment. Employment in the United States is expected to increase between now and the year 2005 by over 20 millions jobs, of which the service sector will furnish 91% of this growth. More than 25% of the growth in the service sector will come from two industries: health services and business services. Many people are concerned that the level of service quality has been declining over the past two decades. They feel service employees are too busy, underpaid, undertrained and undermotivated to provide a good service. One of the causes is that globalization of the economy has forced businesses to compete on an international level and has caused firms to downsize and cut services to keep prices from rising. Deregulation has contributed to these job cutbacks. But perhaps one of the most important reasons for the declining service quality is the short-term goal orientation of service firms. To generate immediate profits, firms looked for ways to gain efficiencies in their operations. Standardizing operations, pushing employees to increase their productivity, and downsizing were favorites approaches. As a result, personal services to customers took second place to generating profits. When discussing the concept of service quality, it is generally accepted that there are three underlying principles should be kept in mind: 1) Service quality is more difficult for the consumer to evaluate than the quality of a good 2) Service quality is based on consumers' perception of the outcome of the service and their evaluation of the process by which the service was performed. 3) Service quality perceptions result from a comparison of what the consumer expected prior to the service and the perceived level of service received. The intention of this course is to provide quantitative tools to observe, measure and improve quality in service operations. -2-

3 Reference Materials for This Class I) Materials Required: Course Packet for MGMT PowerPoint Lecture Notes McClave, J., Benson, P.G. and Sincich, T. Statistics for Business and Economics, 7th edition, Prentice- Hall. Chapters 9 and 16. II) Computer notes located at the following directory s:\guerrero-quality in service\ The following information is already in place: 1) The Syllabus 2) PowerPoint Presentations Textbooks Recommended: 1) J. Fitzsimmons, Mona Fitzsimmons, Service Management: Operations, Strategy and Information Technology, 2 nd Edition, 1998, Irwin-McGraw-Hill, ISBN ) R. Schmenner, Service Operations Management, 1995, Prentice Hall, ISBN X 3) D. Kurt, K. Clow, Services Marketing, 1998, Wiley, ISBN ) V. Zeithaml, A. Parasuraman, L. Berry, Delivering Quality Service, 1990, Free Press, ISBN CASES: The following cases are part of your general grade for the class: Name of the Case: Classification Your Work Due Date The Insurance Company Case EXERCISE-CASE Individual work December 8 CASE Group Work December 8 Branch Performance at Nashville National Bank, by R. Metters -3-

4 Quality Function Deployment in the Automobile Industry EXERCISE-CASE Group Work December 8 Quality in Practice: Leadership and the ISO 9000 at Rubbermaid EXERCISE-CASE Individual work December 10 Return on Quality Methodology Research paper Group Work December 10 The final research paper should have: 1) An extensive bibliographical search about the topic 2) The most relevant qualitative aspects of the problem 3) Real life examples. 4) Conclusions and Recommendations 5) Power point presentations, Excel and other computer output should be used and developed. GRADES DIVISIONS: Class Participation 30% Group Project 35% Individual Projects 35%. -4-

5 Tentative Schedule of Classes DATE: TOPICS COVERED The Nature of Quality and Services NOTES "What does Product Quality Really Mean", David Garvin, Sloan Management Review Quantification of Quality: Correlation. (Chapter 16: Spearman's Rank Correlation Coefficient, 16.6) IN CLASS EXERCISE Consumer Reports' Quality Rating and Pricing The Servqual Model Introduction The Servqual Model Chapter 9: Inferences Based on Two Samples and Tests of Hypothesis. Chapter 16: Non-parametric Statistics Comparison of Two Populations. "The relationship between Customer's quality assurance, satisfaction, and effort: A cost of quality perspective", vy W. Youngdahl and D. Kellog, J. Operations Management "Communication and Control Process in the Delivery of Service Quality", by V. Zeithaml, L. Barry and A. Parasuram, J. of Marketing "Reassessment of Expectations as a Comparison Standard in Measuring Service Quality: Implications for Further Research" by A Parasuraman, V. Zeithaml and L. Berry, J. of Marketing "Expectations as a Comparison Standard in Measuring Service Quality: An Assessment of a Reassessment" by K. Teas, J. of Marketing "Refinement and Reassessment of the SERVQUAL scale" by A. Parasuraman, L. Berry and V. Zeithaml, J. of Retailing "SERQUAL and the Northern Ireland Hotel Sector: A comparative analysis - part I "Return on Quality (ROQ): Making Service -5-

6 Appendix: The Return on Quality Model (ROQ) Basics for Benchmarking and Productivity and Quality Improvement: Quality Financially Accountable", by R. Rust, A. Zahorik, T. Keinigham, J. of Marketing. The Benchmarking Process, excerpt from The Benchmarking book, by M. Spendolini November 17 Productivity and Quality Improvement: Introduction to Quantitative Technique And Data Envelopment Analysis Invited Speaker: Mr. Kevin Huang Quality Director for Citibank's Global Banking (GRB) Customer Organization. Data Envelopment Analysis, OR-notes, by J. Beasley CASE: Branch Performance at Nashville National Bank, by R. Metters "Efficiency, Profitability and Quality Banking Services", by A. Soteriou, S. Zenios, the Financial Institution Center, Wharton Invited Speaker: Mr. Ted Allenbach, Director, Development and Learning, Americas Customer Operations, Xerox Benchmarking in Service: The House of Quality and Quality Function Deployment Capturing the Voice of the Customer, by K. Crow, DRM associates The Customer's voice: Agency Depends on QFD, by M. Keagan "How Alitalia improves service quality through quality function deployment", by A. Ghobadian, A. Terry, Managing Service Quality EXERCISE-CASE Quality Function Deployment in the Automobile Industry EXERCISE ANALYSIS: QFD Process: Credit-Card Service "Quality Function Deployment for Large Systems", E. Dean -6-

7 "Quality Function Deployment: An Effective Technique for Requirement Acquisition", T. Tran, J. Sheriff Quality Deployment Planning model- House of Quality International Standards: ISO 9000 and Services Quality Prizes in the Service Industry Invited Speaker: Mr. Paul M. Campbell Vice President, Premier Innovation Institute ISO 9000 in the Low Countries: Reaching for new heights?, by J. Devos, J.L. Guerrero-Cusumano, W. Selem, Business Process Reengineering and Management J. The ISO 9000 and ISO Certificates, The Sixth Cycle, The Mobil Survey Quality in Practice: Leadership and the ISO 9000 at Rubbermaid Baldrige, European and other international prizes -7-