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Module 1: Striving for Service Excellence

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Improving Service Quality and Productivity - Part 3

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MODULE OVERVIEW

Define and measure service productivity
Understand difference between productivity, efficiency and effectiveness
Recommend key methods to improve service productivity
Understand how to integrate all the tools to improve the quality and productivity of customer service processes
Explain how TQM, ISO 9000, Six Sigma and the Malcolm-Baldrige, and EFQM approaches relate to managing and improving service quality and productivity

Productivity: The output one can get from a certain amount of input
Efficiency: Comparison to a standard which is usually time based; measure how well you do things
Effectiveness: The degree to which an organization meets its golas and desired outcomes, which typically include customer satisfaction.
IMPROVING SERVICE PRODUCTIVITY

Intense competition in many service sectors pushes firms to continually seek ways to improve their productivity.
Following are the sources of and possible approaches to productivity gains:

Generic Productivity Improvement Strategies
Customer-Driven Approaches to Improve Productivity



TOTAL QUALITY MANAGEMENT

It was originally developed in Japan.
It is probably the most widely-known approach to continuous improvement in manufacturing, and more recently, in service firms.
TQM help organizations attain service excellence, increase productivity and is a continued source of value creation through innovative process improvements.

MALCOLM-BALDRIGE APPROACH
The Malcolm-Baldrige Model assesses firms on the basis of 7 elements:

Leadership commitment to a service quality culture
Planning priorities for improvements
Information and analysis
Human resources management
Process management
Customer and market focus
Business results

CONCLUSION

We started our discussion with defining the productivity in the service context and its various measures.
Generic and customer driven approaches to improve service productivity were elaborated in detail.
Thereafter we discussed how to integrate all the tools to improve the quality and productivity of customer service processes .
Concepts like TQM, ISO 9000, Six Sigma and the Malcolm-Baldrige, and EFQM approaches were emphasised upon.