ES438 Quality systems notes – Lecture 11 (Service Quality)
Service Quality in Manufacturing
- All products have a service element to them when seen from the
perspective of the customer
- Sales activity, delivery mechanism, staff interaction, invoicing
- Many people in manufacturing environments contribute to success through
the service they provide
- Personnel, finance, logistics, sales, design, maintenance
Importance of Customers
• Getting new customers costs 5 times more than retaining existing ones
• Dissatisfied customers tell 9 -10 other people about their experience. A
customer who has good experience is likely to tell 3 - 4 other people
• Most dissatisfied customers won’t complain, they just won’t come back
• Better service performers can charge, on average, 9% more for their
products
• Better service performers grow at twice the rate of poor performers (17 vs
8%)
• Better service performers were significantly more profitable (12% vs 1%
ROS)
, Why Do Customers Leave?
1% die
3% move away
5% decide to buy from friends
9% prefer a competitor
14% do not like the product or service
68% because the supplier was disinterested or indifferent to them and their
needs
Dimensions of Service Quality
Tangibles
– Appearance of physical facilities, equipment, personal and
communications materials
Reliability
– Ability to perform the promised service dependably & accurately
Responsiveness
– Willingness to help customers and provide prompt service
Assurance
– Knowledge & courtesy of employees and their ability to convey trust
and confidence
Empathy
– Provision of caring individualised attention to customers
Service Quality in Manufacturing
- All products have a service element to them when seen from the
perspective of the customer
- Sales activity, delivery mechanism, staff interaction, invoicing
- Many people in manufacturing environments contribute to success through
the service they provide
- Personnel, finance, logistics, sales, design, maintenance
Importance of Customers
• Getting new customers costs 5 times more than retaining existing ones
• Dissatisfied customers tell 9 -10 other people about their experience. A
customer who has good experience is likely to tell 3 - 4 other people
• Most dissatisfied customers won’t complain, they just won’t come back
• Better service performers can charge, on average, 9% more for their
products
• Better service performers grow at twice the rate of poor performers (17 vs
8%)
• Better service performers were significantly more profitable (12% vs 1%
ROS)
, Why Do Customers Leave?
1% die
3% move away
5% decide to buy from friends
9% prefer a competitor
14% do not like the product or service
68% because the supplier was disinterested or indifferent to them and their
needs
Dimensions of Service Quality
Tangibles
– Appearance of physical facilities, equipment, personal and
communications materials
Reliability
– Ability to perform the promised service dependably & accurately
Responsiveness
– Willingness to help customers and provide prompt service
Assurance
– Knowledge & courtesy of employees and their ability to convey trust
and confidence
Empathy
– Provision of caring individualised attention to customers
