Service Operations

Management

Lecture – 6

Prof. Pinakhi Suvadarshini

Quantitative Methods and
Operations Management
Email: pinakhis@iimamritsar.ac.in
 SERVICE QUALITY
The quality of the service can also be defined from these same two perspectives

operations service quality customer-perceived quality

how well the service was delivered to customer’s satisfaction with the quality
its specification of the service compared to their needs
and expectations.

Quality Function Deployment Two frameworks to understand service

quality:
Statistical Process Control Charts
1. Servqual: Focuses on what
Quality Management Tools , etc. dimensions make up good service
quality
2. Gap Model : Looks at the potential
shortcomings in delivering that
service quality
 SERVICE QUALITY – CUSTOMER PERSPECTIVE
Assessment/
Comparison
Customer Satisfaction

The result of the

comparison between
expectations and is what is Expectations Service Perceptions
Satisfaction
called ‘satisfaction.

If there is a mismatch
between the two then the
customer is dissatisfied.
is is called the perception-expectation gap.
 GAP Model of Service
The model of service quality identifies five gaps that may cause customers to experience poor service
Quality
quality.
 Gap Model of Service
Gaps DescriptionQuality Causes
Gap 1: Market Research This gap occurs when there is a Lack of market research
Gap difference between what customers Poor communication channel
(Knowledge Gap) expect from a service and what Misinterpretation of customer data
management believes customers expect.

Gap 2: Design Gap This gap occurs when the service design Inadequate Service Design
(Policy Gap) and standards do not align with Unclear Service Standards
management's understanding of customer Insufficient Commitment to Quality
expectations, leading to service delivery
that does not meet customer needs.

Gap 3: Conformance Gap The organization has set the appropriate Inadequate Training and
standards to meet customer expectations, Development
but the actual service delivery fails to Insufficient Resources
meet these standards. Employees play a Lack of Employee Motivation
key role here. Poor Communication
Operational Inefficiencies

Gap 4: Communication This gap occurs when there is a mismatch Over-Promising

Gap between what the organization promises Misleading Information
through its marketing communications Poor communication with
and what it actually delivers. advertising agency

Gap 5: Customer Central focus of the framework. GAP 5 is

Gaps 1-4 focus on the discrepancies
Satisfaction dependentwithin the organization
on the outcomes of GAPs 1that can affect service delivery.
through 4.
Gap (Gap 5) is the ultimate measure of service quality, comparing customer expectations with their perc
 SERVQUAL FRAMEWORK
SERVQUAL is a is framework designed to measure the five dimensions that are believed to represent service
quality.

Five adapted from

dimension of
Parasuraman, A.,
V. A. Zeithaml,

service
and L. L. Berry.
1985. “A
quality used Conceptual Model

by customer
of Service Quality
and Its
to judge a Implications for

service
Future Research.”
Journal of

quality
Marketing 49
(Fall): 48.

• Reliability. Reliability relates to the ability to perform the promised service both dependably and
accurately.
• Tangibles relates to the appearance/quality of physical facilities, equipment, personnel, and
communication materials.
• Empathy. Empathy relates to the provision of caring for and individualized attention to customers.
• Assurance. Assurance relates to the knowledge and courtesy of employees as well as their ability to convey
trust and confidence.
 SERVQUAL FRAMEWORK
Daniel, C. N., & Berinyuy, L. P. (2010). Using the SERVQUAL model to assess service quality and customer
satisfaction. An Empirical Study of Grocery Stores in Umea. Umea School of Business , 1-78.

Expectations Perceptions
 SERVQUAL FRAMEWORK
Daniel, C. N., & Berinyuy, L. P. (2010). Using the SERVQUAL model to assess service quality and customer
satisfaction. An Empirical Study of Grocery Stores in Umea. Umea School of Business , 1-78.

Each issues can be mapped to specific gaps in the

gap model.
 SINGAPORE POST CASE STUDY
What events led to widespread consumer outrage with SingPost?

• Mail being left on mailboxes

• Stacks of unopened letters in a trash bin
• Undistributed Flyers Concealed
• Digitally Manipulated Photos of the distributed flyers.
• Leaving Failed Delivery Notifications Without Waiting
• Lack of Accountability: Customers’ complaints are often met with generic responses, blaming
service lapses on peak periods
• Forged Signatures and Unattended Valuable Parcels
• Lost or delayed packages

For a preliminary analysis to identify causes to this events, a fishbone diagram can be used.
 SINGAPORE POST CASE STUDY

Most of the issues

are related to
employees
dissatisfaction
which has a link
to profitability.
 SINGAPORE POST CASE STUDY
Use the service gap model to determine the gaps in SingPost delivery that contributed to service
lapses?

Market Research Gap

Management may perceive 45 seconds as a reasonable waiting period, but this perception might not
align with the actual time customers need to respond to a doorbell or knock.

Service Design Gap

• Poor Service Design: Workers claim that they deliver more than 2,600 items each day, which is
perceived as a physically daunting task. As a result, some workers are compelled to default on their
duties and discard some mail.

• Poor Employee Welfare and Unattractive Incentives: Management believes that current employee
welfare initiatives, communication channels, and recognition programs are sufficient to maintain a
motivated and satisfied workforce. In reality, employees experience high workloads, insufficient
compensation for overtime, and poor working conditions, leading to dissatisfaction and decreased
morale.
 SINGAPORE POST CASE STUDY
Use the service gap model to determine the gaps in SingPost delivery that contributed to service
lapses?

Conformance Gap

Management expects customer service employees, whether outsourced or internal, to have

comprehensive knowledge of SingPost’s operations, including basic information like the location of the
main office. However, outsourced customer service employees have demonstrated a lack of basic
knowledge about SingPost’s operations, leading to poor service delivery.

Standard operating procedures dictate that workers must wait at the door for at least 45 seconds
before leaving a missed-delivery notice for the customer. However, as outlined in the case incident,
the customer claimed that only a few seconds elapsed before the worker left behind a notice and
returned to the vehicle.

All mail and parcels should be delivered securely to the intended recipients, ensuring privacy and
security of the items. However, Instances where mail was left on top of mailboxes or discarded in
trash bins by delivery personnel.

Employees should accurately report the completion of tasks, ensuring transparency and honesty in
service delivery. However, Employees manipulated photos to falsely indicate that flyers were
distributed, when in fact, they were not.
 SINGAPORE POST CASE STUDY
Use the service gap model to determine the gaps in SingPost delivery that contributed to service
lapses?

Communication Gap

Expectation: On-time delivery of flyers

Reality: Late delivery or no delivery at all.

Expectation: SingPost claims to have an effective customer service system in place to handle inquiries
and complaints efficiently.
Reality: Customers reported receiving generic responses and slow resolutions, indicating a gap
between the promised and actual effectiveness of customer service.

Customer Satisfaction Gap

All the issues from Gap 1 to 4.

 SINGAPORE POST CASE STUDY
What could SingPost have done to prevent the escalation of events when the reports of failure first
surfaced?

Service Recovery Framework

A service recovery framework is a structured approach used by organizations to address service failures
effectively, restore customer satisfaction, and improve service quality. Three phases:

a) Pre-recovery Phase: To prepare for potential service failures by establishing preventive measures,
training employees, and creating clear policies.

Actions taken by SingPost at this stage:

• Conduct a review of past complaints and service issues to pinpoint common failure points.
• Develop protocols for handling lost parcels, including steps for immediate investigation, customer
communication, and compensation.
• Hire temporary staff and extend working hours during peak seasons to manage increased delivery volumes.
• Conduct training sessions on effective communication techniques for resolving customer complaints and
handling service failures.
• Create a policy manual that outlines the steps for addressing common issues such as delayed deliveries or
 SINGAPORE POST CASE STUDY
What could SingPost have done to prevent the escalation of events when the reports of failure first
surfaced?

Service Recovery Framework

b) Immediate Recovery Phase: To address the service failure quickly and effectively to minimize
customer dissatisfaction.

Steps taken by SingPost

• Promptly acknowledge the customer's complaint or issue as soon as it is reported.
• Offer a genuine apology for the inconvenience caused.
• Begin an immediate investigation into the reported issue to understand the cause and extent of the
problem.
• Communicate a clear timeline for when the customer can expect an update or resolution.
• Be transparent about what is being done to resolve the issue and any challenges faced.
• Provide solutions tailored to the customer’s specific needs and the nature of the service failure.
• Offer appropriate compensation for the inconvenience caused by the service failure.
 SINGAPORE POST CASE STUDY
What could SingPost have done to prevent the escalation of events when the reports of failure first
surfaced?

Service Recovery Framework

C) Follow Up Phase: The follow-up phase occurs after the situation has been resolved

Steps taken by SingPost

• Conduct a thorough analysis to understand the root cause of the service failure. Identify what went
wrong and why it happened.
• Engage the appropriate departments (e.g., logistics, IT, customer service) in the analysis to get a
comprehensive understanding of the issue.
• Dismissing workers who had made mistakes
• Feedback from customers
 SERVICE QUALITY FACTORS CLASSIFICATION -
High Hygiene factors are those that need to
SINGPOST Critical factors have the potential to
be in place: if they are they will satisfy, both delight and dissatisfy.
if not they will be a source of • Promptly addressing customer
dissatisfaction. inquiries and issues.
• Ensuring that mail and parcels are safe • Demonstrating knowledge and skill
Potential to dissatisfy

and secure. in handling services and resolving

• Ensuring all mail and parcel services problems.
operate as expected • Being accessible to customers
• Ensuring consistent and dependable through multiple channels.
service delivery.
• Ensuring deliveries are made within
the promised timeframes.

Neutral factors have little effect on Enhancing factors have the potential to
satisfaction. delight if they are present but if they are
• The visual appeal of service locations not there, they are not likely to dissatisfy
and delivery vehicles. the customer.
• Providing a warm and courteous service
experience.
• Offering flexible delivery options and
solutions.
Low • Going the extra mile to ensure customer
Low Potential to delight satisfaction. High
 SINGAPORE POST CASE STUDY
What Steps did SingPost actually take?

https://www.straitstimes.com/singapore/singpost-taking-steps-to-deliver-better-service