A Model For Analyzing Quality in the Service Delivery Process

Abstract

Deming (1986) maintains that improvements in quality also result in increased productivity. This occurs because costs are reduced as rework, mistakes, and delays in the process decrease due to quality improvement efforts. Time and materials that were formerly wasted also become available for productive use, thus improving productivity. While these results were first noted in a manufacturing environment, they also hold true for service operations. The converse, however, is not necessarily true: increasing productivity may actually reduce quality. For example, pressure to increase output per unit time may result in more mistakes as workers rush to complete each item or transaction. In manufacturing, these defects can be detected and corrected before they reach the consumer. Service firms, however, do not have this option since the consumer often sees and participates in the production of service. If a mistake is made, the consumer knows it. This is a critical distinction between quality in manufacturing, where quality is assessed on the production outcome, and quality in services, where quality is largely based on consumers' perceptions of the service experience as well as its outcome. For example, consider a bank customer who experiences service in which the teller initially makes a mistake but then corrects it. The outcome of the service is normal, but the customer will perceive diminished service quality because of the way the service was delivered. Thus, it is important for service managers to consider both the quantitative (e.g., cost savings) and the qualitative aspects (i.e., how the consumer perceives these changes) of proposed process enhancements to effectively improve quality and productivity.