Unique Challenges for Service Providers
• Strategic Service Challenge
– To anticipate and exceed customer’s expectations.
– Distinctive service characteristics
• Customers participate directly in the production process.
• Services are consumed immediately and cannot be stored.
• Services are provided where and when the customer desires.
• Services tend to be labor intensive.
• Services are intangible.
Introduction to Total Quality Management (TQM)
• Creating an organizational culture committed to the continuous improvement of skills, teamwork, processes, product and service quality, and customer satisfaction.
• Four Principles of TQM
– Do it right the first time.
– Be customer-centered.
– Make continuous improvement a way of life.
– Build teamwork and empowerment.
Introduction to TQM (cont.)
• Do It Right the First Time
– Designing and building quality into the product.
• Be Customer-Centered
– Satisfying the customer’s needs by anticipating, listening, and responding.
– Internal customers: anyone in the organization who cannot do a good job unless you do a good job.
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