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The McDonough School of Business

Georgetown University


QUALITY IN SERVICE OPERATIONS
1999 SPRING SEMESTER

Course Number: MGMT 630
Day and Time Tuesdays 6:30-9:00PM
   
Instructor: Professor José-Luis Guerrero-Cusumano
Office: Old North 203
Office Hours: Mondays and Tuesdays 5:30-6:30PM
and by appointment.
E mail: guerrerj@msb.edu
Telephone: 202-687-4338

Introduction:

The service sector has seen rapid growth since World War II as many nations shift from a manufacturing -based economy to a service economy. A major stimulus in this shift was the movement to an information age spurred by the invention of the computer and advancement in telecommunications.

Industrialized nations use the gross national product (GDP) as a measure of output. In recent years the total American GDP was over $6.62 trillion, of which services accounted for over 53.2%. In terms of jobs, services account for over 71% of total employment. Employment in the United States is expected to increase between now and the year 2005 by over 20 millions jobs, of which the service sector will furnish 91% of this growth. More than 25% of the growth in the service sector will come from two industries: health services and business services.

Many people are concerned that the level of service quality has been declining over the past two decades. They feel service employees are too busy, underpaid, undertrained and undermotivated to provide a good service. One of the causes is that globalization of the economy has forced businesses to compete on an international level and has caused firms to downsize and cut services to keep prices from rising. Deregulation has contributed to these job cutbacks. But perhaps one of the most important reasons for the declining service quality is the short-term goal orientation of service firms. To generate immediate profits, firms looked for ways to gain efficiencies in their operations. Standardizing operations, pushing employees to increase their productivity, and downsizing were favorites approaches. As a result, personal services to customers took second place to generating profits.

When discussing the concept of service quality, it is generally accepted that there are three underlying principles should be kept in mind:

  1. Service quality is more difficult for the consumer to evaluate than the quality of a good

  2. Service quality is based on consumers' perception of the outcome of the service and their evaluation of the process by which the service was performed.

  3. Service quality perceptions result from a comparison of what the consumer expected prior to the service and the perceived level of service received.

The intention of this course is to provide quantitative tools to observe, measure and improve quality in service operations.

Reference Materials for This Class

I) Materials Required:

Course Packet for MGMT-603-10-11
PowerPoint Lecture Notes

II) Computer notes located at the following directory

s:\guerrero\

The following information is already in place:

1) The Syllabus
2) PowerPoint Presentations

Textbooks Recommended:

  • J. Fitzsimmons, Mona Fitzsimmons, Service Management: Operations, Strategy and Information Technology, 2nd Edition, 1998, Irwin-McGraw-Hill, ISBN 0-07-021760-2

  • R. Schmenner, Service Operations Management, 1995, Prentice Hall, ISBN 0-02-406811-X

  • D. Kurt, K. Clow, Services Marketing, 1998, Wiley, ISBN 0-471-18034-3

  • V. Zeithaml, A. Parasuraman, L. Berry, Delivering Quality Service, 1990, Free Press, ISBN 0-02-935701-2

CASES:

The following cases are part of your general grade for the class:


Name of the Case: Classification Your Work Industry Type
Consumer Reports' Quality Rating and Pricing EXERCISE-CASE Individual work General
Branch Performance at Nashville National Bank, by R. Metters
OR
A research paper in a suggested area
CASE


Research paper
Group Work


Group Work
Service


Service
Quality Function Deployment in the Automobile Industry EXERCISE-CASE Individual work Manufacturing
Quality in Practice: Leadership and the ISO 9000 at Rubbermaid EXERCISE-CASE Individual work General
Florida Power Light Quality Improvement (Q1) Story Exercise (A) CASE Group Work Service
A Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (A) CASE Group Work Service

Note: Instead of solving the case "Branch Performance at Nashville National Bank, by R. Metters", you can replace it by a research paper in the following areas:

1) How to measure Productivity and Efficiency in the Banking Industry
2) Service Quality in the Insurance Industry

The final case report should have:

  1. An extensive bibliographical search about the topic

  2. The most relevant qualitative aspects of the problem

  3. Real life examples.

  4. Conclusions and Recommendations

  5. Power point presentations, Excel and other computer output should be used and developed.

GRADES DIVISIONS:

Class Participation 30%
Group Project 35%
Individual Projects 35%

Tentative Schedule of Classes 

DATE: TOPICS COVERED NOTES Page
January 19 The Nature of Quality and Services


Quantification of Quality: Correlation, Capability Analysis, the Taguchi Loss Function and Queuing Theory.
"What does Product Quality Really Mean", David Garvin, Sloan Management Review

HARVARD ARTICLES: "Quality is More Than Making a Good Product", H. Takeuchi and J. Quelch, "Where Does the Customer Fit in a Service Operation?" by R. Chase "Quality Control in a Service Business" by G. Hostage

CASE-EXERCISE Consumer Reports' Quality Rating and Pricing
3-22











88-93
January 26 The Servqual Model The Return on Quality Model (ROQ) "The relationship between Customer's quality assurance, satisfaction, and effort: A cost of quality perspective", by W. Youngdahl and D. Kellog, J. Operations Management

"Communication and Control Process in the Delivery of Service Quality", by V. Zeithaml, L. Barry and A. Parasuram, J. of Marketing

"Reassessment of Expectations as a Comparison Standard in Measuring Service Quality: Implications for Further Research" by A Parasuraman, V. Zeithaml and L. Berry, J. of Marketing

"Expectations as a Comparison Standard in Measuring Service Quality: An Assessment of a Reassessment" by K. Teas, J. of Marketing

"Refinement and Reassessment of the SERVQUAL scale" by A. Parasuraman, L. Berry and V. Zeithaml, J. of Retailing

"SERQUAL and the Northern Ireland Hotel Sector: A comparative analysis- part I

"Return on Quality (ROQ): Making Service Quality Financially Accountable", by R. Rust, A. Zahorik, T. Keinigham, J. of Marketing.
24-31





32-45




46-59





60-67




68-83



84-87



94-106
February 1 Invited Speaker: Mr. Ted Allenbach, Director, Development and Learning, Americas Customer Operations, Xerox
  
  
February 2 Basics for Benchmarking and Productivity and Quality Improvement:

Invited Speaker: Mr. Kevin Huang Quality Director for Citibank's Global Banking (GRB) Customer Organization.
The Benchmarking Process, excerpt from The Benchmarking book, by M. Spendolini 110-119
February 9 Productivity and Quality Improvement: Introduction to Quantitative Technique And Data Envelopment Analysis Data Envelopment Analysis, OR-notes, by J. Beasley

CASE: Branch Performance at Nashville National Bank, by R. Metters

"Efficiency, Profitability and Quality Banking Services", by A. Soteriou, S. Zenios, the Financial Institution Center, Wharton
220-229


230-241



242-271
February 23 Benchmarking in Service: The House of Quality and Quality Function Deployment








International Quality Prizes
Capturing the Voice of the Customer, by K. Crow, DRM associates

The Customer's voice: Agency Depends on QFD, by M. Keagan

"How Alitalia improves service quality through quality function deployment", by A. Ghobadian, A. Terry, Managing Service Quality

EXERCISE-CASE Quality Function Deployment in the Automobile Industry

EXERCISE: QFD Process: Credit-Card Service

"Quality Function Deployment for Large Systems", E. Dean

"Quality Function Deployment: An Effective Technique for Requirement Acquisition", T. Tran, J. Sheriff

Quality Deployment Planning model- House of Quality
160-169


170-173


174-179




180-189



190-197


198-203


204-215



216-217
March 1 Invited Speaker: Dr. Allan Roshwalb, Manager and Senior Statistician, Market Facts.
  
  
March 2 Invited Speaker: Mr. Paul M. Campbell Vice President, Premier Innovation Institute

International Standards: ISO 9000 and Services




ISO 9000 in the Low Countries: Reaching for new heights?, by J. Devos, J.L. Guerrero-Cusumano, W. Selem, Business Process Reengineering and Management J

The ISO 9000 and ISO 14000 Certificates, The Sixth Cycle, The Mobil Survey

Quality in Practice: Leadership and the ISO 9000 at Rubbermaid




122-143





144-151



152-157



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