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MBA (SSME) - AGW 651

Service Management

Case Study : Clean Sweep Inc.


Group Members: Yoong Tuck Seong & Andrew Tan Keng Seang

15th August 2009


Agenda
Clean Sweep Overview
Analysis / Recommendation
Conclusion
Q&A
The End
Objectives
1. Case study concentrates on Service Quality

2. How to define Service Quality?


Dimensions of Service Quality
Service Quality Gap Model

3. How to achieve Service Quality?


Statistical Process Control (SPC)
Cost of Quality
Unconditional Service Guarantee

4. Service Recovery
The systematic-response approach
Clean Sweep Overview

Clean Sweep Inc. (CSI) is a custodial-janitorial services company


that specializes in contract maintenance of office space.

CSI have several major contracts to service some of the state


governments offices.

CSIs Business Strategies


1. Focus only on Janitorial services of office space (competitive service strategies :
Focus)
2. Maintain small workforce, while performing high-quality work at a reasonably rapid
speed.
3. Higher pay range for employees as compared to CSIs competitors
CSIs Nature of Service Act
Direct Recipient of the Service
Nature of
the Service Act People Things
Peoples bodies: Physical possessions:

Tangible actions
Janitorial services

Peoples minds: Intangible assets:

Intangible actions
Present CSIs Operations
Each crews working hours => 8.5 hour/shift
15 minutes paid rest breaks and 30-minute unpaid lunch break
The cleaning staffs is divided into 4 crews. Each crew are under the a supervisor of a
crew leader.
Individual staff costs are higher, but CSI management believes in greater
productivity levels in a smaller-than-average workforce.

Crews general task (Listed in no order of importance)

1. Vacuum carpeted floors


2. Empty trash cans and place trash in industrial waste hoppers
3. Dry-mop and buff marble floor
4. Clean rest rooms
5. Clean snack bar areas
6. Dust desk tops
CSIs Current Situation
1. A department of the state government overseeing CSI
Makes periodic random inspections
Rate the cleaning jobs
Also receives any complains about the custodial service from office
workers

2. CSIs contracts renegotiation is several months away. CSIs


management would like to maintain high level of quality to
improve its competitive stance.

3. Problems and concerns voiced out by crew members (medium crew


supervisor)
inequity in crew leaders attitude and performance expectations
lack of opportunities for personal advancement

4. Employee turnover has been fairly high but is still lower than many
other competitors.
Complains of Cleaning Crews

Ratings of Cleaning Crews


Q1: X-bar chart for complaints and plot the average complains for each crew during the
nine-month period. Same for performance ratings. What does this analysis reveal about
the service quality of CSIs crews?

1. To obtain X value, R value, UCL and LCL value

i) Complains of Cleaning Crews value from variable control chart


constant for sample size of 10

UCL = 1.98 + 0.308 (5) = 3.52


LCL = 1.98 0.308 (5) = 0.44

ii) Ratings of Cleaning Crews

R
X
UCL = 6.16 + 0.308 (3.22) = 7.15
LCL = 6.16 0.308 (3.22) = 5.16

10
2. To obtain the average complains and ratings value per crew for each month

i) Complains of Cleaning Crews

ii) Ratings of Cleaning Crews


X-bar chart for average complains for each crew during the nine-month period.

Observation :
1. Throughout 9 months, each of the 4 crews has 1 occurrence out of the control limit. Crew 1 = 1 occurrences ; Crew 2 =
2 occurrences ; Crew 3 = 4 occurrences and Crew 4 = 3 occurrences
2. During the 5th month and onwards, Crew 2 and Crew 3 complains are within control limit. While Crew 1 and Crew 4s are
out of control.
3. The number of complains for each crews is on a decreasing trend. This shows that the customer are complaining less as
they might be more satisfied with CSIs service quality.
Analysis / Recommendation :
1. Crew 3s number of complain could be higher due to more workload for each crew members as every individual in Crew 3
needs to clean more floor space as compared to the other 3 crews. Crew 3s supervisor has to communicate his / her
expectations and help to prioritize task for his / her crew members based on customers feedback and expectations. The
supervisor can also practice less micro managing to his / her crew members. 1
X-bar chart for average ratings for each crew during the nine-month period.

Observation :
1. Throughout 9 months, each of the 4 crews has 2 occurrence out of the control limit. Crew 1 = 2 occurrences ; Crew 2 = 2
occurrences ; Crew 3 = 6 occurrences and Crew 4 = 4 occurrences
2. During the 3trd months rating and beyond, Crew 2s ratings are within control limit. While the other crews are out of control
limit. Crew 4 needs attention from the management to increase the performance rating.
3. The performance ratings for each crews is on an increasing trend until the 7 th month. Only Crew 4 continued to improve the
performance rating from the 7th month and beyond.
4. The overall ratings for all 4 crews was above 5 starting 3rd month and beyond. This shows that the customers satisfaction
on CSIs service quality is improving.
Analysis / Recommendation :
1. CSI management has to investigate why the performance rating for Crew 1, 2 and 3 starts decrease after the 7th month.
There is a possibility that the crew members do not understand customers expectation.
2. CSI management needs to understand their customers expectations and explore how their customer rate the each
crews performance rating. 1
Q2: Discuss possible ways to improve service quality.
a) Achieving Service Quality
Statistical Process Control
Cost of Quality
Unconditional Service Guarantee Cost of Quality
Cost of Quality Definition CSI
Prevention Cost arise from efforts to keep 1. Training program for cleaning staff
defects from occurring at all Improve communication and cleaning skills
share best practices
standardize cleaning procedures
2. Recruitment and selection
Select experienced staff
3. Quality improvement projects
Deming PDCA
DMAIC
Detection Cost arise from detecting 1. Supervision
Costs of control (Costs of defects through inspection,
conformance) Standardize level of supervision / detection
test, audit Crew members treated equally across 4 crews
2. Third-party audit
Fresh ideas and other feedbacks
Walk-through-audit (Service managers lose sensitivity
due to familiarity)
3. Peer review (refereeing)
subject matter expert
4. Customer comment card
feedback to further improve service
understand customers requirement and expectations
Internal Failure Cost incurred from defects 1. Rework
caught internally and dealt Repeat cleaning process
Costs of failure of control with by discarding or repairing 2. Machine downtime
(Costs of non- the defective items
Cleaning machine failure
conformance)
External Failure Cost incurred from defects 1. Negative word-of-mouth
that actually reach customers 2. Loss of future business

Feigenbaum, Armand V. (1991), Total Quality Control (3 ed.), New York, New York: McGraw-Hill, p. 111, ISBN 9780071126120, OCLC 71640975
b) Service recovery Approach
- Systematic-response approach
1. Identify critical failure points (depends on urgency)
2. Ensure that the information obtained is the latest or updated
3. Determine appropriate recovery criteria
4. Plan type of response
reference from (T.C. Johnson and M.A. Hewa, Fixing Service Failures, Industrial Marketing Management 26, 1997,pp. 54-62)

c) Service Quality Dimensions

Dimension CSI
Reliability Constantly perform the guaranteed level of services reliably and accurately
On time
Consistence
Without errors

Responsiveness Must be willing to assist customers promptly


Needs to be swift to work on customers requests.

Assurance Competent to perform cleaning service


Be polite and respect every customer
Efficiently converse with customers

Empathy Approachable, sensitive and ability to understand customers needs

Tangibles To show evidence of care and detailed cleaning are exhibited


Q3. Describe some potential strategies for reducing CSIs staffing problems.

Analysis
1. Crew 1 and Crew 4 has the least number of inequity complains and no advancement feedback.
2. Crew 1s and Crew 4s performance rating is one of the highest among the 4 crews.
3. While Crew 4s number of customer complains is among the lowest among the 4 crews.

Recommendation
1. The management can organize more trainings to enable Crew 1 and Crew 4 to share their best practice with Crew 2 and 3.
2. CSI management can deploy job rotations for each individuals to different buildings or different crews. This can help to
minimize the employees from getting bored of their present job and also experience different customers expectations.
3. The management has to standardize the level of supervision. It is reported that supervisor of Crew 1 and Crew 4 are the least
strict. This could be the reason why Crew 1 and 4 are performing better than Crew 2 and 3.
4. CSI management can promote the Best Employee of the Month award. The winner of the award can be given a one day
leave or be bestowed with cash incentives to further motivate their employees to be more hard-working and go beyond their
daily cleaning routine job.
Service Quality Gap Model

Gap 5
Customer Customer Cleaning Satisfaction Survey
Customer Satisfaction
GAP 5
Perceptions Expectations Gap 1
Walk through audit
Managing the Customer / Understanding
Evidence Marketing Research the Customer Gap 2
Communication
GAP 4 GAP 1 Poka-Yoke
Taguchi Method
Management
Service
Perceptions Gap 3
Delivery of Customer Cost of Quality
Expectations SPC
Unconditional Service Guarantee
Conformance
Design GAP 2
GAP 3
Gap 4
Conformance Service Design Service Recovery
Service
Standards
Conclusion
1. CSI management needs to be pro-active in improving the present service quality by
Understanding customers expectation and experience
explore how their customer rate the each crews performance rating (each
individuals experience and expectation are very subjective or different)
Motivate the crew members through incentives (monetary or a days leave)
Standardizing level of supervision all employees treated equally and with
respect
Measuring the quality of work through random audits or Walk-through-audit

Publish on high ratings

2. CSI managements can arrange a meeting with the department that oversees
custodial service contracts to discuss on potential improvement plans. This approach
can reflect CSIs commitment for continually commitment and improvement in
providing the best custodial-janitorial service.

3. Besides creating a niche in the custodial-janitorial service, CSI can further diversify
their business portfolio to household cleaning.
Q&A
The End

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