operations management 84


The SERVQUAL/Continuous Improvement project involves two phases.


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Phase I (SERVQUAL) of the continuous improvement project involves conducting a small survey using the attached template.

Phase II requires applying the continuous improvement framework to evaluate and propose possible solution to the quality issue you identified in SERVQUAl survey.

The project (including Phase 1 and Phase II) is due on 9/30.18 at 11:55 p.m.


To help you complete the SERVQUAL survey (Phase I of the continuous improvement project), please note the following:

(1) Read the SERVQUAL Procedure (attached herewith).

(2) Read the “Guidelines for completing the SERVQUAL Survey” below.

(3) Read a sample student SERVQUAL project (attached herewith).

Note: Some of the information provided is redundant–this is by design.

Guidelines for completing the SERVQUAL survey:

Please use the SERVQUAL method to measure customer satisfaction in an organization of your choice. A survey instrument that you can adapt for this purpose is attached. (See “SERVQUAL Procedure“). You will see that the sample survey is based on a bank. The survey is a word document that you can copy and revise as you see fit. Please adapt the statements in the questionnaire to be applicable to the service organization you selected for your study. Once you have completed the surveys and summarized the scores write a report not to exceed three single space pages.

The report should: (1) summarize and interpret the results of your SERVQUAL survey, and (2) make recommendations for improvement based on the findings.

Phase II of the project: Applying the Continuous Improvement framework

Please note that this is a continuation of the SERVQUAL project. In the SERVQUAL phase of the project you have selected a service organization, and determined the average gap score (i.e., Perception minus Expectation score, or P – E score for each dimension.

Based on the results you will easily determine the dimension with which customer satisfaction is the lowest.

Once you have completed your SERVQUAL survey, you are ready to begin the continuous improvement process. This will require applying the seven-steps of the Plan–DO–Check–Act (PDCA) cycle. The seven steps are the following:

1. Select an improvement project, i.e. define the problem (this will be the quality dimension with the poorest score you already identified in your SERVQUAL survey as explained above.)

2. Study the current situation. Briefly, explain your understanding of the quality issue you identified.

3. Evaluate the causes for the problem
you identified (i.e., the improvement project)–What do you believe are the root causes to the problem you identified?

4. Identify alternative solutions, evaluate each alternative and select the best solution–List several possible solutions and evaluate each of them as best you can. Normally, this takes doing further research, including gathering actual data from company records as well as asking customers. Obviously, you will not be able to conduct such research. So, simply explain what type of data you will gather and what questions you will ask to help you identify the best solution among the alternatives you have identified.

[Similarly, Steps 5, 6 and 7 below require actual implementation of the proposed change which you will NOT be able to do during the limited time you have. Therefore, you are only expected to indicate what you would have done if you had the opportunity to implement the proposed improvement(s) and to track the results.]

5. Implement the selected solution. (Note: You will not be able to actually implement your recommended solution. Therefore, you are ONLYexpected to suggest how the proposed solution(s) could be implemented to achieve the desired results.)

6. Check the results. (Note: Since you will NOT have actually implemented the proposed change, you are ONLY expected to give suggestions as to HOW the results should be evaluated. For example:

  • When should the evaluation be done?
  • What performance measures should be looked at?
  • what kind of analysis is appropriate? etc.)

7. Act to standardize the improvement. If your assessment indicates that the identified problem has been successfully resolved, suggest developing standard operating procedures so that, moving forward, the improved process will be the norm.

—If, on the other hand, the problem has not been solved, then evaluate WHY, and repeat the above steps until the issue is resolved.

–Once the first improvement project has been successfully implemented, select another improvement project. [You can suggest which problem should be tackled next based on the results of your SERVQUAL results.]


Total length of the project: 4 to 5 pages [about 3 pages for Phase 1, and 1 – 2 pages Phase II]. This does NOT include tables and the survey questionnaire. You can add as many tables, charts and diagrams as you like to support your report.

The Mega Bytes Restaurant case was given as attachment under Lessons. For your convenience, I have posted a copy under Assignments as well.

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