Customer satisfaction evaluation on maintenance service quality at schindler vietnam ltd

HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMICS & MANAGEMENT MPQPM4 NGUYEN THI QUYNH ANH CUSTOMER SATISFACTION EVALUATION ON MAINTENANCE SERVICE QUALITY AT SCHINDLER VIETNAM LTD MASTER FINAL PROJECT MASTER IN BUSINESS QUALITY AND PERFORMANCE MANAGEMENT Ho Chi Minh City (2014) ACKOWLEDGEMENT Of the many people who have been extremely helpful in the preparation of this thesis, I am especially thankful to my supervisor Dr Jacques Martin for his help and support I am grateful for his comments and guidance throughout the development of this thesis I would also like to express my gratitude to Mr Hung Le- Existing Installation Director- for his supports and intellectual comments during this research I would like to thanks to Ms Ngoc Hien- Solvay Program Coordinator- for her support throughout the Master Program and a perfect coordinator in proving useful information relate to final Project Last but not least, I would like to express my gratitude to all my colleagues and my friends for their unconditional support in every way possible throughout the process of this thesis ABSTRACT Customer satisfaction can be seen as one of the main instruments that ensure the existence and survival of a business organization It is very important for the business organizations to consider offering what the customers want rather than offering quality goods and services which may not meet up with the customers’ expectation Therefore, business organizations have to possess a framework in their organizational structure towards satisfying their customers so that they can maintain their existence, survival and success Satisfying a customer today leads to retention and attraction of new customers as a result of the current customers of the business organization being satisfied For a maintenance service at Schindler Vietnam, every minute of break down is cost and more serious is dissatisfaction of customer But normally, we don’t know what customer think about our service So, evaluate customer satisfaction is therefore extremely important for Schindler’s survival With the purpose to evaluate customer satisfaction at Schindler Vietnam, this thesis was performed as a case study at Maintenance Service of the company To be able to evaluate the customer satisfaction The survey will be sent to customer, then data is gathered, analyzed Based on the outcome of these, company can identify the current issues and may use for future improvement Key words: maintenance, Net promoter score, customer satisfaction, CONTENTS ACKNOWLEDGEMENT………………………… ……………………… ABSTRACT……………………………………………… ………………….2 LIST OF FIGURES………………… ……………………………………….5 LIST OF TABLES ……………………… ………………………………… LIST OF ABBREVIATION ……………… …………………………… …7 INTRODUCTION…… …………………… ………………………………8 1Background information about Schindler and MS Department … ……… 2- Research problem and Research question………………… ………………10 3- Objective of the research……………………………… ………………… 10 4- Plan of the research ……………………………………… ……………… 10 5- Structure of the research…………………………………………………….11 PART RESEARCH FRAMEWORK AND LITERATURE REVIEW …… 13 1- Customer satisfaction: Overview and importance……………… …………14 2- Definition of Maintenance……………………………… …………………15 3- Customer satisfaction in maintenance service …………… ……………… 17 4- Net promoter score (NPS) 5- Framework of customer satisfaction criterion in maintenance service… ….21 5.1 Customer oriented behavior ………………………… ……………… 21 5.2 Promptness in problem fixing ………………………… ……………….21 5.3 Operation reliability/ product quality…………………… ……………22 5.4 Price…………………………………………………… ………………23 5.5 Spare part availability ………………………………… …………… 24 PART METHODOLOGY AND RESEARCH DESIGN…………… …….27 1- Development of list of customer satisfaction factors……… ……………….28 2- Design of questionnaire and sampling ………………… ………………… 29 2.1 Design of questionnaire…………………………… …………………29 2.2 Sampling…………………………………………… ………………… 31 3- Layout of questionnaire………………………… ………………………….31 4- Survey distribution and response……………… …………………………32 5- Data analysis……………………………… ………………………………32 PART 3: DATA ANALYSI AND DISCUSSION……………………… …….33 1- Response rate………………………………………………………… …….34 2- Description of result… ……………………………………………………34 2.1 Trigger Answer on Maintenance Service: ……………………………34 2.1.1 Question 1: Did our engineer (technician) contact you upon arrival to site? .34 2.1.2 Question 2: Did our engineer (technician) act in a professional manner? 36 2.1.3 Question 3: Did our engineer (technician) provide sufficient information about the completed works? .37 2.1.4 Question 4: Does our maintenance service meet your expectations?38 2.1.5 Question 5: Can you reach our Service Leader easily and does he respond to your needs? 39 2.1.6 Customer satisfaction summary on trigger question……………….41 2.2 Net Promoter Score –NPS on Customer Satisfaction…………………42 2.3 Customer comment on Maintenance Service………………………….43 2.4 Recommendation………………………………………………………44 CONCLUSIONS AND RECOMMENDATION ………………………………46 Conclusion …………………………………………………………………….47 Possible future development… ……………………………………………… 47 REFERRENCE…… …………………………………………………………… 49 APPENDIX A 51 LIST OF FIGURES Figure 1: Structure of Thesis Figure 2: Relationship between Maintenance and Quality Figure 3: Cost of conformance/non-conformance in relation maintenance type Figure 4: Net Promoter Score Figure 5: Frame of NPS Figure 6: Design of Questionnaire Figure 7: Layout of Questionnaire Figure 8: Q1 result Analysis Figure 9: Q1 Analysis per Area Figure 10: Q2 result Analysis Figure 11: Q2 analysis per Area Figure 12: Q3 result Analysis Figure 13: Q3 Analysis per Area Figure 14: Q4 result Analysis Figure 15: Q4 analysis per Area Figure 16: Q5 result Analysis Figure 17: Q5 analysis per Area Figure 18: Customer satisfaction in Summary Figure 19: Dissatisfaction per Area Figure 20: Positive comment Figure 21: Negative comment LIST OF TABLE Table 1: Summary of Survey Result Table 2: Average percentage of Customer Satisfaction Table 3: Dissatisfaction per Area Table 4: NPS result Table 5: Customer comment summary LIST OF ABBREVIATION NPS: Net Promoter Score MS: Maintenance Service SL: Service Leader INTRODUCTION Customer satisfaction is the result of the correlation between a customer’s assumption and a customer’s feelings By way of explanation, customer satisfaction is identified as the distinction between assumed quality of service and the customer’s involvement or feelings after having perceived the service Customer satisfaction depends on such dimensions as assurance, responsiveness, reliability, empathy and tangibles, and further components such as personal, price and situational factors that may arise as the service quality (Bateson & Hoffman, 2000.) Customer satisfaction helps customers to communicate their needs straight to the sellers Customer satisfaction is very important because it helps to learn about the business’s strengths and weaknesses Business holders can just know their strengths and weaknesses and make the progression Not only this, also customer satisfaction also helps to appropriate resources for eventual strike or satisfaction Furthermore, it supports to show calmness about making better quality of products and services to both the employees and the customers It does not help to learn about strengths and weaknesses but helps it also to persuade competitive strengths and weaknesses Similarly, it helps to benefit more vision into the sources of frustration and areas desiring progression At last, customer satisfaction helps to accommodate a system for informing management of problems or situations requiring actual promotion (ICR, 2011.) While talking about business, it is not easy to establish this thinking but everything needs to be set up everything from top to bottom and management also exists there Nature of business depends upon the size that was established, either in the form of big-scale or small-scale No business has been established without thinking about the profit, and customers are the pillars of the business So every business’s stake holders always think about the satisfaction of the customers by trying to meet the needs of the customer, which is the main responsibilities of the business investor As the task of the research is concerned with the importance of customer satisfaction, some points have already explained this in the above section, and some points are going to be explained here Actually, customer satisfaction helps to increase the profit for business investors so every such investor thinks that to earn profit is not as easy If the business is successful, and able to satisfy the customers then customers will be happy, they buy more goods and the company will be able to sell more goods and it helps to increase the profit Similarly, it helps to increase the sales, to reduce the production costs, and to enhance marketing and advertising If the customers are fully satisfied with the goods and services provided by the business company, they refer it to their friends and relatives telling them that they are satisfied, and this helps to promote marketing and advertising of the business Similarly, it helps to improve the goodwill 1- Background information about Schindler and Maintenance Service Department Founded in Switzerland in 1874, the Schindler Group is a leading global provider of elevators, escalators and related services Its innovative and environmentally-friendly access and transit-management systems make an important contribution to mobility in urban societies Behind the company's success are over 48,000 employees in more than 100 countries Schindler manufactures, installs, services and modernizes elevators, escalators and moving walks for almost every type of building requirement worldwide The company specializes in the latest-technology engineering, as well as mechanical and microprocessor technology products designed and rigorously tested for safety, comfort, efficiency and reliability Inspired by the vision of being the best service provider in the industry for its customers, Schindler will continue in the future to develop highly innovative and user-friendly mobility solutions and to deliver these to the world market In Vietnam, Schindler was one of the first foreign-owned elevator companies to start operating, back in 1995 It is involved in importing, installing and maintaining Schindler elevators and escalators In 1998, Schindler started its own factory in Vietnam, which produces brackets, beams and builder’s elevators for both local and export purposes Schindler Vietnam is headquartered in Ho Chi Minh City with branches in Ha Noi and Da Nang and representatives in Can Tho, Hai Phong and Nha Trang The installation and maintenance of Schindler elevators and escalators are carried out by certified Schindler technicians with the full support of Schindler technical experts At Maintenance service, Schindler’s committed to preventive maintenance programs for elevators and escalators that will keep equipment running safely and reliably With trailblazing technology and highly trained technicians, this means fewer callbacks and fewer inconveniences for your tenants or guests Schindler employee is over 100 specialist maintenance engineers and technicians across Viet Nam Where use latest-technology programs and systems to monitor equipment remotely and to enable predictive intervention, including Schindler Scorecard performance assessment and monitoring 37 Figure 11: Q2 Analysis per Area Look at the graph we see that negative result come from HCM 52%, then Hanoi 40% This is also explained that Hanoi and HCM are both big City, they regularly approach, use high service according to international standard, that’s reason why they have a comparision when use maintenance service of Schindler with other service So, they understand what are requirements for a hight- grade service That why on this question the negative answer is highter than other questions 2.1.3 Question 3: Did our engineer (technician) provide sufficient information about the completed works? This question focus on post-maintenance, in this period if they provide sufficent information about completed works to customer or not Mean that, after completing maintenance job, technician need to infrom customer the satus of their lift so that they can overview current status 38 Figure 12: Q3 Result Analysis The chart show that satisfaction achieved high rating 70% and dissatisfaction achieve 30% This is a good achievement because over a half of customer is satisfy with our service Figure 13: Q3 Analysis per Area Again, the chart show that Hanoi is area where located almost negative result because, as explained, the location of Head Quarter and difference of cultural dimession create this result 2.1.4 Question 4: Does our maintenance service meet your expectations? This question is aim to evaluate customer satisfaction in general after finishing above questions May be they agree with question 1, but not agree with question or contrast or something like that but in generally, with MS 39 provided and with their expectation, we need to know if they satisfy with our service or not The graph below show the result: Figure 14: Q4 Result Analysis Figure 15: Q4 Analysis per Area The chart show a logical data compare with other question’s result Totally, customer, ingeneral, satisfy with our Service up to 81% and only 19% dissatisfy and Hanoi is the higest contribute on customer dissatisfaction because of reasons were explained above 2.1.5 Question 5: Can you reach our Service Leader easily and does he respond to your needs? This question focus on the role of Service Leader in maintenance service Service Leader plays a important role in manage technician team and urgent case from customer such as rescue passenger in lift, lift breakdown, or all 40 necessary information concern to spare part, quotation, contract,…so, contact with Service Leader easily is very important to customer in providing sufficient information and correct information to customer Figure 16: Q5 Result Analysis Figure 17: Q5 analysis per Area In finally, a stable data from question 01 to question 05 with almost customer satisfaction achieve 75-85% But if look at on pie chart above, a different numer is satisfaction ratio of Hanoi is higher than HCM on this question This may explained Service Leader Team in Hanoi always aware the importance of cusomer satisfaction but they may don’t have enough resource to serve and meet customer expectation 41 2.1.6 Customer satisfaction summary on trigger question In general, through Trigger Question, we can evaluate customer satisfaction on Maintenance Service The chart below showed the summary result The data was collected is everage point of resulf The table and figure 18 to show the final result : Point Average Percentage 74% 24% 2% Table 2: Average Percentage of customer satisfaction Figure 18: Customer satisfaction in summary The table and figure 20 to show dissatisfaction per area: Area 1_ dissatisfaction HCM 40% Hanoi 60% Table 3: Dissatisfaction per Area 42 Figure 19: Disatisfaction per Area 2.2 Net Promoter Score –NPS on Customer Satisfaction NPS is the index that measures how likely a customer is to “promote” maintenance service to their friends and their parter Customer are asked if they would recommend maintenance service on a scale of 0-10 will they promote 0-6 means they are a detractor, 7-8 means they are passive and 9-10 means they are a promoter Your final score is calculated by subtracting the detractors from the promoters Values can range from -100 to 100 A positive value is good; it means you have a net positive user base A negative value means you are losing customers and have work to A value over 50 is extremely good Here below is the NPS result collected during survey: NPS (%) Promoter Passive Detractor 50% 70% 11% 19% Table 4: NPS result The NPS indicator is calculate according to formula: NPS = % of Promoter- % of Detractor = 70% - 19% = 50% Through this survey, we measured NPS indicator and have a good result from this 50% NPS is a good performance Customer has a very positive attitude on MS They’re willing to recommend Schindler to their friends or their partners 43 2.3 Customer comment on Maintenance Service For more understand which criterions impact to NPS Next step of Thesis will analyze customer comment Customer comment, as explained in Survey Design, aim to get more information from customer to investigate: - What criterion is customer “promoter”, “Passive” or “Detractor” - What change Schindler should to to improve their thinking Base on the Figure Design of Questionnaire, Open Question is divided into two part One for NPS from 0-8, one for NPS 9-10 Means that if customer answer 0-8 on NPS, surveyor then ask customer Open Question 1, If customer answer 9-10 on NPS, surveyor then ask them Open Question 3,4 Totally, the author conducted 129 surveys and got 160 positive comment from Open Question 3, and 77 comment from Open Question 1, The Table is summary customer comment after codified them into C01 to C06: Customer Comment C01_Customer Oriented Behavior C02_Promptness in Problem fixing C03_Operation Reliability/Product Quality C04_Price C05_Sparepart is availability C06_Other Total 3_Agreement 2_Neutral 1_ Disagreement 32 48 0 23 24 48 13 16 160 0 0 15 13 77 Table 5: Customer Comment Summary The figure 20 presents positive comment from customer: Figure 20: Positive Comment Clearly, the graph showed that almost customer comment come form C02 and C03 This is explained customer feel happy with maintenance service most concern to 44 promptness in problem fixing and good product quality, so they are willing to comment this to their friend and partner The figure 21 below presents negative comment from customer: Figure 21: Negative Comment Through this graph, clearly to state that almost negative comments come from C02 and C01 This means because of these two reasons, they are feel very unhappy with maintenance service, most concern to promptness in problem fixing and customer oriented behavior Clearer explanation is: - Promptness in problem fixing: delay in fixing, repairing problem such as lift breakdown or rescue passenger after callback from customer Or technician come to jobsite late in maintenance visit - Customer Oriented Behavior: behavior, attitude of technician or employee when they come to jobsite or when contact with customer are not be highly appreciated The technician may not willing to answer and explain customer’s queries friendly 2.4 Recommendation The result of thesis was presented, in general, the result showed a good performance to maintenance Service Department with impress numbers: 74% customer satisfaction and NPS achieve 50% Besides that, some weakness was found in Maintenance Service Department: - Customer satisfaction in Hanoi is much lower than HCM - Customer has trend to unhappy with Maintenance Service most concern to Customer Oriented Behavior and Promptness in problem fixing 45 Base on weakness above and current situation of company, author have some recommendations to revert customer satisfaction:  Develop resource in branches include Hanoi, especially, provide enough technician to conduct maintenance job  Customer Oriented Behavior training to technician, Service Leader and all staffs that their job related to customer directly  Consider to build up “Calling Center” where customer contact any time to inform lift problem This center will in charge technician or related people to fix problem quickly 46 CONCLUSIONS AND RECOMMENDATION 47 1- Conclusion The result of questionnaires survey determined that the customer satisfaction in maintenance Department is very good The questionnaire of survey is categorized into parts include Trigger Question, Net Promoter Score and Open Question Together three parts of questionnaire were used to satisfy logical question Do customer satisfy with Maintenance Service ( Trigger question) If Yes or No, Do customer willing to recommend Schindler to their friend and partner ( NPS) What are criterions they recommend or not recommend Schindler Service ( Open Question) By using questionnaire structure, through data analysis, Research Question was defined Author had make call to 151 customer and 22 survey without response Then, data analysis was conducted on 129 surveys and found that 74% customer satisfaction on maintenance service, 2% had no idea and 24% dissatisfaction on maintenance service Although 24% dissatisfaction may be a small number but it can be a potential risk for more frustration of customer in future, the next analysis had been done and author found out the most area contribute on dissatisfaction is Hanoi, up to 60% of dissatisfaction This is explained by location of Head Quarter is in HCM and another thing is cultural dimension, Hanoi is trend to stricter than HCM in using service The next analysis had done on NPS, NPS achieved up to 50%, this is a good performance because the range of this indicator runs from -100%_ extremely detractor to 100%_ extremely promoter This indicator showed that customer is willing to recommend Schindler to their friend Open question was asked to customer to investigate why they recommend or not recommend Schindler to their friend or their partner With group recommended Schindler to their friend ( NPS 9-10), the most criterions are C02: promptness in problem fixing and C03: Product Quality With group did not recommend ( NPS 08), the most criterion are C02: promptness in problem fixing and C01: customer oriented behavior So, C02 was appeared both positive and negative comment Overall, the result offered some valuable findings in the field of customer service It significant helped Maintenance Service Department as well management Team understand and identify where they are and what should they to revert customer satisfaction Base on this analysis, some suggestions from author to revert customer satisfaction and improve NPS are more develop resource in Hanoi where customer satisfaction is lowest Second, customer oriented behavior training to all employee who work correctly with customer Third, build up “Calling Center” where receive all callbacks from customer so that Service Leader or related people can fix problem quickly 2- Possible future development Although this thesis found some key findings so that management team can use and develop to improve the customer experience But the thesis has several limitations as follow: 48  Only conduct survey in Hanoi and HCM, two biggest city and hasn’t conducted survey in other city such as Danang and Can Tho yet where has the emerging market and is the potential market for Schindler in the future  Beside that, due to rush time, this thesis is only conducted in Existing Installation, one field of Schindler Vietnam By limitations, author suggests for future work, should to conduct survey for Danang and Can Thoi, two emerging markets to early warning customer frustration Second, researcher should to conduct study for New installation field This is a very important field of Schindler lift, especially in Vietnam, because Vietnam is a developing country, where there’re many real estate projects will be developed such as trading center, apartment, building,…a attractive market for new installation of elevator and escalator 49 REFERRENCE Bateson, J & Hoffman, K., 2000 Managing Service Marketing Boston: Dryden press Ben Daya, M., and S.O Duffuaa Maintenance and Quality: the missing link Journal ofQuality in Maintenance, no (1995): 20 26 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Consumer, McGraw-Hill, New York, NY 51 APPENDIX A Customer satisfaction Survey Contract No Customer: Contact Person: Surveyed Date: Location MAINTENANCE SERVICE ( YES/No Question) Did our engineer (technician) contact you upon arrival to site? Did our engineer (technician) act in a professional manner? Did our engineer (technician) provide sufficient information about the completed works? Does our maintenance service meet your expectations? Can you reach our Service Leader easily and does he respond to your needs? RECOMMENDATION ( NET PROMOTER SCORE) On a scale of to 10, where 10 is the highest, how likely is it that you would recommend Schindler to your friends or business partners? OPEN QUESTION (If answer for recommendation question from to 8) What single change to the service we provide to you would make you more likely to recommend Schindler? Are there any other improvements Schindler can make for you? OPEN QUESTION ( If answer for recommendation question from to 10) What is the most important reason for you to recommend Schindler? How can we improve the service we provide for you? Rate ( 1/2/3) Comment Code ( C01->C06) ... theoretical context of customer satisfaction management and also the customer satisfaction in maintenance service, the definition of Net Promoter Score and framework of customer satisfaction criterion... Leader INTRODUCTION Customer satisfaction is the result of the correlation between a customer s assumption and a customer s feelings By way of explanation, customer satisfaction is identified... strong correlate with indicators of growth(Satmetrix, 2004) 5- Framework of customer satisfaction criterion in maintenance service 5.1 Customer oriented behavior The conceptualization of customer