TQM: Principles and Strategies: Customer Satisfaction Employee Involvement Process Approach Continuous Process Improvement Supplier Partnership

rship Performance Measures

Customer greatest need of any organization should be satisfy

a.Service Quality b.Customer Delight c.Kano Method d.Agreed Customer Requirement e.Customer Perceived Quality f. Customer Feedback and Complaints Resolution

A. SERVICE QUALITY Service (ISO 9000) results generated, by activities at the interface between the organization and the customer and by the organizations interval activities, to meet customer needs

A. Features of Service: Speed Delivery Schedule Care in Handling Each service offering is different Customer requirements are difficult to comprehend Difficulty in estimating cost Difficulty in measuring performance of service

Speed - as fast as possible without compromising on quality Delivery Schedule - directly delivered to the customer - quite critical in the service industry Care in handling - extreme care handling of both the deliverables as well as the customer

Each service offering in different - fulfill the individual needs of customer Customer requirement are difficult to comprehend - efforts to understand the requirements of each customer correctly Difficulty in estimating cost - organization must have system (simple & unambiguous) for assuring at charges for each offering

Difficulty in measuring performance of service

en achine ethods aterials

Difficulty in Marketing Service - straight forward approach (manufacturing) - personal contacts with potential buyers and building credibility of the organization by good services consistently

Better to lose a customer by telling the truth rather than getting a customer by giving false promises

a.Service Quality b.Customer Delight c.Kano Method d.Agreed Customer Requirement e.Customer Perceived Quality f. Customer Feedback and Complaints Resolution

Customer Attrition if the product is good then customer will come back (again) if not, the product will come back (returned)

According to Tom Power: Customer leave because: Quality problem Higher price Didnt enjoy business w/ the organization

(15%) (15%) (70%)

50 % of problem are due to misunderstood requirement Contractual and Non-contractual requirement of customer Contractual requirement: quality: service/product time schedule of delivery price service document support training support

Non-contractual requirement: quality (not document before) implied requirement value of the money spent environment of conducting business friendliness of the customer service personnel of the organization

Customer Contact Personnel - must be C-O-M-F-O-R-T

aring perceived to be very interested in finding out the real needs of the customer
bservant good observer

indful sensitive to urgency and the expectation of the customer

Continuation.

riendly greet them with a smile bliging answer the customer queries esponsible fulfilling the quality requirements actful customer understand and cooperate in completing the job successfully

a.Service Quality b.Customer Delight c.Kano Method d.Agreed Customer Requirement e.Customer Perceived Quality f. Customer Feedback and Complaints Resolution

The Kano Method 1. Basic quality/Threshold - expects that his requirements will implemented in any case 2. Performance quality - satisfaction proportionate of the product - better the performance, the greater the satisfaction

3. Excitement Quality - received some feature or attribute that they did not expect or think of - basic feature must be provided

a.Service Quality b.Customer Delight c.Kano Method d.Agreed Customer Requirement e.Customer Perceived Quality f. Customer Feedback and Complaints Resolution

1. Invest time for understanding customer requirements 2. Find out the right requirement first. 3. Checklist for eliminating communication gap. 4. Review the contract/requirements. 5. Foresee and provide for amendments 6. Documented Policy. 7. Code of good customer handling practices.

a.Service Quality b.Customer Delight c.Kano Method d.Agreed Customer Requirement e.Customer Perceived Quality f. Customer Feedback and Complaints Resolution

1. No hard and fast rule for identifying measures 2. Identify vital few measures 3. Arrive at quantitative indices 4. Measure for customer satisfaction a. Customer perceived quality b. Response time c. Errors in documentation d. Errors in delivery e. Delay in execution f. Delay in delivery

a.Service Quality b.Customer Delight c.Kano Method d.Agreed Customer Requirement e.Customer Perceived Quality f. Customer Feedback and Complaints Resolution

Customer Feedbacks Complaints resolution Complaints Recovery process

Customer Feedbacks
a.Feedback form - giving a response sheet - simplified to enable the customer to fill up with the least difficulty. b. Confidentiality - assure the customer that the feedback will be kept confidential. - customer will five a free and frank feedback. c. Display Results Benefits: Customer; know that feedback where seriously by the organization. Employee; know where they really stand.

Customer Feedbacks Complaints resolution Complaints Recovery process

Complaints resolution 1. Register of complaints Reasons: a. keep track of the complaints b. carry out root cause analysis and take corrective action immediately c. take preventive action d. find out the cost of poor quality and other statistical purposes. 2. Analyze Independently - open mind and try to analyze 3. Give benefits of doubt to customer - doesnt mean that the organization always yields to the customer.

4. Satisfy annoying customer - diplomatic handling the annoying customers and send them back as early as possible.
Compliant Recovery process - process for recovering complaints, process them, communicating to customer and resolving the issues. - aimed at satisfying customers, resolving problem and taking preventive actions.

TQM: Principles and Strategies: Customer Satisfaction Employee Involvement Process Approach Continuous Process Improvement Supplier Partnership Performance Measures

Employee is the strength of an organization, prime contributors to its success and the only expandable resource in the organization TQM principles pertaining to Employee involvement: Employee motivation Teamwork Training & mentoring Recognition and reward Feedback and performance appraisal Empowerment

EMPLOYEE MOTIVATION

Top Notch 5-10%

Fence sitters 80-90% Difficult to improve 5-10%

Continue to do their best Motivation levels depend on management strategies Do want to get motivated

TEAMWORK working together fulfill the basic expectation of employees

1. Teamwork is not a natural human function - effort should be made to put together compatible person 2. Managements Role - giving a clear definition of the following: a. responsibility b. authority c. wherewithal for accomplishing the task d. criteria of measurement of the work output

3.Effective communication Communications in Three Way Process: employee is working for supervisor or manager person working for him subordinate person one work with peer, counterparts, customer and suppliers.

TRAINING AND MENTORING Necessity for orientation training is to understand: objective of the organization requirement and expectation from his team his role and responsibilities his authority know-how and know-why-jobs to undertaken on day to day basis. familiarity and skill in operating the tool/machinery MENTORING - continuously coaching about the job to understand the organization policy, objective and goals

RECOGNITION AND REWARD - aim at transforming each employee as performer and an achiever.

Attributes for selection of best performing (ETDC, Chennai): Commitment Creativity Flexibility Adaptability Determination Responsibility

FEEDBACK & PERFORMANCE APPRAISALs Feedback essential both employee & management more humane to be curious to know about the result of an action employees from management, vice versa analyze to be a good input for the next decision to be taken

FEEDBACK & PERFORMANCE APPRAISAL Strategies: a. Management by walking around concept (MBWA) - talk to employees and get feedback both from verbal communication as well as their body language. - direct feedback in the action taken - informal discussions and put the employee at ease

b. Quality council - encourage the member to talk freely

FEEDBACK & PERFORMANCE APPRAISAL Performance Appraisal - used for the development of the employee - used for: a. promotion b. granting additional increment c. training of employee d. reallocation of duties etc.

EMPOWERMENT an organizational state, where people are aligned with business direction and understand their performance boundaries, thus enabling them to take responsibility and ownership while seeking improvements, identifying requirement.

EMPOWERMENT Steps involved in empowerment: I. Agree on what they will produce or carry out II. Decide how to organize the team. III.Decide on the responsibility within the team. IV.Decide on flow of work. V. Audit the process. VI. Decide on improvement and restart

TQM: Principles and Strategies: Customer Satisfaction Employee Involvement Process Approach Continuous Process Improvement Supplier Partnership Performance Measures

PROCESS APPROACH - right strategy to be adopted for practicing quality as well as management of organization.

Process - repeatable sequence of events

PROCESS APPROACH

PROCESS APPROACH Input of process: Bill of materials Specificationmaterials Requirement for inspection Procedure for receipt of materials Output of process Product/servicedeliver Documents Specification Methods of measurement Criteria for acceptance

Value addition in the process - machinery, infrastructure or techniques for achieving the desired value addition.

PROCESS APPROACH EXT Model Input Entry Task Exit Outp ut

Condition to be satisfied before the task is undertaken

Condition to be fulfill before the task is considered as completed

PROCESS APPROACH Subburajs 6S model for process improvement

Study Strengthe n Streamlin e

Process of Improvement
Synergy Standardi ze Simplify

TQM: Principles and Strategies: Customer Satisfaction Employee Involvement Process Approach Continuous Process Improvement Supplier Partnership Performance Measures

Continuous Process Improvement Jurans Trilogy Kaizen Kaizen blitz 5S Practice Three MUs The Seven Deadly Wastes Business Process Reengineering

 Jurans Trilogy Quality Planning Quality Control Quality Improvement

Kaizen - gradual, orderly and continuous improvement - activities: maintenance and improvement - principles: a. workplace effectiveness (5S tools) b. elimination of waste, strain and discrepancy (The Three MUs) c.Standardization

5S Tools

Japanese
Seiri Seiton Seison Seiketsu Shitsake

English
Sort Straighten Scrub Systematize Standardize Separate out all unnecessary things Arrange the essential things in order

Keeping machinery and working environment clean

Make cleaning and checking as routine practice Standardize the previous four steps

Three MUs
Muda Muri Mura Waste Strain Discrepancy

THE SEVEN DEADLY WASTE 1. Overproduction waste 2. Waste due to waiting 3. Transportation 4. Processing Waste 5. Inventory waste 6. Waste of motion 7. Product Defects Business Process Reengineering - fundamental rethinking and radical redesign of business processes to achieve dramatic improvement in critical contemporary measures of performance.

TQM: Principles and Strategies: Customer Satisfaction Employee Involvement Process Approach Continuous Process Improvement Supplier Partnership Performance Measures

Supplier Partnership
a. Importance of supplier - quality raw materials= quality finish products. b. Supplier Selection - ISO 9000 or similar standards c. Supplier standards d. Involvement of supplier in development e. Product Audit f. Vendor Rating system g. Price Rating h. Delivery rating

TQM: Principles and Strategies: Customer Satisfaction Employee Involvement Process Approach Continuous Process Improvement Supplier Partnership Performance Measures

Performance Measures 1. PDCA for measurement 2. Balanced Scorecard 3. Performance Based management system

Adaptation

Possible measures are identified

Results are counter check through other means

What will be measured? Who will measure? When it will be measures How?

Performance expectation

Objective Financial Customer Initial business process Learning & Growth

Measure

Target

Initiatives

What strategy must be achieved & what is critical to its success?

How success will be measured and tracked?

Key initiative required to achieve objective