Customer Satisfaction and Total Quality Management

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Customer Satisfaction and

Total Quality Management

Department of Industrial Engineering UETPeshawar


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Why study Customer?

Asset of an organization.

Success of any organization is related to no of

customers, how often they come and buy and how

much.

Customer satisfaction is used as measure of quality

due to national and international competition.

Exceeding customer expectation in order to win newbusiness and to keep the existing business.


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Customer Needs and Company

Offers

Customer satisfaction Model

The customer needs are presented by circle

and square represents the products or services

that the company is going to offer.

Total satisfaction is achieved when the offer

matches the need.


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Who is the Customer?

Internal and external customers.

External customers. The one who uses the

product or service or the one who purchases

the product or service or the one who influence

the sale of the product or service. ( as child

influenced the sale). identification of external

customers is going to change.


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Customers

External customer is one who is normally

outside the organization and is of 3 types.

Current, prospective, and lost customer.

Every employee in the organization must know

how their job enhance the customer needs.

Continuous improvement is required to retain

the existing one and add new one


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Internal Customers

Every function has internal customer. Every

person in a process is considered as a customer

of the proceeding operation.

Each worker goal is to make sure that quality

meets the expectation s of the next person.


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Internal Customers

3 basic question to be asked in internal

customers relations. i.e.

1. what do u need from me?

2. what do u do with my output?

3. are their any gap between what u need

and what u get?


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What is important to customer

ASQ answers on survey basis that following factorsare important to end user.

Performance Feature

Service

Warranty

Price

Reputation


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Performance : A product primary operating

characteristics. It involves fitness for use. It

may include 1) availability: the possibility that

the product will operate when needed.

2) Reliability: freedom from failure over time.

3). Maintainability: ease of keeping the product

operatable.


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Service sector

Research shows that 5 key dimensions of service

quality contribute to customer perception.

Reliability: The ability to provide what was promised,

dependably, and accurately. Example includecustomer service representative responding in the

promised time, following customer instruction,

providing error free invoice and statements, and

making repair correctly the 1st time.


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Service Sector

Assurance: the knowledge and courtesy of

employee and their ability to convey trust and

confidence. For example the ability to answer

questions, having the capability to do

necessary work and being polite and pleasant

during customer transactions.


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Service Sector

Tangibles: the physical facility and

equipments and the appearance of personnel.

Tangible include attractive facilities,

appropriately dressed employees, and well

designed forms that are easy to read and write.


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Service Sector

Empathy: The degree of caring and individual

attention provided to customer.

Responsiveness: the willingness to help

customers and provide prompt services.

Example include acting quickly to resolve

problems and rapidly replacing defective

products.


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Quality dimension of Manufactured

Product vs ServiceQuality Dimension Manufactured Product

(Stereo Amplifier)

Service Product

(checking account)

Performance Power Time to process

customer request

Feature Remote Control Automatic bill payment

Conformance Workmanship Accuracy

Reliability Mean time to failure Variability of time to

process request

Durability Useful life Keeping pace with

industry trends

Aesthetics Oak cabinet Appearance of bank

lobby

Serviceability Ease of repair Resolution of error


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Japanese Professor say

Japanese professor Noriaki Kano suggest three classes ofcustomer requirements.

Dissatisfiers: Requirement that are expected in a product orservice. In Automobile, a radio, heater and required safetyfeatures are examples which are generally not stated bycustomer but assumed as given. If these features are not giventhen customer is dissatisfied.

Satisfiers: Requirements that customer say they want. Manycar buyers want a sunroof, power windows, or antilock brakes.Although these requirements are not expected, fulfilling them

creates satisfaction. Delighters: new features that customers dont expect.

Individual channel selection at each seat will delight theindividual.


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Feedback

Customers continuously change. they changetheir minds, their expectations, and theirsuppliers. It enables the organization to;

1) Discover customer dissatisfaction2) Discover relative priorities of quality

3) Compare performance with competition

4) Identify customer needs5) Determine opportunities for

improvements


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Voice of the customer

Customerneeds/requirements asexpressed by the customersown terms are called as

Voice of the Customer. Customer meaning is a

crucial part of the message.

Vice president of Marketingat Whirlpool refrigerators

stated the consumer speakin code Whirlpool researchshowed that customer wanteasy to clean refrigerator.


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How to Listen Voice of the Customer

Comment Cards

Low cost method for

obtaining feedback from

customer. People respond in case

the product is very good

or very bad.

Also used in restaurants

and hotels.


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Feedback contd..

Customer Questioners:

It is a popular tool for

obtaining opinion and

perceptions about an

organization and its

products and services.

Its costly and time

consuming process

Most survey ask the

customer to grade the

questions


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Feedback contd

Focus Groups:

A focus group is a form ofqualitative research in which agroup of people are asked abouttheir perceptions, opinions, beliefs

and attitudes towards a product,service, concept, advertisement,idea.

Questions are asked in aninteractive group setting whereparticipants are free to talk with

other group members.

Focus groups are sometimes usedwith an organizations employeesto examine internal issues.
http://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Qualitative_research


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Feedback contd..

Customer Visits.

Visits to a customer place of business provide anotherway to gather information.

An organization can easily monitor its productperformance while it is in use and identify anyproblem.

Senior managers should be involved in these visits

along with operational managers. Brain storming sessions with the customers about

future products and services.


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Feedback cond..

Quality Report Card.

These are sent on quarterly basis normally to

the customers regarding the product quality.

Internet and computers

Toll Free Numbers


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Assignment No. 1

Affinity Diagrams


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Demings Background

Main architect for introducing Total Quality

into Japan

Born 1900

Graduated in Electrical Engineering

PhD in mathematical physics

Became statistician for US govt. Sent by US govt. to Japan after WWII to

advise on Japanese census.


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Demings Philosophy

Quality is about people, not products

Suggested quality concept for designing

product

Management need to understand nature of

variation and how to interpret statistical data

Promoted importance of leadership

85% of production faults responsibility of

management, not workers

Enumerated a 14-point management


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Product Development Cycle

1. Design the product.

2. Make it.

3.

Try to sell it.4. Do consumer research and test the products

uses.

5. Redesignstart the cycle all over again.


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Quality

Costs

Prices

Productivity

Market Share

Stay in business


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Demings 14-point Management

Philosophy

2. Adopt a commitment to seek continual

improvements Constantly and forever improve the system

development processes, to improve quality andproductivity, and thus constantly decrease the time

and cost of systems. Improving quality is not a one

time effort.


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Philosophy

4. In dealing with suppliers one should end the

practice of awarding business on price. Move

towards quality of product, reliability of

delivery and willingness to cooperate andimprove. Build partnerships.

Minimize total cost. Move towards a single supplier

for any one item or service, making them a partner ina long-term relationship of loyalty and trust.


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Philosophy

5. Improvement is not confined to products and

their direct processes but to all supporting

services and activities

All functions in an organization need to become

quality conscious to deliver a quality product.


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Philosophy

6. Train a modern way.

Institute training on the job. Everyone must be trained,

as knowledge is essential for improvement.


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Philosophy

7. Supervision must change from chasing, to

coaching and support. Institute leadership. It is a mangers job to help their

people and their systems do a better job.


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Philosophy

8. Drive out fear and encourage two-way

communication. Drive out fear, so that everyone may work effectively.

Management should be held responsible for the faultsof the organization and environment.


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Philosophy

9. Remove barriers between departments

Break down barriers between areas. People must work

as a team. They must foresee and prevent problems

during systems development and use.


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Philosophy

10. Do not have unrealistic targets

Set realistic targets. Do not place people under

unnecessary pressure by asking them to do things

which are not achievable. Eliminate slogans,exhortations, and targets that ask for zero defects, and

new levels of productivity. Slogans do not build

quality systems.


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Philosophy

11. Eliminate quotas and numerical targets

Eliminate numerical quotas and goals. Substitute it

with leadership. Quotas and goals (such as schedule)

address numbers - not quality and methods.


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Philosophy

12. Remove barriers that prevent employees

having pride in the work that they perform Remove barriers to pride of workmanship. The

responsibility of project managers must change fromschedules to quality.


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Philosophy

13. Encourage education and self-improvement

for everyone Institute and vigorous program of education and self-

improvement for everyone. There must be acontinuing commitment to training and educating

software managers and professional staff.


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Philosophy

14. Publish top managements permanent

commitment to continuous improvement of

quality and productivity


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Questions

?

Customer Satisfaction and Total Quality Management

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