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Customer is the Boss orKing Customer dictates the market trends and direction. The organizations success depends on
No of customers How much they buy? How often they buy?
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CUSTOMERS
Front-line Staff
Functional
DepartmentStaff
CEO
Sr.
Mgrs
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Customer needs
Company
Product/Service
offer
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Is it due to Product quality? Is it due to pricing?
Is it due to good customer service ?
Is it due to company reputation? Is it something more?
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External and Internalcustomers External current, prospective and lost customers InternalEvery person in a process is a customer
of the previous operation.( applies todesign,manufacturing,sales,supplies etc.) [Eachworker should see that the quality meetsexpectations of the next person in the supplier-
to-customer chain ] TQMis commitment to customer-focus - internal
and external customers.
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Inputs from
external customers
Internal customers
Outputs to
external customers
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Questions asked by people to their internalcustomers What do you need from me? What do you do with my output? Are there any gaps between what you needand what you get? Good team-work and inter-Departmentalharmony is required. Also the leaders role insupervising the internal customer-supplierchain.
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TQM is quality management and management ofquality there is no full stop and no break in thechain Continuous process (quality) improvement is allits about. Why? One important reason is the customerquality level is not static and his expectationskeep changing and his demands too Also plant process dynamics- how to achievemaximum efficiency , optimizing cost andperformance in the process operations,minimizing waste etc.
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Performance Features Service Warranty Price Reputation
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Customer feedback has to be continuouslysought and monitored - not one-time only (Pro-active Complaints are a reactive methodof finding out there is a problem) Customer feedback can be relayed to Mfgr. Performance comparison with competitors canbe known Customers needs can be identified Relative priorities of quality can be obtainedfrom the horses mouth Areas for improvement can be noted.
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Comment cards enclosed with warranty cardwhen product is purchased. Customer survey and questionnaire Customer visits Customer focus groups Quarterly reports Toll-free phones e-mail, Internet newsgroups,discussionforums Employee feedback Mass customization.
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Employers dont pay wages but it is thecustomer who pays the wages
So take good careof your customers. Customer-care centres not just profit-
centres!
The entire organization must in effect
revolve around the customer whether thecustomer is being well served and if he isreally pleased,contented and satisfied withthe service you have to offer.
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Set of activities an organisation uses to satisfythe customers and their needs. The service can be provided at
Before the sale of the product During the sale of the product After the sale of the product
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(i )Organisation Identify each market
segment Write down the
requirements
Communicate therequirements
Organise processes
Organise physicalspaces
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(ii) Customer Care Meet the customers expectations
Get the customers point of view Deliver what is promised
Make the customer feel valued
Respond to all complaints
Over-respond to the customer Provide a clean and comfortable customer
reception area.
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(iii) Communication Optimize the trade-off between time and
personal attention
Minimize the number of contact points Provide pleasant,knowledgable and
enthusiastic employees Write documents in customer-friendly
language.
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(iv) Front-line people Hire people who like people
Challenge them to develop better methods
Give them the authority to solve problems Serve them as internal customers
Be sure they are adequately trained
Recognise and reward performance
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(v)Leadership Lead by example
Listen to the front-line people
Strive for continuous process improvement(Pgs. 88-93 Besterfield)
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Keep promises to customers Return customer calls promptly Allot staff to handle customer problems Treat customers with courtesy,respect andprofessionalism always Evaluate customer satisfaction regularly Search for customer-related improvementscontinuously Deliver Products/Service promptly andefficiently Give every customer complete and personalattention.
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Maintain a neat and clean appearance of selfand work-place,at all times Review and implement customer feedback
and suggestions into current procedureswhen needed Training and education to enhance jobperformance and commitment to customercare Treat every customer as we would treatourselves. ( Pg. 90, Besterfield)
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Exciters-
Quickly expected Easily identified
Typically performance related
Customer
satisfied
Customer
Not satisfied
Requirement
satisfied
Requirement
Not satisfied
Innovations
Unspoken-
but expectedrequirements
Spoken and
expected
requirements
Known only to experienced
designers or discovered late
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Customer satisfaction should lead to customerloyalty and customer retention. This is the acid test and bottom line- when thecustomer repeatedly comes back to you for repeatorders and to purchase new products mfgrd. byyou. (In spite of stiff competition and multipleSuppliers/Sources ) Firm orders received or cash payments registered ,market share, customer referrals and customer
retention are an indication of your customer successand penetration .
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Maslows Hierarchy of Needs Herzbergs Two-Factor Theory Achieving a motivated task-force
(Pgs.104-105 Besterfield)
Know thyself,Know your employees, Establisha positive attitude, share the goals,Monitorprogress,Develop interstingwork,Communicate effectively, Celebrate
success.
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To invest people with authority to tap thepotential in every worker (avoid the wastageof unrealised capacity) People have the ability,confidence andcommitment to take the responsibility andownership to improve the process, andinitiate the necessary steps to satisfycustomer requirements within well-definedboundaries in order to achieveorganisational goals.
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Everyone must understand the need forchange The system needs to change to the newparadigm The organisation must enable its employees. Teams (Pgs. 109-124 Besterfield)
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Processrefers to business and productionactivities of an Organisation.
Processes for improvement-eg. Design &Manufacturing,Marketing,Stores & Purchase,etc.
Inputs of the Process-Manpower,materials,money,data,etc.Outputs- Products,Services,data etc.Outputs need performance measures mainoutcome being customer satisfaction.(feedbackis used to improve the process)
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Processrefers to business and productionactivities of an organisation
Businessprocesses-Manufacturing,Design,Sales,Purchase,Stores etc.are areas where
non-conformance can be reduced andprocesses improved
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INPUTMaterials
Money
Data,etc.
PROCESS
People
Equipment
Method
Environment
Materials
Procedures
OUTPUTInformation
Data
Product
Service,etc.
CONDITIONS
O/P
FEEDBACK
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Reduce resources Reduce errors Meet or exceed expectations ofinternal/external customers Make the process safer Make the process more satisfying to theperson doing it.
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Jurans Trilogy Shewharts Plan-Do-Study-Act cycle Kaizen- making small incrementalimprovements to the individual and theorganisation. (Pgs.140-160,Besterfield)
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PLANNING Determine internal & external customers.
Their needs are discovered.
Develop product / service features.
Develop the processes able to produce the product / service
features.
Transfer plans to operations.
CONTROL
Determine items to be controlled.
Set goals for the controls.
Measure actual performance.
Compare actual performance to goals.
Act on the difference.
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IMPROVEMENT Establishment of quality council.
Identify the improvement projects.
Establish the project teams with a project leader.
Provide the team with the resources.
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Quality
planning
Cost of
poor
quality
Operation
region
Originalzone of
Quality
controlNew zone
of quality
control
Quality Control- during Operations
0
0
20
40
Time
Sporadic spike
Chronic waste
Opportunity for
improvement. Quality improvement
Lessons learned
The Juran Trilogy Diagram
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Repair Refinement Renovation Re-invention
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Compliance Unstructured Efficiency Process Design Product Design
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PlanPlan
DoStudy
Act Plan
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Identify the opportunity Analyze the current process Develop the optimal solution(s) Implement changes Study the results Standardise the solution Plan for the future.
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Phase I Identify the Opportunity
Phase 2
Analyze the process
Phase 3
Develop the optimal solution(s)
Phase 4 ImplementationPhae 5 Study the results
Phase 7
Plan for the future
Phase 6
Standardise the solution
Act Plan
DoStudy
Phase I Identify the Opportunity
Phase 2
Analyze the process
Phase 3
Develop the optimal solution(s)
Phase 4 ImplementationPhae 5 Study the results
Phase 7
Plan for the future
Phase 6
Standardise the solution
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The 3 K Method Kimerareta Kotoo What has been decided Kimerareta Tori must be followed Kichim to Mamorukotoas per standard.
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SEIRI - Sort ( eliminate unnecessary)
SEITON - Set ( Systematic or Orderliness )
SEISO - Shine ( Sweep or clean-up )
SEIKETSU - Standard (maintaining cleanliness )
SHITSUKE - Sustain ( Self-discipline )
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Kaizen-continuous improvement or improvement over
improvement gradually
Break the complex process into sub-processes and thenimprove the sub-processes.
Continuous improvements in small increments make theprocess more efficient ,controllable and adaptable.
Kairyo- improvements through innovation in great jumps
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The suppliers should be treated as partners to achieve the same
quality level as attained within the organization.
Key elements:
Long term commitment
Trust
Shared vision
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Sole sourcing- only one supplier when no other sources
are available
Multiple sourcing-many suppliers for an item
Single sourcing- use of one supplier when other sources
are available
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Survey stage
Enquiry stage
Negotiation and selection stage
Experience stage
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Inspection Training
Team approach
recognition
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-6 sigma Mean +6 sigma+3 sigma-3 sigma
USLLSL
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Six sigma method is a TQM process that uses processcapability analysis as a means of measuring progress. The smaller the standard deviation, the lesser the
deviation of the product characteristic from its meanvalue. If the process has a normal distribution,the upperand lower specification limits are +/- 6 sigma from themean u. The non-conformance is 2ppb and the processcapability Cp is 2.0(1.33 Cp is de facto standard.) A normal process with mean shifted +/-1.5 sigma fromthe target value desired has non-conformance of 3.4ppmand process capability index Cpk= 1.5, with 1.0 beingthe de facto standard.
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Total Quality Management - Dale H.Besterfield et al. ,Pearson education LPE
Total Quality Management - R.S.Naagarazanand A.A Arivalagar, New Age InternationalPublishers.