TQM Lecture 3

8/8/2019 TQM Lecture 3

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To successfully implementTQM, an organization mustconcentrate on the eight key

elements:

Ethics

IntegrityTrustTraining

TeamworkLeadershipRecognitionCommunication


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TQM has been coined to describe aphilosophy that makes quality the driving

force behind leadership, design, planning,and improvement initiatives.

These elements can be divided into fourgroups according to their function. Thegroups are:

I. Foundation - It includes: Ethics, Integrity and

Trust.II. Building Bricks - It includes: Training, Teamworkand Leadership.III. Binding Mortar - It includes: Communication.IV. Roof - It includes: Recognition.


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CUSTOMER?CUSTOMER?

Everyone in the organization, from hourlyemployees on the front lines to seniorexecutives, should know

the customer is

the customer considers important.


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CUSTOMER ANYONE WHO IS IMPACTED BY THEPRODUCT OR PROCESS. MAY BEEXTERNAL OR INTERNAL.

EXTERNAL IMPACTED BY THE PRODUCT BUTCUSTOMER ARE NOT MEMBERS OF THECOMPANY THAT PRODUCES THEPRODUCT.

INTERNAL IMPACTED BY THE PRODUCT AND

CUSTOMERS ARE ALSO MEMBERS OF THECOMPANY THAT PRODUCESTHE PRODUCT.


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CUSTOMERS' NEEDS

KEEP CHANGING. THERE IS NO

SUCH THING AS A FINAL LIST OFCUSTOMERS' NEEDS.

WHY CUSTOMERS NEEDS CHANGE?

DUE TO

NEW TECHNOLOGYMARKET COMPETITIONSOCIAL UPHEAVALSINTERNATIONAL CONFLICTS.


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Customer supply chain

Inputs from

External

Customers

Internal

Customer

Outputs to

External

Customer

Internal Customer/Supply Relationship

Three basic questions people ask from their internal

customers

1.What do you need from me?

2.What do you do from my output?

3.Are there any gaps?


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DRIVING TRANSFORMATIONAL CHANGEDRIVING TRANSFORMATIONAL CHANGE

Delivery Systems

RedesignNew Process IntentNew Process ModelNew Learning and

Improvement SystemNew Value-Adding

Technology

ContinuousImprovement

Reduction of

Valueless time Valueless activity

Valueless variance

Often

non-linear

Usually

linear


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TQM Philosophy: Continuous Process Improvement

Implies

There is no Acceptable Quality level

Customers needs constantly change- they become

more demanding

1980 88 Quality & Performance of Product

Price

Service

1989- 92 Quality & Performance of Product

Service

Price

ASQ k d


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ASQ ranks end-users

perceptions as

PerformanceFeatures

ServiceWarranty

PriceReputation

Feedback

Discover Customer Dissatisfaction

Discover relative priorities of qualityCompare performance with the competition

Identify customers needs

Determine opportunities for improvement


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Surveys

Remember

Clients and customers are not same Surveys raise customers expectations How you ask a question will determine how the

question is answered Be specific in questions to get better answers Repeated responses are not always possible Spend more time in survey development: You will

spend less time in data analysis and interpretation Who you ask is as important as what you ask Before data collection analysis disciplines should

be understood


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To Implement the Survey Results:

a. Focus Group

b. Toll- Free Numbers

c. Customer Visits

d. Internet & Computerse. Employee Feedback

f. Mass Customization


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Customer service is the set of activities which could

be provided before, during or after the sale.

Few such activities are:

ORGANIZATION

a. Identify each market segment

b. Write down the requirements

c. Communicate the requirements

d. Organize processes

e. Organize physical spaces


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CUSTOMER CARE

1. Meet the customers expectations2. Get the customers point of view

3. Delivered what was promised

4. Respond to all complaints5. Over-respond to customer


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COMMUNICATION

a. Optimize the trade-off between time and

personal attention

b. Minimize the number of contact points

c. provide knowledgeable, pleasant and

responsive employees

d. document in customer-friendly language


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FRONT-LINE PEOPLE

Impart care while recruiting Give them challenges Authorize them to solve problems Provide appropriate training Recognize and reward performances


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LEADERSHIP

Lead by Example Listen to front-line people

Strive for continuous improvement

G Q C STHE GREAT QUALITY PRINCIPLES


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THE GREAT QUALITY PRINCIPLESTHE GREAT QUALITY PRINCIPLES

1. Quality can be improved and costs reduced at the same time.

2. Improving quality increases competitive advantage. Therefore, the goal should be

ultimate quality performance.

3. All variance results in loss to the system as a whole and loss to society.

Therefore, variance must be reduced.

4. Quality is perceived in the mind of the customer. Discover what customers value

now and what they may value in the future. To be the supplier of choice, exceed

their expectations.5. Design products and services according to customers values, and standardize

the processes that produce them while also accommodating the specific needs of

individual customers.

6. Management controls the system; therefore quality improvement must begin with

management.7. Detect defects, errors, and variances immediately, and provide

high-quality feedback immediately.


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Earl Naumann says,

A firm that has no customer satisfactionprogram and no interest in starting one

should be the delight of the firms

competitors


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To capture early warning indicators,

combine the concept of moments of truth

with the development of listening posts bytaking the following steps:


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1.Through training, build awareness of the need to gather

all tidbits of information

2.Develop a system to feed information to a central

collecting place

3.Train personnel who have frequent direct customer

contact to actively listen to the VoC

4.Create incentives for employees to communicatecustomer complaints

5.Make the review of the VoC part of your quality

management system


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By capturing the VoC, your organization willcreate much more than a complaint management

system.

VoC can include

Customers suggestionsTheir dissatisfaction with a product/ service

How they feel they were treated

Their perception of quality

What they would like in future products/ services, or

Their expressions of satisfaction


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Your Customers Are Talking, ButAre You Listening?


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Why Bother?

There are myriad reasons it pays to knowwhats on your customers minds:

Customer retention:

Wouldnt you like to know and fix adeveloping situation before it results in a lostcustomer?


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Why Bother?

Customer satisfaction:

Wouldnt it be beneficial

to have a methodology for gathering andprocessing customer feedback?

a process that will enable your organization toobtain and

retain a leading position in the marketplace?


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Why Bother?

Employee satisfaction:

Wouldnt it be useful

to be able to directly reinforce yourorganizations customer focus throughmeasurements, feedback and positivereinforcement of your responsible employees?


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Why Bother?

Quality management system requirements:

Wouldnt it be nice to implement preventiveaction requirement, a customer data collection,analysis, measurement and reporting processthat fully meets the intent of the standard?


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Cost avoidance:

Wouldnt it be a decided advantage

to know you have the best possible approachto avoiding costly mistakes that could result fromfailure to hear the voices of your customers?

Why Bother?


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Much can be done to

improve an organizations ability toreally listen to

the many voices of its customers.

Reference: Westcott, R. (2006). Quality Progress. February, 22-27


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Determine Customer NeedsDetermine Customer Needs

What product/service attributes are consideredimportant to your customers?

What does your customer require (must have)?

What does your customer want (would be nice to

have)?

Why is it important to determine customer needs?


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Intangible WantsIntangible Wants

Sense of well-being

Securing attention

Courteous treatmentPrompt services

Pleasant surrounding

Sense of importance

Dealt with honestly


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Kano ModelKano Model

Unanticipated Excitement

Surprise

Unspoken

Performance



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Specified Required Desired

Spoken

Performance

Satisfaction

(Tangible)

(Int

ang

ible

)


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Basic Essential Taken for granted

Unspoken

Performance

Satisfaction


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Unanticipated Excitement Surprise

Unspoken

Basic Essential Taken for granted

Unspoken

Specified Required Desired

Spoken

Ch

ange

Performance

Satisfaction

H i Th V i Of Th C t


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Hearing The Voice Of The Customer

Wants

Marketing

Laws & Regulations

Contracts

Competitive AnalysisUser Focus Groups

Tribal Knowledge

Innovative Ideas


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Customer Research

Be a customer

Communicate with

customers

Simulate customer experience

Beyond conventional market research

TQM Lecture 3

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