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Total Quality Management
Total: Made up of the whole Quality: Degree of excellence a product or service provides.
Management:Act and art of managing with steps like plan,
organize, control, lead, staff, provisioning and organizing
It is the application of quantitative methods and human resources
to improve all the processes within the organization and exceeds
customers needs now and in future.
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TQM implies an organizational obsession withmeeting or exceeding a customer expectations so
that customers are delighted.
Essential to win new business and keep existing
business.
Quality product or service that meet the customers
needs at a reasonable price, which includes on time
delivery and outstanding service.
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The Customer is the Ultimate Judge of Value
Quality.
TQM is driven by long-term growth goalsand flexibility, focusing on
bringing the customer in.
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Customer Satisfaction
Quality
System
Quality Product/
Service
Customer Satisfaction
Customer Focus
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ORGANIZATIONAL
HIERARCHIAL DIAGRAMS
Earlier approach TQM approach
CEO
SENIOR
MANAGER
FUNCTIONAL
OPERATIONAL
AREAS
FRONT LINE
REPREENTATIVES
CUSTOMERS
CUSTOMERS
FRONT LINE
REPREENTATIVES
FUNCTIONAL
OPERATIONAL
AREAS
SENIORMANAGER
CEO
Indian companies before LPG and after it.
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Teboul Model ofCustomer Satisfaction
Customer needs
Company
Product/Service
offer
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What is customer satisfaction?
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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Customer types
External current, prospective and lost customers
Internal Every person in a process is a customer of the
previous operation.( applies to design, manufacturing, sales,
supplies etc.) Each worker should see that the quality meets
expectations of the next person in the supplier-to-customerchain.
TQM is committed to customer focus - internal and external
customers.
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Customer/supplier chain
Inputs from
external
customers
Internal
customers
Outputs to
external
customers
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Internal customer/Supplier relationships
Questions asked by people to their internal customers
What do you need from me?
What do you do with my output?
Are there any gaps between what you need and what you get?
Good team-work and inter-Departmental harmony is required.
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User purchase perceptions
An American Society of Quality (ASQ) Survey on the end
user perception of important factors that influence
purchases are as follows:
Performance
Features
Service
W
arranty Price
Reputation
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Customer satisfaction/dissatisfaction feedback
Continuously sought and monitored
Feedback enables the organization to
Discover customer dissatisfaction. Discover relative priorities of quality.
Compare performance with the competition.
Identify customers needs.
Determine opportunities for improvement.
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1. Comment cards enclosed with warranty card when product ispurchased.
2. Customer survey and questionnaire
3. Customer visits
4. Customer focus groups
5. Quarterly report card
6. Toll-free phones, e-mail, Internet newsgroups, discussion
forums
7. Employee feedback
8. Mass customization
Information collecting tools
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CUSTOMERCOMPLAINTS
The feedback is proactive
Customer complaint is reactive but very useful.
by taking the positive approach to the
complaints it is possible to improve theproducts/services
In fact complaints give the
organization a second chanceto win!!
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Elements of Service Quality
(i ) Organization
Identify each market segment
Write down the requirements
Communicate the requirements
Organize processes
Organize physical spaces
(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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Service Quality
(iii) Communication
Optimize the trade-off between time and personalattention
Minimize the number of contact points
Provide pleasant, knowledgeable and enthusiasticemployees
Write documents in customer-friendly language.
(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
Recognize and reward performance
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Service quality
(v) Leadership
Lead by example
Listen to the front-line people
Strive for continuous process.
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CustomerCare Keep promises to customers
Return customer calls promptly
Allot staff to handle customer problems
Treat customers with courtesy, respect and professionalism always
Evaluate customer satisfaction regularly
Search for customer-related improvements continuously
Deliver Products/Service promptly and efficiently
Give every customer complete and personal attention.
Maintain a neat and clean appearance of self and work place,all times
Review and implement customer feedback and suggestions into
current procedures when needed
Training and education to enhance job performance and commitment
to customer care
Treat every customer as we would treat ourselves.
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KANO Model
The Kano model is a theory of product development and customersatisfaction developed in the 80s by Professor Noriaki Kano
The Kano model is a framework for considering, measuring andimplementing activities to not only provide customer satisfaction,
but bring delight. The Kano Model ofCustomer (Consumer) Satisfaction classifies
product attributes based on how they are perceived by customersand their effect on customer satisfaction.
Exciters (Delighters)
If the requirement is absent, it does not cause dissatisfaction, but itwill delight clients if present.
More is Better
The more requirements are met the more one is satisfied.
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Kano Model-conceptualizes customer
requirements
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
Need notfullfilledNEED WELL
FULLFILLED
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Customer Retention
Customer satisfaction should lead to customer loyalty andcustomer retention.
This is the acid test and bottom line- when the customerrepeatedly comes back to you for repeat orders and to
purchase new products manufactured by you.
Firm orders received or cash payments registered , marketshare, customer referrals and customer retention are anindication of your customer success and penetration .
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GOOD CUSTOMER SERVICES &
RETENTION OF CUSTOMERS
Good Customer Service is all about bringing customers back.
And about sending them away happy
---HAPPY enough to pass Positive Feedback about yourbusiness along to others,
who may then try the product or service you offer for
themselves and in their turn become Repeat Customers/
(loyal customers).
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Measuring TQM in form ofCustomer
Satisfaction
The Deming Prize is one of the highest awards on TQM (Total
Quality Management) in the world.
This best known prize with the longest history was first
awarded by the JapaneseU
nion of Scientist andE
ngineers(JVSE) in 1951 to a Japanese company which excelled in Total
Quality Management.
It is given in the following 3 areas:
The Deming Prize for Individuals
The Deming Application Prize
The Quality Control Award for Operations Business Units
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Examples
By applying this framework specified by JVSE and the
concerns for the Deming prize, companies in the TVS Group
like, Sundram Clayton, Sundram Brakelining, TVS Motors,
have achieved excellence
Other auto- component manufacturers like Jay Bharat Maruti,
a subsidiary of Maruti Udyog Limited, Sona Koyo Steering,
and Minda Huf Ltd. in India have established a level of
excellence by which they are able to supply their products to
the top automobile manufactures of the world based in India. They are also able to export to foreign countries facing the
challenges of global competition successfully.
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TVS Motors: TQM
The company is committed to achieving total customer
satisfaction through excellence in Total Quality Management
(TQM) and continuously strives to give the customer best
value for money, across all its products.
The Deming Award from JUSE, which the company won, is
proof of its commitment to achieve total customer satisfaction
through excellence in Total Quality Management.
The companys high quality R&D talent pool, comprising of
over 400 engineers, employed in new product developmentand advanced engineering, is backed by one of the most
modern computer aided labs.
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TATA Business Excellence Model
The model works under the aegis ofTata Quality ManagementServices (TQMS), an in-house organisation mandated to helpdifferent Tata companies achieve their business excellence andimprovement goals.
Other core elements of the Tata business excellence movement are:
The Tata Code of Conduct (TCoC),
A mandatory pan-Tata policy that defines howTata employees can conduct themselves
The Management of Business Ethics, a programmethat helps Tata companies drive ethics and values in the
organisation. The TBEM movement in Tata has a built-in reward and recognition
mechanism wherein companies that have achieved a score of 600on the TBEM framework are felicitated with the JRD QV Award.
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The objectives of the award are:
This award is given to group companies in order to create
awareness on the importance of the value of quality and the
need for total customer satisfaction in all areas of operationswithin the Tata group companies.
To achieve and sustain continuous excellence and
consequently leadership in the marketplace through
perfection and the achievement of quality which will be
recognised as being the best and ahead of competition.
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Criteria for recognition:
* JRDQVAward: 600+ for the first time
* Leadership in Excellence: 700+ for the first time
* Sustained Excellence: 3 successive improvements
beyond 600
* Active Promotion: 500 to 600 for the first time
* SeriousAdoption: 450 to 500 for the first time
* HighDelta:High improvement in one year min 75 for500-
* HighDelta 500+: High improvement in one year min 50
* HighDelta 600+: High improvement in one year min 25
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