8/3/2019 TQM GROUP 1.

1/31

8/3/2019 TQM GROUP 1.

2/31

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.

8/3/2019 TQM GROUP 1.

3/31

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.

8/3/2019 TQM GROUP 1.

4/31

The Customer is the Ultimate Judge of Value

Quality.

TQM is driven by long-term growth goalsand flexibility, focusing on

bringing the customer in.

8/3/2019 TQM GROUP 1.

5/31

Customer Satisfaction

Quality

System

Quality Product/

Service

Customer Satisfaction

Customer Focus

8/3/2019 TQM GROUP 1.

6/31

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.

8/3/2019 TQM GROUP 1.

7/31

Teboul Model ofCustomer Satisfaction

Customer needs

Company

Product/Service

offer

8/3/2019 TQM GROUP 1.

8/31

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?

8/3/2019 TQM GROUP 1.

9/31

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.

8/3/2019 TQM GROUP 1.

10/31

Customer/supplier chain

Inputs from

external

customers

Internal

customers

Outputs to

external

customers

8/3/2019 TQM GROUP 1.

11/31

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.

8/3/2019 TQM GROUP 1.

12/31

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

8/3/2019 TQM GROUP 1.

13/31

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.

8/3/2019 TQM GROUP 1.

14/31

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

8/3/2019 TQM GROUP 1.

15/31

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!!

8/3/2019 TQM GROUP 1.

16/31

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.

8/3/2019 TQM GROUP 1.

17/31

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

8/3/2019 TQM GROUP 1.

18/31

Service quality

(v) Leadership

Lead by example

Listen to the front-line people

Strive for continuous process.

8/3/2019 TQM GROUP 1.

19/31

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.

8/3/2019 TQM GROUP 1.

20/31

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.

8/3/2019 TQM GROUP 1.

21/31

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

8/3/2019 TQM GROUP 1.

22/31

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 .

8/3/2019 TQM GROUP 1.

23/31

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).

8/3/2019 TQM GROUP 1.

24/31

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

8/3/2019 TQM GROUP 1.

25/31

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.

8/3/2019 TQM GROUP 1.

26/31

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.

8/3/2019 TQM GROUP 1.

27/31

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.

8/3/2019 TQM GROUP 1.

28/31

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.

8/3/2019 TQM GROUP 1.

29/31

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

8/3/2019 TQM GROUP 1.

30/31

8/3/2019 TQM GROUP 1.

31/31