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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
Kano ModelKano Model
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Kano ModelKano Model
Specified Required Desired
Spoken
Performance
Satisfaction
(Tangible)
(Int
ang
ible
)
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Kano ModelKano Model
Basic Essential Taken for granted
Unspoken
Performance
Satisfaction
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Kano ModelKano Model
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