Quality Management BUS 424

Second semester 2013

• Instructor:Dr. Mohammed A. Nasseef• Email:manassief@kau.edu.sa• Website:www.nasseef.infoContact Number:0540627773 ( SMS and whatsApp)

note: mobile number is for urgent calls, please if you call consider a appropriate time.

Grading Policy

• Midterms 20• One Team Project Written Report 15 (team members all receive same grade)• One Team Project Presentation 15• Class Participation 10 • Final Exam 40• TOTAL 100

Quality Evolution

Evolution of Quality I

Finding mistakes/errors

External assessment/control

Culture of mistrust

Inspecting the past

Evolution of Quality II

Looking into the past and plan for the future

avoid mistakes

personal responsibility / ownership

culture of trust

Evolution of Quality III

Systematic fulfillment of customer requirements

Evolution of Quality IV

Participation of all members of an organization

Quality is Everywhere people deal with the issue of quality

continually in their daily lives

We all apply a number of criteria when making a purchase To understand quality as a consumer-driven concept

How will you judge the quality of the restaurant?

ServiceResponse time

Food preparation Atmosphere

PriceSelection

What is Quality• Fred Smith. CEO of FedEx defines

quality as “ performance to the standard expected by customer “

• Boeing “ providing our customer with products and services that consistently meet their needs and expectations”

Is … So Quality• Although there is no universally accepted definition of

quality. There are some similarity among among quality definition:

• Quality involves meeting or exceeding customer expectations.

• Quality applies to products, services, people, processes, and environments.

• Quality is ever changing state (i.e., what consider quality today may not good enough to be considered quality tomorrow).

W. Edwards Deming• Born on October 14, 1900 • Was an American statistician,

professor, author, lecturer, and consultant

• Widely credited with improving production in the United States during the Cold War

• Best known for work in Japan • Taught top management

(1950 onwards)

W. Edwards DemingQuality keys:

• Understanding customer needs

• Process improvement• Statistical analysis• Expertise of workers• PDCA cycle

DEMING 14 POINTS

1. Create constancy of purpose2. Adopt a new philosophy3. Stop dependence on inspection4. Don’t focus on price tag5. Improve constantly & forever

DEMING 14 POINTS6. Institute training7. Institute leadership8. Drive out fear9. Break down barriers10. Eliminate slogans, exhortations

DEMING 14 POINTS

11. Eliminate quotas; use leadership12. Remove barriers to workmanship13. strong education program14. Involve everybody

The Deming Cycle• The Deming cycle, or PDSA cycle, is

a continuous quality improvement model consisting of a logical sequence of four repetitive steps for continuous improvement and learning: Plan, Do, Study (Check) and Act.

• It is also known as the Deming circle/cycle/wheel, Shewhartcycle, control circle/cycle, or plan–do–study–act (PDSA)

• W. Edwards Deming in the 1950's proposed that business processes should be analyzed and measured to identify sources of variations that cause products to deviate from customer requirements.

• He recommended that business processes be placed in a continuous feedback loop so that managers can identify and change the parts of the process that need improvements.

The Deming Cycle

• Example : • At Toyota this is also known as "Building people

before building cars.“• Toyota and other Lean companies propose that

an engaged, problem solving workforce, using PDCA, is better able to innovate and stay ahead of the competition through rigorous problem solving and the subsequent innovations. This also creates a culture of problem solvers using PDCA and creating a culture of critical thinkers.

The Deming Cycle

• PLAN establish the objectives and processes necessary to deliver results in accordance with the expected output (the target or goals). By establishing output expectations, the completeness and accuracy of the specification is also a part of the targeted improvement. When possible start on a small scale to test possible effects.

• DO Implement the plan, execute the process, make the product. Collect data for charting and analysis in the following "CHECK" and "ACT" steps.

The Deming Cycle

• CHECK Study the actual results (measured and collected in "DO" above) and compare against the expected results (targets or goals from the "PLAN") to discover any differences. Look for deviation in implementation from the plan and also look for the appropriateness and completeness of the plan to enable the execution, i.e., "Do". Charting data can make this much easier to see trends over several PDCA cycles and in order to convert the collected data into information. Information is what you need for the next step "ACT".

The Deming Cycle

• ACT Request corrective actions on significant differences between actual and planned results. Analyze the differences to determine their root causes. Determine where to apply changes that will include improvement of the process or product. When a pass through these four steps does not result in the need to improve, the scope to which PDCA is applied may be refined to plan and improve with more detail in the next iteration of the cycle, or attention needs to be placed in a different stage of the process.

The Deming Cycle

Joseph M. JuranQuality keys:• Features that satisfy

customers• Freedom from

deficiencies• Juran Trilogy®

– Quality planning– Quality control– Quality improvement

Joseph M. Juran• Dr. Juran was born on December 24, 1904 in Braila,

Romania. He moved to the United States in 1912 at the age of 8.

• Juran holds degrees in both engineering and law. The emperor of Japan awarded him the Order of the Sacred Treasure medal, in recognition of his efforts to develop quality In Japan.

• Juan's teaching and consulting career spanned more than seventy years, known as one of the foremost experts on quality in the world.

Joseph M. JuranJuran

is best known for the following contributions to

the quality philosophy:

• Juran's Three Basic Steps to Progress• Juran's Ten Steps to Quality Improvement• The Juran Trilogy

Juran's Three Basic Steps to Progress

• I. Achieve structured improvements on continual basis combined with dedication and a sense of urgency.

• II. Establish an extensive training program.• III. Establish commitment and leadership on

the part of higher management

Juran's Three Basic Steps to Progress are broad steps    to achieve world-class quality

Juran's Ten Steps to Quality  Improvement

1.Build awareness of both the need for improvement and opportunities for improvement

2. Set goals for improvement.

3.Organize to meet the goals that have been set.

4.Provide training.

5.Implement projects aimed at solving problems.

6.Report progress.

Juran's Ten Steps to Quality  Improvement

7.Give recognition.

8.Communicate results.

9.Keep score.

10.Maintain momentum by building improvement into the company's regular systems

JURAN TRILOGY

JURAN TRILOGY

• Juran's prescriptions focus on three major aspects of quality called the Quality Trilogy.

• Quality planning the process for preparing to met quality goals,

• Quality control the process for meeting quality goals during operations, and

• Quality improvement the process for breaking through to unprecedented levels of performance

• Quality Planning: Quality planning involves developing the

products, systems, and process needed to meet or exceed customer

expectations. The following steps are required

JURAN TRILOGY

JURAN TRILOGY

1. Determine who the customers are.2. Identify customers' needs.3.Develop products with features that respond

to customer needs.4.Develop systems and processes that allow the

organization to produce these features.5.Deploy the plans to operational levels

Quality Planning

JURAN TRILOGYQuality Control

1. Assess actual quality performance.

2. Compare performance with goals.

3.Act on differences between performance and goals

JURAN TRILOGYQuality Improvement

1. Develop the infrastructure necessary to make annual quality improvements.

2. Identify specific areas in need of improvement, and implement improvement

projects.

3. Establisha project team with responsibility for completing each

improvement project.

4. Provide teams with what they need to be able to diagnose problems

to determine root causes develop solutions, and

establish control that will maintain gains made

Announcement

• Midterm exam 12 March 2013

• http://manassief.kau.edu.sa

• Group project• Baldrige Award Recipients

• http://www.baldrige.nist.gov/Contacts_Profiles.htm

FUNDAMENTALS OF TOTAL QUALITY 

• Total quality a comprehensive, organization-wide effort to improve the quality of products and service applies not only to large manufacturers, but to small companies alike.

• All organization large and small, manufacturing and service, profit and not-for-profit can benefit from applying the principles of total quality.

Principles of Total Quality

• Total Quality (TQ) is a people focused management system that aims at continual increase in customer

satisfaction at continually lower real cost. • TQ is a total system approach (not a separate area or program) and an integral part of high

level strategy; it works horizontally across functions and departments, involves all employees, top to bottom, and

extends backward and forward to include the supply chain and the customer chain. TQ stresses learning and adaptation to continual change as

keys to organizational success

Principles of Total Quality

• The foundation of total quality is philosophical: TQ includes systems, methods, and tools. The systems

• permit change; the philosophy stays the same. TQ is anchored in values that stress the dignity of the

• individual and the power of community action

Principles of Total Quality

• There probably are as many different approaches to TQ as there are businesses.

However, most share basic elements: (1) customer focus, (2) a process orientation, (3) continuous improvement and learning, (4) empowerment and teamwork, (5) management by fact, and (6) leadership and strategic planning.

Leadership for Quality

• Leadership is fundamental to management and organizational behavior and is on just about everyone's

short list of basics for organizational success. • Thus it is not surprising that leadership plays crucial role in

the total quality organization. Virtually every article and book written about quality emphasizes leadership.

• is the first category in the Malcolm Baldrige National Quality Award and is recognized as the "driver“

of successful quality systems.

Leadership for Quality• Leaders establish unity of purpose and direction of

the organization. • They should create and maintain

the internal environment in which people can become fully involved in achieving the organization's objectives.

• Leaders communicate a vision that turns self-interest into commitment to the job

Leadership VS. Manager

Leadership VS. Manager

The roles of a Quality Leader

• Underlying the concept of quality leadership are some clear imperatives for managers who aspire to quality leadership.

• First, they must establish a vision. • Second, they must live the values. • Third, they must lead the improvement efforts.

Establish a Vision

• A vision is a vivid concept of what an organization could be

• It is a dream, both in the sense of being desirable and in the sense of being a long way from the current reality,

but it is not an "impossible dream." A vision should be clear and exciting to an organization's employees.• It should be linked to customers' needs and convey a

general strategy for achieving the mission.

Live the Values

• All of the vision and values in the world are worthless if

the organization is not continuously making strides to improve its performance in the eyes of customers

• Visions of world-class quality and competitiveness can only be achieved if an organization keeps finding ways to do things a little better and a little faster.

Leaders must be at the center of these efforts

Lead Continuous Improvement

• Manager's actions can symbolize their commitment to quality-oriented values in many concrete ways.

• For example, they can attend training programs on various aspects of quality, instead of just sending

• others. • They can practice continuous improvement in

processes that they control, such as strategic planning and capital budgeting.

Perhaps most importantly, they can provide adequate funding for quality efforts. So that TQ will not be the "poor cousin" to other business issues.

EMPOWERMENT FOR TQ

• Empowerment means giving someone power-granting the authority to do whatever is

necessary to satisfy customers, and trusting employees to make the right choices without waiting for management approval. • By empowering employees, organizations

drive decision making down to its lowest possible level

EMPOWERMENT FOR TQ

• Empowerment allows organizations to flatten their organizational structure because fewer

managers are needed to "direct and control“ employees

• It represents a high degree of involvement in which employees make decisions themselves

and are responsible for their outcomes

EMPOWERMENT FOR TQ• For empowerment

to occur, managers must undertake tow major initiatives:

• Identify and change organizational conditions that make people powerless, and

• Increase people's confidence that their efforts to accomplish something important will be

successful

Determining the skill level of the employee Providing for employee training as needed Coaching tasks with which the employee has some

skills but is lacking experience or motivation Supporting tasks where the employee knows what to

do but is still lacking confidence in their abilities Delegating tasks where the employee is motivated

and fully capable.

Empowerment Process

CASE STUDY TO DISCUSS

• Teams could be everywhere in TQ organizations: at the top and bottom and in ever function and department

• The TQ philosophy recognizes the interdependence of the organization and uses teams as a way to coordinate work.

• Teamwork enables various parts of the organization work together in meeting

customer needs that can seldom be fulfilled by employees limited to one area of expertise

TEAMWORK CULTURE FOR TQM

• Teams promote equality among individuals, encouraging a positive attitude and trust. • The diversity inherent in tams often provides unique perspective on work, spontaneous thought, and creativity. • teams develop a greater sense of responsibility for achieving goals and performing tasks. • teams provide a variety of benefits that are not derived from individuals working alone

TEAMWORK CULTURE FOR TQM

• TQ organizations recognize that the potential contributions of employees are much greater than in

the traditional organization, an teams are an attempt to take advantage this potential. • The competitive environment of modern business requires flexible, fast reaction to changes in customer

demands or technological capacity. • Teams can provide the capacity for rapid response

TEAMWORK CULTURE FOR TQM

Types of TQ Teams

• Some common types of teams include :• Steering committees (or quality councils) management teams that lead an organization and provide direction and focus.• Problem-solving teams teams of workers and supervisors that met to address workplace problems involving quality and productivity, or

ad-hoc teams with a specific mission such as• organizational design teams that act a architects

of change.

Steering Committees• Most organizations practicing total quality have a steering

committee, called a quality council or a quality improvement team . • Steering committees are responsible for establishing policy for TQ and for guiding the implementation and evolution of

TQ throughout the organization. • The top manager of the organization is usually on the steering committee,

for example, the Vice President /Director of Total quality. • The steering committee may meet fairly often when a TQ effort is getting started. • This group makes key decisions about the quality process how

quality should be measured and what structures and approaches should be used to improve quality.

• steering committee also frequently reviews the status of TQ and makes the adjustment necessary to ensure customer satisfaction and continuous improvement. • In general, the steering committee has

overall responsibility for the progress and success of the TQ effort

Problem-Solving Teams

• The second, and probably most common, type o team used in TQ is the problem-solving team.

• As the name implies, problem-solving teams work to improve quality by identifying and solving specific quality-related problems facing the organization. Such teams are sometime referred to as corrective

• action teams, or quality circles, although many organizations have created their own names for them.

• Two basic types of problem-solving teams are departmental and cross-functional.

Cross-Functional Teams• Cross functional teams are not unique to total quality they are commonly used in new product development

• teams come from several departments or functions, deal with problems that involve a variety

of functions, and typically dissolve after the problem is solved

Cross-Functional Teams

• Cross-functional teams make a great deal of sense in an organization devoted to process

improvement. • If a process is to be comprehensively To be effective, cross

functional teams should include people from several departments

Criteria for Team Effectiveness

1. Clarity in team goals. As a sound basis, a team agrees on a mission, purpose, and goals.

2. An improvement plan. A plan guides the team in determining schedules and mileposts by helping the team decide what advice, assistance, training, materials, and other resources it may need.

3. Clearly defined roles. All members must understand their duties and know who is responsible for what issues and tasks.

4. Clear communication. Team members should speak with clarity, listen actively, and share information.

5. Beneficial team behaviors. Teams should encourage members to use effective skills and practices to facilitate discussions and meetings.

6. Well-defined decision procedures. Teams should use data as the basis for decisions and learn to reach consensus on important issues.

7. participation. Everyone should participate, contribute their talents, and share commitment to the team's success.

8. Established ground rules. The group outlines acceptable and unacceptable behaviors.

9. Awareness of group process. Team members exhibit sensitivity to nonverbal communication, understand group dynamics, and work on group process issues.

10. Use of the scientific approach. With structured problem-solving processes, teams can more easily find root causes of problems.

Customer Relationship Management (CRM)

Why CRM is a Customer and Competitive Necessity

• It typically costs 5-10 times as much to acquire a new customer as it does to retain an existing one.

• “Some companies can boost profits by almost 100% by retaining just 5% more of their customers.” Harvard Business Review (Reicheld & Sasser)

• A recent McKinsey study showed that the average new customer spends $24.50 at a given web site in the first 3 months as a shopper. The average repeat customer spends $52.50 every 3 months.

• Most companies lose 50% of their customers in 5 years (Harvard University)

Why CRM is a Customer and Competitive Necessity

• On average only 15% of a site’s customers consider themselves loyal to it. The loyalty rating among people who had experienced a problem was only 6%. Customers who had not experienced problems indicated a customer loyalty rating of 19%. The loyalty rating among customers who had experienced problems but were satisfied with the way they were handled: 21%. (Digital Idea)

• 70% of repeat purchases are made out of indifference to the seller, NOT loyalty. (eLoyalty)

• The web customer is ‘only 1 click away from your competition’.

Customer Relationship Management (CRM)

• A business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty with a retailer’s most valuable customers.

CRM

• All customers are not equally profitable, and more or less profitable customers need to be treated differently

• Retailers now concentrate on providing more value to their best customers using targeted promotions and services to increase their share of wallet – the percentage of the customers’ purchases made from the retailer

Customer Loyalty

• Committed to purchasing merchandise and services from a retailer

• Resist efforts of competitors to attract the loyal customer

• Emotional attachment to retailer– Personal attention– Memorable positive experiences– Brand building communications programs

No! Retail strategies like these

can be copied by competitors

These strategies encourage customers to be always looking for the best deal rather than developing a relationship with a retailer

Can Offering Price Discounts Achieve Customer Loyalty?

McGraw-Hill Companies, Inc./Gary He, photographer

CRM Process Cycle

Collecting Customer Data:Customer Database

• Transactions – a complete history of purchases– Purchase date, price paid, SKUs bought, whether or not the

purchase was stimulated by a promotion

• Customer contacts by retailer (touch points) --visits to web site, inquires to call center, direct mail sent to customer

• Customer preferences• Descriptive information about customer

– Demographic and psychographic data

• Customer’s responses to marketing activities

Collecting Customer Data: Identifying Information

Approaches that store-based retailers use:• Asking for identifying information– Telephone number, name and address

• Offering frequent shopper cards– Loyalty programs that identify and provide rewards

to customers who patronize a retailer– Private label credit card (that has the store’s name

on it)• Connecting Internet purchasing data with the

stores

• Control over Collection– Do customers know what information is

being collected?– Do customers feel they can decide upon

the amount and type of information collected by retailers?

• Control over Use– Do customers know how the information

will be used by the retailer?– Will the retailer share the information with

third parties?

Privacy Concerns

Steve Cole/Getty Images

• Information collected without the awareness of customers

• Collecting click stream data using cookies

Similar to an invisible person videotaping a customer as they walk through a store

Heighten Privacy Concerns When Using Electronic Channel

Stockbyte/Punchstock Images

Protecting Customer Privacy:Differences between U.S. and EU

United States• Limited protection in specific

areas– Credit reporting– Video rentals– Banking– Medical records

• Opt out: Consumers must explicitly tell retailers not to use their personal information

European Union• Stringent consumer privacy laws

– Information only can be collected for specific purposes

– Purpose must be disclosed to customer– Information can only be used for specific

purpose– Information cannot be exported to

countries with less stringent regulations• Opt in: Consumers own their personal

information, and retailers must get consumers to explicitly agree to share this personal information

Customer Value

• Customers seek to maximize value by:– estimating which offer (product/firm) delivers the most

value– forming an expectation of value and acting upon it

(purchase)– evaluating their usage experience against the expectations

Customer Value

Determinants of Customer Delivered Value

Customer Satisfaction

• Satisfaction is defined as . . .“ a person’s feelings of pleasure or

disappointment resulting from comparing a product’s perceived performance (or outcome)

in relation to his or her expectations”.– i.e., Performance - Expectation

• Satisfaction results when expectations are equaled or surpassed.

Customer Satisfaction

• To maximize satisfaction . . .– Don’t exaggerate the product / service’s

capabilities in advertising or other communications • Dissatisfaction will result• FTC may become involved

– Don’t set expectations too low • Market size will be limited

High Performance Businesses

High Performance Businesses

Porter’s Generic Value Chain

Customer Retention

• Reducing customer churn (defection) is highly desirable– Define and measure retention rate– Identify causes of attrition– Estimate profit lost from customer defection (customer

lifetime value)– Estimate cost to reduce defection; take appropriate action

Customer Development Process

Strong Customer Bonds?• Adding Financial Benefits– Frequency programs, Club memberships

• Adding Social Benefits– Personalize customer relationships

• Adding Structural Ties– Create long-term contracts– Charge less for ongoing purchases– Link product to long-term service

Strong Customer Bonds

The U.S. Harley Davidson site promotes the

benefits of joining H.O.G. (Harley

Owners Group)

Customer Profitability Analysis

Paradigm shift from acquiring “customers” to maintaining “clients ”

• Quality: totality of all features and characteristics of product or service that satisfy stated or implied needs.

• Understanding the Role of Quality– The core product is not enough– Supplemental products are critical

• Delivering Superior Quality (four issues)– Understand customers’ expectations, needs, and wants– Translate customer research into specifications for quality– Deliver on specifications– Promise only what can be delivered

Quality

Quality and Total Product Offering

• Satisfaction vs. Quality vs. Value– Expectations

• Customer Satisfaction and Customer Retention– Understand what can go wrong– Focus on controllable issues– Manage customer expectations– Offer satisfaction guarantees– Make it easy for customers to complain– Create loyalty programs– Make customer satisfaction measurement an ongoing priority

Summary: Retaining Customers Over the Long Term

Examples of Satisfaction Guarantees

Creating a Company Customers Love Doing Business With

Maintain Internal Harmony within the Organization to Provide Quality

Service to Customers

Customer Service PhilosophyThe core of customer satisfaction is COMPANY CULTURE

• Company Culture cascades from top Management• Customers sense that your company is unique and different• Customers know that you have their best interest at heart

A Golden Rule of Company Culture: Companies must take care of their own people first. When that is done, the customers they service are naturally happier.

The Customer comes Second

Build a Customer-Oriented Culture• Employees will treat customers the way they are treated by Management.

Employee belief system

Employee Relations Customers and Suppliers

Those who are not served well will not serve well.

BusinessCulture

Who Companies need to Hire Hire people who are good with people, rather than just their

technical abilities and/or product knowledge.

Hire those who possess attributes that cannot be easily taught.

• Attitude: A fundamentally positive attitude toward work

• Co-operation: enthusiastic of work interdependency

• Energy: Have a “fire” to accomplish

• Service Ethic: Doing what is right without regard for profit (If you do the right thing, you will ultimately profit)

Employee RelationsProvide an environment where employees are happy to serve your

Company and hence, serve your customers.

•Encourage employees to look at work as a fun and personal experience and to enjoy coming to work every morning.

• Instill ‘Company Family’ values to enhance employees’ sense of belonging and pride. Invite family members of employees to join corporate social activities.

• Employees must feel unafraid to make decisions impacting their self-esteem

What’s in it for the EmployeeBOSS CUSTOMER

SALES EMPLOYEE

“The boss is getting business, the customer is

getting what he/she wants, so what’s in it for me”?

Managers should take an active responsibility to diversify job descriptions with sales employees’ career goals .

Caring in Business

If you expect 100% from employees, then give them 100%.

“Without caring, there can be no quality. Caring for customers leads to productivity,

innovativeness, comfort and initiation from the customer ”.

When employees get 100%, customers get 100%.

Vision and Mission• Make employees aware of and involve them in setting the company’s ongoing vision and mission of business.

• When employees can’t decide what course of action to take, train them to go back to the company’s mission statement to help them.

• Post the company customer service philosophy over your offices so that employees are continually reminded of their job goals.

Every employee is part of a company’s vision for itself

Communicate for Internal HarmonyFor Managers: Share company information without reservation..

• Let employees know where the company is headed and that they are a critical contribution to the company’s growth.

• Encourage and regularly arrange for open dialogue between employees and Management to find out perceptions that may affect employee attitude and motivation.

To get desired behavior from employees, Management must know what employees are thinking about the company they work for.

Instilling Sales Philosophy• Do not react negatively to negative customer behavior.

• Never say NO to a customer. Find a way to maintain contact.

• Employees must believe that the customer is the center of the company’s universe.

• Encourage employees at every organizational level to reveal information that could benefit the company’s growth.

Correct communication is the key to positive customers

Service in Action

Customer Service means taking someone else’s problem upon yourself and fixing it for them. Being liked is not the only goal.

How to handle BAD CUSTOMERS (S-A-V-E):

1. Sympathize: Agree with the customer’s complaint. 2. Act: Take action so that the customer believes that he/she is

getting immediate attention.3. Vindicate: Let them know how rare the problem is. “This is not

a normal occurrence in our company.” 4. Eat Something: Give the customer an unexpected ‘goodie’

before they leave.

Bottom-Line Thinking• Making service possible requires being realistic. Do not expect ideal performance, and do not create the hope of unusual possibility.

Today, the monetary unit is not the Dollar. It is the MINUTE

• Customers make a decision based not only on price, but also on how much time they have to invest to get benefit out of a product. Time is a VALUE UNIT.

Customer Focus

Saturate the company with the voice of the customer

• Work as if there is a customer watches your actions all the time.

• Identify specific ways to measure customer service success.

• Conduct customer focus groups to get consumer reactions.

• Constantly rethink customer service policies to fit Company goals.

• Always express gratitude to the customers that bring business.

Re-Engineering

• Re-Engineering is complex, costly, and time-consuming. - It is an option if the organization has a goal of long-term

change and profitability.

• This process is connected to Total Quality Management (TQM) where procedures and protocols are revised and updated to reduce time and cost

Better customer service is a result of enforcing quality

Applying Principles of Total Quality Management for Improving

Customer Service

Steps to Ensure Quality in Customer Service Processes and Policies

The 6 Steps to Customer Quality

1. Research Customer Service trends and philosophy.

2. Get data on problems faced by customers.

3. Define BURNING ISSUES from the data.

4. Identify root processes of burning issues.

5. Modify existing processes/create new ones.

6. Indulge in Continuous Improvement.

Step 1: Education Get journal articles on TQM, research guiding principles, and case-studies.

Attend seminars on the subject and talk with prospective consultants.

Be committed to learning and getting TQM training.

Organize your time to accommodate this important step because only then can subsequent steps be followed

Step 2: Assessment

Ask employees and customers: 1. What do you think should be stopped

here?2. What should we start doing here?3. What are the things we ought to keep

doing?

Give them an open ended survey and ask them to track their observations for 3 weeks by completing sentences like ‘I wish we would stop…’, ‘I hope we continue to…’, and ‘I wish we could start…’.

Step 3. Determine Burning IssuesThe WHY Technique: When faced with a problem,

don’t ask WHY just once .

Why are we getting customer complaints about our product?

Because we are shipping out the wrong product!

Why are we shipping out the wrong product?

Why can’t the warehouse manager read the 4th copy?

Because it is difficult to read the 4th copy of the order form!

Because we are using a 150-year old print wheel!

Burning Issue

Core of the Burning Issue

Step 4. Critical Process Management

• Determine CRITICAL PROCESSES related to customer service in your organization.

• How long do these processes take? (Are there any unnecessary steps that can be eliminated?)

• Decide what is to be measured like response time, aspects of service, and relevance to customers.

Know your business in terms of steps that impact customers

Step 5. Reorganizing Customer Service Policies and Principles

Get representatives that are affected by customer policies and a consensus on the steps required to perform them.

Discuss whether steps are laid out in proper sequence, what takes too long, what needs to be simplified, and what needs to be measured to know how effective it is in terms of cost and time.

Benchmark processes in other companies to innovate within.

Get steps of critical processes down on paper

Step 6. Continuous Improvement

• Alert watching on maintaining the principles of quality service.

• Making sure that new customer policies become part of every employee’s everyday thinking, applying it to the work setting.

• Celebrating the implementation of successful customer service with all employees.

Customer Satisfaction is directly proportional to an organization’s internal quality.