Customer Satisfaction & Quality (CS&Q) · 2 Confidential Property of Schneider Electric Three important questions What does Customer Satisfaction & Quality should mean in a company

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Customer Satisfaction & Quality (CS&Q)

Introduction

Jérôme Firmin

2015

2

Confidential Property of Schneider Electric

Three important questions

What does Customer Satisfaction & Quality should mean in a

company ?

Why a focus is needed on CS&Q ?

How can every employee of a company can ensure Customer

Satisfaction in a company ?

3


Course objective, better understand the following:

Importance of the customer value stream

Importance of behaviors to establish connection with customers

Role of the Quality Policy

Need for a CS&Q vision & strategy with the associated focus areas

Role of the CS&Q processes

Need for performance measurement (Key Performance Indicators)

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The Customer relationship

Establishing a privileged relationship with customers depends on :

> Installed base

> Channel access (Go to Market)

- Direct, Indirect, Physical / virtual

> Type of offer

- Products, Solutions, Services

5


The value stream

Processes model

The set of interacting activities is simply called a process

> What to do ? What value add ?

All processes are described in the processes model of the Quality

Management System (QMS) of the company

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Focus on quality requirements (technical, performance…) is key

but there is an other aspect

EMOTION

Way to provide products, solutions, services (part of the offer creation & delivery)

Vital to maximize Customer Satisfaction and Loyalty

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Objective is to get the customer emotionally attached to the

Brand

(Emotion – Brand)

Importance of behaviors

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Customer emotions Loyalty: keep and increase customers

Commoditization: only economic value

Danger: start loosing customers

Dead: loose all customers

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Capturing Customer experience

Need to bring the Voice of Customer “inside” the organization

> Customer corridor with Touch - points

« Moments of truth »

> Where we can influence the perception and build the emotional connection

> Where we can influence the Offer Creation on Quality objectives & execution

Access the

web site

Review

commercial

proposal

Receive

an order

Return a

product

Sales visit Schedule a

service

Contact

Technical

support

Place an order

Customer Experience Corridor - Interactions

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How does information on customers’ emotions and customer

feedback contribute to the improvement of the

Customer Satisfaction & Quality plan ?

It helps in modifying behavior to establish an emotional

connection with customers

It helps in improving processes, and how Quality is addressed

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The improvement system of CS&Q

PerformancePerformance

BehaviorsBehaviors

ProcessesProcesses

Make Customer life easier

when interact with us

Provide competitive

differentiation to Customers

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From To

Establish emotional

connection with Customers

Listen & involve Customers

in upstream steps

Listen to Customers

feedbacks and act quickly


BehaviorsBehaviors

ProcessesProcesses



Provide competitive



BehaviorsBehaviors

ProcessesProcesses





Provide competitive


Provide competitive


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From To

Establish emotional


Establish emotional



in upstream steps


in upstream steps

Listen to Customers


Listen to Customers


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Session #1 take away - reminder

A Value stream is an end to end collection of activities that creates results

for customers. The value stream has a clear goal : to satisfy the customer

Customer centric behavior is a key element contribution to customer

satisfaction & loyalty

Touch-points are very important because out of all activities we perform as

an organization, the touch-points represent our “moment of truth” and our

best opportunity to influence the customer perception of our performance

It is not just about Performance expectations but also Emotional

expectations

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Customer Satisfaction commitment

Every employee of a company contributes to the CS&Q objectives

> Daily

> Constantly assessed and challenged for excellence

Quality Policy is summarized for all in a simple statement to

capture the overall intention and directions of the organization

Displayed “everywhere” and signed off by the President / CEO of

the company

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Quality Policy

The Quality Policy is based on :

> Bringing a differentiated and superior experience to customers

> Developing an exemplary customer centric culture

> Empowering and training people to make no compromise on quality

The ultimate measure of quality is

customer satisfaction

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Need a Vision - Customer Satisfaction & Quality

In a global environment of rapid change and intense competition,

it is a must, faster than ever :

> To focus on customer satisfaction and loyalty

> To create the most powerful differentiation

> To ensure profitable growth

> To give a sense to the company mission

> To learn in each individual jobs


The best companies have focus. That focus guides their actions and gives them purpose.

We call this focus a company program.

It translates our strategy into execution and aligns everybody in the company on common priorities.

It’s time for a new focus…

It’s time to become the best company for our customers,

and to do more for them.

Our company program


Introducing


Digitize • Our products,

systems,

and services

• Our customer

experience

Do More • Growth with

customer boosters

• Closer to

customers

• Tailored Supply

Chain 2.0

• Consistent Project

Execution

everywhere

Step Up • In performance

and opportunities

• In leadership and

cooperation

• In diversity

• In learning

• In well-being

Simplify

• For efficiency

• To reallocate

resources

to priorities

Innovate • With our

customers

• Fast and

selectively

• With the right

teams and leaders

• With platforms

and tools

• In sustainability

Schneider is On… for its customers

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Missions of Customer Satisfaction & Quality

Impact on every one !

Collaborative w

ay

Constru

ctive b

ehavior

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Key changes

Key Changes / Continuous Improvement

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Key changes


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Key changes


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Key changes


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Key changes


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Key changes


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Quality Issue - Example

Why ? What? Root

cause

Go

Live

Installed

base

Safety

warning

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What to do to prevent such incident ?

Solid process defined, known and well executed

The Enterprise Processes Model

> End to End flows

- Product / Equipment fulfillment

- Customer Projects

- Installed base service

> Core processes

- Offer creation

- Operations (Production)

- Customer Support

> Enabling processes

- Finance, I&T, HR, Health, Safety

> Governing processes

- Customer Satisfaction & Loyalty Development

- Issue to prevention

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What to do to prevent such incident ?

Solid process defined, known and well executed

The Enterprise Processes Model

> End to End flows

- Product / Equipment fulfillment

- Customer Projects

- Installed base service

> Core processes

- Offer creation

- Operations (Production)

- Customer Support

> Enabling processes

- Finance, I&T, HR, Health, Safety

> Governing processes

- Customer Satisfaction & Loyalty Development

- Issue to prevention

3

1

2

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Customer Support - Process

Core part of Customer Satisfaction & Quality

It provides :

> Single point of contact to customers

> Fast / effective resolution of their queries

> Proactive communication with them

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Issue to Prevention - Process

One of the key process to :

> Capture of Quality Customer complaints and internal quality issues

> Analyze customer complaints and requests and internal quality issues

> Solve customer complaints and quality issues in a fast and effective way,

keeping customers properly informed throughout resolution

> Contain underlying problems, identify root causes, correct them to avoid

recurrence and apply lessons learnt to prevent future issues

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Issue to Prevention (I2P) - Process

Issue to Resolution Warm Loop

Issue to Problem Analysis Loop

issue

resolution prevention systemic problem recurrent issue

severe issue immediate prevention needed

Problem to Prevention Cold Loop

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Issue to Prevention

Each issue is an

opportunity to learn

and improve

6 Principles

Correcting a problem

generates knowledge

which can prevent

future problems

Customer complaints

and problems must be

contained with

urgency

Each customer who

calls us is making us a

gift

Each customer

complaint must receive

immediate resolution Each customer

complaint is caused

by root causes in our

offer or processes

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Offer Creation - Process

Open Do Produce Sell Close

Quality field

experience

Quality

objectives

definition

Quality plan

Quality

Assurance

Field Test

Quality Control Lesson Learnt

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Do you think that just

implementing processes ensure

there will be no product quality issue, recall… ?

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Can we avoid wide customer dissatisfaction

issues by just following processes ?

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Measuring is a must have!

Timely monitor performance and improve quality effectiveness

With the help of tools

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Key performance indicators & improvement

Must be set at corporate level

To ensure culture of continuous improvement

Examples :

> Customer experience

> Quality of offer

> Quality of delivery

> Quality of issue resolution and prevention

> Quality of supply

> Customer support

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Customer experience : measures customer’s perception of company

performance in the overall relationship with them and on key touch-points /

transactions

Quality of offer : measures performance related to the quality of software,

products, equipment, solutions, services, …

Quality of delivery : performance related to how offers are delivered to customers

Quality of issue resolutions and prevention : performance related to how

quality issues are solved and prevent their recurrence

Quality of supply : related to performance of internal / external supplier’s quality

Quality support : measure performance related to how support and response are

provided to all customers in interactions and also online self-service

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Deliveries 98% On-time delivery at

Customer door

(OTDC)

Offer Quality

Performance

(OQP)

Customer experience

on Solutions

(SOL-NPS)

Defect per Million

(DPMe)

Service Rate

(ESSR)

335ppm

59.8% 98.2%

443ppm

76.1% Collaborative Sales

Forecast Accuracy

(1-MAPE PF M-3)

Customer experience

on Customer Care Center

(CCC-NSS)

Business Risk

Escalation Closing

Time

Technical Expert

assessment experience 65.8% 49%

15days

61% Customer

Net Promoter Score

Offer Quality

Projects &

Solutions

External

Suppliers

Pro-activity

Customer

Interactions

Complaint

Management

in line with year target

not in line with year target

: Improving : Stable : Deteriorating

Comparison to

previous month

Customer experience

on Services

(SER-NPS) 63.1% Services

63.1% Strategic Account

Net Promoter Score Customer Experience

Customer Satisfaction & Quality KPI dashboard

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Tools / methods - for non Quality Solving & Continuous Improvement

5 Whys

5 S

Fishbone diagram

PDCA – Deming wheel

Failure Mode and Effects Analysis (FMEA)

Eight disciplines (8D)

Six Sigma

Statistic Process Control (SPC)

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5 Whys is an iterative interrogative technique used to explore the cause-and-

effect relationships underlying a particular problem. The primary goal of the technique is to determine the root

cause of a defect or problem by repeating the question "Why?" Each question forms the basis of the next question. The "5" in the

name derives from an empirical observation on the number of iterations typically required to resolve the problem.

5S is the name of a workplace organization method that uses a list describing how to

organize a work space for efficiency and effectiveness by identifying and storing the items used, maintaining

the area and items, and sustaining the new order - "sort", "straighten", "shine", "standardize", and "sustain".

Ishikawa diagrams (also called fishbone diagrams) are causal diagrams created by Kaoru

Ishikawa (1968) that show the causes of a specific event. Common uses of the Ishikawa diagram are product

design and quality defect prevention, to identify potential factors causing an overall effect.

PDCA, also known as Deming wheel, is an iterative four-step management method used in

business for the control and continuous improvement of processes and products. PDCA was made

popular by Dr W. Edwards Deming, who is considered by many to be the father of modern quality control

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Failure Mode and Effects Analysis (FMEA) is a systematic techniques for failure analysis. It is

often the first step of a system reliability study. It involves reviewing as many components, assemblies, and subsystems as possible to

identify potential failures, their effects, causes and control. Probability for Effect / Cause / Control results in Risk Priority Number.

Eight Disciplines (8Ds) Problem Solving is a method developed at Ford Motor Company to

identify, correct, and eliminate recurring problems. It is focused on product and process improvement.

Six Sigma seeks to improve the quality output of process by identifying and removing the

causes of defects and minimizing variability in manufacturing and business processes. It uses a

set of quality management methods, mainly empirical, statistical methods, and creates a special infrastructure of people within the

organization ("Champions", "Black Belts", "Green Belts", "Yellow Belts", etc.) who are experts in these methods. It was introduced by

Motorola in 1986.

Statistical process control (SPC) is a method of quality control which uses statistical methods. SPC is applied in order to monitor and control a process.

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5 Whys – example on the recall

Le problème: l’appareil a un problème de câblage de la terre

WHY1 - Pourquoi la terre n’est pas correctement câblée?

> Parce que le capot à légèrement forcé sur la face arrière du produit au montage

WHY2 – Pourquoi le capot force-t-il sur la face arrière au montage ?

> Parce que lorsque l’opérateur insert le capot de droite à gauche il peut arriver qu’il entraine

le câble de terre

WHY3 – Pourquoi l’opérateur monte le capot de droite à gauche ?

> Parce que les instructions de montage ne précisent pas explicitement qu’il faut insérer le

capot de gauche à droite

WHY4 – Pourquoi les instructions de montage ne précisent pas ce point ?

> Parce que manuel n’a pas été relu par la bonne personne avant commercialisation

WHY5 – Pourquoi le manuel n’a pas été relu par la bonne personne ?

> Parce que cette personne était en vacances

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Deux actions:

> Prévoir planning des vacances et former un back up pour relecture des instructions

de montage

> Prévoir un redesign de la face arrière pour éviter ce risque

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Zoom on 8D

8D is a disciplined, systematic process for solving problems and

preventing their recurrence

One of the major corrective and preventive tools to solve quality issues

effectively and improve customer satisfaction

Problem

Containment

Correction

Prevention

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8D – the disciplines (1/2)

D1: Assemble a team - Establish a team of people with product/process knowledge.

D2: Define and describe the problem - Specify the problem by identifying in quantifiable terms

the who, what, where, when, why, how, and how many (5W2H) for the problem.

D3: Develop interim containment plan - Implement and verify interim actions, define and

implement containment actions to isolate the problem from any customer.

problem

containment

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8D – the disciplines (2/2)

D4: Determine, identify, and verify root causes and escape points - Identify all applicable

causes that could explain why the problem occurred. Also identify why the problem was not noticed

at the time it occurred. All causes shall be verified or proved, not determined by fuzzy

brainstorming. One can use 5 Whys and cause and effect diagrams to map causes against the

effect or problem identified.

D5: Choose and verify permanent corrections for problem/nonconformity - Through

preproduction programs, quantitatively confirm that the selected correction will resolve the problem

for the customer.

D6: Implement and validate corrective actions - Define & implement the best corrective actions.

D7: Take preventive measures - Modify the management systems, operation systems, practices,

and procedures to prevent recurrence of this and all similar problems.

D8: Congratulate your team - Recognize the collective efforts of the team. The team needs to be

formally thanked by the organization.

correction

prevention

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Golden rule for each of the 8 disciplines

D1: assemble a cross functional team

D2: be specific when describing the problem, referencing the desired state or

specification

D3: protect the customer

D4: find root causes by digging deep in the business processes

D5: address all root causes. Aim for zero-defect processes

D6: implement corrective actions and verify their effectiveness

D7: ensure preventive actions address systemic root causes

D8: offer formal recognition to the team to boost future commitment

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Jobs in Customer Satisfaction & Quality

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Take away from this course (1/2)

A Value stream is an end to end collection of activities that creates results for customers.

The value stream has a clear goal : to satisfy the customer

Customer centric behavior is a key element contribution to customer satisfaction & loyalty

Touch-points are very important because out of all activities we perform as an

organization, the touch-points represent our “moment of truth” and our best opportunity to

influence the customer perception of our performance

Tasks are performed in accordance to the company Quality policy

To manage activities an Enterprise Process Model (EPM) must be used

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Take away from this course (2/2)

Customer care process provides a single point of contact to customers, for fast and

effective resolution of queries and also a means for proactive communication with them

Issue to prevention is helpful in capturing, solving and analyzing customer complaints and

queries and corrections them to avoid recurrence

KPIs at global level are must have to monitor CS&Q. They measure the performance and

act as a major driver to ensure the culture of continuous improvement

8D is a disciplined systematic process for solving problems and preventing their

recurrence

Customer Satisfaction & Quality needs specific organization, skilled people, continuous

improvement in developing customer understanding

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Thank you.

Documents

Customer Satisfaction & Quality (CS&Q) · 2 Confidential Property of Schneider Electric Three important questions What does Customer Satisfaction & Quality should mean in a company