GE2022 TOTAL QUALITY MANAGEMENT

UNIT I - INTRODUCTION

Introduction - Need for quality - Evolution of quality - Definition of quality - Dimensions of

manufacturing and service quality - Basic concepts of TQM - Definition of TQM – TQM

Framework - Contributions of Deming, Juran and Crosby – Barriers to TQM.

Unit One -Introduction

A. Quality Concepts

B. History of quality

C. TQM Concepts

D. Quality management Guru’s Contributions.

E. Barriers to TQM

A. Quality Concepts

Synopsis

1. Introduction to Quality

2. Meaning

3. Definition

4. Quantified

5. Characteristics

6. Need for quality

7. Benefits of Quality

8. Dimensions of quality

9. Dimensions of Service quality

1. Introduction to Quality

Quality concepts are evolving continuously for more than 100 years. Organization need

to adapt quality concepts to gain competitive advantage. Quality is also refers to Excellence.

Total Quality Management (TQM) is an enhancement to the traditional way of doing business.

Total - Made up of the whole

Quality - Degree of Excellence a Product or Service provides.

Management - Art of handling, controlling, directing etc.

TQM is the application of quantitative methods and human resources to improve all the processes within an organization and exceed CUSTOMER NEEDS now and in the future.

Concept of Quality

Conformance to specifications Fitness for use Value for price Support services

2. Meaning of Quality

Quality in modern management means everything that an organization does in the eyes of

its customer.

“Quality is fitness for use” -Juran

Q = Quality for Excellence.

U = Understanding Customer Needs

A = Action to achieve customer appreciations

L = Leadership – Determination to become

L = Involving all people

T = Team spirit to work for a common goal

Y = Yardstick to measure progress

3. Definition of Quality

According to American Society of Quality Control, “Quality is the totality of features and

characteristics of a product or services that bear on its ability to satisfy a given need”

4. Quality Quantified as

Q = P/ E Q = Quality

P = Performance

E = Expectations

5. Characteristics of Quality

Technical

Psychological

Time Base Item

Contractual

Ethical

6. Need for Quality

If an a organization aims for a long-term success and growth it has to maintain quality in

order to

Satisfy for the customer and

To have competitive advantage.

7. Benefits of Quality

Positive company Image

Increases market share

Reduces cost

Avoids unnecessary costs

Improve Competitive ability both nationally and internationally.

8. Various Dimensions of Quality? 16 Marks

1) Performance

2) Features

3) Conformance

4) Reliability

5) Durability

6) Service

7) Response

8) Aesthetics

9) Reputation

10) Safety

11) Usability

12) Maintainability

13) Uniformity

14) Compatibility

What do you mean by service Quality? 2 Mark

It is the set of activities, an organization uses to safety the customer and their needs .

9. Various Dimensions of service Quality? 16 Marks

1) Tangibles2) Reliability3) Responsiveness4) Assurance5) Empathy

1] What do you mean by the term ‘Cost of Quality’? 2 Marks

A] Quality costs are the costs associated with monitoring, ensuring or failing to achieve

product/service quality. They are classified as prevention costs, appraisal costs, internal failure

costs, and external failure costs.

B. History of Quality 16 Marks

C. TQM Concepts

Synopsis

1. TQM Definition and it’s Characteristics

2. Concepts of TQM

3. Principles of TQM

4. Elements of TQM

5. TQM tools

6. 3 Pillars of TQM

7. 4 ‘C’s of TQM

8. Evolution of TQM

1. TQM Definition 2 Marks

“Total Quality Management is a management approach that tries to achieve and sustain

long term organizational success by encouraging employee feedback and participation, satisfying

customer needs and expectations, respecting societal values and beliefs, and obeying

governmental statutes and regulations.”

Explain the Characteristics of TQM is a: 8 Marks

Management philosophy to guide a process of change.

Customer – Oriented management system

Teamwork

Cable for planning

Strategy for continuously improving in all levels

Achieving results

Recognizes internal customer- Supplier relationship

Emphasize the importance of measurement

Aims at customer need and satisfying the customer.

2. List out Six basic Concepts of TQM? 2 Marks

Total Quality management is the management approach of an organization, centered on

quality, based on the participation of all its members and aiming at long – term success through

customer satisfaction and benefits to all members of the organization and to society.

Top management commitment

Focus on the customer

Effective employee involvement

Continuous improvement

Treating suppliers as partners

Establishing performance measures.

3. Principles of TQM

TQM focuses at two levels firstly an “External “one aimed at identifying customer requirements and secondly an “Internal” one focusing on

Organizational System and Procedures to meet those requirements right the first time and

every time.

Leadership Commitment Quality strategy Vision Values Quality culture Customer Orientation Employee Empowerment and Participation Team work Approach Communication Process centered Training Problem solving and TQM Tools Continuous improvement Measurement and Audit

4. TQM Elements 2 Marks

(i) TQM Principles and practices Leadership (People and relationships) Customer focus Employee involvement Supplier partnership Continuous process improvement Performance measures

ii) TQM Tools and Techniques

Seven tools of quality Six sigma process capability Benchmarking Failure Mode and Effect Analysis (FMEA) Quality check QFD

5. Pillars of TQM P1 ------ Satisfying Customer P2 ------- System / Process P3 ------- People P4 ------- Improvement tools.

6. 4”C” of TQM Commitment Competence Communication Continues Improvement.

F. Quality management Guru’s Contributions.

1. Explain Deming Philosophy? 16 Marks

Deming’s philosophy is given in his 14 points. Most of these points were given in a seminar for 21 presidents of leading Japanese industry in 1950. W. Edwards Deming is often referred to as the ³father of quality control.´ He was a statistics professor at New York University in the 1940s. After World War II he assisted many Japanese companies in improving quality. The Japanese regarded him so highly that in 1951 they established the Deming Prize.

Deming on American was the senior Quality guru.

1928 – Awarded doctorate in mathematical physics.

1946 –He was send to Japan to help the nation recover from world war two losses.

1951- Japanses established the Deming Prize.

1956—Awarded the shewhart medal by the American society for quality control.

1960-Awarded by the Japanese Emperor with the second order of the sacred Treasure for his teachings

Deming Contributions 14 points on route of quality

Deming cycle

Seven deadly diseases of management

System of profound knowledge

14 Points on route of quality

1. Create and publish the aim and purpose of the organization 2. Learn the new philosophy 3. Understand the purpose of inspection 4. Stop awarding business based on price along.5. Improve constantly and forever the system. 6. Institute training.7. Teach an institute leadership.8. Dry out fear, create trust and create climate for innovation. 9. Optimize the efforts of teams, group and staff areas. 10. Eliminate exhortations for the work force. 11. Eliminate management by objective (MOB). 12. Remove barriers that rob people of workmanship. 13. Encourage education and self improvement for everyone. 14. Take action to accomplish transformation.

Deming’s “Seven Deadly Diseases” 16 Marks

1. Lack of Constancy of purpose2. Emphasis on short term profits

3. Evaluation of performance, merit rating or annual review of performance

4. Mobility of management5. Running the company on visible figures alone6. Excessive medical costs 7. Excessive costs of warranty fueled by lawyers that work on

contingency feesJoseph M Juran 16 Marks

Juran born in Romania (1904) and immigrated to America in 1912.

1951 “ Published Quality Control Hand book” 1950 Like Deming, travelled to Japan to conduct top and middle level executive

seminars on planning organizational issues, management responsibilities for quality and the need to set and monitor improvement target goals.

Juran Books Names:

Quality Planning and Analysis Juran on Leadership for Quality

Juran contributions

1. Internal Customer

2. Cost of Quality

3. Quality trilogy

4. Juran’s 10 Steps for Quality improvement

5. The breakthrough Concept

Juran Quality Definition

Product performance that results in customer satisfaction. Freedom from product deficiencies, which avoids customer

dissatisfaction, simply summarized as “fitness for use”.Fitness for use.

1. Quality of design

2. Quality of Conformance

3. Availability

4. Safety and

5. Field Use

1 Internal Customer: Juran realized that the customer was not just the end customer and that

each person along the chain has an internal customer that is supplier and a customer. 2 Cost of Quality: Juran classified the cost of quality into 3 classes as 8 Marks

Prevention Cost : Training ,Preventive auditing and Process improvement implementation.

Appraisal Cost : Inspection, Compliance auditing and Investigations.

External Failure Costs: Repair , Travel and lodging expenses ,replacement cost etc.

Internal Failure Costs: Scrap, Reworks, Corrective actions, Warranty claims Customer Complaints, Loss of cost.

3 Juran’s Quality Trilogy: Juran divides quality Management into 3 parts.

1.Quality Planning : Objectives are to determine quality goals.1. Determine internal and external customers2. Their need are discovered3. Develop product and services features4. Develop the processes able to produce the product5. Transfer plans to operations.

2.Quality Control : Objectives are to monitor performance to Compare objective with achievements and to act reduce the gap.

1. Determine item to be controlled2. Set goals for the controls3. Measure actual performance4. Compare actual performance with goal5. Act on the difference

3. Quality Improvement : Objectives are to reduce waste, to enhance logistics to improve employee morale.

1. Establishment of the quality council2. To Reduce Waste3. Provide the team with the resources4. To Enhance logistics5. To Improve employee morale6. To Improve Profitability 7. To Satisfy Customers

4 Explain Juran’s 10 Steps to Quality Improvement.1. Build awareness of the need and opportunity for improvement.2. Set goals for improvement.3. Organize to reach the goals (establish a quality council, identify problems,

select projects, appoint teams, designate facilitators).4. Provide training.5. Carry out projects to solve problems.

6. Report progress.7. Give recognition.8. Communicate results.9. Keep score.10. Maintain momentum by making annual improvement part of the regular

systems and processes of the company.

5. The Breakthrough Concept:

Juran’s breakthrough concerns itself with the product /service Life cycle

In essence, this splits it up into two areas.

The “Journey from Symptom to cause. The “Journey from cause to remedy”

PHILIP CROSBY

Crosby is an American known for quality gurus. Crosby rose to international fame mainly thanks to his teachings on quality

management. He is best known for the concepts of

“Zero Defects” and “Do it right first time”

He has authored many book including “Quality is Free” “Quality without Tears” “Let’s talk Quality and leading . The art of becoming an

Executive”.

CROBSY CONTRIBUTIONS

1. Four absolutes of quality

2. Fourteen steps to quality Management

3. Crosby quality Vaccine

1. What are the four Crosby Absolutes for quality Management? 2 Marks

First Absolute : Performance

Second Absolute : Features

Third Absolute : Reliability

Fourth Absolute : Conformance

Explain Crosby’s 14 Steps to improve Quality.

1. Make it clear that management is committed to quality.

2. Form quality improvement teams with representatives from each department.

3. Determine where current and potential quality problems lie.

4. Evaluate the cost of quality and explain its use as a management tool.

5. Raise the quality awareness and personal concern of all employees.

6. Take actions to correct problems identified through previous steps.

7. Establish a committee for the zero-defects program.

8. Train supervisors to actively carry out their part of the quality improvement program.

9. Hold a “zero-defects day” to let all employees realize that there has been a change.

10. Encourage individuals to establish improvement goals for themselves and their groups.

11. Encourage employees to communicate to management the obstacles they face in attaining

their improvement goals.

12. Recognize and appreciate those who participate.

13. Establish quality councils to communicate on a regular basis.

14. Do it all over again to emphasize that the quality improvement program never ends.

CROSBY’S QUALITY VACCINE

The Vaccine is explained as medicine for management to prevent poor quality. Five Sections of Crosby’s quality Vaccine

Section 1- Integrity

Section 2- System’s

Section 3- Communication

Section 4- Operations

Section 5- Policies

D. “Various difficulties can be anticipated in the implementation of TQM programme”. Validate the statement ?

Barriers in TQM Implementing 16 Marks

Lack of Top Management Commitment and vision

Inability to change Organization culture and management style

Misunderstanding about the concept of TQM

Improper planning

Lack of employees commitment

Lack of effective communication.

Lack of interest or in competence of leaders

Non-application of proper tools and techniques

Inadequate use of empowerment and team work

Deciding how to start.

Content with certifications or Awards

Inadequate attention to internal and external customers.

Fail to understand relationship

Gaining the involvement of non-manufacturing departments.

UNIT II TQM PRINCIPLES

Leadership – Strategic quality planning, Quality statements - Customer focus – Customer

orientation, Customer satisfaction, Customer complaints, Customer retention - Employee

involvement – Motivation, Empowerment, Team and Teamwork, Recognition and Reward,

Performance appraisal - Continuous process improvement – PDSA cycle, 5s, Kaizen - Supplier

partnership – Partnering, Supplier selection, Supplier Rating.

Leadership - Concepts

A leader is one who instills purposes, not one who controls by brute force. He strengthens and inspires the followers to accomplish shared goals.

Leaders

Shape the Organization’s value

Promote the Organization’s value

Protect the Organization’s value and

Exemplifies the Organization values

Characteristics of quality leaders: 2 Mark

1. They give priority attention to external and internal customers and their needs.

2. They empower, rather than control, subordinates.

3. They emphasis improvement rather than maintenance.

4. They emphasis prevention.

5. They emphasis collaboration rather than competition.

6. They train and coach, rather than direct and supervise.

7. They learn from the problems.

8. They continually try to improve communications.

9. They continually demonstrate their commitment to quality.

10. They choose suppliers on the basis of quality, not price.

11. They establish organizational systems to support the quality effort.

12. They encourage and recognize team effort.

Leadership Concepts:

A leader should have the following concepts

1. People, Paradoxically, need security and independence at the same time.

2. People are sensitive to external and punishments and yet are also strongly self -

motivated.

3. People like to hear a kind word of praise. Catch people doing something right, so you

can pat them on the back.

4. People can process only a few facts at a time; thus, a leader needs to keep things simple.

5. People trust their gut reaction more than statistical data.

6. People distrust a leader’s rhetoric if the words are inconsistent with the leader’s actions.

The 7 habits of highly effective people:

Stephen R.Covey has based his foundation for success on the character Ethic

Golden Rule- Character Ethic

Integrity Humility Fidelity Temperance Courage Justice Patience Simplicity Modesty

1. Habit – 1 Be Proactive

2. Habit – 2Begin with the End in mind

3. Habit – 3 Put First Things First

4. Habit – 4 Think Win – Win

5. Habit – 5 Seek First to Understand, then to Be Understood

6. Habit – 6 Synergy

7. Habit – 7 Sharpen the Saw (Renewal)

Leadership Roles-[eight]

1. Producer Role

2. Director Role

3. Coordinator Role

4. Checker Role

5. Stimulator Role

6. Mentor Role

7. Innovator Role

8. Negotiator Role

Quality Planning

A. Strategic Quality Planning

B. Process Quality Planning

C. Product Quality Planning

Quality Planning:

Quality planning is the pre-determined activities in order to achieve conformation to the

requirements. many organizations are finding that strategic quality plans and business plans are

inseparable. The quality planning procedure given by Joseph.A.Juran has the following steps:

Identify the customers

Determine their needs

Translate those needs into our language.

Develop a product that can respond to those needs

Optimize the product features to meet our and customer need is far from

simple.

Quality Costs:

All organizations make use of the concept of identifying the costs needed to carry out the various functions –

product development, marketing, personnel, production etc.,

During the 1950’s the concept of ³Quality Cost´ emerged. Different people assigned different

meanings to the term. Some people equated quality cost with the cost of attaining quality; some

people equated the term with the extra incurred due to poor quality. But, the widely accepted

thing is ³Quality cost is the extra cost incurred due to poor or bad quality of the product or

service´.

Quality Cost: 2 Marks

Many companies summarize quality costs into four broad categories. They are,

a) Internal failure costs - The cost associated with defects that are found prior to transfer of the

product to the customer.

b) The cost associated with defects that are found after product is shipped to the customer.

c) Appraisal costs - The cost incurred in determining the to degree of conformance quality

requirement.

d) Prevention costs - The cost incurred in keeping failure and appraisal

costs to a mini mum. Sometimes we can also include the hidden costs

i.e., implicit costs.

A. Strategic quality planning

Strategy refers to the large –scale future oriented plans for interacting with the

competitive environment to optimize achievement of org. objectives”

Strategic planning

SP sets t he long-term direction of the organization in which it wants to proceed in

future.

Definition SP

“The process of deciding on objectives of the organization, on changes, on these objective on the

resource used to attain these objectives and on the policies that to govern the acquisition, use and

disposition of these of these resources”.

Definition of quality

“Fitness for use and purpose at the most economical level”

What is meant by strategy planning? Explain the 7 step ? 8 Marks

Strategic Planning Process-Seven Step

In order to integrate quality with the strategic planning process, a systematic and

sequential procedure has to be adopted.

There are seven basic steps to strategic quality planning.

a) Customer needs:

The basic step is the identification of customer and their needs and wants An.Org must

seek its customer’s requirement, expectations and assess future trends before developing

ASP.

b) Customer positioning

Second step requires the planners to determine its customer, in order to become

successful, the org should concentrate and consolidate its position in its areas of

excellence. Eg: Colgate past.

c) Predict the future

Because it will effect product /services

Tools as Demographic

Technical assessments

d) Gap analysis

Identify the gab between the current state and the future state of the org. This concept is

also known as ”value stream mapping ”

e) Closing the gap

Now the planners should develop a specific plan to close the gaps. This process is also

termed as “process improvement”.

f) Alignment

Now the revised plan should be aligned with the mission vision and core values and

concepts of the org.

g)Implementation

Strategic planning can be performed by any organization. It can be highly effective,

allowing organizations to do the right thing at the right time, every time.

What is QUALIT STATEMENTS? 8 Marks

The quality statement include the

Vision Statement

Mission statement and

Quality statement

Once developed, they are only occasionally reviewed and updated. They are part of the

strategic planning process. The utilization of the 3 statements varies considerably from

organization.

In fact, small organization may use the quality policy statement.

(1) Vision Statement

The vision statement is a short declaration of what an organization aspires

to be tomorrow. It is the ideal state that might never be reached but which you continually strive

to achieve.

Successful visions are

Timeless

Inspirational and

Become deeply shared within the organization

Example:

(2) Mission statement

The mission statement answers the following questions.

Who we are?

Who are the customers?

What we do? and

How w do it?

This statement is usually one paragraph, it is easy to understand, and describe the

function of the organization . It provides a clear statement of purpose for employees

Customer and Suppliers

(3) Quality Policy Statement

The quality policy is a guide for everyone in the organization as to how they

should provide products and service to the customers.

It should be written by the CEO with feedback from the work force and be

approved by the quality council.

Characteristics of Quality Policy Statement

Quality is first among equals

Meet the needs of the internal and external customer

Equal or exceed the competition

Continually improve the quality

Include business and production practices

Utilize the entire work force

A quality policy is a requirement ISO/QS 9000.

Define the term QP? Introduction to Quality Planning? 2 Marks

[Designing the desired and deliverable quality Std is the job quality planning.] Quality

planning is a strategic planning process in which quality is embedded in each and every step.

Quality planning is needed

To set quality objective and target

To take into account the customer needs and wants

To take into account of product marketability

To carry out pre-production process capability

To establish the relative importance of the quality characteristics and

specifications

To communicate it to the production live people as well as to the

vendors supplying the raw materials.

To look after various under quality control aspects.

To establish statistical control techniques charts and sampling plans.

To establish training programmes.

B. Product Quality planning

Process Quality Planning - Building quality into various Processes such as

Design

Purchase

Store

Issue

Production

Packing and

Dispatch

If the quality is build into process that delivers product, it helps in preventing defects and

delays. For this quality need to be planned at process in all levels that is explain

Inputs Outputs Review Validation and Changes

C. Product Quality Planning

PQP is for building product quality with a specific end product for each end

product there is a specific product quality plan which precisely indicate how each product

should be manufacture by using which machines .

What test should be conducted by using which test set ups, what should be the

acceptance criteria for each component and finished product and so on.

Product Quality Planning Should Address

Capability and qualification of equipment Operating conditions for the product Use or application of product Disposal of the product Product life cycle Environment impact of the product Impact of the use of natural resources including materials and

energy.

Strategic quality planning

Understand existing product and process

Identify potential customers

Identify potential customer needs in their language by using QFD

Product quality planning

Translate customer needs in the form of product features

Develop specification for product features

Optimize product design to set product goals

Develop process to meet product goals

Process quality planning

Establish process stability by measuring process performance

Complete process capability by considering specification and process

performance.

Transfer process to operations.

Process ready to produce

Customer

Synopsis1. Customer Focus

2. Customer Orientation

3. Customer Satisfaction

4. Customer Complaints

5. Customer Retentions

Definition of customer - A customer can be defined as ”One who purchases a product or

service”.

What are the types of customer?

Internal Customer and

External customer

Six Basic Requirements of Internal and External customer

High levels of quality

A high degree of flexibility

High levels of services

Low costs

Quick response

Consistency

Hierarchy of Customer Requirement

Delight

Added Values

Core Needs

1.Customer Focus

Meaning Organization understands the customer need and focus itself to exceed customer

expectation.

Factors Influencing Customer Purchases

Price

Company in brand Name

Customer Need

Past Experience

Prior Relationship with supplier

Peer Recommendation

Information on Company website

Trade show demonstration

Prior Relationship with sales person

1. Customer Orientation

1. Develop

2. Manufacture

3. Market

4. Deliver

1. Develop

Product development should be doen keeping customer needs into mind.

Product should be customer oriented

The Product development cycle time should be minimal.

2. Manufacture

Manufacture should be such that it gives a best products to customer

Quality should not be compromised

Manufacturing cycle time should be reduced

3. Market

Indentifying and Targeting the right customer

Analyzing the demand as early as possible

Customization of the product for the market

4. Deliver

Deliver to the target customer

Reduce delivery time

Value for money products

2. Customer Orientation Strategy

5. Price Sensitive Orientation

6. Quality Sensitive Orientation

7. Niche Strategy

Customer Orientation Strategy

COS is the way that a business focuses its product or service to customers. There are

many specific ways of doing this ,but in general there are 3 ways

(A) Price sensitive Orientation

The price sensitive orientation involves targeting customers who are mainly

focused price. This orients a company towards a potentially large market segments.

In this strategy

Company has to reduce its overheads.

If helps discounting price and offers.

(B) Quality Sensitive Orientation-Market leaders

This strategy can allow a company to achieve market leadership in an industry where quality

is considered more important than price.To become a market leader means that it is the preferred

choice of most consumers.

(C) Niche Strategy

The strategy involves finding a small audience and aiming a particular product at the

audience. This means that the product is not necessarily the best or the cheapest but it is the best

fits the needs of a particular consumer.

3. Customer Satisfaction

Customer satisfaction a business term is a measure of how product and services

supplied by a company meet its customer expectation.

Measuring Customer Satisfaction

Customer Satisfaction measured at the individual level, but it is almost always reported at

an aggregate level. It can be measured along various dimensions such as

Performance or fitness for use

Availability and on time delivery

Reliability and Maintainability

Features of Product and services offered

After sales Service

Warranty and guarantee given by Product and services offered

After sales Service

Warranty and guarantee given by seller

Price which represents value for money concept.

What is customer satisfaction?

Meeting or exceeding customer expectations in the use of a product/service.

Importance of Customer Satisfaction

1. Customer satisfaction provides a leading indicator of consumer purchase intentions and

loyalty.

2. Customer satisfaction data are among the most frequently collected as it indicates the

market share.

3. It helps in determining how the organization providing it product and services to the

customer.

4. It is important to get customer loyalty.

5. Satisfied customer advertise the product or service at free of cost.

6. Every satisfied customer tells four other persons but every dissatisfied customer tells to

16 persons.

Customer satisfaction is generally measured on a five –point scale

Very satisfied

Satisfied

Neutral

Dissatisfied

Very dissatisfied

Customer Satisfaction Model

The importance of customer satisfaction four goals of any business are To satisfy its customer To achieve higher customer satisfaction than its competitors To retain customers in the long run To gain market share

Customer satisfaction Index

American Society for quality control released the first American customer satisfaction Index (ACSI). A new economic indicator that measures customer satisfaction at the national level. The ACSI is based on customer evaluation of the quality of goals and services purchased in the us and produced by both domestic and foreign firms with a substantial us market share.

5. Customer Retention

Meaning of customer Retention Customer Retention Rate Importance of customer Retention

JOEL E.ROSS-Customer Retention Model

He stresses that CR will improve profit In order to retain customer it is necessary that system and human components be

kept in order.

Customer Retention Model show that

Employ satisfaction in the company is the driver for the whole exercise. If the employees are not satisfied customer retention will be impossible

In Customer Retention Model we have

Human System

Driver and Out come

4. Customer Complaints

Meaning

A customer complaint is any communication a customer has with your company in which ‘displeasure’ is expressed. But every customer complaint is valid.

Definition from ISO 10002:2004

“A complaint is an expression of dissatisfaction made to an organization, related to its product, or the complaints handling process itself, where a response or resolution is explicitly or implicitly expected”. Customer complaint is a measure of customer dissatisfaction

Customer complaints can be received

Feedback from

Survey questionnaire

Complaint register

Toll-free telephone number

Service report cards

Company website

Company hotline number.

What is customer Feedback?

Customer Feedback is very important it can be collected through

Email Telephone Mail Customer feedback form etc.

Seven Steps of Resolving Customer Complaints

Do not waste time with your avoidance and make things worse Approach the customer as soon as you near they are unhappy

1. Listen Intently

2. Thank them

3. Apologize

4. Seek the best solution

5. Reach Agreement

6. Take quick Action

7. Follow-up

5. Customer Retention - It is an ability of a company to attract and retain new customer.

Customer retention is more than giving the customer what they accept it’s about exceeding their expectation so what they loyal advocates for your brand.

Customer retention represents the activities that produce the necessary customer

satisfaction which in turn creates the customer loyalty.

customer retention moves customer satisfaction to the next level by determining what is

truly important to the customers and making sure that the customer satisfaction system focuses

valuable resources on things that are important to the customer. Customer retention is the

connection between customer satisfaction and the bottom line.

World-class companies that continuous improvement and customer satisfaction should

go hand-in-hand.

Improved service to the customer is a costlier affair, so an organization must determine its

return on the service investment. For this the important service elements that significantly

improve revenues and market share should be determined.

One survey indicates, it requires five times of effort to win a new customer than retaining

a present customer. In this context customer retention is important for organizational success.

Customer Retention rate

It refers to the number of customer lost over a period of time

Calculated as

% Of lost customer /existing customer

State the importance of customer Retention? 2 marks

Increase in sales volume. Increase in profit. Increase in Brand name Helps in promoting new product and Diversification.

Top Five Customer retention tactics and implication on Customer retention 2 marks

1. Regular communication with customized content and special offers

2. Customer service

3. Listen (and then talk)

4. Loyalty programs, appreciation awards and customer referral rewards.

5. Bring your customer together –social networks

Customer Retention- is more powerful than customer satisfaction because of the following findings in customer focus related researches

Over 70% of an organization future revenue will come from existing customer

A 3% increase in customer retentio0n has an equivalent impact upon profitability as a

12%reduction in operating costs.

90% of the unhappy customer will never purchase goods and services from you again.

It costs 5 times as much to attract a new customer as it costs to keep an old one.

How Companies lose their customers

Dissatisfied customer -15% Influenced by friends-5% Trued away by competitors-9% Customer death -1% Poor customer service-70%

Employee Involvement

Synopsis

1. Motivation2. Empowerment3. Team and Teamwork4. Recognition and Reward5. Performance Appraisal.

Employee involvement is creating an environment in which people have an

impact on decisions and actions that affect their jobs. Employee involvement is to involve people

as much as possible in all aspect of work decision and planning. How to involve employee in

decision making and continuous improvement activities is the strategic aspect of involvement

and can include such methods as suggestion system.

Suggestion system

Manufacturing cells

Work teams

Continuous improvement meeting

Kaizen (continuous improvement)

Corrective action processes events and

Periodic discussions with the supervisor

List out any four benefit of Employee Involvement? 2 Mark

Its meets the organization goals and objectives It improves the quality It improves the productivity It improves the team activities

Employee Involvement Model

Tell : the supervisor makes the decision and announces it to staff.

Sell : supervisor attempts to gain commitment from staff by “selling” the positive

aspects of the decision.

Consult: The supervisor invites input into a decision while retaining authority to

make the final decision herself.

Join: supervisor invites employees to make the decision with the supervisor

Delegate: The supervisor turns the decision over to another party.

Employee Motivation

According to Behavioral Theory Of Motivation

Proactive Behavior Reactive Behavior

Proactive Behavior:

Some people would get motivated to work for recognition and likes work.

Reactive Behavior:

Some people dislike for work. Punishment behavior is known as reactive behavior. Employee have to be grouped into individual human beings and this is known as “working partners” we must acknowledge the with individuals

Need Drives Characteristics Personalities Aspirations

Motivation

Knowledge of motivation is necessary to understand the utilization of man power (employee) involvement to achieve the organization goals and objective.

“Capacity to work” and “willingness to work” is two different things. An employee be physically mentally and technical fit to work but may not

be interested or willing to work. When a employee is not willing to work then only these is need for

motivation.

Theories of Motivation

Maslow’s Hierarchy of Needs Herzberg’s Two factor Theory

Maslow’s Hierarchy of Needs

He believed that a person’s motivational needs can be arranged in a hierarchical manner.

Once a level of hierarch is reached by an a individual it no longer serves as motivation.

The next higher level of need has to be activated in order to motivate on a individual.

Herzberg’s two factor theory

Determinants of job dissatisfaction

(A) Hygiene factor

(B) Motivator factor

(A) Hygiene factor

a. Pay benefitsb. Working conditionsc. Quality of supervision d. Interpersonal relationship

(B) Motivator Factors

a. Work itself b. Advancementc. Recognition

2. Define Empowerment. 2 Marks

A] Empowerment is the power and authority given to an employee to show initiative and take

decisions on his own without the need to consult his superior.

Empowerment requires a sincere belief and trust in people. It involves employees directly in

decision-making processes, giving them the security and confidence to make decisions, and

providing them with the necessary tools and training.

“Employee empowerment is defied as giving employee authority and responsibility to make decisions about their work without superiors approval”.

Authority and responsibility are the two said of a coin. These decision are to be within well defined boundaries and should necessarily

be directed towards achievement of organization goals and values. Employee empowerment should not be confused with delegation and job

enrichment Delegation refers to distributing and entrusting work to other employees Employee empowerment is an individual is held responsible for accomplishing a

whole task. The employee becomes the process owner

Thus the individual is not only responsible but also accountable.’’’

Job enrichment is aimed at expanding the content of an individual’s job.

In order to create on empowered environment 3 conditions are to be necessarily implemented

(1) Everyone must understand the need for change.

People should not fear change People should accept change

(2) The system in the organization is to be changed for the new concept.

For motivation reward and reorganization For freedom to act

(3) The organization must enable its employee

To provide them information and skill.

Team

Meaning : Team comprises a group of people linked in a comm. On purpose. Teams are especially appropriate for conducting tasks are high in complexity and have many interdependent subtasks.

4] List the benefits of team work.

A] Many heads are more knowledgeable than one. Each member of the team has special abilities

that can be used to solve problems. It promotes camaraderie, team spirit.

Explain the Characteristics of Effective Team? 8 Marks

Clear goal and objective

Results-driven structure

Competent team members

Unified commitment

A collaborative climate

High standards that are understood by all

Receive external support and encouragement

Principled leadership

Cohesiveness

Balanced participation

Open communication

Account ability

Types of teams

Process improvement teams

Cross-functional teams

Natural work teams

Self-directed/ self managed teams

Stages of team Growth

A team just not start perform immediately, there are stages in which a team grow and a team should be given time to work . A team can growth can be separated into four stages.

Stage 1: Forming

Stage 2: Storming

Stage 3: Norming

Stage 4: Performing

Define Teams. What are the various types of teams? Explain their roles & functions.

16 marks

TEAMS

* A team is defined as a group of people working together to achieve common objectives or

goals. Teamwork is the cumulative actions of the team in which each member of the team

subordinates his individual interests to fulfill the objectives or goals of the group. The objective

or goal may be to solve a problem, improve a process, design a product, plan a conference, and

so on.

* Teams work because many heads are more knowledgeable than one. Each member of the team

has special abilities that can be used to solve problems. Many processes are so complex that one

person cannot be knowledgeable concerning the entire process.

* Traditionally, human resources management has focused on individuals. Practices such as

MBO, individual performance evaluation, and individual promotion result in rivalries, favoritism

and self-centeredness which work against accomplishing the true mission of an organization.

Team-work breaks down barriers between individuals, departments, and line and staff functions.

* In a TQ environment, teamwork takes on a new meaning. Teams may perform a variety of

problem solving activities, such as determining customer needs, brainstorming to discover

opportunities for improvement, selecting projects, recommending corrective actions, and

tracking effectiveness of solutions.

* Effective teams are goal-oriented, independent, open, supportive and empowered. Problem

solving drives the team concept. The three basic functions of a team are toidentify,

analyze and solve quality and productivity problems. These three basic functions can be

expanded into the following nine steps:

Identify: 1. Develop list of problems, 2. Select problem to tackle.

Analyze: 3. Collect data, 4. Focus attention, 5. Find causes.

Solve: 6. Develop solutions, 7. Pick best solution, 8. Develop follow-up plan, and  9. Implement.

* The development of Quality Circles by the Japanese in 1961 is considered to be the beginning

of the use of teams to improve quality. Quality Circles are groups of people from one work unit

who voluntarily meet together on a regular basis to identify, analyze, and solve quality and other

problems within their area. Various other types of teams have subsequently come up to tackle

diverse issues in a TQ environment. Some of these are:

Process improvement teams: The members represent each operation of the process. When the

targeted process includes many work units or the entire organization, a cross-functional team

may be more appropriate with work unit teams operating as sub-teams. The life cycle of this type

of team is usually temporary – it is disbanded when the objective has been achieved.

Cross-functional teams: The members represent a number of different functional areas such as

engineering, marketing, accounting, production, quality, and human resources. It may also

include the customer and/or the supplier. A design review team is a good example of a cross-

functional team. This type of team breaks down functional area boundaries.

Problem-solving teams: Members gather to solve a specific problem and then disband.

Project teams: Teams with a specific mission to develop something new or to accomplish a

complex task.

Self-directed/self-managed work teams: They are the epitome of the empowered organization

– they not only do the work but also manage it. There is wide discretion to organize their work

subject to organizational work flow requirements.

Differentiate between Recognition & Reward.

Recognition is a form of employee motivation in which the organization

publicly       acknowledges the positive contributions an individual or team has made to the

success of the organization.

 Reward is something tangible such as a cash award, plaque, certificate, special dinner,   theatre

tickets, etc. to promote desirable behavior.

Continuous process improvement 16 Marks

Write short notes on:

a)      Juran Trilogy

b)      PDSA cycle

c) 5W2H

d)      Kaizen

e)      5’S concept

JURAN TRILOGY

* Joseph Juran, like Edwards Deming, was a US citizen who taught quality principles to the

Japanese in the 1950s and was a principal force in their quality reorganization. Juran’s

prescriptions focus on three major quality processes, called the Quality Trilogy: (1) quality

planning – the process of preparing to meet quality goals, (2) quality control – the process of

meeting quality goals during operations, and (3) quality improvement – the process of breaking

through to unprecedented levels of performance.

(1) Quality planning: Quality planning begins with identifying customers, both external and

internal, determining their needs and developing product features that respond to those needs.

Juran wanted employees to know who uses their products, whether in the next department or in

another organization. Quality goals based on meeting the needs of customers and suppliers alike

at a minimum combined cost are then established. Next, the process that can produce the product

to satisfy the customers’ needs and meet quality goals must be designed.

(2) Quality control: Quality control involves determining what to control, establishing units of

measurement to evaluate data objectively, establishing standards of performance, measuring

actual performance, interpreting the difference between the actual performance and the standard,

and taking corrective action on the difference.

(3) Quality improvement: The third part of the trilogy aims to attain levels of performance that

are significantly higher than current levels. Process improvements begin with the setting up of an

effective infrastructure such as the quality council. The duties of the council are to identify

improvement projects, establish project teams, and provide the teams with required resources.

The teams work to identify the causes, create solutions, and establish controls to hold on to the

gains. The quality council is the catalyst that ensures that improvement is continuous and never

ending. Process improvement can be incremental or breakthrough.

B) Explain the phases of PDSA CYCLE 8 Marks

* Also known as the Deming Cycle and Deming Wheel, it is a simple methodology for

continuous improvement that was strongly promoted by Edwards Deming. It was originally

called the Shewhart Cycle after its original founder, Walter Shewhart, but was renamed the

Deming Cycle by the Japanese in 1950. The Deming Cycle is composed of four stages: plan, do,

study, and act (PDSA). (The third stage – study – was formerly called check, and the Deming

Cycle was originally known as the PDCA cycle.Deming made the change in 1990. He felt that

“study” is more appropriate, while with “check”, one might miss something).

Seven Steps of PDSA 8 Marks

1. Identify the opportunity

2. Analyze the current process

3. Develop the optimal solution

4. Implement changes

5. Study the results

6. Standardize the solution

7. Plan for the future.

1. Plan:

Define the problem

Define the performance indicators

Collected and analyze process data

Generate possible solution

2. Do:

Implement the plan on a limited scale or conduct an experiment to the test the proposed

improvement.

Train all involved employee in the use of quality improvement methods and techniques.

3. Check:

Evaluate the trial project with the performance indicators.

Verify whether the improvement has been successful or not.

4. Act:

Act to implement proven improvements.

The improvements are documented in standard procedures.

Usually the cycle will be repeated under the different circumstances

c) 5W2H

What

Why

Where

When

Who

How

How much

d) 5S PRINCIPLES

* Japanese factories are well known for their cleanliness and orderliness.

* A dirty factory cannot produce quality products. Similarly a person of disorderly habits cannot

be efficient and effective at work.

* The 5S Principles is a technique for effective workplace management. It is a tool for high

quality housekeeping, thereby improving workplace effectiveness.

* The 5S’s stand for five Japanese words: Seiri, Seiton, Seiso, Seiketsu, andShitsuke.  The 5S is

not only useful to improve the physical environment, but also the thinking processes.

1. Seiri (Sort): Separate out all unnecessary things and remove them, retaining only necessary

things. Accumulation, mixing of unnecessary things and wastes with needed items leads to

clutter, confusion and mess, thereby reducing the efficiency of working. Seiri also involves

keeping the number of things as low as possible and at a convenient location. If the workplace is

clean, there is greater motivation to carry out the job; but if the place is full of unwanted things,

it will be difficult to work effectively.

2. Seiton (Arrange): Put required things in proper order so that they can be easily accessed for

use and quickly put away in their proper locations after use. It prevents people from wasting their

time searching for things. “A place for everything and everything in its place”.

3. Seiso (Clean up): Keep machinery and work environment clean. Employees should be

responsible for cleaning their own workplaces. Workers should clean up the workplace first thing

before they commence work and at the end of the day before they leave. They should also see

that their workplace remains clean and tidy throughout the day. Any dirt, spillage, etc. should be

attended to immediately.

If cleanliness is not maintained, it can be harmful to the personnel [health hazards], machinery

[can fail due to dust, dirt, etc.], and materials [due to contamination], thereby causing quality and

productivity problems.

4. Seiketsu (Systematize, Standardize): Develop routine practices for orderly, systematic

working. If the 5S processes are standardized, it becomes easier to continuously maintain the

organization’s neatness and cleanliness. An effective means of achieving Seiketsu is Visual

management – like signboards, marked parking lots, marking of aisles, identification labels, etc.

Another important consideration is transparency – tools, files, etc. should be visible so that it is

easy to locate them. This will reduce the time for searching.

5. Shitsuke (Self-Discipline): Impart systematic training and coaching to ensure discipline in 5S

implementation. Discipline comes through repetition and practice. Self-discipline goes beyond

discipline. It is essential for the successful implementation of the 5S principles.

* In a factory, 5S increases productivity, eliminates waste, reduces inventory, creates a pleasant

workplace, improves safety, and increases the overall efficiency and effectiveness of people and

machines.

* The logic behind the 5S principles is that organization, neatness, cleanliness, standardization,

and discipline at the workplace are basic requirements for producing high quality products and

services, with high productivity and little or no wastage; hence the importance of combining the

5S principles in TQM.

e) KAIZEN

* Kaizen, which is a Japanese word that means gradual and orderly continuous improvement, is a

philosophy that covers all business activities and everyone in an organization. In the kaizen

philosophy, improvement in all areas of business – cost, meeting delivery schedules, employee

safety and skill development, supplier relations, new product development, and productivity –

serve to improve the quality of the firm. Thus, any activity directed toward improvement falls

under the kaizen umbrella.

* For example, statistical process control, robotics and advanced technology, employee

suggestion schemes, total productive maintenance, just-in-time production systems all lead to

improvement and fall under the kaizen umbrella.

* Kaizen begins with the notion that an organization can assure its long-term survival and

success only when every member actively pursues opportunities to identify and implement

improvements everyday. Kaizen sets no conditions for the magnitude of improvement. In fact, it

often favors small, incremental improvements.

* By instilling kaizen into people and training them in basic quality improvement tools, workers

can build this philosophy into their work and continually seek improvement in their jobs. This

process-oriented approach to improvement encourages constant communication among workers

and managers.

* The kaizen philosophy has been widely used by many firms in the US and around the world.

For example, at ENBI Corporation, a New York manufacturer of components for the printer,

copier, and fax machine markets, kaizen projects resulted in a 48% increase in productivity, a

30% reduction in cycle time, and a 73% reduction in inventory. At Mercedes-Benz’s truck

factory in Brazil, kaizen resulted in reductions of 30% in manufacturing space, 45% in inventory,

70% in lead time, and 70% in setup time over a three-year period.

What is Kaizen?

A] Kaizen is a Japanese term which means ‘continuous improvement’. It is based on the belief

that virtually any aspect of an operation or process can be improved and the people most closely

associated with it are in the best position to identify the changes to be made.

SUPPLIER PARTNERSHIP

An efficient SCM , built on strong partnerships will create high levels of

people satisfaction and customer satisfaction.

Ensuring the partnership processes for an organization is use of QMS

Audits, reviews and action plans.

Partnership are Planned and managed must be in line with overall policies

and strategies and support the operation of the processes.

Principle’s of Customer & Supplier Partnership by Dr Kaoru Ishikawa

Customer & Supplier are fully Responsible for Control for Quality.

Customer & Supplier are Independent of each other.

Customer’s must be given full Information about the raw material, semi

finished products (or) services required.

Clear Contract regarding Quality, Quantity, Price, Delivery Modes, Etc.

Principle’s of Customer & Supplier Partnership by Dr Kaoru Ishikawa

Evaluation of Same Quality Standards by Both the Customers & Suppliers

Problem Solving By Discussion

Exchange Information & Feed Back

Both Customer & Supplier do Business transaction w.r.t. END USER.

PARTNERING

Long Term Commitment

Trust

Shared Vision

SOURCING

Sole

Multiple

Single

SUPPLIER SELECTION BASED ON

Quality Philosophy of the Customer

Stable Management

High Technical Standards With Future

Raw materials & Parts Meet Quality Std

Delivery as per Schedule

Effective Quality System

Record of Customer Satisfaction Credibility in Industries

Supplier Rating

Quality

On Time delivery

Service

Internal Structure

Customer Satisfaction

Review Reports

Potential Pitfalls of Partnership

Fear of Unknown Concept

Starting Early

Poor Communication

Impatience

Mistrust

Over dependency

Time & Resources

PERFORMANCE MEASURE IN TQM

Performance can be expressed in Financial & Non Financial Terms.

Performance Measure Provides the right direction.

Performance Based on Quality, Product, Service, Process, Sales, Customer

Satisfaction, Cost Reduction.

Performance Shows Whether the Organization makes Profit (or) Loss

Performance Based On

Objectives

Customers

Suppliers

Production

Human Resources

R & D

Marketing / Sales

Strategic Measurement System

Quality

Cost

Flexibility

Innovation

Reliability

Graphs, Bar Diagram, Control Charts

Taguchi Loss Function