Management of QualityWhirlpool Case StudyGroup No – VPGDM11

WhirlpoolWhirlpool Corporation of the USA is a leading

manufacturer of major home appliances. Its has units in13 countries and markets in 170 countries under the brand names Whirlpool, Kitchen Aid, Roper, Estate, etc.

Whirlpool's pervasive vision, “Every Home, everywhere, with pride, passion and performance”

This vision rests on the pillars of innovation, operational excellence, customer-centric approach and diversified talent.

These are embedded within the business goals, strategy, processes and work culture.

Consumer DurablesThe Indian Consumer Durables is

segmented in 3 groups -

Core Competencies of Whirlpool Innovation: Unique and compelling solutions valued by

our customers and aligned to our brands create competitive advantage and differentiated shareholder value.

Operational Excellence (OPEX): WES (Worldwide Excellence System) methodology for solving problems & continuous improvement of products & processes through pursuit, acquisition, and utilization of knowledge using critical thought and planned experimentation helps us achieve operational excellence.

Customer Excellence: Excelling the customer expectation from the company, its brands, products and services are a three-step process. The three steps are: Know a customer, Be a customer, Serve a customer.

Customer Satisfaction by Innovation

Customer Satisfaction by InnovationThe development of a specific innovation typically follows a flow: Idea generation – Idea Labs are formed which are driven by I-

teams in Whirlpool. Basic business case formation – E.g. In health and wellness

domain, short-term (water filters on our existing refrigerators),  Mid-term (develop appliances with anti-microbial surfaces), Long term (whole home sanitizer)

Competition for development of the idea – Out of 10 prototype only 1 is to be taken further by I-Boards who make Idea to Action.

Testing and experimentation of the ideas – The testing of assumptions and working of prototype is measured for performance and modifications are made if required.

Launch, Scale & Large scale commercialization – Once the product is ready it is introduced into market for customers.

Customer Satisfaction by Innovation

www.whirlpoolcorp.com

Customer Satisfaction by OPEX

Customer Satisfaction by Operational Excellence (OPEX)

What is Quality?• In simple terms Quality is meeting or exceeding the

customer’s expectations. Quality can be quantified as: Q=P/E

(Q=Quality, P=Performance, E=Expectations) What is Quality Control?• According to Juran – QC is Evaluation of actual

performance, compare actual performance with quality goals & act on the difference to rectify the differences.

Quality Quality Control

Quality Assuran

ceQuality Manual

Customer Satisfaction by Operational Excellence (OPEX)

Quality Quality Control

Quality Assuran

ceQuality Manual

What is Quality Assurance?•Quality assurance proactive procedures are planned, developed, documented and communicated to all employees as per organisational requirements. E.g. Supplier Selection is done by Supplier Survey, Audit, Sample Use, Supplier material inspection.

What is Quality Manual? •Quality Manual means the documents that describe your quality system and say how it should operate. It is written down or captured in some form: written procedures, policies, checklists, forms, or graphics, drawings, flowcharts, diagrams, even IT systems.

Customer Satisfaction by TQMWhirlpool TQM is based on

Manufacturing Quality Products but also keeping Customer Focus – So it is also known as Six Sigma Customer Centric Approach

Quality System

Quality Product/Service

Customer Satisfaction

Customer Focus

Customer Satisfaction by Operational Excellence (OPEX)Whirlpool uses Six Sigma tool as one of the

centrepieces for managing Quality.

Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects.

Benefits of Six Sigma – Reduces Variability in ProcessReduces costImproves Productivity

Customer Satisfaction by Six SigmaAt Whirlpool, Six Sigma was used to improve design processes for Duet washer and dryer.

The Team developed various new metrics for how customers evaluate product quality. (Performance, Durability, Reliability)Based on this metrics the model was developed.

www.isixsigma.com 

Customer Satisfaction & Delight by Customer Excellence

Customer Satisfaction & Delight by Customer Excellence

Know the customers - Internal customers, External customers.

Internal Customers◦Customers inside the company.◦Every person in the process.◦Each dept. is customer of another.

External Customer◦Who uses the product◦Who purchases the product◦Who influences the sale of product

Customer Satisfaction & Delight by Customer ExcellenceHow is Customer Buying Behaviour for Whirlpool?Buying consumer durable is lengthy

process, lengthy decision.Customer will have need/ requirement of

durable products.Customer gives more importance for

research and available options.Customer has high involvement.Customer is Quality and Price conscious.

Customer Satisfaction & Delight by Customer ExcellenceFactor influencing level of Customer involvement -Personal factor – Need of person for washing

machine or fridge, Advertisement creating interest in a person.

Situational factor- Unavailability of maid for washing clothes or discount offer.

Object factors – Better features than other brands

Customer Satisfaction & Delight by Customer ExcellenceElements Customer Seeks in terms of being satisfied for product/ service Service

◦ Provided with the service at right time, even though the customer haven’t given any complaint.

◦ On time Delivery. Warranty

◦ Represents a promise of a quality product for customer to buy with assurance

◦ It builds a trust if customer is given replacement immediately in warranty period.

Price◦ High price towards Quality is accepted by customer.◦ Expects to get good product in medium and lower price too.◦ Customer’s perception of value is always changing and org

should identify it. Reputation

◦ Customer will buy product from a known company.◦ Reputation brings customers and loyalty.

Customer Satisfaction & Delight by Customer Excellence

Steps for customer needs & solving problems Survey Customers - Discover customer needs,

requirements, dissatisfaction, etcUnderstand Expectations - Discover priorities

of Quality, Price, Features. Find Out Where You’re Failing – Make teams,

determine key performance indicators, Analyze them on weekly basis, compare products with the competition. 

Pinpoint Specifics and Find Solutions – Improvement in after sales service can be done by hiring more trained engineers.

Customer Satisfaction & Delight by Customer ExcellenceRoles of Customer Service –

◦Get the customers point of view.◦ Meet the customer’s expectations.◦Deliver what is promised.◦Make the customer feel valued.◦Respond to all complaints.◦Time limits to respond to the customer.◦Customer feedback has to be

continuously sought and monitored (comment cards, surveys, toll free nos.)

Customer Satisfaction based on Product Attributes

Customer Satisfaction based on Product AttributesTHE KANO MODEL OF QUALITYThe Kano Model of Customer

(Consumer) Satisfaction classifies product attributes based on how they are perceived by customers and their effect on customer satisfaction.

These classifications are useful for guiding design decisions in that they indicate when good is good enough, and when more is better.

Customer Satisfaction based on Product Attributes

CustomerSatisfaction

Degree of Achievement

Basic Quality(unspoken)Fully Automatic Washing of Clothes

Spoken Perform

ance

100% stain & dirt

remover

ExcitementQuality(unspoken)Least Power Consumption(5 Stars)

Adapted from Kano et al (1984)

Customer Satisfaction based on Product AttributesThreshold / Basic Attributes: (Washing Machine) Washing Section or Container with certain capacity to wash clothes (This is the basic function required, i.e. section which does actual cleaning or cleansing of cloths automatically)One Dimensional Attributes (Performance/Linear):Washing Machine:1. Effective cleaning of clothes2. 100% removal of stain or dirt3. Dryer in machine may serve as increased functionalityOther functionality1. Time setting2. Drainer3. Different mode for different clothes(These are the additional features added to a core need which results in more customer satisfaction)Attractive attribute (Exciters/Delighter)Washing Machine:1. Light weight machine2. Less power/electricity consumption3. Damage warranty4. Toughened glass(These are unknown or unexpected features of the machine which presented or pitched  right by sales executive may result as delighter)

Customer Satisfaction based on Voice Of Customer VOC data is effectively ‘dialog’ data that

may be collected in a company via customer service call centers, customer warrantee claims, surveys, e-mail, web forms, etc.

It can be structured (in the form of coded customer contact data), or unstructured (in the case of free form comments on warrantee claims or surveys responses).

Benefits – Customer Satisfaction, Customer Retention, Service/Product Improvement, New Product Development, Cross Selling.

RecommendationsUsing WiFi Hub & Smartphone

Technology to control appliances.

This is innovation for the entire product line of whirlpool connected and give premium customers value added service

RecommendationsFor Customer Service: Starts when customer enters the showroom – Salesman

will be of Whirlpool employee to exclusively sell whirlpool products only.

Employees – Reward program for employees who have given best.

Logistics – Control over logistics facility of Distributor to deliver goods in time without delay.

Providing Easy Finance from Bank at which customer has account.

For Customer Delight: Ask birth date – Giving customer free service coupons on

that date. Discount on next purchase – Giving Rs1000/- discount on

next purchase.