Download - PeopleCustomersSuppliers 2. Approach Organization wide approach “Employing a consistent organization- wide approach to continual improvement of the organization’s

People Customers Suppliers

2. Approach

Organization wide approach

“Employing a consistent organization-wide approach to continual improvement of the organization’s performance.”

This requires organizations to take steps in the following areas:

I. People

II. Customers

III. Suppliers


I. People

This requires the organizations to take the following steps:-

• Having motivated & committed employees,

• Attracting and retaining people and

• Building right attitudes.


Having motivated and committed employees


Activities helpful in motivating people

Define the outcome you want from managers and insist that they find their own way there. This practice encourages creativity and makes people empowered enough to innovate their way to achieving goals.


Identify strengths of the employees and make efforts to develop and use their strengths by assigning suitable jobs to them. The best way to motivate a person is to offer him the job which he / she likes the most.



The seniors must genuinely share the joys and sorrows of the individuals. Treat every employee as a distinctive individual. Every individual is a unique bundle of needs, insecurities, ambitions, spirit and genius. This must be translated into specific action in managing every individual’s growth, training, rewards etc. In majority of cases the employees do not leave companies - they leave their seniors and supervisors.



• To motivate a person to give his best to your organization, demonstrate to him how his best will make the organization a better performer. Their opinions must be considered during the decision making process.

• Assist employees in translating organization’s mission into personal mission.



• Get teams to initiate continuous improvement process and recognize their achievements. Only then you will find every one committed to quality. Encourage team based rewards rather than individual rewards.

• Encourage people to develop healthier relationships with others at the work place instead of only encouraging professional relationships.


Create a work culture that is transparent, open to new ideas and promotes lot of creativity and innovation.



It must be remembered that good pay and perks can always be matched and even bettered by your competitors - it is only the great work places that will make significant difference to the quality of the organization.



Attracting and retaining people



Continuous improvement requires organizations to attract, manage and nurture talent. This calls for pro-active measures on three fronts.



1. Organizations will have to create an ambience where talent can bloom.

2. They have to put in place systems that will help unleash the potential of their employees.

3. They have to build a reward and recognition mechanism that provides value for people.



Today’s dynamic market environment will give rise to lot many entrepreneurial opportunities, which will take away talent from even the best organizations. Thus the take home pay cheque will seize to be a major motivator. Exciting opportunities and meaningful work with a sense of fun will be the preferred choice for employees.



Organizations will have to create small entrepreneurial islands, where they can house their best talents to pursue experiments, innovate, develop cutting edge products, dream up new and better ways of doing business and create value in an unrestricted manner.


Building right attitude


While considerable attention has been given to the technical side of quality, there is an increasing need of the importance of the human side to total quality.

The human side of quality


The greatest contributions to the process of TQM are made by the people who make the organization. People - who share the vision. Intellectual capital and knowledge are more and more the true assets of any organization.


Quality of human behavior

In its original Japanese context, Total Quality refers not only to the quality of management which ultimately produces quality goods and services, but to the quality of human behavior, skills, commitment and the winning instinct necessary to accomplish our business objectives.


This not only makes good business sense, it also reflects a deeper yearning of the human spirit to be of service, to build loving, caring relationships, to affirm our interdependence, and to bring value, beauty, and benefit into the world.


Quality begins with me.

If we are to take Total Quality to heart, we too must come to look at our own lives in a more multidimensional, interrelated and holistic manner. Taking the theme of Total Quality personally has the potential to tap us into the flow of life giving forces and ways of living and working that are ultimately most rewarding and productive.


II. Customers

This requires organizations to maximize value for their customers.


Maximizing customer value

In this fiercely competitive market, today’s breakthrough product or service is tomorrow’s undifferentiated commodity. One absolute certainty about the customer behavior is that our customers will continue to demand more for less.


Customer value...

They will have to be given more quality, more service, more choice and most importantly more innovation in times to come. And for getting all this, the customers will continuously want to spend less time getting it, take less risk while buying and would want to pay less for it.


No matter how effectively a company meets the needs of its customers, it must remain constantly alert and responsive to the dynamic competitive environment and continuously changing needs and expectations of the customers.

In order to continuously improve, the organization must carry out an effective program for determining the present and future needs of the customer.


Customer expectation determination

Customer expectation determination is the first step towards increasing customer satisfaction. This can be through :-

• Market research • Customer surveys• Competitive analysis• Environmental scan• New products / emerging market research


Customer satisfaction

Customer satisfaction is determined by the value-to-price ratio

CustomerSatisfaction

=Value the customer gets

Price the customer pays


Components of customer value

Product

• Performance• Reliability• Durability• Serviceability• Aesthetics• Perceived quality


Components of customer value

Service• Security• Reliability• Accessibility• Timeliness• Responsiveness• Empathy• Assurance


III. Suppliers

This requires organizations to build effective supplier quality program.


Objective of supplier quality program

• Right quality materials

• Right quantity

• Right time

• Right price


Potential quality drivers

• Develop new materials and equipment which seem likely to reduce costs and improve performance.

• Develop supply capacity through the identification of additional suppliers.

• Reduce the number of suppliers and develop a closer working relationship with those few who are expected to provide the most productive link in the organization’s supply chain.


Potential quality drivers

• Reduce inspection of incoming materials and stress on vendor certification of quality.

• Allocate business to more than one supplier to preserve competition.


Methods of Supplier Evaluation

• Evaluation of product samples

• Past history with the similar product

• Test results of similar products

• Third party certification or registration with major customers

• On-site evaluation assessment


Supplier evaluation - Questionnaires

• Can the supplier’s plant and machinery produce at the required rate?

• Are the machines capable of maintaining quality parameters within acceptable limits?

• Does the supplier have well staffed quality organization and quality control program?

• Does the supplier use a considerable number of components obtained from trade or from subcontractors? If so how do they control the quality of these components?


Supplier evaluation -Questionnaires

• What are the supplier’s source of raw materials? Does the supplier maintain adequate reserve stock of raw materials to safeguard itself from interruptions in the supply of materials? How is the supply of raw materials quality inspected for quality?

• Does the supplier have complete testing facilities for the product in question? If not what alternative arrangement can be made if pre-shipment inspection is to be carried out?


Supplier evaluation -Questionnaires

• Has the supplier executed an order for the product similar to the one being considered? If so the details of the order should be obtained?

• What is the financial standing of the supplier?

• What is the general attitude of the supplier’s management to the quality of its products? Are they confident to comply with the order?

• Does the supplier have proper quality system in place?

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