ge2022 total quality management unit 1
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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