TQM PRINCIPLES & STRATEGIES
CUSTOMER SATISFACTION
It is a measure of how products and services
supplied by a company meet or
surpass customer expectation. Customer
satisfaction is defined as "the number of
customers, or percentage of total customers,
whose reported experience with a firm, its
products, or its services (ratings) exceeds
specified satisfaction goals.
SERVICE QUALITY
The results generated by activities at
the interface between the organization
and the customer, and by the
organization’s internal activities, to
meet customer needs.
FEATURES OF SERVICES
Speed
Deliver schedule
Care in handling
Each service offering is different
Psychology of customer
Difficulty in
Understanding requirements
Estimating cost
Measuring performance
Measuring customer satisfaction
Marketing
CUSTOMER DELIGHT
The very favorable experience of
the client of a business when they
have received a good or service that
significantly surpasses what they
had initially anticipated.
THE KANO MODEL
The Kano Model of product development and customer satisfaction
was published in 1984 by Dr Noriaki Kano, professor of quality
management at the Tokyo University of Science.
Kano says that a product or service is about much more than just
functionality. It is also about customers' emotions.
For example, all customers who buy a new car expect it to stop when
they hit the brakes, but many will be delighted by its voice-activated
parking-assist system.
THE KANO MODEL
THREE TYPES OF RESPONSES
Basic quality
Performance quality
Excitement quality
BASIC QUALITY
Threshold Quality
Unspoken or minimum expected requirements
Customers are expecting his requirements will be
implemented
Customers will complain if basic quality attributes are
not fulfilled but they will not appreciate the supplier
for fulfilling the same.
Basic Quality Measurements
Customer Complaints
Warranty Data
Product Recalls
Number of Lawsuits
Things gone wrong
Other failure reports
PERFORMANCE QUALITY
Voice of customer
Quality function deployment
The better the performance, the
greater the satisfaction.
EXCITEMENT QUALITY
Customers received some feature or
attribute they did not expected or think
of
Reason for customer loyalty.
AGREED CUSTOMER REQUIREMENTS
Finding out requirements right first time
customers may mean something and say
something else.
Service provider should be inquisitive.
Use checklist
Contains all the relevant details
Model checklist
Review of requirements
Review contract before service request is given
Foresee and provide for amendments
Additional requirements with additional costs
Documented policy
Procedures and methodology in customer service
Code of good customer handling practices
Result of past experiences
Customer perceived quality
No hard and past rules for identifying measures
Identify vital few measures
Arrived at quantitative measures
Parameters in determining perceived quality
Defects in the product in delivery
Number of requirements fulfilled
Number of misunderstood
requirement
Frequency of defects
Time taken for repair
CUSTOMER PERCEIVED QUALITY
CUSTOMER FEEDBACK AND
COMPLAINTS RESOLUTION
CUSTOMER FEEDBACK
Difficult to get
Design simple feedback forms
Ensure confidentiality
Analyze and display results
COMPLAINT RESOLUTION
To be handled by senior management
Analyze independently
Give benefit of doubt to customers
Satisfying annoying customers
Establish complaint recovery process
Process of receiving complaints, processing them,
communicating to customer and resolving the issue
Problems have to be recorded
COMPLAINT RECOVERY PROCESS