Customer Satisfaction in TQM

1. Customer Satisfaction in TQM Engr Mian Khurram Mateen Engr Mian Khurram

2. Customer satisfaction • The asset of any organization is customer • Increase in numbers, buy more, more frequently show a satisfied customer • As customer satisfaction is a measure of quality • Successful TQM begins by defining quality by customer prospective • Customer satisfaction, not increase profit will the primary goal of a organization (Why ?) • Customer satisfaction measurement is subjective not objective in nature. • So it is hard to measure the feelings, attitudes, opinions and perception.

3. Customer Satisfaction Organizational Diagram CUSTOMERS Front-line Staff Functional Department Staff Sr. Mgrs CEO

4. Teboul Model of Customer Satisfaction Customer needs Company Product/Service offer

5. Customer Satisfaction Who is the Customer? External Customer -- those who receive the final products. Occurs normally at the organizational level McDonald's determine the customer to be the child when they launched Happy Meals. The never paid for the meal but the child influence the sale. External customer can be defined in many ways who • Use the product and services • Purchase the product or services • Influence the sale

6. Customer Satisfaction External Customer : fall in three categories • Current customer • Prospective customers (Introduction of fast food) • Lost customer • Internal Customers – Every person in a process is a customer of the previous operation.( applies to design, manufacturing, sales, supplies etc.) [Each worker should see that the quality meets expectations of the next person in the supplier-to-customer chain ] • TQM is commitment to customer-focus - internal and external customers.

7. Customer/supplier chain Outputs to external customers Inputs from external customers Internal customers

8. Internal customer/Supplier relationships • Questions asked by people to their internal customers • What do you need from me? • What do you do with my output? • Are there any gaps between what you need and what you get? • Good team-work and inter-Departmental harmony is required. Also the leaders role in supervising the internal customer-supplier chain.

9. TQM and customer quality percepts • TQM is quality management and management of quality – there is no full stop and no break in the chain! • Continuous process (quality) improvement is all its about. • Why? One important reason is the customer quality level is not static and his expectations keep changing and his demands too! • Also plant process dynamics- how to achieve maximum efficiency , optimizing cost and performance in the process operations, minimizing waste etc.

10. Customer perceptions of Quality –survey conducted by American Society for Quality ASQ • Performance- Fitness for use • Availability • Reliability • Maintainability • Features- example -Cars • Service • Warranty • Price • Reputation • Good experience is communicated to 6- persons • Bad experience is communicated to 15-persons

11. Customer satisfaction/dissatisfaction feedback • Customer feedback has to be continuously sought and monitored - not one-time only!( Pro-active! Complaints are a reactive method of finding out there is a problem. Customer feedback gives following information • Discover customer dissatisfaction • Relative priorities of quality can be obtained from the customer • Performance comparison with competitors can be known • Customers needs can be identified • Areas for improvement can be noted.

12. Customer feedback methods • Comment cards enclosed with warranty card when product is purchased. (Hotels) • Customer survey and questionnaire- uses scale from 1-5 or 1-10- education – remember 6- point to conduct it • Client and customer are not the same • Surveys raise customer expectation • Be specific in questions • You have only one chance • More time spend on survey development lesser time spend on analysis and results • Before the data collection you know how to process it

13. Customer feedback methods • Customer visits- Example-Harrpic cleaner • Customer focus groups- Ex- Pharmaceutical • Toll-free phones- Ex- banks • e-mail, Internet newsgroups ,discussion forums • Employee feedback • Mass customization.

14. Customer satisfaction • Customer complaints. Every company should have a procedure for using complaints. • Accept complaints • Feedback complaint information to all people in organization • Analyze complaints by doing the detective work • Eliminate the root of cause. More inspection may not corrective action. • Report result of all investigation and solution to everyone.

15. Service Quality • (i )Organization • Identify each market segment • Write down the requirements • Communicate the requirements • Organize processes • Organize physical spaces

16. Service Quality • (ii) Customer Care • Meet the customer’s expectations • Get the customer’s point of view • Deliver what is promised • Make the customer feel valued • Respond to all complaints • Over-respond to the customer • Provide a clean and comfortable customer reception area.

17. Service Quality • (iii) Communication • Optimize the trade-off between time and personal attention • Minimize the number of contact points • Provide pleasant, knowledgeable and enthusiastic employees • Write documents in customer-friendly language.

18. Service Quality • (iv) Front-line people • Hire people who like people • Challenge them to develop better methods • Give them the authority to solve problems • Serve them as internal customers • Be sure they are adequately trained • Recognize and reward performance

19. Service quality • (v)Leadership • Lead by example • Listen to the front-line people • Strive for continuous process improvement

20. Customer Care • Keep promises to customers • Return customer calls promptly • Allot staff to handle customer problems • Treat customers with courtesy, respect and professionalism always • Evaluate customer satisfaction regularly • Search for customer-related improvements continuously • Deliver Products/Service promptly and efficiently • Give every customer complete and personal attention.