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Danang University of Economics

Assignment Front Sheet


Qualification Unit Code / Unit number and title

Pearson BTEC Level 5 HND Diploma in Business R/601/1100


(Management) Unit 32: Quality Management in Business
Student name / BTEC Registration Number Assessor name

Mr. Ananta Kar

Date issued Hand in deadline Submitted on

17 Oct 2016 11 Nov 2016

Assignment title QMIB1: A Zurich Case Study (1 of 2)

In this assessment you will have opportunities to provide evidence against the following criteria.
Indicate the page numbers where the evidence can be found.

In this assessment you


Learning Learning Assessment will have the opportunity Task Evidence
Outcome outcome Criteria no. (Page no)
to present evidence that

Discuss definitions of quality in


1.1 terms of business and services 1
Understand provision
the different
approaches
to quality Illustrate the processes of 1
1.2
LO1 management inspection and assurance
appropriate
to Discuss a range of approaches to 1
commercial 1.3 quality management
operations
Explain the similarities and
1.4 differences between the different 1
methods

Discuss what is meant by


2.1 customer satisfaction 2
Understand
the benefits
Explain the meaning of
of 2.2 2
continuous improvement
quality
management
LO2 in a Illustrate the type of added
business and 2.3 values to be gained 2
services
context
Describe the types of information
made available to customers and
2.4 the importance given to effective 2
marketing

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Student declaration

I certify that the work submitted for this assignment is my own. I have clearly referenced any sources
used in the work. I understand that false declaration is a form of malpractice.

Student signature: Date:

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In addition to the above PASS criteria, this assignment gives you the opportunity to
submit evidence in order to achieve the following MERIT and DISTINCTION grades

Indicative
Grade Descriptor Contextualisation
characteristic/s
M1 Identify and Effective judgements have To achieve M1, you would have made
apply strategies to been made effective judgements to discuss
find appropriate definitions of quality in terms of business
solutions and services provision

(Task 1)

M2 Select / design Relevant theories and To achieve M2, you would have shown
and apply techniques have been applied the use of relevant theories and
appropriate techniques to illustrate the processes of
methods / inspection and assurance
techniques
(Task 1)

M3 Present and The appropriate structure and To achieve M3, you would have shown
communicate approach has been used that you have made appropriate
appropriate structure and approach according to the
findings report/presentation's purpose and
audience where appropriate as to
abstract/executive summary, content
list, list of figures/tables/charts,
introduction, conclusion,
recommendations, appendices and
reference list and terminology

(Task 1 and 2)

D1 Use critical Conclusions have been To achieve D1, you will have drawn
reflection to arrived at through synthesis conclusions through synthesis of ideas
evaluate own work of ideas and have been and have been justified in your
and justify valid justified discussion on what is meant by customer
conclusions satisfaction

(Task 2)

D2 Take Activities have been managed To achieve D2, you will have
responsibility for demonstrated an effective approach to
managing and independent research and study and will
organising activities have met the deadline to submit the
tasks and achieve the unit assessment
criteria

(Task 1 and 2)

D3 Demonstrate
convergent / lateral
/ creative thinking

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Assignment Brief

Qualification Pearson BTEC Level 5 HND Diploma in Business (Management)

Unit number and title Unit 32: Quality Management in Business

Assessor name Mr. Ananta Karr

Date issued 17 Oct 2016

Hand in deadline 11 Nov 2016

Assignment title QMIB1: A Zurich Case Study (1 of 2)

Scenario

A Zurich Case Study - Creating Quality Customer Care

Introduction
Zurich Insurance Group provides insurance and other financial services to both individuals
and businesses. The group has more than 130 years experience and is one of the worlds
largest insurance groups. It has more than 60,000 employees and operates in over 170
countries. In the UK alone, Zurich has over two million live policies and each month its Life
business handles 300,000 interactions with customers by telephone and mail, as well as a
further 300,000 email and internet enquiries.

Zurich products and services include insurance for properties, accidents, cars and life. The
aim of insurance is to help people and businesses protect themselves financially if something
goes wrong. There can be major financial consequences if expensive assets like buildings and
cars are damaged. People need assurance that they will not suffer if someone is unable to
work, requires extensive treatment or care because of an accident or dies.

The policy holder has the reassurance that if something goes wrong, the consequences are
managed and Zurichs insurance will, at least financially, help to put things right. In exchange
for its customers paying money in regular premiums (over a specified period of time) Zurich
promises that it will be there when it is needed.

Code of conduct and core values


In a service industry many companies offer broadly similar products. Quality is one way in
which Zurich can differentiate its services from those of its competitors. It puts delivering
quality customer service at the heart of everything it does. Zurich's ambition is to be the best
global insurer as measured by its customers, shareholders and employees. Zurich
demonstrates its commitment to achieve its ambition through the Zurich Basics; its code of
conduct for all employees based around five core values - Integrity, Customer Centricity,
Excellence, Sustainable Value Creation and Teamwork.

This case study examines how Zurich brings quality to life in the care it provides for its
customers every day.

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What is quality?
Quality can be described as fit for purpose. Note that quality does not necessarily equate to
luxury. For example, if someone wants to hire an economical and easy-to-park car, then a
model such as a Smart car would adequately meet the customers need so would be fit for
purpose. Providing anything of a higher standard would be an unnecessary cost. Quality is
linked to what the customer needs and expects. If a product meets these needs and
expectations, then it can be considered a quality product.

Quality is also linked to the target market of a business. The level of quality required to be fit
for purpose is different depending on the types of customers a business deals with. For
example, a customer willing to pay 50 per night for a hotel room will have lower
expectations than a customer willing to pay 200 per night. However, in both cases, the
customer will consider whether the quality of the room is fit for purpose based on the amount
they have spent.

Quality is equally relevant to a service business as to a manufacturing one. Zurich must


therefore establish what its customers need and expect. It must deliver on its promise to be
there when its customers need assistance, efficiently and courteously.

Meeting customer expectations


The ability to meet customer needs and expectations and deliver on its core promise
determines how customers feel about the Zurich brand. To ensure that customers have a
positive experience, Zurich focuses on:clearly identifying customer needs effective planning
and processes putting in place the right resources (people and systems) for the job providing
in-depth employee training to ensure that all staff are customer focused setting appropriate
and achievable targets continuous measuring and monitoring of progress against these
targets.

Zurich has developed a way of helping its employees to deliver quality consistently to
customers and has called it iQUALITY. This acronym is designed to help define what quality
looks like at Zurich. It reminds staff that quality is a key part of every interaction they have
with customers.

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Zurich recognises that quality is not a one-off process. Its commitment to providing a world-
class service requires that it continuously listens to its customers' changing needs and
expectations. It puts in place the appropriate processes and people to meet these needs.
Employees play a crucial role in delivering quality service. Zurich encourages its staff to:

see...the benefits of getting things right, first time, every time


hear...what our customers want, keep our promises and
deliver
feelempowered and add value to the business and the customer
experience thinkabout how customers perceive Zurich.

Quality control

Quality can be managed in several ways. It can be measured at the end of a process to make
sure that any sub-standard products do not reach customers. This is known as quality control
(QC).

This procedure is most often used in product manufacturing. The process involves testing a
sample of the product as it comes off the production line. Putting things right at the end of a
process is often costly. In a manufacturing environment, extra items must be made to replace
the faulty products. There will also be costs in terms of the staff time needed to put things
right and other resources. For example, it may not be possible to recover or reuse the
materials from faulty products.

In a service industry, a quality control approach is rarely enough to maintain standards. This
is because many aspects of a service are only realised as they are delivered to customers. For
example, an insurance company can only deal with a claim on a policy when the customer
makes a claim. This is why many businesses use other ways of managing quality.

Quality assurance

One approach is quality assurance (QA). Quality is not simply considered at the end of a
process but at every stage. Processes or procedures can be measured against set standards
or best practice benchmarks within the industry.

TQM
Total quality management (TQM) is an approach that seeks to ensure that all parts of a
process are right first time. The aim is for zero defects. A TQM approach requires every
employee to take responsibility for delivering quality. TQM looks at improving both the people
and processes involved in the business through continuous improvement.

iQUALITY

Zurichs approach to managing quality uses a combination of the methods above. Firstly, it
uses iQUALITY to embody the principles of TQM, helping to bring this to life in the minds of its
employees so they apply it to the customer care experience every day. Secondly, Zurich
carries out regular quality sampling of the customer care it provides and the outputs it
produces, e.g. letters and benefit statements. The amount of quality sampling carried out
depends on the level of the employee's experience and the complexity of the task. For
example, work produced by a new recruit may initially be subject to QA whereas, for an

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experienced employee, quality sampling will normally be carried out as a percentage of


the work they complete. If the quality sampling for the experienced employee identifies
a trend of errors, the percentage of quality sampling may be increased.

'Five whys'

In practice, it is difficult to remove errors completely from a business process. To drive


continuous improvement, what an organisation can do is identify errors and put them
right.
Zurich uses a process known as root cause analysis. This is a way to find out why
something went wrong and to find ways to stop it from happening again. Zurich applies
the five whys approach to root cause analysis. Staffs involved in quality management
look at the 'trigger' that brings attention to the problem and then repeatedly ask 'why',
probing deeper, until the true root cause is discovered. Once this is identified, Zurich can
devise a suitable solution to stop it happening again and then monitor outcomes to
make sure that the solution is addressing the problem.

For example, one issue facing Zurich was that it was receiving a number of similar complaints
from customers about not receiving payments promptly when their savings policies matured
(came to an end). The complaints were the trigger in this case. Using the five whys
approach, Zurich found the root cause was that the manual process for issuing claim packs
and sending payments for these policies was causing delays. Zurich changed the process so
that packs are now sent out earlier and the payments are sent out automatically 10 days
before a policy matures. This ensures customers receive payment promptly. There has since
been a 78% fall in complaints related to this issue.
Conclusion

A quality product or service is one that does what it is supposed to do - that is, meet
customer requirements for its target market. For a business, therefore, quality is based
on knowing what customers need and expect and meeting these demands.

A business that is serious about quality does more. Zurich aims not only to meet
customer expectations, but also to exceed them. Zurich puts quality at the centre of
how it does business. It actively manages and measures the quality of the service it
provides to make sure its customers receive the best possible level of customer care.

Sources: http://businesscasestudies.co.uk/zurich/creating-quality-
customer-care/conclusion.html#ixzz4KhK7Y7j9

Your task is as a Quality Management Analyst to write a report to help your superior,
who is the Senior Consultant, to prepare a report to the management of Zurich to advise
them on the following areas:

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Task 1 (LO 1: 1.1, 1.2, 1.3, 1.4 and M1, M2, M3, D2)

Discuss definitions of quality in terms of business and services provision; illustrate the
processes of inspection and assurance; discuss a range of approaches to quality management;
explain the similarities and differences between the different methods.

To achieve M1, you would have made effective judgements to discuss definitions of quality in
terms of business and services provision.

To achieve M2, you would have shown the use of relevant theories and techniques to illustrate
the processes of inspection and assurance.

To achieve M3, you would have shown that you have made appropriate structure and
approach according to the report/presentation's purpose and audience where appropriate as to
abstract/executive summary, content list, list of figures/tables/charts, introduction, conclusion,
recommendations, appendices and reference list and terminology.

To achieve D2, you will have demonstrated an effective approach to independent research and
study and will have met the deadline to submit the tasks and achieve the unit assessment
criteria.

Task 2 (LO 2: 2.1, 2.2, 2.3, 2.4 and M3, D1, D2)

Discuss what is meant by customer satisfaction; explain the meaning of continuous


improvement; illustrate the type of added values to be gained; describe the types of
information made available to customers and the importance given to effective marketing.

To achieve M3, you would have shown that you have made appropriate structure and
approach according to the report/presentation's purpose and audience where appropriate as to
abstract/executive summary, content list, list of figures/tables/charts, introduction, conclusion,
recommendations, appendices and reference list and terminology.

To achieve D1, you will have drawn conclusions through synthesis of ideas and have been
justified in your discussion on what is meant by customer satisfaction.

To achieve D2, you will have demonstrated an effective approach to independent research and
study and will have met the deadline to submit the tasks and achieve the unit assessment
criteria.

Evidence Evidence
Summary of evidence required by student
checklist presented

A report that elaborates on the different approaches to quality


Task 1
management appropriate to commercial operations

A report that compiles the benefits of quality management in a


Task 2
business and services context

Sources:
http://businesscasestudies.co.uk/zurich/creating-quality-customer-
care/introduction.html#axzz4KfUB1bEJ

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PRESENTATION

1. The assignment should have a cover page that includes the assignment title,
assignment number, course title, module title, Lecturer/tutor name and students
name. Attach all the pages of assignment brief/achievement summary with your
report and leave them blank for official use.

2. Ensure that authenticity declaration has been signed.

3. This is an individual assignment.

4. Content sheet with a list of all headings and page numbers.

5. A fully typed up professionally presented report document. Use 12 point Arial or


Times New Roman script.

6. Your assignment should be word-processed and should not exceed 2,500 words in
length.

7. Use the Harvard referencing system.

8. Exhibits/appendices are outside this limit.

9. The assignment should contain a list of any references used in the report.

NOTES TO STUDENTS FOR SUMMISSION

Check carefully the submission date and the instructions given with the
assignment. Late assignments may not be accepted.
Ensure that you give yourself enough time to complete the assignment by the
due date.
Do not leave things such as printing to the last minute excuses of this nature
will not be accepted for failure to hand-in the work on time.
You must take responsibility for managing your own time effectively.
If you are unable to hand in your assignment on time and have valid reasons
such as illness, you may apply (in writing) for an extension.
Failure to achieve a PASS grade will results in a REFERRAL grade being given.
Take great care that if you use other peoples work or ideas in your assignment,
you properly reference them in your text and any bibliography.
NOTE: If you are caught plagiarising, the University policies and
procedures will apply.

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Achievement Summary
Pearson BTEC Level 5 HND Diploma
Qualification Assessor name Mr. Ananta Kar
in Business (Management)

Unit Number Unit 32: Quality Management in


Student name
and title Business

Criteria To achieve the criteria the evidence must show that the Achieved?
Reference student is able to: (tick)
LO 1

Discuss definitions of quality in terms of business and services


1.1
provision

1.2 Illustrate the processes of inspection and assurance

1.3 Discuss a range of approaches to quality management

1.4 Explain the similarities and differences between the different methods

LO 2

2.1 Discuss what is meant by customer satisfaction

2.2 Explain the meaning of continuous improvement

2.3 Illustrate the type of added values to be gained

Describe the types of information made available to customers and the


2.4
importance given to effective marketing

Higher Grade achievements (where applicable)


Achieved? Achieved?
Grade descriptor Grade descriptor
(tick) (tick)

D1: Use critical reflection


M1: Identify and apply strategies to to evaluate own work
find appropriate solutions and justify valid
conclusions

D2: Take responsibility


M2: Select/design and apply
for managing and
appropriate methods/techniques
organising activities

D3: Demonstrate
M3: Present and communicate convergent/lateral
appropriate findings
/creative thinking

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Danang University of Economics

Assignment Feedback
Formative Feedback: Assessor to Student

Action Plan

Summative feedback

Feedback: Student to Assessor

Assessor Signature Date

Student Signature Date

FOR INTERNAL USE ONLY


VERIFIED YES NO

DATE : ...............................................................

VERIFIED BY : ................................................................

NAME : ................................................................

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Table of Contents
Abstract............................................................................................................................ 13
Back ground:.................................................................................................................. 13
1.1 Discuss definitions of quality in terms of business and services provision..........................13
1.2 Illustrate the processes of inspection and assurance......................................................14
1.3 Discuss a range of approaches to quality management..................................................17
1.4 Explain the similarities and differences between the different methods..............................21
2.1 Discuss what is meant by customer satisfaction............................................................21
2.2 Explain the meaning of continuous improvement...........................................................22
2.3 Illustrate the type of values to be gained.......................................................................25
2.4 Describe types of information made available to customers and the importance given to
effective marketing............................................................................................................. 27
Reference......................................................................................................................... 28

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Abstract
This assignment is about to analyze the quality management and apply it to Zurich
Insurance Group.

Back ground:
Their heritage is about helping customers understand and protect themselves from risk.
Since 1872 they have been applying their expertise and experience so that their customers
can have the very best protection for the things that customers value. This is their mission
and the timeless idea behind their brand. It is also the authentic truth that has been and
always will be at the heart of the Zurich brand.
They had pronounce that We are committed to effective corporate governance for the
benefit of our shareholders, customers, employees and other stakeholders based on the
principles of fairness, transparency and accountability. Structures, rules and processes are
designed to provide for proper organization and conduct of business within the Group and to
define the powers and responsibilities of its corporate bodies and employees. Zurich
insurance, 2015.
1.1 Discuss definitions of quality in terms of business and services provision.
Quality policy
Zurich complies with the Directive on Information Relating to Corporate Governance of the
SIX Swiss Exchange and the Swiss Code of Best Practice for Corporate Governance. The
Group continues to publish a risk management and internal control statement in the risk
Dimension of quality:
1. Performance:
It relates to the different operating characteristics of the product. For insurance criteria, for
example, these characteristics will be the quality of the care of company to their customers.
2. Features:

These are characteristics supplemented with basic operational characteristics. In this


situation, for example, in car insurance, it covers many aspects like comprehensive, injury
liability, damage.

3. Reliability:
Reliability of products is the level of trust and confidence of the benefits of the product for a
long time.
It refers to the probability that the product will work without interruption or damage.
4. Conformance:

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That is the extent to which these products are suitable to prevent the specifications
established. All quality products are expected to satisfy precisely defined standards.
In Zorich, the service will follow and maintain until the end of the contract. They will make
sure that their customer will get fully benefit when they meet the term.
5. Durability:
It measures the length of time that a product made before a replacement becomes
necessary. It mean that Zorich will update their term according quotation.
6. Serviceability:
Serving refers to an expeditious and courteous, qualified and easily fix the broken product
and sent for repair.
7. Aesthetics:
Aesthetic aspect of a product is relatively subjective and refers to its impact on the human
senses how it looks, feels, sounds, tastes and so on, depending on the type of product. In
Zorich, it effect their customer by their brand image and what they do to proportional that
image like the care of their staff to their customer.
8. Perceived quality:
An important dimension of quality is the perception of the quality of products in the minds of
consumers. Honda Automobile, Sony Walkman and Rolex watches are considered high
quality goods by consumers. And to Zorich, they must first show to their customer that they
are the best for them and they had made it, prof that they had appear in 170+ countries.
(Chand S., 2015)

1.2 Illustrate the processes of inspection and assurance.


iQUALITY

Zurichs approach to managing quality uses a combination of the methods above.


Firstly, it uses iQUALITY to embody the principles of TQM, helping to bring this to life in
the minds of its employees so they apply it to the customer care experience every day.
Secondly, Zurich carries out regular quality sampling of the customer care it provides
and the outputs it produces, e.g. letters and benefit statements. The amount of quality
sampling carried out depends on the level of the employee's experience and the
complexity of the task. For example, work produced by a new recruit may initially be
subject to QA whereas, for an experienced employee, quality sampling will normally be
carried out as a percentage of the work they complete. If the quality sampling for the
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experienced employee identifies a trend of errors, the percentage of quality sampling
may be increased.(Managing Quality., 2016)
Quality assurance

One approach is quality assurance (QA). Quality is not simply considered at the end of
a process but at every stage. Processes or procedures can be measured against set
standards or best practice benchmarks within the industry. (Managing Quality., 2016)
TQM
Total quality management (TQM) is an approach that seeks to ensure that all parts of a
process are right first time. The aim is for zero defects. A TQM approach requires
every employee to take responsibility for delivering quality. TQM looks at improving
both the people and processes involved in the business through continuous
improvement. (Managing Quality., 2016)
'Five whys'

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In practice, it is difficult to remove errors completely from a business process. To drive
continuous improvement, what an organisation can do is identify errors and put them
right.
Zurich uses a process known as root cause analysis. This is a way to find out why
something went wrong and to find ways to stop it from happening again. Zurich applies
the five whys approach to root cause analysis. Staffs involved in quality management
look at the 'trigger' that brings attention to the problem and then repeatedly ask 'why',
probing deeper, until the true root cause is discovered. Once this is identified, Zurich
can devise a suitable solution to stop it happening again and then monitor outcomes to
make sure that the solution is addressing the problem.
For example, one issue facing Zurich was that it was receiving a number of similar
complaints from customers about not receiving payments promptly when their savings
policies matured (came to an end). The complaints were the trigger in this case. Using the
five whys approach, Zurich found the root cause was that the manual process for issuing
claim packs and sending payments for these policies was causing delays. Zurich changed
the process so that packs are now sent out earlier and the payments are sent out
automatically 10 days before a policy matures. This ensures customers receive payment
promptly. There has been a 78% fall in complaints related to this issue.
Quality control
Quality can be managed in several ways. It can be measured at the end of a process to
make sure that any sub-standard products do not reach customers. This is known as
quality control (QC).
This procedure is most often used in product manufacturing. The process involves
testing a sample of the product as it comes off the production line. Putting things right
at the end of a process is often costly. In a manufacturing environment, extra items
must be made to replace the faulty products. There will also be costs in terms of the
staff time needed to put things right and other resources. For example, it may not be
possible to recover or reuse the materials from faulty products.
In a service industry, a quality control approach is rarely enough to maintain standards.
This is because many aspects of a service are only realised as they are delivered to
customers. For example, an insurance company can only deal with a claim on a policy

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when the customer makes a claim. This is why many businesses use other ways of
managing quality. (Managing Quality., 2016)
ISO
ISO is an independent, non-governmental international organization with a membership
of 163 national standards bodies. Through its members, it brings together experts to
share knowledge and develop voluntary, consensus-based, market relevant
International Standards that support innovation and provide solutions to global
challenges. By those standard, the first example of Zurich was ISO 14001, it
environmental management. They see that to had higher brand image in front of their
customer, contribute to society is the best way (Zurich insurance, 2015).

1.3 Discuss a range of approaches to quality management.


The Deming philosophy (14 points)
A product or a service possesses quality if it helps somebody and enjoys a good and
sustainable market. (Karr A., 2016) it defined by Deming and he points out the 14 points for
management:
1. Create and Publish the aims and purpose of the Organization
2. Learn new Philosophy
3. Understand the purpose of Inspection
4. Stop awarding business based on price alone
5. Improve constantly and forever the system
6. Institute Training
7. Teach and Institute leadership
8. Drive out fear, Create trust, and create a climate for Innovation
9. Optimize the efforts of Teams, Groups and staff areas
10. Eliminate Exhortations for the work force
11. Eliminate numerical quotas for the work force & Eliminate Management by Objectives
12. Remove barriers that Rob people of pride of workmanship
13. Encourage education and self improvement for everyone
14. Take action to accomplish the transformation
Base on Demings 14 Points on Quality Management we can see that Zurich choses
Environmental protection is integral to sustainable value creation, which is one of their core
values as set out in the Zurich Basics, their code of conduct. Environmental Performance is
one of Zurichs seven corporate responsibility focus areas, which address a range of
relevant environmental, social and governance issues. Zurich Basics and The Zurich
Commitment together with their commitment to the United Nations Global Compact are at
the core of Zurichs Corporate Responsibility framework. They implemented a Group-wide
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environmental management system (EMS) that allows them to accurately measure and
improve their environmental footprint across all countries in which they operate. This system
helps them to reduce their global carbon footprint and address other types of environmental
impact from their offices, such as paper use, waste generation and water consumption.
Their environmental management system is based on ISO 14001, one of the most widely
used standards for environmental management. In Switzerland, they have received ISO
14001 certification for all Zurich in-house business operations and activities of Zurichs
headquarters and the Zurich Switzerland business unit.
The EMS follows a plan, do, check and act approach.(Managing Our Impact, 2016)

1. Plan

The Group Environmental Policy plays an important part in planning our activities. It defines
the Groups commitments in terms of environmental management. We also have a solid
framework in place to measure our environmental performance, which comprises a detailed
action plan and key milestones. The action plan is reviewed every year, and is always
projected two years into the future. The planning phase includes an analysis of Zurichs
current position and performance and serves to determine our environmental targets and
the actions needed to achieve them.
2. Do

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The Implementation stage of the Environmental Management System ensures that roles
and responsibilities are appropriately assigned and processes and tools in place to execute
projects to improve Zurichs environmental performance. For example, in Zurichs Corporate
Real Estate department, we engage with various suppliers on the procurement of energy,
equipment, basic materials and logistic materials, leasing of buildings etc. We engage with
landlords through our Green Leasing project. We have established a globally harmonized
language for green leases, which puts dual responsibility on landlords and tenants to
achieve environmental targets. For example, landlords are asked to provide utility data and
to contribute to the investment of energy efficiency initiatives in leased buildings. We are
tracking the number of green leases established. We are also engaging with suppliers on
building sustainable facilities, which Zurich will occupy. By focusing on Green IT, we are
changing how we run our data centers and by making them more efficient, we can decrease
our energy consumption.
3. Check

Zurich has been measuring and reporting on its carbon footprint since 2007. The carbon
footprint includes energy (electricity and heat) and emissions related to business travel
(flights, rental cars, car fleet and rail). We measure water and paper use and waste
volumes. We are making several improvements in how we collect and calculate our
environmental footprint. For example, we have increased the number of countries reporting
environmental data and implemented a market-leading Environmental Reporting Software
(ERS).

The ERS is an automated reporting tool that lets us calculate Zurichs environmental
footprint in a consistent way across the countries in which we operate. It allows us to do
analyses and extract carbon, energy, water, paper, waste and travel statistics. It helps us to
develop strategies and targets to further reduce our environmental footprint throughout the
Group.

Improving the quality of environmental data that our ERS uses is a core priority. We do this
in many ways, including by:

Standardizing data collection processes


Increasing the number of countries where data is provided (geographical scope)
Increasing the percentage of data received
Increasing the frequency of data collection
Implementing data-quality checks
Providing a process for uploading and storing key supporting documents
Implementing data approval processes

We consider independent audits of environmental data to be essential in our efforts to


improve data quality and ensure the credibility of the data used in our Environmental
Management System. We are therefore working with a third-party auditor to verify the quality
of the environmental data we collect.
4. Act

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A management review is the fourth and final step within the environmental management
system. It ensures that Zurich is going in the right direction when it comes to managing our
operations with regards to our impact on the environment. Our senior management (Head of
Group Operations and Technology, Corporate Responsibility Working Group, CFO) identifies
opportunities to improve our efforts with regards to the environment. It can also 'adjust' the
environmental strategy as needed to ensure that we continue to make improvements and
look for ways to innovate in this regard. Senior management conducts these reviews
annually.
The Juran philosophy
During Juran's time, end product was the taget of all company and also in deming
philosophy. But insteat of human dimension of quality managerment, he focus to training
managers. He think that, human relationship and don't want to change to fit in. First it for
manufacturing processes but later it had effect also to non-manufacturing processes.
One of the first to write about the cost of poor quality, Juran developed an approach for
cross-functional management that comprises three legislative processes:

Quality planning
Identify who the customers are.
Determine the needs of those customers.
Translate those needs into our language.
Optimise the product features so as to meet our needs and customer needs.

Quality control
Develop a process which is able to produce the product.
Optimise the process.

Quality improvement
Prove that the process can produce the product under operating conditions.
Transfer the process to operations.
At Zurich they provide their employees with challenging, real life opportunities to develop
and grow with them and contribute to the world around them both professionally and
personally. "We welcome you to come join them if you want to be part of this great
organization and contribute to Zurich as a leader in their industry!" (Zurich insurance, 2015).
Zurich also thinks that employee was their root to develop their company and to improve
their product right instant, it mean please their customer and continuous improvement.
Crosby philosophy
Crosby principles, Do It Right the First, is his answer to the crisis of quality. He determined
that the appropriate quality and perfectly adequate to the customer's requirements. The

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essence of his philosophy is expressed in what he calls the absolute quality of management
and the basic elements of reform.
They have many rewarding career opportunities for talented professionals and are
committed to your career development and ongoing education. So if you decide to further
your career in another role, business unit or country, theyll help you with the training to get
there.

1.4 Explain the similarities and differences between the different methods.
There are many methods had been used in Zurich and they had similar and different:
Similarities
All programs are based on quality standards specific quality of the product or service. For
example, control and quality planning quality programs corrective action to minimize the
poor performance of the manufacturing process, while ensuring quality control and quality
assessment of quality current number of companies and come to a decision. Quality is
constantly changing in quality management and quality control.
Difference
Level of quality previously only plan considered to be on schema quality planning. schema
only quality assurance review of the level of quality assurance. Continuously improving
quality performance practice is the main target of quality control charts. Whole-quality
program of quality management implementation should be able to use or not use as stage
of the production process.

2.1 Discuss what is meant by customer satisfaction


Through many studies show that the quality of service and customer satisfaction are two
distinct concepts. Zeithalm and Bitner (2000) argue that customer satisfaction is affected by
several factors such as product quality, service quality, price, situational factors, personal
factors.
Service quality and satisfaction but two different concepts, but closely related to each other
in the study of service (Parasuraman and partners, 1988). The previous studies have shown
that quality of service is the cause of satisfaction. The reason is that the quality of services
related to the provision of services, and satisfaction assessment only after using the service.
Customer satisfaction as a result, the quality of service as the cause, nature pleased
forecasts, expectations; Service quality is an ideal preparation. Customer satisfaction is a
general concept, expressed their satisfaction with the consumption of a service. Meanwhile
the quality of services focused on specific components of the service. But between service
quality and satisfaction with the relationship with each other but little research has focused
on testing the extent explains the components of service quality for satisfaction, especially
for each industry-specific services. Cronin and Taylor has tested this relationship and
concluded perceived quality of service leads to customer satisfaction. Studies have
concluded that the quality of service is the premise of satisfaction (Cronin and Taylor, 1992;
Spereng, 1996) and is the main factor affecting satisfaction (Ruyter, Bloemers, 1997).
And in our company, Zurich, we find that the claim is a moment of truth. It gives us the
opportunity to implement our promise on what is often a difficult time for our customers.

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Zurich's philosophy statement put our customers at the center of the claims process by
making sure we treat them with sympathy, by responsive, proactive and clear
communication.
Our clients are individuals, families, businesses and organizations face risk every day. We
have to earn their trust - and the commitment of dealers, brokers and others who help us
serve them. We must provide the insight, the products and services that empower them to
understand and protect themselves from risks.

2.2 Explain the meaning of continuous improvement.

Kaizen is a continuous improvement activities with the participation of everyone to improve


continuously work environment, life each individual, each family.
There are two approaches to improve the productivity of companies:
- Gradual approach - Kaizen.
- Approach breakthrough - Innovation
When applied to the workplace, Kaizen means continuous improvement, and it requires the
commitment and persistent efforts of the people, the management staff as well as m? I
officers and employees.
Kaizen is the small improvements implemented gradually in a long time. In fact, Japanese
companies often focus on implementing Kaizen or program has the participation of
employees because of this program lies in the control of the management staff. Kaizen less
expensive than new investment. It improves the quality of work it noted the participation of
managers, improve the quality of products, services and reduce operating costs.
Western managers fetish innovation. Innovation is a breakthrough in technology or
application of new production techniques. Breakthrough innovation and strong impact also
Kaizen is gradual and subtle, not seeing immediate results. While Kaizen is a continuous
process of innovation is usually instantaneous.

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7 Usefull tools to improve control the quality of production and service provision. Typically
we use 7 QC tools to control product defects (product inconsistent) in production / services
to find the cause to overcome.

7 Tools include:
Stock control (check sheets)
1. Pareto chart
2. Histogram
3. Cause & Effect Diagram
4. Scatter diagram
5. Chart Control
6. Graphs
Quality gap
The bigest gap of Zurich Insurance industry and was the gap the between Apply practical
knowledge to design services to service providers (Contact Customer) Appears when bank
employees do not transfer to the customer service according these criteria have been
identified.
This distance depends on the quality of staff directly providing services and products.
Whether the product has been designed right idea, utilities, have the ability to meet
customer needs, but if at the stage of supply, attitude and professional qualifications of the
staff does not guarantee, does not meet the needs of customers, making customers feel
annoyance, the efforts of companies in understanding the market demand, product
design, ... well no longer meaningful.
To limit this gap, the basic solution is to raise the professional qualifications for staff directly
providing services. Employees need to understand and master the product as well as
product extensions to form advisory capacity, to convince customers. There also needs to
be equipped with soft skills in service provider, such as communication skills, negotiation
skills, negotiation skills, sales skills, ...

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Services quality
How Zurich create sustainable value

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2.3 Illustrate the type of values to be gained.
A term describing the services provided in conjunction with the sale of insurance that goes
beyond just the provision of insurance. This may entail the risk control services, claims
management services. Value-added service offered by way of responsibility (EPL) insurance
companies, for example, seeks to prevent and control the types of insurance claims EPL
(EPLI) policy, including the audit items such as human resources, training and reference
manuals, sample employee handbook, loss prevention software, and the "hot line"
(controlled by HR professionals human resources advice on handling the issues related to
work and trouble). The nature and quality of the value-added service offered by a dealer /
broker or insurance company are important factors for insurance buyers in choosing
between competing organizations.
Customer Loyalty

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Step 1: Customer Acquisition - This step refers to the approach of gaining new
customers.
Step 2: Customer Development - This step refers to the approach of getting to
know your market target, how you're going to reach out to them, and what they
ultimately need from you as a company.
Step 3: Customer Commitment - This step refers to the approach of sales, how
are you going to promote your product or service to guarantee the customer's
commitment of purchase.
Step 4: Customer Retention - This step refers to the approach of acquiring
customer loyalty. Companies use several types of methods to reduce customer
betrayal. Companies will figure out ways in providing more then what the
consumer is expecting, in hopes of creating a long-lasting relationship with the
customer and gaining their trust and loyalty to the company, product, brand, or
service.

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2.4 Describe types of information made available to customers and the importance
given to effective marketing.
Zurich is a leading multi-line insurer that serves its customers in global and local markets.
With about 55,000 employees, they provide a wide range of general insurance and life
insurance products and services. We serve individuals, small businesses, and mid-sized
and large companies, including multinational corporations, in more than 170 countries.
(Zurich insurance, 2015).
The Challenge
Zurich Financial was becoming just another commoditised insurance company in a sea of
undifferentiated providers. Like the rest of the industry, Zurich was too internally focused.
Underwriters, risk engineers and claims adjusters calling the shots, and the brand
positioning lacked relevance in customers lives. Customers told Prophet they saw
insurance providers as non-responsive, slow and untrustworthy little more than an
organized crime syndicate.
Our Solution
Together, Zurich set out to understand what customers really want from their insurance
provider. Using a combination of qualitative and quantitative global market research, they
found that barely 10% of people said they trusted insurance providers.
This meant that a traditional insurance brand positioning around reassurance and peace
of mind simply wasnt credible. Instead, what customers (and brokers) wanted was an
insurer that simply delivers when it matters.
Customers wanted an insurance provider that was straightforward, fair, and could be relied
upon to get the job done. This is why Prophet developed a plan to create a global, unified
brand positioning that put the customer at the heart of everything. The positioning was
brought to life through the Zurich HelpPoint initiative. The challenge was to get 60,000
employees across 140 countries to make HelpPoint real and meaningful in their day-to-day
business.
The goal of HelpPoint is to provide guidance, solutions and service offerings that are aimed
at what the customer wants. Based on our research, the following areas are those solved by
HelpPoint and key differentiators for Zurich:
Help at the moments that matter most.
Help that understands your business.
Help that shortens the distance between problems and resolution.
Help that adapts and changes as your life changes.
Help that goes the extra mile.
Help that understands you and the world you live in.
Help that delivers.
This could have been seen as yet another empty promise were it not for the vision of
training 60,000 employees to be authentic evangelists of the brand, armed with the
permission to identify and execute proactive, spontaneous touchpoints, unheard of in the
world of insurance. (Grieco D., 2011)

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