TOTAL QUALITY MANAGMENT | inous UNIVERSITY By: Mudit M, Saxena Dept. of Mech. Engineering IITE, Indus University UNIT 1. INTRODUCTION Contents INDI UNIV ens TY * Introduction - Need for quality - Evolution of quality - Definitions of quality * Dimensions of product and service quality - Basic concepts of TQM * TQM Framework - Contributions of Deming, Juran and Crosby - Barriers to TQM * Customer focus - Customer orientation, Customer satisfaction, Customer complaints, and Customer retention. By: Mudit M. Saxena; Dept. of Mech. Engg..ITE, Indus University i 5 aNeed / Importance for quality Producing superior quality products / service is vital to the continued growth success of a company, therefore benefits of quality are given below. 1. 2 It gives a positive company image It improves competitive ability both nationally and internationally . It increases market share, which translates into improved profits . Overall it reduces costs which also results in profits . It reduces problems & avoids unnecessary costs . It creates an atmosphere for high employee morale, which improves productivity . By: Mudit M, Saxena; Dept. of Mech. Engg. ITE, Indus University \ ij auEvolution of Quality (Critical Success Factors Quatry ‘By: Mudit M, Saxena; Dept. of Mech. Engg.ITE, Indus University CONCEPTS OF QUALITY Q- Quest for excellence U- Understanding customers’ needs A- Action to achieve customer's appreciation L- Leadership-determination to be a leader I- Involving all people T- Team spirit to work for a common goal Y- Yardstick to measure progress ‘By: Mudit M. Saxena; Dept. of Mech. Engg..ITE, Indus University 4 ' ifINTRODUCTION TO TQM TQN is the integration of all functions and processes within an organization in order to achieve continuous improvement of the quality of goods and services. The goal is customer satisfaction. By: Mudit M. Saxena: Dept. of Mech. Engg. ITE, Indus University ! ul TQM FRAMEWORK TQM framework gives the overall structure of the organization. GURUS Tools and techniques Principles and »| Product or Service Customer Practices Realization By: Mudit M. Saxena; Dept. of Mech. Engg.JITE, Indus University ! i ulTQM FRAMEWORK * The Total Quality Management (TQM) framework is a technique based on the premise that employees continuously work on their ability to provide value to customers. + Importantly, the word “total” means that all employees are involved in the process - regardless of whether they work in development, production, or fulfillment. By: Mudit M. Saxena: Dept. of Mech. Engg..IT, Indus University { ‘ i ity TQM FRAMEWORK 8 principles of Total Quality Management 01. Customer-focused 02. Employee engagement 03. Process approach 04. System integration 05. Strategic and systematic approach 06. Continual improvement 07. Decision-making based on facts 08. Communication By: Mudit M. Saxena; Dept. of Mech. Engg. NTE, Indus University ' | { itTQM framework in (J ml + The TQM framework was developed by management consultant William Deming, who introduced it to the Japanese manufacturing industry. Today, Toyota is perhaps the best example of the TQM framework in action. The carmaker has a “customer first” focus and a commitment to continuous improvement through “total participation”. + Indeed, the focus of the TQM framework is the continual improvement of all processes with an organization - regardless of whether they have a direct or indirect impact on customer satisfaction. + Improvement comes from identifying and then removing or reducing errors. Errors commonly occur in supply chain management, manufacturing, employee training, and customer experience. + Regardless of the cause, all employees must work toward problem-solving and adding value to the customer experience. By: Mudit M. Saxena: Dept. of Mech. Engg.IT, Indus University, t Y 8 principles of Total Quality Management * While there is no universal approach to implementing a TQM framework, many businesses use the following eight principles. * Many of these are evergreen principles that can be applied to any industry and are incorporated in more modern management techniques. By: Mudit M. Saxena; Dept. of Mech. Engg. ITE, Indus University '+ = 8 principles of Total Quality Management ne Oi 1. Customer-focused * The TQM framework acknowledges that the customer is the final determiner of whether company processes are sufficiently high quality. If the customer is not satisfied, then the company must refocus its efforts on understanding consumer needs and expectations on a deeper level. 2. Employee engagement * Engaged employees are empowered employees who are not fearful of their jobs. As a result, they have the confidence and experience to suggest and implement continuous improvement across many systems. By: Mudit M, Saxena; Dept. of Mech. Engg.JITE, Indus University 8 principles of Total Quality Management 3. Process approach Refining process is a fundamental component of the TQM framework. Here, refinement means processes are followed in a logical order to ensure consistency and increased productivity. Flowcharts and visual action plans can be produced so that employees understand their responsibilities. 4. System integration System integration means that every single employee in a given company has a reasonable understanding of policies, standards, and objectives. It is vital that employees understand their roles and how they contribute to the greater success of the company - no matter how indirect these roles may seem. By: Mudit M. Saxena; Dept. of Mech. Engg..ITE, Indus University ‘8 principles of Total Quality Management 5. Strategic and systematic approach A business must develop strategies that are quality-centric. Company mission statements and their associated goals and values should also reflect the quality-first approach to customer satisfaction. 6. Continual improvement Continual improvement is important in developing a competitive advantage and also in meeting stakeholder expectations. Toyota's model for continual improvement places a high emphasis on employee participation, eliminating waste and reducing bureaucracy. These factors increase innovation and reduce costs, which ultimately flow to the consumer. By: Mudit M. Saxena; Dept. of Mech. Engg. TE, Indus University 8 principles of Total Quality Management 7. Decision-making based on facts Informed decisions are derived from a deep understanding of a business’s market and their target audience. Wherever possible, data should be collected to support employee experience and intuition concerning creating value for consumers. 8. Communication Communication is an often overlooked yet vitally important part of any successful company. It plays a key role in clarifying expectations while also increasing employee morale and motivation. It also increases collaboration and innovation between previously separate departments in a single company. By: Mudit M, Saxena; Dept. of Mech, Engg. ITE, Indus University t ’ . ;TQM Six Basic Concepts ois A nl . Leadership . Customer Satisfaction . Employee Involvement . Continuous Process Improvement . Supplier Partnership . Performance Measures OUPRWNR By: Mudit M, Saxena; Dept, of Mech. Engg..ITE, Indus University ' ! t it TQM Six Basic Concepts RVansity In order to achieve excellence, six basic concepts of TQM: 1. Top management should be aware of currect situation and needs to be commited towards TQM implementation. 2. Focus customer requirements and product/service expectations. 3. Involve employees in understanding the quality aspects and make them accountable 4. Continuous improvement in the process is required 5. Treat suppliers as your partners 6. Develop tracking mechanism for processes and improve it as per business requirements By: Mudit M. Saxena; Dept. of Mech. Engg..ITE, Indus University ' | ! ,The Three Quality Gurus Deming: the best known of the “early” pioneers, is credited with popularizing quality control in Japan in early 1950s.Today, he is regarded as a national hero in that country and is the father of the world famous Deming prize for quality. According to Deming: * Good quality means a predictable degree of uniformity and dependability with a quality standard suited to the customer. > = e JURAN on, Juran, like Deming was invited to Japan in 1954 by the union of Japanese Scientists and engineers. Juran defines quality as fitness for use in terms of design, conformance, availability, safety and field use. He focuses on top-down management and technical methods rather than worker pride and satisfaction. By: Mudit M. Saxena: Dept. of Mech. Engg.ITE Indus University ' | ‘ it ;Philip Crosby: By: Mudit M. Saxena; Dept. of Mech, Engg. TE, Indus University Commonality of Themes of Quality Gurus By: Mudit M, Saxena; Dept. of Mech, Engg. ITE, Indus University Quality is defined as conformance to requirements, not “goodness” The system for achieving quality is prevention, not appraisal. The performance standard is zero defects, not “that's close enough” The measurement of quality is the price of non-conformance, not indexes. + Inspection is never the answer to quality improvement, nor is “policing”. Involvement of leadership and top management is essential to the necessary culture of commitment to quality. A program for quality requires organization-wide efforts and long term commitment, accompanied by the necessary investment in training. Quality is first and schedules are second. ive ity hen+ DIFINITION OF QUALITY S eH Different people interpret quality differently. Few can define quality in measurable terms that can be proved operationalized. When asked what differentiates their product or service; The banker will answer” service” The healthcare worker will answer “quality health care” The hotel employee will answer “customer satisfaction” The manufacturer will simply answer “quality product” By: Mudit M. Saxena; Dept. of Mech Engg. ITE, indus University, DEFINITION OF QUALITY os Ci. Quality can be quantified as * Q=PlE Where Q=Quality P=Performance E=Expectations If Q is greater than 1.0, then the customer has a good feeling about the product or service. By: Mudit M. Saxena; Dept. of Mech. Engg..lITE, Indus University t aon Ny DIMENSIONS OF MANUFACTURING AND SERVICE QUALITY ry The various dimensions of product and service quality are: - Performance - Features - Conformance - Reliability - Durability - Service - Response - Aesthetics - Reputation By Must, Saxena; Dept. of Mech. Engp.TE, Indus University t tT - = ei DIMENSIONS OF MANUFACTURING AND SERVICE QUALITY BS Qi rv * Performance - Primary product characteristics, such as the brightness of the picture * Features - Secondary characteristics, added features, such as remote control. * Conformance - Meeting specifications or industry standards, workmanship. * Reliability - Consistency of performance over time, average time for the unit to fail. By: Mudit M. Saxena: Dept. of Mech, Eng9..ITE, Indus University ' t iDIMENSIONS OF MANUFACTURING AND SERVICE QUALITY * Durability - Useful life, includes repair * Service - Resolution of problems and complaints, ease of repair. * Response - Human-to-human interface, such as the courtesy of the dealer. * Aesthetics - Sensory characteristics, such as exterior finish wih. Reputation - Past performance and other intangibles, such as being ranked first. By: Mudit M. Saxena; Dept. of Mech. Engg.,ITE, Indus University ' i Quality in different areas of society eH iq ad Area Examples Airlines On-time, comfortable, low-cost service Health Care Correct diagnosis, minimum wait time, lower cost, security Food Services Good product, fast delivery, good environment Postal Services fast delivery, correct delivery, cost Academia Proper preparation for future, on-time knowledge delivery Consumer Products Properly made, defect-free, cost effective Insurance Payoff on time, reasonable cost Automotive Defect-free, Reliable service Communications Clearer, faster, cheaper service by: Must M, Saxena: Dept. of Mech. Engg.TE Indus Unversity iqWhat is Quality? * Conformance to specifications (British Defense Industries Quality Assurance Panel) * Conformance to requirements (Philip Crosby) * Fitness for purpose or use (Juran) * A predictable degree of uniformity and dependability, at low cost and suited to the market (Edward Deming) . pingnymous with customer needs and expectations (R J lortiboys) * Meeting the (grated) requirements of the customer- now and in the future (Mike Robinson) By: Mudit M, Saxena; Dept. of Mech. Engg..ITE, Indus University ' | t it Definitions of Quality em * Transcendent definition: excellence + Product-based definition: quantities of product attributes + User-based definition: fitness for intended use; meeting or exceeding user expectations ¢ Value-based definition: quality vs. price * Manufacturing-based definition: conformance to specifications By; Mudit M, Saxena; Dept, of Mech, Engg..ITE, Indus University ! ulMore about Quality Realistic but demanding STANDARDS; Getting things RIGHT FIRST TIME; ‘It costs less to prevent a problem than it does to correct it’ Influences the relationship with CUSTOMERS; Influences how COMPLAINTS are dealt with; Something to do with how things LOOK and FEEL. By: Mudit M. Saxena; Dept. of Mech. Engp..ITE, Indus University | { a Deming’s 14 Principles. ee ., 1. Create a constant purpose toward improvement. Plan for quality in the long term. Resist reacting with short-term solutions. Don't just do the same things better - find better things to do. Predict ond prepare for future challenges, and always have the goal of getting better. 2. Adopt the new philosophy. By: Mudit M, Saxena: Dept. of Mech. Engg..ITE, Indus University i | t Embrace quality throughout the organization. Put your customers’ needs first, rather than react to competitive pressure - and design products and services to meet those needs. Be prepared for a major change in the way business is done. It's about leading, not simply managing. Create your quality vision, and implement it. iqDeming’s 14 Principles ‘By: Mudit M. Saxena: Dept. of Mech. Engg..ITE Indus University Deming’s 14 Principles. 3. Stop depending on inspections. + inspections are costly and unreliable - and they don't improve quality, they merely find a lack of quality. + Build quality into the process from start to finish. + Don't just find what you did wrong - eliminate the "wrongs" altogether. + Use statistical control methods - not physical inspections alone - to prove that the process is working. 4. Use a single supplier for any one item. Quality relies on consistency - the less variation you have in the input, the less variation you'll have in the output. Look at suppliers as your partners in quality. Encourage them to spend time improving their own quality - they shouldn't compete for your business based on price alone. Analyze the total cost to you, not just the initial cost of the product. Use quality statistics to ensure that suppliers meet your quality standards. 5. Improve constantly and forever. Continuously improve your systems and processes. Deming promoted the Plan-Do-Check-Act approach to process analysis and improvement. Emphasize training and education so everyone can do their jobs better. Use kaizen as a model to reduce waste and to improve productivity, effectiveness, and safety. By: Mudit M. Saxena; Dept. of Mech. Engg..ITE, Indus University, t iDeming’s 14 Principles Use training on the job. ‘Train for consistency to help reduce variation. Build a foundation of common knowledge. Allow workers to understand their roles in the "big picture." Encourage staff to learn from one another, and provide a culture and environment for effective teamwork. . Implement leadership. Expect your supervisors and managers to understand their workers and the processes they use. Don't simply supervise - provide support and resources so that each staff member can do his or her best. Be a coach instead of a policeman. Figure out what each person actually needs to do his or her best. Emphasize the importance of participative management and transformational leadership. . Find ways to reach full potential, and don't just focus on meeting targets and quotas. Oy ted Sanne ett Hech Eng TE nds ey ' f q = ae a = Deming’s 14 Principles inc Wy 8. Eliminate fear. + Allow people to perform at their best by ensuring that they're not afraid to express ideas or concerns. + Let everyone know that the goal is to achieve high quality by doing more things right - and that you're not interested in blaming people when mistakes happen. + Make workers feel valued, and encourage them to look for better ways to do things. + __ Ensure that your leaders are approachable and that they work with teams to act in the company's best interests. + Use open and honest communication to remove fear from the organization. 9. Break down barriers between departments. + Build the “internal customer" concept ~ recognize that each department or function serves other departments that use their output. * Build a shared vision. + Use cross-functional teamwork to build understanding and reduce adversarial relationships. * Focus on collaboration and consensus instead of compromise. By: Mult M. Saxena: Dept. of Mech. Engg..ITE, Indus University ; YDeming’s 14 Principles 10. Get rid of unclear slogans. + Let people know exactly what you want - don't make them guess. “Excellence in service” is short and memorable, but what does it mean? How is it achieved? The message is clearer in a slogan like "You can do better if you try." * Don't let words and nice-sounding phrases replace effective leadership. Outline your expectations, and then praise people face-to-face for doing good work. 11. Eliminate management by objectives. + Look at how the process is carried out, not just numerical targets. Deming said that production targets encourage high output and low quality. + Provide support and resources so that production levels and quality are high and achievable. + Measure the process rather than the people behind the process. By: Mudit M, Saxena: Dept. of Mech. Engg..ITE, Indus University : { j 4 Deming’s 14 Principles 12 Remove barriers to pride of workmanship. Allow everyone to take pride in their work without being rated or compared. Treat workers the same, and don't make them compete with other workers for monetary or other rewards. Over time, the quality system will naturally raise the level of everyone's work to an equally high level. 13. Implement education and self-improvement. Improve the current skills of workers. Encourage people to learn new skills to prepare for future changes and challenges. Build skills to make your workforce more adaptable to change, and better able to find and achieve improvements. 14, Make “transformation” everyone's job. Improve your overall organization by having each person take a step toward quality. ‘Analyze each small step, and understand how it fits into the larger picture. Use effective change management principles to introduce the new philosophy and ideas in Deming's 14 points. ‘By: Mudit M. Saxena: Dept. of Mech. Engg..ITE, Indus University } t t 4QUALITY DOES NOT OCCUR BY ACCIDENT * What does the customer actually want? - Identify, understand and agree customer requirements + How are you going to meet those requirements? - Plan to achieve them By: Mudit M. Saxena; Dept. of Mech. Engg..lITE, Indus University ; ' { \ Deming’s Cycle What are we trying to Eleteolaalo)i are How will we know that a change is an improveme What change can we make thatill result in improvemen © . oo ierCi Taguchi’s Contribution TY + In the early 1980s, Prof. Genechi Taguchi introduced his approach to using experimental design for 1) Designing products or processes so that they are robust to environmental conditions. 2)Designing/developing products so that they are robust to component variation. 3)Minimizing variation around a target value. * By robust, we mean that the product or process performs consistently on target and is relatively insensitive to factors that are difficult to control. By: Mudit M. Saxena; Dept. of Mech. Engg. TE, Indus University, ' | t 4 Taguchi Philosophy wae a 3 stages in a product’s (or process’s) development: 1) System design: Uses scientific and engineering principles to determine the basic configuration. 2) Parameter design: Specific values for the system parameters are determined. 3) Tolerance design: Determine the best tolerances for the parameters. By: Mudit M. Saxena; Dept. of Mech. Engg. TE, Indus University, | ' t iTaguchi Philosophy * Recommends: statistical experimental design methods have to be used for quality improvement, particularly during parameter and tolerance design phases. * Key component: reduce the variability around the target (nominal) value. susan nen fined Internal and External Benefits of Quality ay Internal Benefits External Benefits By: Mudit M. Saxena; Dept. of Mech. Engg..ATE, Indus University | t iDrawbacks * Long way to establish in the organisation * QM design not always fit for purpose (loss of cost effectiveness) * Substantial efforts * Maintain system, otherwise reject it. By: Mudit M. Saxena; Dept. of Mech. Engg..ITE, Indus University ; | t it BARRIERS TO TQM Lack of Management Commitment * There must be a substantial management commitment of management time and organizational resources. * The purpose must be clearly and continuously communicated to all personnel * Management must consistently apply the principles of TQM By: Mudit M, Saxena: Dept. of Mech. Engg..ITE, Indus University, ‘ 3BARRIERS TO TQM Inability to change organizational Culture Basic Concepts * People change when they want to and to meet their own needs. + Never expect anyone to engage in behavior that serves the organizational values unless adequate reason (why) has been given, * For change to be accepted, people must be moved from a state of fear to trust. * Speeches, Slogans, Campaigns are effective only for a short period of time. * Organization that spend more time on change, only have chances of success. By: MuditM, Saxena: Dept. of Mech Engg. ITE, Indus University ! t Y BARRIERS TO TQM Sal Improper Planning * All constituents of the organization must be involved in the development of the implementation plan and any modification that occurs as the plan evolves. * The most important thing is two way communications of ideas by all personnel during the development of the plan and its implementation. * Customer satisfaction should be the goal rather than the financial or sales goals. By: Mudit M. Saxena; Dept. of Mech, Engg..ITE, Indus University | ! { 4BARRIERS TO TQM Seo. Lack of continuous training and education * Training and education is an ongoing process for everyone in the organization. * Training and education are most effective when senior management conducts the training on the principles of TQM. By; Mudit M, Saxena; Dept. of Mech. Eng. ITE, Indus University t iT Hi we BARRIERS TO TQM BD Incompatible Organizational Structure and Isolated Individuals and Departments. * Differences between departments and individuals can create implementation problems. * The use of multifunctional team will help to break down long-standing barriers. * Restructuring the organization to meet organization needs is important. * Individuals who do not embrace the new philosophy can be required to leave the organization. By: Mudit M. Saxena; Dept. of Mech, Engg.,ITE, Indus University ' i aBARRIERS TO TQM Ineffective Measurement Techniques and Lack of Access to Data and Results. * Key characteristics of the organization should be measured so that the effective decisions can be made. * Access to data and quick retrieval is necessary for effective processes. By: Mudit M. Saxena; Dept. of Mech. Engg. TE, indus University i | ty BARRIERS TO TQM Paying Inadequate Attention to Internal and External Customers * Organizations need to understand the changing needs and expectations of their customers. * Effective feedback mechanisms that provide data for decision making are necessary for this nderstanding. * When an organization fails to empower individuals and teams, it cannot hold them responsible for producing results. By: Mudit M, Saxena; Dept. of Mech. Engg. ITE, Indus University i ' ft 4BARRIERS TO TQM Inadequate Use of Empowerment and Teamwork * Teams need to have the proper training and at least in the beginning a facilitator. * Individuals should be empowered to make decisions that affect the efficiency of their process or the satisfaction of their customers. Failure to Continually Improve * Alack of continuous improvement of the processes, product or service will even leave the leader of the pack in the dust. By: Mudit M. Saxena; Dept. of Mech. Engg..ITE, Indus University i | ! t it CUSTOMER FOCUS Ci The first of the Total Quality Management principles puts the focus back on the people buying your product or service. Your customers determine the quality of your product. If your product fulfills a need and lasts as long or longer than expected, customers know that they have spent their money on a quality product. When you understand what your customer wants or needs, you have a better chance of figuring out how to get the right materials, people, and processes in place to meet and exceed their expectations. By: Mudit M. Saxena; Dept. of Mech. Engg.,ITE, Indus University ' | : itCUSTOMER FOCUS To implement this TQM principle: * Research and understand your customers’ needs and expectations. * Align your organization's objectives with customer needs. * Communicate with customers, measure satisfaction, and use the results to find ways to improve processes. * Manage customer relationships. * Find a balance for satisfying customers and other interested parties (such as owners, employees, suppliers, and investors). * The benefits of being customer-focused include: * More sales, increased revenue, market share, and mindshare * Strong customer loyalty leading to repeat business Increased possibility that satisfied customers will tell others about your products and services 8y; Mudie M. Saxena; Dept. of Mech Engg. ITE, Indus University —— . + CI Customer orientation uni ~ rv * Customer orientation is a business approach in which a company solves for the customer first. It's all about focusing on helping customers meet their goals. * Essentially, the needs and wants of the customer are valued over the needs of the business. For customer service, this means your support team is focused on meeting customer needs. * Rather than implementing a customer orientation approach, some companies choose to use a sales orientation methodology. This means that your business would value the needs and wants of the company over the customer. By: Mudit M. Saxena; Dept. of Mech. Engg..ITE, Indus UniversityCustomer orientation * With inbound customer service, your support team is focused on providing helpful, human, and holistic solutions to your customers. * Accustomer orientation approach is useful for several reasons. For ‘one, as mentioned above, it's more cost-effective to retain customers than it is to acquire new ones. * Additionally, the happier your customers are, the more likely they are to become ambassadors for your brand. * Now, you might be wondering, “How do | implement a customer orientation approach in my customer support team?" By: Mudit M, Saxena: Dept. of Mech, Engg.TE, Indus University Customer orientation * For example, when you calculate Net Promoter Score, you're hoping to have as many promoters as possible. Promoters are loyal to your brand and will tell their friends about it. * Plus, in this day and age, customers know what they want. They're highly knowledgeable and have more resources than ever before. By: Mudit M, Saxena; Dept. of Mech. Engg. ITE, Indus University t | | t Hi]How To Implement Customer Orientation * Below we've outlined eight steps to help you get started. 1. Recruit the right people. * Who you hire is of the utmost importance for your customer service team. Instead of hiring for skills, which you can teach, hire for attitude and friendliness. Plus, look for empathetic people who can problem solve. Finding the right people can make or break a customer support team. 2. Value your employees. * Customer support can often be a thankless job. But it shouldn't be. Don't forget to treat your employees well. If they're happy coming to work, it makes it easier for them to focus on the customers. By: Mudit M. Saxena; Dept. of Mech, Engg..ITE, Indus University, | ' a e Bue) a To Implement Customer Orientation oie 3. Provide excellent training. * Your entire team needs to be trained on the customer first approach. In regards to customer support, training should focus on product knowledge, troubleshooting, and customer care. . Lead by example. The entire leadership and management team needs to fully embrace a customer orientation approach. If they don't, your team won't feel comfortable to implement this strategy. For example, you can't punish employees for solving for the customer. This means that the company culture needs to follow through on what you say your values are. For instance, support staff shouldn't get punished for making product suggestions. sien By: Mudit M. Saxena: Dept. of Mech. Engg..ITE, Indus University INWVeroiTYTo Implement Customer Orientation 5. Understand the customer. * It's important to understand your customer. For customer support, this means empathizing with customers who are upset. Listen to them. It's important that your customer support team truly understands your customers needs. 6. Iterate your process. + Keep in mind that your customers’ needs are always changing and evolving over time. Your company should evolve and change with them. With a customer orientation approach, your business should always be focused on figuring out how you can accommodate changing needs, and hopefully anticipate them. By: Mudit M, Saxena: Dept: of Mech. Engg.IITE, Indus Unversity ! hi To Implement Customer Orientation 7. Empower your staff. + Your customer support team should have the authority to resolve most customer complaints. Plus, your support staff should be empowered to suggest changes to management that would benefit customers in the long run. 8. Receive feedback. + Since customer needs are always changing, you'll have to talk to your customers about what they need and want. Customer support is in a unique position to do this. Your customer support team will have a pulse on what customers are upset about and what changes can be made. + Ultimately, you have to be steadfast in your philosophy, teach it, and implement it. A customer orientation approach only works if you walk the walk. + In customer service, you can show a customer orientation approach by responding promptly and respectfully to customer complaints. You can help customers and solve their problem, even if it doesn't directly benefit your company. By: Mudit M. Saxena; Dept. of Mech. Engg..ITE, Indus University { t+ — INDI UNI\ ~..-.TY & * Customers are important asset to the organization, satisfied customers will buy more, and buy more frequently, and pay their bill promptly. CUSTOMER SATISFACTION * Ina manufacturing and service organization, customer satisfaction is considered as a measure of quality. + TQM implies an organizational drive with meeting or exceeding customer needs. Understanding the customer's needs and expectations is essential to winning new business. * To attain this level, the organization should examine their quality system to respond to their ever changing customer's needs. By: Mudit M. Saxena: Dept. of Mech. Engg..ITE, Indus University CUSTOMER COMPLAINTS * Unlike the customer's feedback the customer complaints are reactive, and they are important in gaining data on customer perceptions. * Adissatisfied customer can easily become a lost customer because of their frustrations, This customer dissatisfaction becomes a measure for organizational process improvement measures. * Every single complaint should be accepted, analyzed, and acted upon to again win over customer's confidence. Since more than 50% of the dissatisfied customers will buy again if they are complaint has been heard and resolved. * By adopting a positive approach the complaints can be seen as an opportunity to obtain information and provide a positive service to the customer. By: Mudit M, Saxena: Dept. of Mech. Engg. ITE, Indus University, | : YCUSTOMER RETENTION + 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. * World-class companies know 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. By: Mudit M. Saxena; Dept. of Mech, Engg. .JITE, Indus University