TQM: Principles and Strategies:

 Customer Satisfaction
 Employee Involvement
 Process Approach
 Continuous Process
Improvement
 Supplier Partnership
 Performance Measures
Customer
• greatest need of any organization
• should be satisfy
a.Service Quality
b.Customer Delight
c.Kano Method
d.Agreed Customer Requirement
e.Customer Perceived Quality
f. Customer Feedback and
Complaints Resolution
A. SERVICE QUALITY
Service (ISO 9000)
“results generated, by activities at the
interface between the organization and
the customer and by the organization’s
interval activities, to meet customer needs”
A. Features of Service:
 Speed
 Delivery Schedule
 Care in Handling
 Each service offering is different
 Customer requirements are difficult to
comprehend
 Difficulty in estimating cost
 Difficulty in measuring performance of
service
Speed
- as fast as possible without compromising on
quality

Delivery Schedule
- directly delivered to the customer
- quite critical in the service industry

Care in handling
- extreme care handling of both the deliverables
as well as the customer
Each service offering in different
- fulfill the individual needs of customer
Customer requirement are difficult to
comprehend
- efforts to understand the requirements of
each customer correctly
Difficulty in estimating cost
- organization must have system (simple &
unambiguous) for assuring at charges for
each offering
Difficulty in measuring performance of service

en
achine
ethods
aterials
Difficulty in Marketing Service
- straight forward approach (manufacturing)
- personal contacts with potential buyers and
building credibility of the organization by
good services consistently

“Better to lose a customer by telling the

truth rather than getting a customer by
giving false promises”
a.Service Quality
b.Customer Delight
c.Kano Method
d.Agreed Customer Requirement
e.Customer Perceived Quality
f. Customer Feedback and
Complaints Resolution
Customer Attrition
“if the product is good then customer will
come back (again)”
“if not, the product will come back (returned)”
According to Tom Power:
Customer leave because:
Quality problem (15%)
Higher price (15%)
Didn’t enjoy business w/
the organization (70%)
50 % of problem are due to misunderstood
requirement
Contractual and Non-contractual requirement
of customer
Contractual requirement:
• quality: service/product
• time schedule of delivery
• price
• service
• document support
• training support
Non-contractual requirement:
• quality (not document before)
• implied requirement
• value of the money spent
• environment of conducting business
• friendliness of the customer service
personnel of the organization
Customer Contact Personnel
- must be C-O-M-F-O-R-T

aring
perceived to be very interested in finding
out the real needs of the customer
bservant
good observer
indful
sensitive to urgency and the expectation of
the customer
 Continuation….

riendly
greet them with a smile

bliging
answer the customer queries
esponsible
fulfilling the quality requirements

actful
customer understand and cooperate in
completing the job successfully
a.Service Quality
b.Customer Delight
c.Kano Method
d.Agreed Customer Requirement
e.Customer Perceived Quality
f. Customer Feedback and
Complaints Resolution
The Kano Method
1. Basic quality/Threshold
- expects that his requirements will
implemented in any case

2. Performance quality
- satisfaction proportionate of the product
- better the performance, the greater the
satisfaction

3. Excitement Quality
- received some feature or attribute that
they did not expect or think of
- basic feature must be provided
a.Service Quality
b.Customer Delight
c.Kano Method
d.Agreed Customer Requirement
e.Customer Perceived Quality
f. Customer Feedback and
Complaints Resolution
1. Invest time for understanding customer
requirements
2. Find out the right requirement first.
3. Checklist for eliminating communication gap.
4. Review the contract/requirements.
5. Foresee and provide for amendments
6. Documented Policy.
7. Code of good customer handling practices.
a.Service Quality
b.Customer Delight
c.Kano Method
d.Agreed Customer Requirement
e.Customer Perceived Quality
f. Customer Feedback and
Complaints Resolution
1. No hard and fast rule for identifying
measures
2. Identify vital few measures
3. Arrive at quantitative indices
4. Measure for customer satisfaction
a. Customer perceived quality
b. Response time
c. Errors in documentation
d. Errors in delivery
e. Delay in execution
f. Delay in delivery
a.Service Quality
b.Customer Delight
c.Kano Method
d.Agreed Customer Requirement
e.Customer Perceived Quality
f. Customer Feedback and
Complaints Resolution
Customer Feedbacks
Complaints resolution
Complaints Recovery process
Customer Feedbacks
a.Feedback form
- giving a response sheet
- simplified to enable the customer to fill up
with the least difficulty.
b. Confidentiality
- assure the customer that the feedback will
be kept confidential.
- customer will five a free and frank feedback.
c. Display Results
Benefits: Customer; know that feedback where
seriously by the organization. Employee; know
where they really stand.
Customer Feedbacks
Complaints resolution
Complaints Recovery process
Complaints resolution
1. Register of complaints
Reasons:
a. keep track of the complaints
b. carry out root cause analysis and
take corrective action immediately
c. take preventive action
d. find out the cost of poor quality and
other statistical purposes.
2. Analyze Independently
- open mind and try to analyze
3. Give benefits of doubt to customer
- doesn’t mean that the organization
always yields to the customer.
4. Satisfy annoying customer
- diplomatic handling the annoying
customers and send them back as early
as possible.

Compliant Recovery process

- process for recovering complaints, process
them, communicating to customer and
resolving the issues.
- aimed at satisfying customers, resolving
problem and taking preventive actions.
TQM: Principles and Strategies:
 Customer Satisfaction
 Employee Involvement
 Process Approach
 Continuous Process
Improvement
 Supplier Partnership
 Performance Measures
 “Employee is the strength of an organization,
prime contributors to its success and the only
expandable resource in the organization”
TQM principles pertaining to Employee
involvement:
Employee motivation
Teamwork
Training & mentoring
Recognition and reward
Feedback and performance appraisal
Empowerment
EMPLOYEE MOTIVATION

Top Notch
• Continue to do their best
5-10%

Fence sitters • Motivation levels depend

80-90% on management strategies

Difficult to • Do want to get motivated

improve 5-10%
TEAMWORK
 working together
 fulfill the basic expectation of employees

1. Teamwork is not a natural human function

- effort should be made to put together
compatible person
2. Management’s Role
- giving a clear definition of the following:
a. responsibility
b. authority
c. wherewithal for accomplishing the task
d. criteria of measurement of the work
output
3.Effective communication
Communications in Three Way Process:
 employee is working for supervisor
or manager
 person working for him – subordinate
 person one work with peer, counterparts,
customer and suppliers.
TRAINING AND MENTORING
Necessity for orientation training is to understand:
 objective of the organization
 requirement and expectation from his team
 his role and responsibilities
 his authority
 know-how and know-why-jobs to undertaken
on day to day basis.
 familiarity and skill in operating the
tool/machinery
MENTORING
- continuously coaching about the job to
understand the organization policy, objective and
goals
RECOGNITION AND REWARD
- aim at transforming each employee as
performer and an achiever.

Attributes for selection of best performing (ETDC,

Chennai):
 Commitment
 Creativity
 Flexibility
 Adaptability
 Determination
 Responsibility
 FEEDBACK & PERFORMANCE APPRAISALs

Feedback essential both employee & management

 more humane to be curious to know about the
result of an action
 employees from management, vice versa
 analyze to be a good input for the next
decision to be taken
FEEDBACK & PERFORMANCE APPRAISAL
Strategies:
a. Management by walking around concept (MBWA)
- talk to employees and get feedback both from
verbal communication as well as their body
language.
- direct feedback in the action taken
- informal discussions and put the employee at
ease

b. Quality council
- encourage the member to talk freely
FEEDBACK & PERFORMANCE APPRAISAL

Performance Appraisal
- used for the development of the employee
- used for:
a. promotion
b. granting additional increment
c. training of employee
d. reallocation of duties etc.
EMPOWERMENT
 an organizational state, where people are
aligned with business direction and
understand their performance boundaries,
thus enabling them to take responsibility
and ownership while seeking
improvements, identifying requirement.
EMPOWERMENT

Steps involved in empowerment:

I. Agree on what they will produce or carry
out
II. Decide how to organize the team.
III.Decide on the responsibility within the
team.
IV.Decide on flow of work.
V. Audit the process.
VI. Decide on improvement and restart
TQM: Principles and Strategies:
 Customer Satisfaction
 Employee Involvement
 Process Approach
 Continuous Process
Improvement
 Supplier Partnership
 Performance Measures
PROCESS APPROACH
- right strategy to be adopted for practicing quality
as well as management of organization.

Process
- repeatable sequence of events
PROCESS APPROACH
PROCESS APPROACH
Input of process: Output of process
 Bill of materials Product/service-
 Specification- deliver
materials Documents
 Requirement for Specification
inspection Methods of
 Procedure for measurement
receipt of materials Criteria for acceptance
Value addition in the process
- machinery, infrastructure or techniques for
achieving the desired value addition.
PROCESS APPROACH

EXT Model

Outp
Input Entry Task Exit
ut

Condition to be Condition to be fulfill

satisfied before before the task is
the task is considered as
undertaken completed
PROCESS APPROACH

Subburaj’s 6S model for process improvement

Study
Strengthe
n Streamlin
e

Process of
Improvement

Synergy
Simplify
Standardi
ze
TQM: Principles and Strategies:
 Customer Satisfaction
 Employee Involvement
 Process Approach
 Continuous Process Improvement
 Supplier Partnership
 Performance Measures
Continuous Process Improvement
 Juran’s Trilogy
 Kaizen
 Kaizen blitz
 5S Practice
 Three MU’s
 The Seven Deadly Wastes
 Business Process Reengineering
 Juran’s Trilogy
Quality Planning
Quality Control
Quality Improvement

 Kaizen
- gradual, orderly and continuous improvement
- activities: maintenance and improvement
- principles:
a. workplace effectiveness (5S tools)
b. elimination of waste, strain and
discrepancy (The Three MUs)
c.Standardization
 5S Tools

Japanese English

Separate out all unnecessary

Seiri Sort
things
Arrange the essential things in
Seiton Straighten
order
Keeping machinery and
Seison Scrub
working environment clean
Make cleaning and checking
Seiketsu Systematize
as routine practice
Standardize the previous four
Shitsake Standardize
steps
 Three MUs
Muda Waste
Muri Strain
Mura Discrepancy
THE SEVEN DEADLY WASTE
1. Overproduction waste
2. Waste due to waiting
3. Transportation
4. Processing Waste
5. Inventory waste
6. Waste of motion
7. Product Defects
Business Process Reengineering
- fundamental rethinking and radical redesign of
business processes to achieve dramatic
improvement in critical contemporary measures
of performance.
TQM: Principles and Strategies:
 Customer Satisfaction
 Employee Involvement
 Process Approach
 Continuous Process
Improvement
 Supplier Partnership
 Performance Measures
Supplier Partnership
a. Importance of supplier
- quality raw materials= quality finish products.
b. Supplier Selection
- ISO 9000 or similar standards
c. Supplier standards
d. Involvement of supplier in development
e. Product Audit
f. Vendor Rating system
g. Price Rating
h. Delivery rating
TQM: Principles and Strategies:
 Customer Satisfaction
 Employee Involvement
 Process Approach
 Continuous Process
Improvement
 Supplier Partnership
 Performance Measures
Performance Measures
1. PDCA for measurement
2. Balanced Scorecard
3. Performance Based management system
 Possible measures
are identified
Adaptation

What will be measured?

Results are counter Who will measure?
check through other When it will be measures
means How?
 Performance
expectation

Objective Measure Target Initiatives

Financial
Customer
Initial business
process
Learning &
Growth

Key initiative required to

What strategy must How success will be
achieve objective
be achieved & what measured and tracked?
is critical to its
success?