Dr.

Pravin Kumar

Philosophy of Total Quality

Management
Philosophy of TQM

 Continuous Improvement
 Customer Focus
 Benchmarking
 Team Approach
 Leadership
 Employee empowerment
 Supplier relationship management
Continuous Improvement-Tools

 Deming wheel or PDCA/PDSA Cycle

 Control Chart
 Sampling Plan
 7-QC tools
 PokaYoke
PokaYoke

 This is known as “MISTAKE-PROOFING”

 From Japanese:
Yokeru (avoid) & Poka (inadvertent errors)
Characteristics of Poka-Yoke
 Eliminates the cause of an error at the
source;
 Detects an error as it is being made;
 Detects an error soon after it has been made
but before it reaches the next operation.
Poka-Yoke

 There are two approaches to dealing with errors:

1. ERRORS ARE INEVITABLE!
 People always make mistakes.
 While we accept the mistakes as natural, we
blame the people who make them.
 With this attitude, we are likely to overlook
defects as they occur in production.
 They may be detected at final inspection, or
worse still, by the customer.
Poka-Yoke

2. ERRORS CAN BE ELIMINATED!

 Any kind of mistake people make can be
reduced or even eliminated.
 People make fewer mistakes if they are
supported by proper training and by a
production system based on the principle
that errors can be avoided.
 CUSTOMER FOCUS

Customer focus can be defined as the degree to

which a firm continuously satisfies customer
needs and expectations. It includes:
• Emphasis on customer-defined quality
• Emphasis on customer service
• Integration of customer information for new
product development
• Partnering with customer for the product
development, R&D, technology forecasting.
IMPORTANCE OF CUSTOMER FOCUS

• The customers are the valuable assets for any

organization.
• The success of an organization depends on the
satisfied customer.
• The satisfied customer tends to purchase
frequently and more.
• The manufacturing and service organization use
customer satisfaction as the measure of quality.
• Identifying the customer expectation is the key to
satisfy the customer.
CLASSIFIACTION OF CUSTOMERS

• The Negotiator
– negotiators always want to bargain. If you’re dealing
with them, know that a common objection is to bargain
your price based on a cheaper competitors offer. But most of
the time they want to bargain as a matter of principle.
• The Well-Informed
The well-informed are confident. They will walk directly
towards you, giving you a firm handshake. Although they
already seem to know everything, they expect
professional advice from you. Often their decision to
purchase is based on how the product reflects their social
status.
CLASSIFIACTION OF CUSTOMERS

• The Annoyed One

Every once in a while you have to deal with customers who
complain about almost everything. Whether it’s the high
price, the bad quality or the unfriendly seller- there’s nothing
really you can do to please the customer. They’re just
always irritated.
• The Suspicious One
Suspicious customers will not hide their mistrust of
products and advertising. They’re one thing above all:
critical. They will gladly let you explain everything and
surprise you with a strong opinion and knowledge .
CLASSIFIACTION OF CUSTOMERS
• The Questioner - This type of customer wants to know
everything.
• The Ones Who Agree On Everything
These customers are reserved and act shy. They will say
“yes” quickly. At the same time they’re overwhelmed and feel
that they’ve been taken by surprise. The sales conversation is
a stressful moment for them. Sensitivity is required here.
• The Indecisive
These are the customers who aren’t really sure about what
they want. They’ll give you short, indecisive answers, saying
things like “maybe” or the dreaded “I don’t know.” There is a
lot going on in their head. Numerous questions show that they
are considering whether to buy or not to buy.
CUSTOMER EXPECTATIONS

Here are the most common customer expectations:

• Solid information
• Options
• Engagement
• Complaint management
• Flexibility
• Creativity
• Fairness
• Trust
 CUSTOMER SATISFACTION
1. Treat your Customers Right – Genuinely Interact
2. Don’t Come on Too Strong – Respect Your Customers
3. Always Listen – Hear What Your Customers are Saying
4. Continue to Satisfy – Offer Ongoing Support and
Specials
5. Treat a Customer Like a Valued Partner –
Communication is two Way
6. Build Trust – Alert Customers to Large Scale Changes,
Good or Bad
7. Be Transparent – Honesty is Crucial When it comes to
Mistakes
8. Follow Through on Your Word – Follow Up on Promises
CUSTOMER DELIGHT

Customer delight is surprising a customer by

exceeding his or her expectations and thus
creating a positive emotional reaction.
There are three objectives when implementing
Customer Delight:
 make customers loyal
 have customers that are more profitable
 have clients talk positively about your product,
brand or shop, the so-called word of mouth
HANDLING CUSTOMER COMPLAINTS

• Provide an appropriate channel to receive

complaints
• Recording
• Resolution
• Communicating with the complainant
Thorough investigation
• Response
• Follow-up
UNDRSTANDING CUSTOMER
BEHAVIOR

Consumer behavior is the study of individuals

and organizations and how they select and
use products and services. It is mainly
concerned with psychology, motivations, and
behavior.
UNDRSTANDING CUSTOMER
BEHAVIOR
The study of consumer behavior includes:
• How consumers think and feel about different
alternatives (brands, products, services, and retailers)
• How consumers reason and select between different
alternatives
• The behavior of consumers while researching and shopping
• How consumer behavior is influenced by their
environment (peers, culture, media)
• How marketing campaigns can be adapted and improved
to more effectively influence the consumer
Factors influencing customer
behavior
 Social factors- family, roles and status, ref.
groups
 Economic factors- size of family, disposable
Income, propensity to consume, consumer
credit.
 Cultural factors- values, Beliefs, arts
 Personal factors- age, occ., life style,
personality
 Physiological factors- basic needs
Qual
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 BenchMarking

Benchmarking is the process of improving

performance by continuously identifying,
understanding, and adapting outstanding
practices found inside and outside the
organization.
 BenchMarking
Improvement

Time
BenchMarking

Better Awareness of Ourselves (Us)

 What we are doing
 How we are doing it
 How well we are doing it
Better Awareness of the Best (Them)
 What they are doing
 How they are doing it
 How well they are doing it
Why Benchmarking
Types of Benchmarking
Product Benchmarking

 Many firms perform product benchmarking

when designing new products or upgrades
to current products.
 Providing an external perspective on
opportunities to improve products,
technology, manufacturing and support
processes, the product development
process, and engineering practices are core
activities of product benchmarking.
Performance Benchmarking

 Performance benchmarking focuses on assessing

competitive positions through comparing the
products and services of other competitors.
 When dealing with performance benchmarking,
organizations want to look at where their
product or services are in relation to
competitors on the basis of things such as
reliability, quality, speed, and other product or
service characteristics.
Process Benchmarking

 Process benchmarking focuses on the day-

to-day operations of the organization. It is
the task of improving the way processes
performed every day.
 Some examples of work processes that could
utilize process benchmarking are the
customer complaint process, the billing
process, the order fulfillment process, and
the recruitment process
Strategic Benchmarking

 Strategic benchmarking deals with top

management. It deals with long term results.
Strategic benchmarking focuses on how
companies compete.
 This form of benchmarking looks at what
strategies the organizations are using to make
them successful. This is the type of
benchmarking technique that most Japanese
firms use. This is due to the fact that the
Japanese focus on long term results.
 LEADERSHIP

 Leadership is the quality to lead others to accomplish

the set goals of organization and who occupies the
quality, is leader. Hersey and Blanchard (1988) felt three
basic competencies necessary for leader:
1. Ability to interaction and understanding the
situation
2. Adapting the ability to change behavior and
resources in the light of situation
3. Ability to communicate with other member of the
organization to get acceptance and understanding.
PRINCIPLES OF ETHICAL LEADERSHIP
LEVEL OF LEADERSHIP
LEADERSHIP ROLES &
RESPONSIBILITIES
 Leadership Development
 Planning and Implementation
 Employee and Process Assessment
 Employee Motivation
 Decision Making
 Conflict Resolution
 Problem Solving
 EMPLOYEE EMPOWERMENT

 Power is a tool to pass on to those who work

on organization’s behalf.
 “To empower,” means to enable, to allow or to
permit, and can be conceived as both self-
initiated and initiated by others.
 Empowerment is the process of enabling
employees to set their own work-related goals,
make decisions and solve problems within their
spheres of responsibility and authority.
EMPLOYEE EMPOWERMENT

 “Empowerment is the process of sharing

power with employees”.
-Bateman & Snell: 2003
 “Employee Empowerment predominantly
about encouraging front-line staff to solve
customer problems on the spot, without
constant recourse to management approval”.
- Goldsmith et al: 1997
Need of Empowerment

 Time to respond is much shorter today.

 First line employees must make many
decisions.
 There is great-untapped potential.
 Employees feel much more control over their
lives.
 Empowered people do not feel like victims.
 Ways of Employee Empowerment

• Express confidence in employees’ abilities.

• Hold high expectations concerning their performance.

• Allow employees to participate in the decision making process.

• Allow employees freedom and autonomy in how they perform

their jobs.

• Use position power in a positive way and limit the use of

coercive power.

• Set inspirational and managerial goals for employees.

Significance of Empowerment

• Enhances beliefs of employees that they are

influential contributors to the organizational
success.
• Employees perceive meaning in work.
• Employees feel competent.
• Employees derive a sense of self
determination.
• Employees believe that they have an impact
on important decisions.
Pre-requisites of Employee
Empowerment

• Involvement
• Quick decision-making
• Solving complex problems
• 360-degree Feedback
• Variable Rewards with some Group Component
• Error Tolerance
• Enhanced Communication
• Generalists Managers and Employees
• Trust and Support of Management
Process of Employee Empowerment
Characteristics of Empowered
Employees

• Sense of Self-Determination
• Sense of Meaning
• Sense of Competence
• Sense of Impact
Supplier Relationship Management
Supplier Relationship Management
Thank You