MARKETING IN QUALITY MANAGEMENT SYSTEMS

BY N.VAIDYANATHAN,
BE(MECH).,D.O.M.,M.I.E.,F.I.V.,F.I.I.I.S.L.A.,M.I.R.M(UK) CHARTERED ENGINEER AND SYSTEMS CONSULTANT

ISO 9001:2008
WHAT IS QUALITY MANAGEMENT SYSTEM ?

WHAT IS QUALITY MANAGEMENT SYSTEMS ISO 9001:2008

WHAT IS QUALITY? QUALITY IS THE DEGREE OF NEARNESS TO THE REQUIREMENTS.

WHAT IS MANAGEMENT ?
MANAGEMENT IS DEFINED AS MANAGE MEN T. MANAGE MEN AS A TEAM.

WHAT IS SYSTEM ?
SYSTEM IS A PROCESS DONE AS PER PRE-DETERMINED METHOD.

WHAT IS QUALITY SYSTEM MANAGEMENT ?

QUALITY SYSTEM MANAGEMENT MEANS A TEAM OF PEOPLE WORKING TOGETHER IN A PREDETERMINED METHOD TO PROCEED AS CLOSE AS POSSIBLE TO THE REQUIREMENTS OF CUSTOMERS.

WHAT IS ISO 9000 ?

ISO MEANS INTERNATIONAL ORGANISATION FOR STANDARDISATION. 9000 IS JUST A NUMBER AND DENOTE NO OTHER MEANING.

THE 2008 SERIES OF QMS.

ISO 9000:2008 FUNDAMENTALS & VOCABULARY. ISO 9001:2008 REQUIREMENTS. ISO 9004:2008 GUIDELINES FOR PERFORMANCE IMPROVEMENT.

QUALITY MANAGEMENT PRINCIPLES.

1.CUSTOMER - FOCUSSED ORGANISATION. 2.LEADERSHIP. 3.INVOLVEMENT OF PEOPLE. 4.PROCESS APPROACH. 5.SYSTEM APPROACH TO MANAGEMENT.
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QUALITY MANAGEMENT PRINCIPLES.

6.CONTINUAL IMPROVEMENT. 7.FACTUAL APPROACH TO DECISION MAKING. 8.MUTUALLY BENEFICIAL SUPPLIER RELATIONSHIP. ISO 9000-2008 QUALITY MANAGEMENT SYSTEM IS BASED ON THE ABOVE 8 PRINCIPLES
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PRINCIPLE 1.
CUSTOMER FOCUSSED ORGANISATION TO UNDERSTAND CUSTOMER NEEDS TO COMMUNICATE THESE DATA THROUGHOUT ORGANSATION. TO MEASURE CUSTOMER SATISFACTION AND RESULTS. TO MANAGE CUSTOMER RELATIONSHIPS

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Marketing
Gain knowledge of the market Gain knowledge of the customers Gain industry & competitor information Evaluate channels of distribution Determine effective advertising & promotion Determine marketing strategies & objectives Establish branding & packaging strategies
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Marketing ..CONTD.
Define and provide after sales service & customer care Provide sales & customer training Determine sales strategies & objectives Define plans & resources to deploy strategies
Track & measure marketing performance

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PERFORMANCE INDICATORS
Market and Customer Share of market New and lost customers Customer satisfaction or dissatisfaction indices Quality performance Delivery performance Response time Market/channel/customer profitability Warranties, claims, returns

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5.2 Customer focus

Quality is what the customer requires. The topmost aim must be to meet your customers requirements and win, retain and further increase their confidence and satisfaction. Identify customers desires and expectations Clarify product-related obligations e.g. legal requirements
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5.3 Quality policy

Top management must ensure quality policy: is appropriate to purpose of organization provides a framework for quality objectives is communicated & understood within organization is reviewed for continuing suitability includes commitment to comply with requirements and continually improve effectiveness of system
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5.5.3. INTERNAL COMMUNICATION

To Ensure that appropriate communication processes are established within the organisation To ensure that communication is effective.

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7.2.1.DETERMINATION OF REQUIREMENTS RELATED TO THE PRODUCT

Requirements specified by Customer including delivery and post delivery activities Requirements not stated by the Customer but necessary for specified or intended use, where known Statutory and regulatory requirements related to the product Any additional requirements considered necessary by the organisation
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7.2.2.REVIEW OF REQUIREMENTS RELATED TO THE PRODUCT

To conduct review prior to organisations commitment to supply the product to the customer ( submission to tenders, acceptance of contracts or orders, acceptance of amendments to orders or contracts. Shall ensure that Product requirements are defined, contract requirements differing from those previously expressed are resolved, and organisation has the ability to meet the defined requirements.
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7.2.2.REVIEW OF REQUIREMENTS RELATED TO THE PRODUCT. . contd..

Records of the results of such review and actions arising from the review shall be maintained. Where customer provide no documented statement or requirement, the customer requirements are confirmed by the organisation before acceptance. Where product requirements are changed, organisation shall ensure that relevant documents are amended and that relevant personnel are made aware of the changed requirements

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7.3.CUSTOMER COMMUNICATION
To implement effective communication with customers in relation to Product Information, Enquiries, Contracts or Order handling, including the amendments, Customer feedback, including Customer complaints

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8.2.1.CUSTOMER SATISFACTION
Organisation shall monitor information relating to customer perception as to whether the organisation has met his requirements, from inputs from customer satisfaction surveys, customer data on delivered product quality, user opinion surveys, lost business analysis, compliments, warranty claims and dealer reports
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8.2.1.CUSTOMER SATISFACTION
A survey on Why customers quit found the following: 3 percent move away 5 percent develop other friendships 9 percent leave for competitive reasons 14 percent are dissatisfied with the product 68 percent quit because of an attitude of indifference toward the customer by the owner, manager or some employee.
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8.2.1.CUSTOMER SATISFACTION
Seven out of ten complaining customers will do business with you again if you resolve the complaint in their favor. If you resolve it on the spot, 95 percent will do business with you again.

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8.4.ANALYSIS OF DATA
To analyse the data of the followings Customer satisfaction Conformity of product requirements Trends of processes Suppliers

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8.5.1. CONTINUAL IMPROVEMENT

To continually improve the effectiveness of the quality management system through the use of quality policy, quality objectives, audit results, analysis of data, corrective and preventive actions and management reviews

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BUSINESS PLAN
Have a formal Business Plan Plan must be comprehensive and controlled Use short-term as well as long-term goals Have methods to determine customers current & future requirements & expectations Have process to define scope & analysis of information, including frequency & methods of collection of such data Have methods to track, update, revise & review the plan Ensure plan is followed and communicated as needed to the organization Confidential & not subject to audit
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TRUTH ABOUT SALES AND QUALITY

When the leadership of organizations decides that a quality initiative should be implemented, they tend to leave the sales and marketing sections out of the new initiative. Unfortunately this decision insures total failure of the initiative.

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MARKETING IN QMS
When a quality management system (QMS) is implemented, results are evident immediately: reduction in warranty cost, reduction in rework, reduction in scrap, higher profit margins, etc. If and only if you apply the same quality standards and quality concepts to the entire sales process, you stand to see significant improvements.
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Effect of QMS on Sales

Quality Requirements
Quality Policy Quality Manual

Purpose
Set company direction Summary of processes and procedures Monitor customer satisfaction Monitor QMS performance

Effect on Sales
Show case Show case of Company Processes Increase in repetitive business Increase profit margins

Focus on customer satisfaction Tracking objectives Procedures Corrective and preventive actions

Normalise Processes Increase profit margins Correct or prevent systemic issues Decrease customer returns or complaints 30

Sales Process defined

ENQUIRY/ LEADS ENQUIRY HANDLING PRESENTATION

CONTRACT

CLOSING/ FINALISING

PROPOSALS/ OFFERS

Next Slide shows the benefits that derived after mapping and defining each step of the sales process.
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Sales Process definedcontd

ENQUIRY/ LEADS ENQUIRY HANDLING CONSISTENCY IMPROVED KNOWLEDGE OF CUSTOMERS PRESENTATION CONSISTENCY CONFIDENCE IMPROVED PRODUCT/ SERVICE KNOWLEDGE

CONTRACT

CLOSING/ FINALISING CONFIDENCE INCREASED RELATIONSHIPS WITH CUSTOMERS

PROPOSALS/ OFFERS CONSISTENCY IMPROVED TURNAROUND TIME

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Sales Objectives.Examples
Few sample objectives that could go with the process above: Proposal turnaround time: e.g., 15 days from inquiry Presentation turnaround time: e.g., Seven days from inquiry Decrease proposal errors: e.g., Zero changes on the proposal due to wrong or misinterpreted requirements Improve rate of inquiries to presentations: e.g., 90 percent of inquiries handled translate into quotes
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Include sales in your product realization processes

When was the last time your sales department participated in a management review? When was the last time your sales department used the corrective and preventive action system? When was the last time your sales people had a formal review or had a defined training plan? When was the last time sales was involved in quality? If the answer is never, then how in the world do you want QMS to help your sales? It only starts when you allow this to happen.
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What to do?
After all, organization has the right to expect every one and every process apply the same world-class quality management principles the company deserves. If the corporate quality management system is good for all processes, then make sales become part of it.
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THANKING YOU

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