Quality Management and Customer Care

BS 3008
Best / Common Sense, Practice

Kenneth R Batty, MSc(QM), DCR(R) MIQA.

What Is Quality?

The degree of excellence of a thing. Concise Oxford Dictionary.

Totality of features and characteristics of a product or service that bears upon its ability to satisfy stated or implied needs. International Standards Organisation.

What is Quality?

Means many things to many people - it is usually associated with cost. Fitness for purpose - J M Duran Conformance to requirements - P B Crosby
Providing customers, both internal and external, with products and services that fully satisfy their negotiated requirements. Fitness for purpose and use, and foreseeable misuse

What is Quality?

Conformance quality - conforming to specifications; having a product or service that meets predetermined standards. Requirements quality - meeting total customer requirements; having perceived attributes of a service or product that meet or exceed customer requirements. Quality of kind - quality so extraordinary that it delights the customer; having perceived attributes of a product or service that significantly exceed customer expectations, thereby delighting the customer with its value.

What is Quality?
1. "Quality is conformance to specifications. British Defence Industries Quality Assurance Panel 2. "Quality is conformance to requirements. Philip Crosby 3. "Quality is fitness for purpose. Dr Juran 4. "Quality is synonymous with customer needs and expectations. R J Mortiboys

What is Quality?
5. "Quality is a predictable degree of uniformity and dependability, at low cost and suited to the market. Dr Edwards Deming 6. "Quality is meeting the (stated) requirements of the customer- now and in the future. Mike Robinson

What is Quality?
7. "Quality is the total composite product and service characteristics of marketing, engineering, manufacturing and maintenance through which the product and service in use will meet the expectations by the customer." Armand Feigenbaum 8. "Totality of characteristics of an entity that bear on its ability to satisfy stated and implied needs. ISO 8402 : 1994

Talking Quality - (Perceptions)

What Quality is perceived to mean to:

Your Customers - Getting something for nothing Your Suppliers Employees

- You want something for nothing

- More work

Management

- Additional COST

What Quality means in:

JAPAN

Perfection Conformance to Specification A Luxury It Works Doesn't It!

GERMANY FRANCE AMERICA -

The Four Absolutes of Quality

Quality is conformance to requirements

Do what you said you would do.

The system for producing quality is NOT prevention, NOR is it appraisal.

Solve problems permanently

The performance standard is ZERO defects.

Right first time and every time.

Quality is measured by the cost of NonConformance.

Repair / re-work is paid for out of profits.

GARVIN Quality is Defined from the

Customers point of view
Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived

quality

Zeithaml, Parasuraman, Berry (1985)

Tangibles
Reliability Responsiveness Competence Courtesy

Credibility
Security Access Communication Understanding the Customer

Dimensions of Service Quality

Evaluative dimensions (SERVQUAL)

Tangibles, reliability, responsiveness, assurance & empathy

Procedural dimensions
Timing, flow logic, accommodation, anticipation, communication, feedback

Personal dimensions
Appearance, attitude, attentiveness, tact, guidance, gracious problem solving.

Quality Eras (History of Quality)

Inspection Quality Control
fire-fighting

Quality Assurance
prevention, Co. wide approach, ZERO defects

Strategic Quality Management

market place / customer focus, integrative approach

Competitive Continuous Improvement

Quality Eras
The Evolution of QUALITY (Cumulative)
Q u a l i t y E R A S

Insp QC QA SQM CQI

1890

1900

1910

1920

1930

1940

1950

1960

1970

1980

Time Line

1990

History of Quality Management

Middle ages: Europe

Skilled craftsmen - carpenters, blacksmiths, shoemakers etc

Contact with customer and complete lifecycle very direct

i.e. Customer/Design/Manufacture/Inspect/ Maintain

History (cont.)

Industrial Revolution:
Eli Whitney established the concept of interchangability applied to the manufacture of rifles for the US Army

Made high demands on the manufacturing process Quality Assurance imperative (especially for large buyers)

History (cont..)

Early 1900s: Taylorism

The philosophy of job decomposing which separated the tasks of the craftsman into deskilled isolated operations The links between Customer/Design/Manufacture/Inspec tion were broken
inspection
craftsman

product

inspection product

History (cont..)

1920s: Bell Telephone Labs

A group was formed to develop new theories and methods of inspection to improve and maintain quality This is were the term Quality Assurance was first used Developed
Control Charts Sampling Techniques Economics of quality time

History (cont..)

1930s: the first books on Quality Control World War 2: the US military adopts a system of statistical sampling and the imposition of strict standards to be met by suppliers. In the UK the establishment of a statistical advisory unit of the ministry of supply.

History (Cont..)

http://www.deming.org/deminghtml/wedi.html

1950s: Deming and Jurans introduction to Japan of Statistical Quality Control Techniques

http://www.juran.com/drjuran.html

More quality gurus

Philip Crosby Quality is free - the optimum is zero defects.

W. Edwards Deming
Armand Feigenbaum Kaoru Ishikawa Joseph Juran Genichi Taguchi

Demings 14 points. How to use statistics.

Total quality control. Quality circles and cause and effect diagrams . Quality as fitness for use, rather than conformance to specification. Loss function. Minimize variation.

History (Cont..)

US domination of global production US development of NATO quality standards UK defense standards 05-21, 05-24, 05-29 based on NATO standards

History (Cont..)

1960s and 70s : Increasing Japanese domination of large sectors of world trade in manufacturing In the UK BS5179 was developed for industry

History (Cont..)

1972 Institute of Quality Assurance (IQA) established The Ministry of Defense adopts the AQAP standards (Allied Quality Assured Publication)

History (Cont..)

1979: First version of the British Standard BS5750

Guide to the development and specification of the standard of a quality management system

1982: Dti ran the British National Campaign for Quality 1987: BS5750 is revised and is now also being referred to as the ISO9000 series of standards.

History (Cont..)

Early 90s: Japan still increasing its domination of manufacturing sectors and services; with one of the fastest growing economies The West in recession and focussing heavily on quality systems Late 90s: Consolidation and a much reduced manufacturing base means that UK is doing comparatively well Quality? Or are we just cheap?

History (Cont..)

Despite the collapse of the Pacific rim tigers and the faltering of the Japanese economy (with the likelihood of the rest of the world following suit) Total Quality Management (TQM) the ISO9000 series of Quality Standards are still being heavily touted as being the prerequisite to surviving in an ever increasing market. US adopting the standard (especially in motor manufacturers) Quality no longer an issue for Japan, is it an issue here? Millennium new set of ISO standards introduced, still filtering into the workplace

Quality
The Pursuit of

QUALITY is a JOURNEY not a DESTINATION!

Where are you; on your STARTING blocks?

Quality Improvement

QUALITY starts here and NOW!

Customer Care: Philosophy and Procedures

Who Are Our CUSTOMERS?

BS 3008

Customer Care: Philosophy and Procedures

Why is customer care important ? Increasing market competition Globalisation Rise of consumerism Customer relationship marketing (CRM) as important an asset as capital and labour Reflects on how well staff themselves are treated

Customer Care: Philosophy and Procedures Why are customers valuable ? Think of customers as an income stream e.g. How much is spent over 12 years by a family spending 80 per week on groceries 60% customers are repeat business Much cheaper to retain customers than attract new ones

Customer Care: Philosophy and Procedures Succinctly We had a simple goal, find the right customers, learn what they want, sell it to them, service all their needs
Gabrielle Battista, President of Cable and Wireless

Customer Care: Philosophy and Procedures But central problems to be solved are:
1.

2.

3.

Enterprise information and customer information must be integrated into a single whole New kinds of customer behavioural information must be captured and processed Customers and employees must share a common knowledge base

Customer Care: Philosophy and Procedures Aspects of service

The product (e.g. mortgage package, meal) The process (how handled) The programmes (when dealt with) The plant (types of equipment and particular usage) The people (trained, motivated, rewarded)

Customer Care: Philosophy and Procedures Characteristics of service industries Consumed at point of production Customer is present Mistakes cannot be hidden Greater importance of right first time Process is hard to control with customer there Customers react to situations

Customer Care: Philosophy and Procedures

1.

Almost all services depend, in one way or another, on other services, as part of the input, throughput or output and sometimes all three

2.

Quality.. applies as much to the relationships along the chain as it does to the ultimate link Lucy Gaster, (1995) Quality in Public Services

Customer Care: Philosophy and Procedures Complaint Handling

Help customers to complain accurately (know exactly what has gone wrong) Have a well established and speedy procedure How are customers from hell dealt with? How do we interpret numbers of complaints?

Customer Care: Philosophy and Procedures

Web-based Customer Care. Historically, we use a cost-free call-centre. Virtually every area of customer support (information, support, maintenance, warranties, upgrades, status) can be handled over the Internet. E-commerce allows possibilities for accessing information for life-time value.

Customer Care: Philosophy and Procedures Customer Relationship Marketing Creates dialogues with customers to supply needs rather than sell products Not meant to be a quick fix but a change in marketing strategy Long term aim is to build customers for life Be capable of delivering real solutions

Customer Care: Philosophy and Procedures

10 Good Customer Habits to Develop

Be on Time Follow Up on Promises Under-promise,overdeliver Go the extra mile Offer Customer Options

Express Sympathy Give Customers highest priority Treat co-workers as customers Give Customer your name and number Develop good telephone manner

Customer Care: Philosophy and Procedures

10 Good Ways to be a role model

Start the day right Discuss Feelings Do the Right thing Support Staffs decisions Be willing not to know the answer

Learn to listen Take time to socialise Good telephone etiquette Thank staff often Say what you mean (mean what you say)

Customer Care: Philosophy and Procedures

10 Major Donts (and Dos)

I dont know No Thats not my job Youre right this stinks Thats not my fault

You need to talk to my manager You want it when? Calm down Im busy just now Call me back

Customer Care: Philosophy and Procedures

De Bonos Six Hats
White Red Objective info (facts and figures) Feelings, emotions, nonrational feelings What facts do I need ? How do I get them? How do I feel about this ?

Black
Yellow Green Blue

Why ideas will not work

Opportunities, possibilities Creative new ideas Control of the thinking process Cool

What are downsides ?

Advantages? Best possible outcome ? Fresh innovative approaches, creative Review thoughts, think of next logical step