Total Quality Management

Total: Made up of the whole Quality: Degree of excellence a product or service provides. Management: Act and art of managing with steps like plan, organize, control, lead, staff, provisioning and organizing It is the application of quantitative methods and human resources to improve all the processes within the organization and exceeds customers needs now and in future.

 TQM implies an organizational obsession with meeting or exceeding a customer expectations so that customers are delighted. Essential to win new business and keep existing business. Quality product or service that meet the customers needs at a reasonable price, which includes on time delivery and outstanding service.

The Customer is the Ultimate Judge of Value Quality.

TQM is driven by long-term growth goals

and flexibility, focusing on

bringing the customer in .

Customer Satisfaction

Quality System

Quality Product/ Service

Customer Satisfaction

Customer Focus

ORGANIZATIONAL HIERARCHIAL DIAGRAMS

Earlier approach
CEO SENIOR MANAGER FUNCTIONAL OPERATIONAL AREAS

TQM approach
CUSTOMERS FRONT LINE REPREENTATIVES

FUNCTIONAL OPERATIONAL AREAS SENIOR MANAGER

FRONT LINE REPREENTATIVES CUSTOMERS

CEO

Indian companies before LPG and after it.

Teboul Model of Customer Satisfaction

Company Product/Service offer

Customer needs

What is customer satisfaction?

Is it due to Product quality? Is it due to pricing? Is it due to good customer service ? Is it due to company reputation? Is it something more?

Customer types
External current, prospective and lost customers Internal Every person in a process is a customer of the previous operation.( applies to design, manufacturing, sales, supplies etc.) Each worker should see that the quality meets expectations of the next person in the supplier-to-customer chain. TQM is committed to customer focus - internal and external customers.

Customer/supplier chain

Inputs from external customers

Internal customers

Outputs to external customers

Internal customer/Supplier relationships

Questions asked by people to their internal customers What do you need from me? What do you do with my output? Are there any gaps between what you need and what you get? Good team-work and inter-Departmental harmony is required.

User purchase perceptions

An American Society of Quality (ASQ) Survey on the end user perception of important factors that influence purchases are as follows: Performance Features Service Warranty Price Reputation

Customer satisfaction/dissatisfaction feedback

Continuously sought and monitored Feedback enables the organization to Discover customer dissatisfaction. Discover relative priorities of quality. Compare performance with the competition. Identify customers needs. Determine opportunities for improvement.

Information collecting tools

1. Comment cards enclosed with warranty card when product is purchased. 2. Customer survey and questionnaire 3. Customer visits 4. Customer focus groups 5. Quarterly report card 6. Toll-free phones, e-mail, Internet newsgroups, discussion forums 7. Employee feedback 8. Mass customization

CUSTOMER COMPLAINTS

 The feedback is proactive  Customer complaint is reactive but very useful.  by taking the positive approach to the complaints it is possible to improve the products/services  In fact complaints give the organization a second chance to win!!

Elements of Service Quality

(i ) Organization Identify each market segment Write down the requirements Communicate the requirements Organize processes Organize physical spaces (ii) Customer Care Meet the customers expectations Get the customers point of view Deliver what is promised Make the customer feel valued Respond to all complaints Over-respond to the customer Provide a clean and comfortable customer reception area.

Service Quality
(iii) Communication Optimize the trade-off between time and personal attention Minimize the number of contact points Provide pleasant, knowledgeable and enthusiastic employees Write documents in customer-friendly language. (iv) Front-line people Hire people who like people Challenge them to develop better methods Give them the authority to solve problems Serve them as internal customers Be sure they are adequately trained Recognize and reward performance

Service quality
(v) Leadership Lead by example Listen to the front-line people Strive for continuous process.

Customer Care
Keep promises to customers Return customer calls promptly Allot staff to handle customer problems Treat customers with courtesy, respect and professionalism always Evaluate customer satisfaction regularly Search for customer-related improvements continuously Deliver Products/Service promptly and efficiently Give every customer complete and personal attention. Maintain a neat and clean appearance of self and work place,all times Review and implement customer feedback and suggestions into current procedures when needed Training and education to enhance job performance and commitment to customer care Treat every customer as we would treat ourselves.

KANO Model
The Kano model is a theory of product development and customer satisfaction developed in the 80s by Professor Noriaki Kano The Kano model is a framework for considering, measuring and implementing activities to not only provide customer satisfaction, but bring delight. The Kano Model of Customer (Consumer) Satisfaction classifies product attributes based on how they are perceived by customers and their effect on customer satisfaction. Exciters (Delighters) If the requirement is absent, it does not cause dissatisfaction, but it will delight clients if present. More is Better The more requirements are met the more one is satisfied.

Kano Model-conceptualizes customer requirements

Customer satisfied ExcitersQuickly expected Easily identified Typically performance related NEED WELL
FULLFILLED

Need not fullfilled

Innovations

Requirement Not satisfied Unspokenbut expected requirements Spoken and expected requirements

Requirement satisfied

Customer Not satisfied

Known only to experienced designers or discovered late

Customer Retention
Customer satisfaction should lead to customer loyalty and customer retention. This is the acid test and bottom line- when the customer repeatedly comes back to you for repeat orders and to purchase new products manufactured by you. Firm orders received or cash payments registered , market share, customer referrals and customer retention are an indication of your customer success and penetration .

GOOD CUSTOMER SERVICES & RETENTION OF CUSTOMERS

Good Customer Service is all about bringing customers back. And about sending them away happy ---HAPPY enough to pass Positive Feedback about your business along to others, who may then try the product or service you offer for themselves and in their turn become Repeat Customers/ (loyal customers).

Measuring TQM in form of Customer Satisfaction

The Deming Prize is one of the highest awards on TQM (Total Quality Management) in the world. This best known prize with the longest history was first awarded by the Japanese Union of Scientist and Engineers (JVSE) in 1951 to a Japanese company which excelled in Total Quality Management. It is given in the following 3 areas: The Deming Prize for Individuals The Deming Application Prize The Quality Control Award for Operations Business Units

Examples
By applying this framework specified by JVSE and the concerns for the Deming prize, companies in the TVS Group like, Sundram Clayton, Sundram Brakelining, TVS Motors, have achieved excellence Other auto- component manufacturers like Jay Bharat Maruti, a subsidiary of Maruti Udyog Limited, Sona Koyo Steering, and Minda Huf Ltd. in India have established a level of excellence by which they are able to supply their products to the top automobile manufactures of the world based in India. They are also able to export to foreign countries facing the challenges of global competition successfully.

TVS Motors: TQM

The company is committed to achieving total customer satisfaction through excellence in Total Quality Management (TQM) and continuously strives to give the customer best value for money, across all its products. The Deming Award from JUSE, which the company won, is proof of its commitment to achieve total customer satisfaction through excellence in Total Quality Management. The companys high quality R&D talent pool, comprising of over 400 engineers, employed in new product development and advanced engineering, is backed by one of the most modern computer aided labs.

TATA Business Excellence Model

The model works under the aegis of Tata Quality Management Services (TQMS), an in-house organisation mandated to help different Tata companies achieve their business excellence and improvement goals. Other core elements of the Tata business excellence movement are: The Tata Code of Conduct (TCoC), A mandatory pan-Tata policy that defines how Tata employees can conduct themselves The Management of Business Ethics, a programme that helps Tata companies drive ethics and values in the organisation. The TBEM movement in Tata has a built-in reward and recognition mechanism wherein companies that have achieved a score of 600 on the TBEM framework are felicitated with the JRD QV Award.

The objectives of the award are: This award is given to group companies in order to create awareness on the importance of the value of quality and the need for total customer satisfaction in all areas of operations within the Tata group companies. To achieve and sustain continuous excellence and consequently leadership in the marketplace through perfection and the achievement of quality which will be recognised as being the best and ahead of competition.

 Criteria for recognition: * JRD QV Award: 600+ for the first time * Leadership in Excellence: 700+ for the first time * Sustained Excellence: 3 successive improvements beyond 600 * Active Promotion: 500 to 600 for the first time * Serious Adoption: 450 to 500 for the first time * High Delta: High improvement in one year min 75 for 500* High Delta 500+: High improvement in one year min 50 * High Delta 600+: High improvement in one year min 25