Module 3 - TQM-18ME734.pptx

Total Quality Management
(18ME734)
MODULE 3 - Customer Satisfaction and
Customer Involvement
(Teaches TQM principles 2 & 3)
• Unwavering focus on the customer both external
and internal
• Effective involvement and utilization of the entire
work force)
Presenter:
Ms. D N Roopa
Assistant Professor
Department of Mechanical Engineering
JSSATE, Bangalore – 60
roopadn@jssateb.ac.in

Customer Satisfaction and Customer Involvement: Customer Satisfaction: customer and customer
perception of quality, feedback, using customer complaints, service quality, translating needs into
requirements, customer retention, case studies.
Employee Involvement – Motivation, employee surveys, empowerment, teams, suggestion system,
recognition and reward, gain sharing, performance appraisal, unions and employee involvement,
case studies. 08 Hours
(Refer Besterfield REVISED 3RD EDITION – Chapter 3 and 4)

TQM’s Customer Approach
• “the customer defines quality.”
• “the customer is always right.”
• “the customer always comes first.”
• “the customer is king.”
• “quality begins and ends with the customer”
Customer Satisfaction

Types of Customers
• External - outside the organization (people who pay
the bills.)
– End-user customers
– Manufacturer (OEM) for suppliers.
• Internal - people within your organization who
receive your work
• In many situations, producers have multiple
customers and therefore find it useful to identify
“core customers”

Measuring Customer Satisfaction
• Example: Mahindra and Mahindra Ltd-- Initial
Quality Survey (IQS) measures customer satisfaction
- problems per 100 vehicles.
• Effect of Mahindra and Mahindra
automotive quality?
– 1998: 176 problems per 100 vehicles*
– 2005: 118 problems per 100 vehicles*
Ltd- IQS on

Some Data on Customer Attitudes and
Loyalty
(Source: Winning Back Angry Customers, Quality Progress, 1993)
• An average customer with a complaint tells 9-10 people; if it is
resolved he/she only tells 5 people.
• For every complaint received, there are twenty others that are
not reported.
• It costs 5-10 times more in resources to replace a customer
than it does to retain one.
• Companies spend 95% of service time redressing problems and
only 5% trying to figure out what made the customer angry.

Methods to Collect
Customer Satisfaction Data
• Proactive Feedback (ask customers for their opinions)
– examples: customer surveys, focus groups, “employees” as
customers.
– advantage: identify key product features and assess levels of
performance.
• Negative Feedback Analysis
– customer complaints, warranty claims, repair records…
– focus on problems
– concern: many dissatisfied customers do not complain (1/20
complain).
• Analysis of Competitor Products
– examples: Benchmarking
– advantage: “Know the competitor, know yourself”
– Refer page 50 – 57 from besterfield edition -3

Customer feedback methods
• Comment cards enclosed with warranty card
when product is purchased.
• Customer survey and questionnaire
• Customer visits
• Customer focus groups
• Quarterly reports
• Toll-free phones
• e-mail, Internet newsgroups, discussion forums
• Employee feedback
• Mass customization.
Refer page 50 – 57 from besterfield edition -3

Activity 3 : Identifying customer needs and translating
into requirement
Example: Design of a Cordless Screwdriver
Steps:
1. Gather data from customers using various
methods.
2. Translate them into “needs/requirement”
3. Organize into a hierarchy
4. Establish relative importance

Step 2: Translating to requirement

Step 2: Guidelines for writing needs statements:

Step 3: Organize the needs into a hierarchy
• Print each statement on a card or Post-It note
• Eliminate redundant statements
• Group the statements according to the similarity
of needs they express
• Choose a label for each group
• Consider “sub groups” of 2-5 groups
• Review and edit the organized needs statements
Two basic approaches
 Consensus of the team
 Further customer surveys

Step 4: A numerical ranking process is a
common tool. For example:
• 5 - The feature is critical
• 4 - The feature is highly desirable
• 3 - The feature would be nice to have, but is
not necessary
• 2 - The feature is not important
• 1 - The feature is undesirable
Gathering “voice of the customer” is a continuous process

Reflect on the results and the process
• Have we included all of the important types of
customers?
• Did we miss anything in our information
gathering process? Are there any follow up
interviews needed?
• What do we know now that we didn’t know
when we started? Did we find any surprises?
• How can we improve the process?

Summary of Voice of Customer

Kano model
Noriaki Kano, a Japanese researcher and consultant,
published a paper in 1984 with a set of ideas and
techniques that help us determine our customers’ (and
prospects’) satisfaction with product features. These
ideas are commonly called the Kano Model and are
based upon the following premises:
• Customers’ Satisfaction with our product’s features
depends on the level of Functionality that is provided
(how much or how well they’re implemented);
• Features can be classified into four categories;
• You can determine how customers feel about a
feature through a questionnaire.

• These categories have been translated into
English using
(delighters/exciters,
various
satisfiers,
names
dissatisfiers,
etc.), but all refer to the original articles
written by Kano.
• Must-be Quality
• One dimensional quality
• Attractive quality
• Indifferent quality

Must-be Quality (Threshold attributes)
• One of the main points of assessment in the Kano model is the threshold
attributes.
• These are basically the features that the product must have in order to
meet customer demands.
• If this attribute is overlooked, the product is simply incomplete. If a new
product is not examined using the threshold aspects, it may not be
possible to enter the market.
• This is the first and most important characteristic of the Kano model.
• The product is being manufactured for some type of consumer base, and
therefore this must be a crucial part of product innovation.
• Threshold attributes are simple components to a product. However, if they
are not available, the product will soon leave the market due to
dissatisfaction.
• Since this component of the product is a necessary guideline, many
consumers do not judge how advanced a particular feature is.
• Therefore, many times companies will want to improve the other
attributes because consumers remain neutral to changes in the threshold
section. roopadn@jssateb.ac.in

One-dimensional Quality (Performance attributes)
• Performance attributes are those for which more is better,
and a better performance attribute will improve customer
satisfaction.
• Conversely, a weak performance attribute reduces customer
satisfaction.
• When customers discuss their needs, these needs will fall into
the performance attributes category. Then these attributes
will form the weighted needs against the product concepts
that are being evaluated.
• The price a customer is willing to pay for a product is closely
tied to performance attributes. So the higher the performance
attribute, the higher the customers will be willing to pay for
the product.

• Performance attributes also often require a
trade-off analysis against cost.
• As customers start to rate attributes as more and
more important, the company has to ask itself,
"how much extra they would be willing to pay for
this attribute?" And "will the increase in the price
for the product for this attribute deter customers
from purchasing it." Prioritization matrices can be
useful in determining which attributes would
provide the greatest returns on customer
satisfaction.

Attractive Quality (excitement attributes)
• Not only does the Kano model feature performance attributes, but
additionally incorporates an "excitement" attribute as well.
• Excitement attributes are for the most part unforeseen by the client but
may yield paramount satisfaction. Having excitement attributes can only
help you, but in some scenarios it is okay to not have them included.
• The beauty behind an excitement attribute is to spur a potential
consumer's imagination, these attributes are used to help the customer
discover needs that they've never thought about before.
• The key behind the Kano model is for the engineer to discover this
"unknown need" and enlighten the consumer, to sort of engage that "awe
effect."
• Having concurrent excitement attributes within a product can provide a
significant competitive advantage over a rival. In a diverse product
assortment, the excitement attributes act as the WOW factors and trigger
impulsive wants and needs in the mind of the customer.

• The more the customer thinks about these amazing
new ideas, the more they want it. Out of all the
attributes introduced in the Kano model, the
excitement ones are the most powerful and have the
potential to lead to the highest gross profit margins.
• Innovation is undisputedly the catalyst in delivering
these attributes to customers; you need to be able to
distinguish what is an excitement today, because
tomorrow it becomes a known feature and the day
after it is used throughout the whole world.

Indifferent Quality
• These attributes refer to aspects that are neither good nor bad, and
they do not result in either customer satisfaction or customer
dissatisfaction.
• For example, thickness of the wax coating on a milk carton. This
might be key to the design and manufacturing of the carton, but
consumers are not even aware of the distinction.
• It is interesting to identify these attributes in the product in order to
suppress them and therefore diminish production costs.
• Examples: In a call center, highly polite speaking and very prompt
responses might not be necessary to satisfy customers and might
not be appreciated by them. The same applies to hotels.

Four Attributes' place on the model changes over time
• An attribute will drift over time from Exciting to
performance and then to essential.
• The drift is driven by customer expectations and by
the level of performance from competing products.
• For example mobile phone batteries were originally
large and bulky with only a few hours of charge.
• Over time we have come to expect 12+ hours of
battery life on slim lightweight phones.
• The battery attributes have had to change to keep up
with customer expectations.

EMPLOYEE INVOLVEMENT
• Third principle of TQM – Effective involvement and utilization of the
entire workforce.
• Employee involvement is a means to meet the organization’s goals
for quality and productivity at all levels of an organization.
• For proper understanding of Employee Involvement we have to
identify MOTIVATION levels of employees for an organization.

• Abraham Maslow developed the first and
most popular motivational theories.

He stated that motivation is best explained in
terms of hierarchy and that there were FIVE
LEVELS.

Maslow’s assumptions and Levels
1. "MAN HAS AN ESSENTIAL NATURE OF HIS OWN, SOME SKELETON OF
PSYCHOLOGICAL STRUCTURE"
- consists of needs, capacities and tendencies
- some common to the human species
- some unique to the individual
- healthy development consists of actualizing this nature "GROWING FROM
WITHIN RATHER THAN BEING SHAPED FROM WITHOUT“
3. "PSYCHOPATHOLOGY RESULTS FROM THE DENIAL OR THE FRUSTRATION OR
THE TWISTING OF MAN'S ESSENTIAL NATURE“
- human beings need to develop along the lines of their inner nature
- inner nature is weak, delicate and subtle and easily overcome
- rarely disappears, but persists underground
4. HUMANS ARE BORN WITH AN "IMPULSE TOWARDS GROWTH”
- can be DISSATISFIED by an unhealthy environment

• Growth motivation is weak compared to gratify basic
needs, because two inner defenses also impede
growth:
- Jonah complex – our fear of our own possibilities
- desacralizing – denying the awesome, symbolic,
beautiful qualities of people and existence; results in
lack of trust and respect

• Level1:This level termed as Survival includes clothing, shelter
etc. An organization has to realize the basic needs for its
employee. (Other examples: proper lighting, good ventilation,
phone system)
• Level 2: This level termed as Security of work and job security
as well. It is one of the important level that if employees
considered secured then he will be fully motivated and work
with full potential. (other examples: lockable storage for
personal items, ergonomically designed furniture)
• Level 3: This level relates to Social level, we are not living in
isolation. We have to coordinate socially & working as team in
a place. Being a member of a group motivate individuals.
• Level 4: Esteem needs - Self-esteem: strength, competence,
mastery, confidence, etc. Esteem from others: respect,
desires for fame, status, attention, dignity, etc.
• Level 5: This level relates to Self-Actualization, where an
individual is performing ones job according to their abilities.

Herzberg’s Two-Factor Theory
This theory, also called the Motivation-
Hygiene Theory or the dual-factor theory, was
penned by Frederick Herzberg in 1959.
An American psychologist, who was very
interested in people’s motivation and job
satisfaction.
He developed the theory that people’s job
satisfaction depends on two kinds of factors.
Factors for satisfaction (motivators/satisfiers)
and factors for dissatisfaction (hygiene factors/
dissatisfiers).

Ideal Situation:
Take away the dissatisfaction
Create conditions for satisfaction

Factors Employee
Rating
Manager
Rating
Interesting work 1 5
Appreciation 2 8
Involvement 3 10
Job security 4 2
Good pay 5 1
Promotion / growth 6 3
Good working conditions 7 4
Loyalty to employees 8 7
Help with personal problems 9 9
Tactful discipline 10 6
What Employees Wants

Achieving a Motivated Work Force
1. Know one-selves.
2. Know your employees
3. Establish a positive attitude
4. Share the goals
5. Monitor progress
6.Develop interesting work – job rotation, job
enlargement, job enrichment
7. Communicate effectively
8. Celebrate success

voice of the employee – Through Employee feedback system (to
determine their current level of perceived empowerment)

Empowerment
• Empowerment: authority or power given to
someone to do something and also requires
individuals to be held responsible for
accomplishing a whole task.
• Empowering employees is simply giving your
employees more freedom and making them
more accountable in every task they handle. It
means giving your team members and your
employee's permission to take decisions and
actions that affect your company.

EMPOWERMENT DELEGATION JOB ENRICHMENT
1. Individual is held responsible for
accomplishing the whole task.
2 Employee becomes the process
owner-thus not only responsible
but also accountable.
3. Focuses on expanding the
context of the job such as
interactions and interdependencies
to other functions of the
organization.
It refers to
distributing
and entrusting
work to others
To expand the
content of an
individuals job

• Employee empowerment is a source by which
persons are given the authority to analyze
situations and take positive decisions.
• This creates a sense of ownership towards the
organization in the employees.

In order to create the empowered environment,
three conditions are necessary:
 Every one must understand the need for change
 The system needs to change to the new paradigm
 The organization must enable its employees

TEAMS
Difference between a group of employees and a team?
• A group is a collection of individuals who coordinate
their individual efforts.
• On the other hand, a team is a group of people who
are interdependent with respect to information,
resources, and skills and who seek to combine their
efforts to achieve a common goal.
• Teams normally have members with complementary
skills and generate synergy through a coordinated
effort which allows each member to maximize their
strengths and minimize their weaknesses.

• Team members need to learn how to help one
another, help other team members realize
their true potential, and create an environment
that allows everyone to go beyond their
limitations.
• A team becomes more than just a collection of
people when a
mutual commitment
strong
creates
sense of
synergy, thus
generating performance greater than the sum of
the performance of its individual members.

Characteristics of Successful Teams
1. Sponsor.
2. Team charter.
3. Team composition.
4. Training.
5. Ground rules.
6. Clear objectives.
7. Accountability.
8. Well-defined decision procedures.
9. Resources.
10. Trust.
11. Effective problem solving.
12. Open communication.
13. Appropriate leadership.
14. Balanced participation.
15. Cohesiveness.

Team Member Roles
A team will consist of a team leader, facilitator, recorder, timekeeper,
and members. All team members have clearly defined roles and
responsibility

Stages of Team Development
• Team development is considered as one of important factor
towards performance of an individuals.
• It is required that every individual of team know exactly
which goals needs to perform.
• Bruce Tuckerman found that there are FOUR stages of
team’s development.
1. FORMING
2. STORMING
3. NORMING
4. PERFORMING
5. ADJOURNING

Adjourning: It’s a reserve stage considered as temporary team. There is need of
evaluation & past experiences. Most companies are lacking that when participant
change for future team they don’t considered key participant or team’s
contribution. It is difficult for an organization to monitor lapses in stages.

Common barriers to team progress
• Insufficient training
• Incompatible reward & compensation
• First-line supervisor resistance
• Lack of planning
• Lack of Management Support
• Access to Information Systems
• Lack of Union Support
• Project scope too large
• Project objectives are not significant
• No clear measure of success
• No time to do improvement work

Training
• Training is an essential tool for an effective team
• It includes an experimental approach such as practical
knowledge
• Trainers characteristics are knowledgeable, enthusiasm etc
• Team should feel comfortable after training whatever role
provided
• Team leader should be receptive to suggestions and changes
warranted
• Initially, there must be strong awareness regarding training
objectives
• There must be room of suggestion, feedback needs to
accommodate
• There is need to analyze the changes in behavior & attitude
• In relation to TQM it covers group dynamics, awareness of
problem solving& technical aspects

Module 3 - TQM-18ME734.pptx

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