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  2. 2. What you will know… <ul><li>Definitions of Quality </li></ul><ul><li>Theories of Deming, Moeller and Crosby </li></ul><ul><li>Service and Product Quality </li></ul><ul><li>Customer Orientation </li></ul><ul><li>Evaluation of TQM- Inspection & QC </li></ul><ul><li>TQM System </li></ul><ul><li>Human component </li></ul>
  3. 3. Definitions of Quality <ul><ul><li>Conformance to specification </li></ul></ul><ul><ul><li>Fitness for use </li></ul></ul><ul><ul><li>Customer satisfaction </li></ul></ul><ul><ul><li>Delighting the customer </li></ul></ul><ul><ul><li>Enchanting the customer </li></ul></ul>
  4. 4. Theories of Deming, Moeller and Crosby
  5. 5. Deming’s Theory <ul><li>Deming's 14 Points </li></ul><ul><li>Create constancy of purpose to improve product and service. </li></ul><ul><li>Adopt new philosophy for new economic age by management learning responsibilities and taking leadership for change. </li></ul><ul><li>Cease dependence on inspection to achieve quality; eliminate the need for mass inspection by building quality into the product. </li></ul><ul><li>4. End awarding business on price; instead minimise total cost and move towards single suppliers for items. </li></ul>
  6. 6. Contd… <ul><li>5. Improve constantly and forever the system of production and service to improve quality and productivity and to decrease costs. </li></ul><ul><li>6. Institute training on the job. </li></ul><ul><li>7. Institute leadership; supervision should be to help do a better job; overhaul supervision of management and production workers. </li></ul><ul><li>8. Drive out fear so that all may work effectively for the organisation. </li></ul><ul><li>9. Break down barriers between departments; research, design, sales and production must work together to foresee problems in production and use. </li></ul>
  7. 7. Contd… <ul><li>10. Eliminate slogans, exhortations and numerical targets for the workforce, such as 'zero defects' or new productivity levels. Such exhortations are diversory as the bulk of the problems belong to the system and are beyond the power of the workforce. </li></ul><ul><li>11. Eliminate quotas or work standards, and management by objectives or numerical goals; substitute leadership. </li></ul><ul><li>12. Remove barriers that rob people of their right to pride of workmanship; hourly workers, management and engineering; eliminate annual or merit ratings and management by objective. </li></ul><ul><li>13. Institute a vigorous education and self-improvement programme. </li></ul><ul><li>14. Put everyone in the company to work to accomplish the transformation. </li></ul>
  8. 8. Moeller’s theory <ul><li>Claus Moeller – Concept of personal quality </li></ul><ul><li>Set personal quality goals </li></ul><ul><li>Establish own personal quality account </li></ul><ul><li>Check how satisfied others are with your efforts </li></ul><ul><li>Regard the next link as a valued customer </li></ul><ul><li>Avoid errors </li></ul><ul><li>Perform tasks more effectively </li></ul><ul><li>Utilize resources well </li></ul><ul><li>Be committed </li></ul><ul><li>Learn to finish what you start </li></ul><ul><li>Control your stress </li></ul><ul><li>Be ethical </li></ul><ul><li>Demand quality </li></ul>
  9. 9. Crosby’s theory <ul><li>Philip Crosby- “Quality is free” </li></ul><ul><li>Establish management commitment </li></ul><ul><li>Form quality improvement teams </li></ul><ul><li>Establish quality measurements </li></ul><ul><li>Evaluate the cost of quality. </li></ul><ul><li>Raise quality awareness </li></ul><ul><li>Take action to correct problems </li></ul><ul><li>Zero defects planning </li></ul><ul><li>Train supervisors and managers </li></ul><ul><li>Hold a zero defects day </li></ul><ul><li>Encourage the setting of goals for improvement </li></ul><ul><li>Obstacle reporting </li></ul><ul><li>Recognition for contributors </li></ul><ul><li>Establish Quality councils </li></ul><ul><li>Do it all over again </li></ul>
  10. 10. Service and Product Quality <ul><li>Customer satisfaction and service quality are related terms </li></ul><ul><li>How to we ensure that our customers are having a good experience? </li></ul>
  11. 11. Measuring service quality: Service Quality Reliability Responsiveness Assurance Empathy Tangibles
  12. 12. Contd… <ul><li>Reliability </li></ul><ul><ul><li>dependability </li></ul></ul><ul><ul><li>delivering on promises </li></ul></ul><ul><ul><li>accuracy </li></ul></ul><ul><ul><li>consistency </li></ul></ul><ul><li>Responsiveness </li></ul><ul><ul><li>promptness </li></ul></ul><ul><ul><li>helpfulness </li></ul></ul>Get it right the first time! and on time!
  13. 13. <ul><li>Assurance </li></ul><ul><ul><li>competence </li></ul></ul><ul><ul><li>courtesy </li></ul></ul><ul><ul><li>credibility </li></ul></ul><ul><ul><li>security </li></ul></ul><ul><li>Empathy </li></ul><ul><ul><li>easy access </li></ul></ul><ul><ul><li>good communication </li></ul></ul><ul><ul><li>customer understanding </li></ul></ul><ul><ul><li>personalised attention </li></ul></ul><ul><li>Tangibles </li></ul><ul><ul><li>physical evidence </li></ul></ul>I feel safe They listen to me People look smart
  14. 14. The Gaps Model of Service Quality Marketer Consumer Past experience Expected service Perceived service Service delivery (including pre- and post-contacts) External communications to consumers Translations of perceptions into service quality specifications Management perceptions of consumer expectations GAP 5 GAP 3 GAP 2 GAP 1 GAP 4 Personal needs Word-of-mouth communications
  15. 15. Closing the gaps <ul><li>Learn what customers expect </li></ul><ul><li>Establish the right service quality </li></ul><ul><li>standards </li></ul><ul><li>Ensure that service performance meets standards </li></ul><ul><li>Ensure that delivery matches promises </li></ul>
  16. 16. Learn what customers expect <ul><li>Use research, complaint analysis, customer panels </li></ul><ul><li>Increase direct interactions between managers and customers </li></ul><ul><li>Improve upward communications </li></ul><ul><li>Act on information and insights </li></ul>listen to customers
  17. 17. Establish the right service quality standards <ul><li>Top management commitment to providing service quality </li></ul><ul><li>Set, communicate, and reinforce customer-oriented service standards </li></ul><ul><li>Establish challenging and realistic service quality goals </li></ul><ul><li>Train managers to be service quality leaders </li></ul><ul><li>Be receptive to new ways to deliver service quality </li></ul><ul><li>Standardise repetitive tasks </li></ul>
  18. 18. <ul><li>Prioritise tasks </li></ul><ul><li>Gain employee acceptance of goals and priorities </li></ul><ul><li>Measure performance of service standards and provide regular feedback </li></ul><ul><li>Reward managers and employees for achievement of quality goals </li></ul>Service Quality Awards
  19. 19. Ensure that service performance meets standards <ul><li>Attract the best employees </li></ul><ul><li>Select the right employees </li></ul><ul><li>Develop and support employees </li></ul><ul><ul><li>train employees </li></ul></ul><ul><ul><li>provide appropriate technology & equipment </li></ul></ul><ul><ul><li>encourage and build teamwork </li></ul></ul><ul><ul><li>empower employees </li></ul></ul><ul><ul><li>internal marketing </li></ul></ul>Can I take your order?
  20. 20. <ul><li>Retain good employees </li></ul><ul><ul><li>measure and reward service quality achievements </li></ul></ul><ul><ul><li>develop equitable and simple reward systems </li></ul></ul>You are a Star Service Provider
  21. 21. <ul><li>Performance </li></ul><ul><li>Features </li></ul><ul><li>Reliability </li></ul><ul><li>Conformance </li></ul><ul><li>Durability </li></ul><ul><li>Serviceability </li></ul><ul><li>Aesthetics </li></ul><ul><li>Perceived Quality </li></ul>Eight Dimensions of Product Quality
  22. 22. Eight Dimensions of Product Quality <ul><li>1. Performance </li></ul><ul><ul><li>the primary operating characteristics of the product or service. </li></ul></ul><ul><li>2. Features </li></ul><ul><ul><li>the characteristics that supplement the basic functioning of the product or service. </li></ul></ul><ul><li>3. Reliability </li></ul><ul><ul><li>probability of the product or service failing within a specified period of time. </li></ul></ul><ul><li>4. Conformance </li></ul><ul><ul><li>the degree to which a product or service meets acknowledged standards </li></ul></ul>
  23. 23. <ul><li>5. Durability </li></ul><ul><ul><li>a measure of product life (both technical and economic). </li></ul></ul><ul><li>6. Serviceability </li></ul><ul><ul><li>the speed, courtesy, competence, and ease of repair or recovery. </li></ul></ul><ul><li>7. Aesthetics </li></ul><ul><ul><li>how a product or service looks, feels, sounds, tastes, or smells. </li></ul></ul><ul><li>8. Perceived Quality </li></ul><ul><ul><li>various tangible and intangible aspects of the product from which quality is inferred. </li></ul></ul>Eight Dimensions of Product Quality …
  24. 24. Customer Orientation <ul><li>Customer focus </li></ul><ul><li>Org. focus on </li></ul><ul><ul><li>Attracting more customers </li></ul></ul><ul><ul><li>Making them happy </li></ul></ul><ul><ul><li>Retaining them </li></ul></ul><ul><li>Quality begins and ends with customers </li></ul>
  25. 25. Customer types <ul><li>Type – 1 </li></ul><ul><ul><li>Knows not what he wants, </li></ul></ul><ul><ul><li>Knows not that he knows </li></ul></ul><ul><li>They are insignificant . But be gentle as he is easy to satisfy </li></ul><ul><li>Type – II </li></ul><ul><ul><li>Knows not what he wants, </li></ul></ul><ul><ul><li>Knows that he knows not what he wants </li></ul></ul><ul><li>Humble, teaching and training will make them knowledgeable; easy to satisfy </li></ul>
  26. 26. Contd… <ul><li>Type – III </li></ul><ul><ul><li>Knows what he wants </li></ul></ul><ul><ul><li>Knows not that he knows what he wants </li></ul></ul><ul><li>Sleeping customers; few in number; attractive advertisements will awaken them and make them understand reality </li></ul><ul><li>Tough to satisfy </li></ul>
  27. 27. Contd… <ul><li>Type – IV </li></ul><ul><ul><li>Knows what he wants </li></ul></ul><ul><ul><li>Knows that he knows what he wants </li></ul></ul><ul><li>Masters of themselves; demanding; large percentage; assume position of king; vital few group </li></ul>
  28. 28. Customer satisfaction model Delighted customers Dissatisfied customers Value addition Not available Value addition available Type A customer- without expectations Type B customers- with expectations
  29. 29. Contd… <ul><li>Customer satisfaction model relates to customer satisfaction and value addition </li></ul><ul><li>TYPE – A </li></ul><ul><ul><li>Expectations on value addition </li></ul></ul><ul><ul><ul><li>No comments when expectations are met </li></ul></ul></ul><ul><ul><ul><li>Dissatisfied when expectations are not met </li></ul></ul></ul><ul><li>TYPE- B </li></ul><ul><ul><li>No expectations </li></ul></ul><ul><ul><ul><li>Normal when expectations are not met </li></ul></ul></ul><ul><ul><ul><li>Delighted when value addition is provided </li></ul></ul></ul><ul><li>Quality strategy: provide value addition not expected by customers </li></ul>
  30. 30. contd… <ul><li>Appropriate strategy would be to </li></ul><ul><ul><li>Asses and express the unexpressed customer needs </li></ul></ul><ul><ul><li>Train people to be quality conscious </li></ul></ul><ul><ul><li>Go in for system perfection- ISO </li></ul></ul><ul><ul><li>Monitor them and look for continuous improvement </li></ul></ul><ul><ul><li>Thus C Sat is sure to improve </li></ul></ul>
  31. 31. Holistic approach to customer satisfaction model <ul><li>3 circle model to explain key factors that constitute customer satisfaction </li></ul>Human component Efficient Effective Rubber bondage Customer needs Unaccep table System component
  32. 32. Contd… <ul><li>C Sat level depends upon extent of integration of the 3 factors </li></ul><ul><ul><li>Human component </li></ul></ul><ul><ul><li>System component </li></ul></ul><ul><ul><li>Customer needs </li></ul></ul><ul><li>Human component : </li></ul><ul><ul><ul><li>Quality consciousness </li></ul></ul></ul><ul><ul><ul><li>Quality culture among employees </li></ul></ul></ul><ul><li>System component: </li></ul><ul><ul><ul><li>Infrastructure </li></ul></ul></ul><ul><ul><ul><li>Process perfection </li></ul></ul></ul>
  33. 33. Customer retention model <ul><li>Sustained satisfaction alone will retain customers </li></ul><ul><li>Customer retention is directly proportional to profits </li></ul><ul><li>This is called “lifetime retention value” </li></ul><ul><li>Developed by Joel E Ross </li></ul><ul><li>Human component need to be in order to retain customers </li></ul><ul><li>Employee satisfaction is the driver </li></ul><ul><li>Customer retention is dependent on C Sat. </li></ul><ul><li>C Sat is proportional to quality </li></ul>
  34. 34. Internal Service Quality C sat Employee satisfaction profit Customer retention External service quality Employee retention Human component CUSTOMER RETENTION MODEL DRIVER OUTCOME
  35. 35. Customer satisfaction Measurement <ul><li>Helps in planning by revealing the status at every point of time </li></ul><ul><li>It tells you where exactly you stand </li></ul><ul><li>Helps take decisions to prevent or solve customer dissatisfaction </li></ul><ul><li>CSM is done using surveys- written or oral </li></ul>
  36. 36. Evaluation of TQM- Inspection & QC Inspection: <ul><li>The act of determining conformance or non-conformance of the expected performance is the function of inspection. By inspection, a manager seeks to determine the acceptability or non- acceptability of the parts, products or services. The basis for inspection is usually a specification which is called inspection standard. Inspection is made by comparing the quality of the product to the standard. </li></ul>
  37. 37. When to inspect <ul><li>Inspection is desired at </li></ul><ul><ul><li>Finished products and parts to know that correct parts are to be assembled or products are right when shipped, </li></ul></ul><ul><ul><li>Before an expensive processing, </li></ul></ul><ul><ul><li>The out put of automatic machine periodically so that possible errors are confined to small quantities, and </li></ul></ul><ul><ul><li>Before an operation that can’t be undone, for example, in mixing paint. </li></ul></ul>
  38. 38. Frequency of inspection <ul><li>The challenge is to keep inspection costs minimum, yet realise expected quality. In certain cases every part is inspected, in which case, it is called 100 percent inspection. When it is less than 100 percent , it is called partial or sampling inspection. Parts with high value and those having tendency to run in to large number of rejects are normally subject to 100% inspection. </li></ul>
  39. 39. Quality control <ul><li>Quality control is a management system for initiating and coordinating: </li></ul><ul><ul><li>Quality development, quality maintenance and quality improvement in the various departments of design and manufacturing, for achieving the twin objectives of: </li></ul></ul><ul><ul><li>Economical production and customer satisfaction </li></ul></ul>
  40. 40. Objectives of Q C <ul><li>It is to provide products which are dependable, satisfactory and economical </li></ul><ul><li>To ensure economic production of products of uniform quality acceptable to the customer </li></ul><ul><li>Aims at preventing the defects rather than detecting the defects </li></ul>
  41. 41. Quality control Techniques <ul><li>JIT </li></ul><ul><li>Quality at source </li></ul><ul><li>Inspection </li></ul><ul><li>SQC </li></ul><ul><li>QC </li></ul><ul><li>TQM </li></ul>
  42. 42. Human component <ul><li>Quality management practices are attempted in many industries </li></ul><ul><li>The various factors that contribute to success of quality practices are </li></ul><ul><ul><li>Involvement or interest of employers </li></ul></ul><ul><ul><li>Training on quality practices </li></ul></ul><ul><ul><li>Top management commitment </li></ul></ul><ul><ul><li>Conducive work culture </li></ul></ul><ul><ul><li>Facilities for implementing quality practices </li></ul></ul>
  43. 43. Human factor is very important in the implementation of any process <ul><li>The top management commitment may be reflected in the following ways </li></ul><ul><li>The CEO will initiate quality activities in the organization </li></ul><ul><li>Funds will be sanctioned for the quality related activities </li></ul><ul><li>Training will be provided for all in the organization including the CEO </li></ul><ul><li>The CEO himself will follow quality practices first </li></ul>
  44. 44. Leadership for TQM <ul><li>A leader is expected to posses certain leadership qualities essential for leadership </li></ul><ul><li>Leadership is considered as doing right things while management is doing things right </li></ul><ul><li>Leadership is influencing the people so that all of them do the right things, the right way at the right time, willingly. </li></ul><ul><li>Leaders concentrate on people building and train them to work as a team. </li></ul><ul><li>The key word in leadership is “influencing”. The employees look at the leader’s words through patterns and works and are attracted by it. </li></ul><ul><li>A leader is said to be special and have qualities such as cool temperament, maturity, endurance, tact, decisiveness, integrity etc. </li></ul>
  45. 45. Change management <ul><li>Change is the only thing that does not change </li></ul><ul><li>Change can be externally imposed or self imposed </li></ul><ul><li>Change should come from employees rather than top management </li></ul><ul><li>Communication plays a very important role </li></ul><ul><li>Change one at a time and reap benefits </li></ul>
  46. 46. Drivers of change <ul><li>Competition in market </li></ul><ul><li>Consumer demand </li></ul><ul><li>Reduction in profit margin </li></ul><ul><li>Technological advancements </li></ul><ul><li>Limited time </li></ul><ul><li>HR problems/scarcity </li></ul><ul><li>Quality consciousness </li></ul><ul><li>Others are doing it </li></ul><ul><li>National agenda </li></ul><ul><li>Visionary leader wants it </li></ul>
  47. 47. Resistance to change <ul><li>I don’t understand </li></ul><ul><li>My workload will be more </li></ul><ul><li>Old is gold </li></ul><ul><li>As it is everything is ok </li></ul><ul><li>Against norms </li></ul><ul><li>This has failed elsewhere </li></ul><ul><li>Against my ideals </li></ul><ul><li>He is new and does not know </li></ul><ul><li>I am fed up </li></ul><ul><li>I do not get anything </li></ul>
  48. 48. Ways to change <ul><li>Define the change </li></ul><ul><li>State why it is needed </li></ul><ul><li>Tell the benefits </li></ul><ul><li>Tell success stories </li></ul><ul><li>Prepare schedule </li></ul><ul><li>Never accept or expect overnight changes </li></ul><ul><li>Involve everyone </li></ul><ul><li>Introduce changes one by one </li></ul><ul><li>Have meetings and training </li></ul>
  49. 49. End of unit….