TOTAL QUALITY MANAGEMENT PRINCIPLE 2: CUSTOMER FOCUS

Quality for customer satisfaction means: a) Using customer’s perspective; b)Meeting or exceeding customer expectations; c)Anticipating future needs of the customer

Who is the Customer? 1) External Customer – one who purchases/uses the product or service, or one who influences the sale of the product or service. The external customer falls into 3 categories the current, prospective and lost customer. 2) Internal customer – every person in a production process is considered a customer of the preceding operation. Each worker’s goal is to make sure that the quality meets the expectations of the next person.

Dealing with the Internal Customer The formula for successful internal customer/ supplier relationships varies. But it always begins with asking three basic questions. i.What do you need from me? ii.What do you do with my output? iii.Are there any gaps between what you need and what you get?

Customer Perception of Quality Quality is judged by customers. Thus quality must take into account all product and service features and characteristics that contribute value to customers and lead to customer satisfaction, preference and retention.

T he American Society for Quality (ASQ) surveys perceptions of important factors: 1) Performance – fitness for use. Other considerations include (1) availability, which is the probability that a product will be there when needed; (2) reliability, which is freedom from failure over time; and (3) serviceability, which is the ease of keeping the product operable. 2) Features (add-ons) – these may be physical, time-oriented, contractual, ethical or technological.

3) Service – this is an intangible requirement by customers and may differentiate between purchasing a service/product in one place relative to another – a way of serving the customer better. 4) Warranty – it represents an organization's public promise of a quality product backed up by a guarantee of customer satisfaction. It also represents a public commitment to guarantee a level of service sufficient to satisfy the customer.

5) Price – Today’s customer is willing to pay a higher price to obtain value. On-going efforts must be made by everyone having contact with customers to identify, verify and update each customer’s perception of value in relation each product and service. 6) Reputation – Total customer satisfaction is based on the entire experience with the organisation.

Getting Customer Feedback/ Collecting Customer Information Feedback enables the organization to: i.Discover customer dissatisfaction ii.Discover relative priorities of quality iii.Compare performance with competition iv.Identify customer needs v.Determine opportunities for improvement

Ways of getting customer feedback/ information Comment card – to give feedback on a specific service/product Report card – A quarterly report card could be sent to repeat customers. Customer questionnaire – by mail, in person or via phone Focus Groups – A group of customers is assembled in a meeting room to answer a series of questions/discuss issues.

Ways of getting customer feedback/ information Customer visits – An organization can proactively monitor a product’s performance while in use thereby identifying any specific or recurring problems. Employee feedback – They can offer information and insights about conditions that inhibit service quality, and can also brainstorm on ideas to address those problems.

Online feedback – Internet users can use given feedback online possibly on a company’s website Imprint analysis – Imprint refers to the collection of associations and emotions unconsciously linked to a word, concept or experience. Managers acting as customers – Managers can act as customers of their own establishments in order to understand customer needs better.

Process vs. Customer  Customer complaints are often as a result of process variation.  From the company’s viewpoint, customer satisfaction is the result of a three-part system: (1) company processes (operations); (2) company employees who deliver consistent product or service and (3) customer expectations.

Process vs. Customer The overlap represents the extent to which customer satisfaction is achieved. The objective is to make this area as large as possible and ultimately make all three circles converge into an integrated system

10 Key Excellence Indicators for Customer Satisfaction 1) Service standards derived from customer requirements 2) Understanding customer requirements Thoroughness/objectivity Customer types Product/service features 3) Frontline empowerment 4) Strategic infrastructure support for frontline employees

10 Key Excellence Indicators for Customer Satisfaction 5) Attention to hiring, training, attitude, morale for frontline employees 6) High levels of satisfaction – customer awards 7) Proactive customer service systems 8) Proactive management of relationships with customer 9) Use of various listening posts  Surveys, product/service follow-ups, complaints, turnover customers, employees

10 Key Excellence Indicators for Customer Satisfaction 10) Quality requirements of market segments  Surveys that go beyond current customers  Commitment to customer (trust/confidence/ making good on word)