Upload
markedsingle
View
129
Download
11
Tags:
Embed Size (px)
DESCRIPTION
it tackles about the principles of tqm as well as its strategies in attaining TQM
Citation preview
TOTAL QUALITY MANAGEMENT:
Principles and Strategies
TQM: Principles and Strategies: Customer Satisfaction Employee Involvement Process Approach Continuous Process Improvement
Supplier Partnership Performance Measures
Customer Satisfaction
Customer• greatest need of any organization• should be satisfy
Customer Satisfactiona.Service Quality b.Customer Delightc.Kano Methodd.Agreed Customer Requiremente.Customer Perceived Qualityf.Customer Feedback and
Complaints Resolution
Customer Satisfaction
A. SERVICE QUALITYService (ISO 9000)
“results generated, by activities at the interface between the organization and the customer and by the organization’s interval activities, to meet customer needs”
Customer Satisfaction
A. Features of Service: Speed Delivery Schedule Care in Handling Each service offering is different Customer requirements are difficult to
comprehend Difficulty in estimating cost Difficulty in measuring performance of
service
Features of Service
Speed - as fast as possible without compromising on quality
Delivery Schedule - directly delivered to the customer - quite critical in the service industry
Care in handling - extreme care handling of both the deliverables as well as the customer
Features of Service
Each service offering in different - fulfill the individual needs of customer
Customer requirement are difficult to comprehend - efforts to understand the requirements of each customer correctly
Difficulty in estimating cost - organization must have system (simple & unambiguous) for assuring at charges for each offering
Features of ServiceDifficulty in measuring performance of service
Menachineethodsaterials
Features of Service
Difficulty in Marketing Service - straight forward approach (manufacturing) - personal contacts with potential buyers and building credibility of the organization by good services consistently
Psychology of customer
“Better to lose a customer by telling the truth rather than getting a customer by giving false promises”
Customer Satisfactiona.Service Quality b.Customer Delightc.Kano Methodd.Agreed Customer Requiremente.Customer Perceived Qualityf.Customer Feedback and
Complaints Resolution
B. Customer Delight
Customer Attrition “if the product is good then customer will come back (again)” “if not, the product will come back (returned)”
According to Tom Power: Customer leave because:
Quality problem (15%)Higher price (15%) Didn’t enjoy business w/ the organization (70%)
Customer Delight
50 % of problem are due to misunderstood requirement
Contractual and Non-contractual requirement of customer Contractual requirement:
• quality: service/product• time schedule of delivery• price• service• document support• training support
Customer Delight
Non-contractual requirement:• quality (not document before)• implied requirement• value of the money spent• environment of conducting business• friendliness of the customer service
personnel of the organization
Customer Delight
Customer Contact Personnel - must be C-O-M-F-O-R-T
C aring
perceived to be very interested in finding out the real needs of the customerO bservantgood observer
Mindfulsensitive to urgency and the expectation of the customer
Customer Delight Continuation….
F
O
R
T
riendlygreet them with a smile
bliginganswer the customer queries
esponsiblefulfilling the quality requirements
actfulcustomer understand and cooperate in completing the job successfully
Customer Satisfactiona.Service Quality b.Customer Delightc.Kano Methodd.Agreed Customer Requiremente.Customer Perceived Qualityf.Customer Feedback and
Complaints Resolution
C. The Kano Method
The Kano Method1. Basic quality/Threshold
- expects that his requirements will implemented in any case
2. Performance quality - satisfaction proportionate of the product - better the performance, the greater the
satisfaction
3. Excitement Quality - received some feature or attribute that
they did not expect or think of - basic feature must be provided
Customer Satisfactiona.Service Quality b.Customer Delightc.Kano Methodd.Agreed Customer Requiremente.Customer Perceived Qualityf.Customer Feedback and
Complaints Resolution
D. Agreed Customer Requirement
1. Invest time for understanding customer requirements2. Find out the right requirement first.3. Checklist for eliminating communication
gap.4. Review the contract/requirements.5. Foresee and provide for amendments6. Documented Policy.7. Code of good customer handling practices.
Customer Satisfactiona.Service Quality b.Customer Delightc.Kano Methodd.Agreed Customer Requiremente.Customer Perceived Qualityf.Customer Feedback and
Complaints Resolution
E. Customer Perceived Quality
1. No hard and fast rule for identifying measures
2. Identify vital few measures3. Arrive at quantitative indices4. Measure for customer satisfaction
a. Customer perceived qualityb. Response timec. Errors in documentationd. Errors in deliverye. Delay in executionf. Delay in delivery
Customer Satisfactiona.Service Quality b.Customer Delightc.Kano Methodd.Agreed Customer Requiremente.Customer Perceived Qualityf.Customer Feedback and Complaint
s Resolution
F. Customer Feedback and complaints resolution
Customer FeedbacksComplaints resolutionComplaints Recovery process
Customer Feedbacksa.Feedback form
- giving a response sheet- simplified to enable the customer to fill up
with the least difficulty.b. Confidentiality - assure the customer that the feedback will be kept confidential.
- customer will five a free and frank feedback.c. Display Results
Benefits: Customer; know that feedback where seriously by the organization. Employee; know where they really stand.
F. Customer Feedback and complaints resolution
Customer FeedbacksComplaints resolutionComplaints Recovery process
Complaints resolution
1. Register of complaints Reasons:
a. keep track of the complaintsb. carry out root cause analysis and
take corrective action immediatelyc. take preventive actiond. find out the cost of poor quality and
other statistical purposes.2. Analyze Independently
- open mind and try to analyze3. Give benefits of doubt to customer
- doesn’t mean that the organization always yields to the customer.
4. Satisfy annoying customer- diplomatic handling the annoying
customers and send them back as early
as possible.Compliant Recovery process - process for recovering complaints, process them, communicating to customer and resolving the issues. - aimed at satisfying customers, resolving problem and taking preventive actions.
TQM: Principles and Strategies: Customer Satisfaction Employee Involvement Process Approach Continuous Process Improvement
Supplier Partnership Performance Measures
EMPLOYEE INVOLVEMENT
“Employee is the strength of an organization, prime contributors to its success and the only expandable resource in the organization”
TQM principles pertaining to Employee involvement:
Employee motivationTeamworkTraining & mentoringRecognition and rewardFeedback and performance appraisalEmpowerment
EMPLOYEE MOTIVATION
• Continue to do their bestTop Notch 5-
10%
• Motivation levels depend on management strategies
Fence sitters 80-90%
• Do want to get motivatedDifficult to
improve 5-10%
TEAMWORK working together fulfill the basic expectation of employees
1. Teamwork is not a natural human function - effort should be made to put together compatible person
2. Management’s Role - giving a clear definition of the following:
a. responsibilityb. authorityc. wherewithal for accomplishing the taskd. criteria of measurement of the work
output
3.Effective communication Communications in Three Way Process: employee is working for supervisor or manager
person working for him – subordinate person one work with peer, counterparts, customer and suppliers.
TRAINING AND MENTORING Necessity for orientation training is to understand: objective of the organization requirement and expectation from his team his role and responsibilities his authority know-how and know-why-jobs to undertaken
on day to day basis. familiarity and skill in operating the
tool/machinery MENTORING - continuously coaching about the job to understand the organization policy, objective and goals
RECOGNITION AND REWARD- aim at transforming each employee as performer and an achiever.
Attributes for selection of best performing (ETDC, Chennai):
Commitment Creativity Flexibility Adaptability Determination Responsibility
FEEDBACK & PERFORMANCE APPRAISALs
Feedback essential both employee & management more humane to be curious to know about the
result of an action employees from management, vice versa analyze to be a good input for the next
decision to be taken
FEEDBACK & PERFORMANCE APPRAISAL
Strategies:a. Management by walking around concept (MBWA)
- talk to employees and get feedback both from verbal communication as well as their body language.
- direct feedback in the action taken - informal discussions and put the employee at
ease
b. Quality council - encourage the member to talk freely
FEEDBACK & PERFORMANCE APPRAISAL
Performance Appraisal - used for the development of the employee - used for:
a. promotionb. granting additional incrementc. training of employeed. reallocation of duties etc.
EMPOWERMENT an organizational state, where people are
aligned with business direction and understand their performance boundaries, thus enabling them to take responsibility and ownership while seeking improvements, identifying requirement.
EMPOWERMENT
Steps involved in empowerment:I. Agree on what they will produce or carry
outII. Decide how to organize the team.III.Decide on the responsibility within the
team.IV.Decide on flow of work.V. Audit the process.VI. Decide on improvement and restart
TQM: Principles and Strategies: Customer Satisfaction Employee Involvement Process Approach Continuous Process Improvement
Supplier Partnership Performance Measures
PROCESS APPROACH - right strategy to be adopted for practicing quality as well as management of organization.
Process - repeatable sequence of events
PROCESS APPROACH
Input/s to the process
Outputs of the process
Process/Task
PROCESS APPROACH
Input of process: Bill of materials Specification-
materials Requirement for
inspection Procedure for
receipt of materials
Output of processProduct/service-deliverDocumentsSpecificationMethods of measurementCriteria for acceptance
Value addition in the process - machinery, infrastructure or techniques for achieving the desired value addition.
PROCESS APPROACH
Input Entry Task Exit Output
EXT Model
Condition to be satisfied before the task is undertaken
Condition to be fulfill before the task is considered as completed
PROCESS APPROACH
Subburaj’s 6S model for process improvement
Study
Streamline
Simplify
Standardize
Synergy
Strengthen
Process of Improvement
TQM: Principles and Strategies: Customer Satisfaction Employee Involvement Process Approach Continuous Process Improvement Supplier Partnership Performance Measures
Continuous Process Improvement Juran’s Trilogy Kaizen Kaizen blitz 5S Practice Three MU’s The Seven Deadly Wastes Business Process Reengineering
Juran’s TrilogyQuality PlanningQuality ControlQuality Improvement
Kaizen - gradual, orderly and continuous improvement - activities: maintenance and improvement - principles:
a. workplace effectiveness (5S tools)b. elimination of waste, strain and
discrepancy (The Three MUs)c.Standardization
5S Tools
Japanese English
Seiri SortSeparate out all unnecessary things
Seiton Straighten Arrange the essential things in order
Seison ScrubKeeping machinery and working environment clean
Seiketsu SystematizeMake cleaning and checking as routine practice
Shitsake StandardizeStandardize the previous four steps
Three MUsMuda WasteMuri StrainMura Discrepancy
THE SEVEN DEADLY WASTE1. Overproduction waste2. Waste due to waiting3. Transportation4. Processing Waste5. Inventory waste6. Waste of motion7. Product Defects
Business Process Reengineering - fundamental rethinking and radical redesign of business processes to achieve dramatic improvement in critical contemporary measures of performance.
TQM: Principles and Strategies: Customer Satisfaction Employee Involvement Process Approach Continuous Process Improvement
Supplier Partnership Performance Measures
Supplier Partnershipa. Importance of supplier - quality raw materials= quality finish products.b. Supplier Selection - ISO 9000 or similar standardsc. Supplier standardsd. Involvement of supplier in developmente. Product Auditf. Vendor Rating systemg. Price Ratingh. Delivery rating
TQM: Principles and Strategies: Customer Satisfaction Employee Involvement Process Approach Continuous Process Improvement
Supplier Partnership Performance Measures
Performance Measures 1. PDCA for measurement 2. Balanced Scorecard 3. Performance Based management system
Plan
Do
Check
Act
Possible measures are identified
What will be measured?Who will measure?When it will be measuresHow?
Results are counter check through other means
Adaptation
PDCA for measurement
Objective Measure Target Initiatives
Financial
Customer
Initial business process
Learning & Growth
What strategy must be achieved & what is critical to its success?
How success will be measured and tracked?
Performance expectation
Key initiative required to achieve objective
Performance Based Management System
Thank you