Quality is Customer Satisfaction

ZIA AHMED DEVELOPMENTAL INITIATIVE
wwww.ziaahmedhan.com

Total Quality Management
Implementation Manual Part 1

1

zia@milestonevision.com

www.ziaahmedkhan.com

Objective
Bring About a Common
understanding of TQM
concerns.
Understand the integrated
Model for TQM
implementation.





2



Face of Today’s Reality
Concern for
Ecology

Information
Age and Global
Market

Emergence of
New Economic
Powers
Human Spirit of
Innovators Cause

Political
Realignment

Concern for
Human Rights
Growing
literate and
Knowledge
Oriented
Society

3



How Chaos Impacts Society
Changes in Environment Manifested in New Behavior of
Innovators

Observation/Experiencing by Masses/ Society

No Impact/ Wait and
see attitude

Positive Restlessness+
Proactive State

The Common Man Implementers
4

Anxiety + Reactive State

The Blockers – High
Resistance to Change

The Leaders - Innovators



Recognition
of New
Paradigms

5

Proactive State To Innovation

Experiencing
New
Behaviour

Questioning
of Existing
Paradigms

Human
Spirit
Causes
This

New
Learning
Peak
Experience “
Aha “

Creating a
Vision

Examining
Today’s
Reality

Unlearning

Dealing with
Resistance



Recognizing Need
to Change

Proactive State of a Learning
Organization

Change in
External
Environment

6

Evaluating The
Depth of External
Change

Institutionalizing
Change

Identifying New
Business Segment

Competition
Power
Un –learning
existing business
practices &
beliefs

Challenging
Assumptions of
Internal Situation

Re-aligning
business towards
new objectives

Creating a Vision
Realigning
Business
Objective



Key Influences Effecting The Business
New
Entrants

Buyers

Rivals
Your
Business

Suppliers

Substitute

7



IDENTIFY NEW BUSINESS SEGMENTS
EXISTING
BUYERS/EXISTING
PRODUCT



VOLUME
RANGE
VALUE ADDITION
NEW PRODUCTS
NEW BUYERS/EXISTING
PRODUCT
NEW BUYERS/NEW
PRODUCT
BACKWARD
INTEGRATION
FORWARD INTERSRATION
STRATEGIC SOURCING

8



CHALLENGE TODAYS BUSINESS
ASSUMPTION & PRACTICES
Customer definition
Technology
Method
Materials
Org. structure





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

9



VISION CONCEPT


Vision is a dream created in our waking hours of how we would
like the organization to be. It can be described as a living picture
of a future. It is inspired by the values that we cherish.

10



Process of Creating a Shared Vision

Top Team
Critical Mass

The
Pyramid

Top Team
Critical Mass

Other Employees
The Pyramid
with Critical
Mass
11



Process of Creating a Shared Vision


Shared Vision
Organization



Stakeholder

The organization with shared vision enrolling
other share holder and stake holder

12



Mission Statement


It is a statement of what business we are in and sometimes
out ranking in that business as also the competitive advantage
that we want to have over the others. The mission statement
names the game we are going to play e.g.. To market health
care products that have a demonstrable health benefit to the
customer to be the leader in each product line, to return a fair
profit to our stock holders and to provide good opportunities
to our employed.
Purpose of Organization
It’s Reason for Existence

13



WHAT IS A STRATEGIC POSTURE?


STRATEGIC POSTURE IS THE UNIQUE STANCE THAT THE
ORGANIZATION TAKES TO GAIN A CUTTING EDGE IN THE
MARKET PLACE.
Vision
Mission

Strategic
Posture

Reality
14



CRITICAL QUESTIONS FOR ARRIVING AT STRATEGIC
POSTURE






What stance does your origination ‘s competitive advantage?
What are your organization’s focus areas?
What is your Organization’s unique selling point (USP)
What is your approach to competition?
What are the driving forces in your organization









15

Is it low cost…
Is it the product offered…
Is it based on market/customer needs…
Is it technology/body of knowledge…
Is it your production/delivery capabilities…
Is it your method of sale…
Is it your method of distribution…
Is it natural resources…


STRATEGY PLAN IMPLEMENTATION







What should I do to plan?
How should the plan be implemented?
What resources do I have/need to implement the plan?
What could be my measurable tangible results after
implementation?
What immediate/shorter – term opportunities exist to
achieve early tangible results?

16



Vision
External Environment
• Macro Environment
• Segment Attractiveness
• Competitor Analysis
Identification of Key
Success Factors

Internal Environment
• Product Portfolio Analysis
• Value Chain Analysis
• Financial Analysis

Mission
Business
Objective

Identification of Core
Competencies

Consolidation & Gap Analysis

Strategic Options
Strategic Plan Formulation

The Approach To Strategy Formulation
17



The Common Perception


It is often uneconomical to make quality improvement
since it brings down productivity, increases cost and
investment.

18



In Reality






It may be possible to
improve quality
continuously without
reducing productivity and
increasing cost.
AS W.E. Deming says:
“Productivity goes up and
cost comes down as
quality goes up. This fact
is well known, but only to
a selected few.”
19



What does it involve?
Participants Response

TOTAL QUALITY MANAGEMENT

20



Elements of TQM






People
Appropriate Technology
Problem Solving
Tools/Procedures
Continuous Improvement

21



22



TQM – A Definition


TQM is an integrated organizational approach in
delighting customers (both external and internal) by
meeting their expectations on a continuous basis through
everyone involved with the organization working on
continuous improvement in all products, services and
processes along with proper problem solving
methodology.

23



Quality Target is 100%
 Not Even 99.9%

Because 99.9 % Might
Mean

For India






At least 1, 60,000 wrong prescriptions each year
More than 1, 20,000 new born babies accidentally dropped by
doctors each year
Unsafe drinking water almost 1 hour each month
2 – 3 rail accidents every day
The heart stopping for 8.76/year
24



What is quality

25



Quality Definition






THE OLD VIEW: CONVENTIONAL QUALITY
Products and Services that are provided exactly to
specifications.
THE NEW VIEW: TOTAL QUALITY
Products & Services that totally satisfy our customer need
& expectations in very respect on a continuous basis.
Products & Services that totally satisfy our customer need
& expectations in very respect on a continuous basis.

26



It is in fact to delight customers
Quality Then is to Satisfy Customer Need

27



Quality is not Expensive – It is Priceless
“A customer is the most important visitor on our premises
He is not dependent on us. We are dependent on him
He is not an interruption to our work He is the purpose of
it.
He is not an outsider in our business. He is a part of it.
We are not doing him a favor By serving him
He is doing him a favor by giving us an Opportunity to do
so.”
Mohandas K. Gandhi

28



Kano’s Model of Customer satisfaction

Expected Features





DEGREE OF ACHIEVEMENT
EXPECTED FEATURES
FUNDAMENTAL FUNCTIONS MUST BE PRESENT
ABSENCE DISSATISFIES, PRESENCE DOES NOT SATISFY

Performance Features


CREATED SATISFACTION IF CUSTOMER’S EXPECTATIONS ARE EXCEEDE
(DISSATISFATION IF THEY FALL SHORT)

EXCITEMENT FEATURES




INNOVATIONS BEYOUND CUSTOMER’S AWARENESS
EVEN MINOR ITEMS. IF PERCEIVED BY CUSTOMERS AS SUPERIOR VALUE.
CAN ENHANCE MARKET SHARE.
MUST BE BASED ON INTIMATE KHOWLEDGE OF CUSTOMER PRODUCT
FUNCTION & USAGE CONDITIONS TO BE SUCCESSFUL.`
29



Service Quality Internal Customer Orientation and
Service




OBJECTIVES
To understand Total Quality Service
To understand internal Customer Orientation

30



Some ifs, And or Buts About Quality
If the new laptop you ordered arrives defect free so that its quality is as good
as can be, and the installer has skills irreproachable. So that 'service quality'
is a matter un-broachable.
But it arrives a bit late six months to the day- In a box that seems to have
passed through Pompei, While the invoice, of course, has glided right through
(It's the kind of thin,;] kid gloves handling can do)
And the ,invoice numbers, though crisp and precise, Contain a slight defect:
they don't match the price,
At-least not the price you agreed to when you talked to the store And were
treated like. a bother, and a nuisance, and a bore. So you call to flag the billing
mistake and ask them to reconsider- it. And are told: Could you call back after
lunch? Be a bit more considerate? Then you fuss and fume and wait to call
back your question.
Adjusting your schedule revising your plans to accommodate their digestion.
Then you pick up the manual, triggering your fondest single wish, Not that it
be shorter or simpler. but that at least it be in English.
When such things happen. are you so discerning. viewing things with a
jeweler eye?
31



Do you say 'Great product' too bad about your:








Delivery ...
and packing ....
and sales billing ..
and scheduling .
and telephone answering
....
and documentation
problems ...

Or do you simply
say, 'GOOD - BYE'?
32



PRODUCTS Vs. SERVICES




in delivering products, the
quality is visible only when
the products are made
and sold !
In providing services, the
customer joins the
supplier in the production
process! (e.g. Hair Cut).

33



OUTSTANDING SERVICE QUALITY IS A MUST FOR
COMPETITIVE EDGE IN THE MARKET

34



OUTSTANDING SERVICE QUALITY IS POSSIBLE ONLY
THROUGH AND ORGANISATION WIDE CONCERTED EFFORT
TO MAKE IT CUSTOMER DRIVEN AND SERVICE ORIENTED

35



Consumer
Research

Continuous
Improvement
Through PDCA

Vision, Mission,
Strategy

Total
Quality
Service

Improvement
Management
through
Empowerment

Education ,
Training &
Communication

36

Service Recovery
& Service
Guarantee

Excellence in
Service
Encounters



CHALLENGES OF HIGH QUALITY SERVICE





Understanding our customers and their expectation of us.
Defining our strategy our mission or goal in terms of
customer expectations
Delivery systems accessible and approachable
People selected, trained, empowered and rewarded for
providing exceptional service to the customer.`

37



THE VOICE OF THE INTERNAL CUSTOMER


GET IT RIGHT INSIDE THE
COMPANY FIRST - IF WE
FAIL TO GET IT RIGHT WE
CANNOT MEET THE NEEDS
OF THE EXTERNAL
CUSTOMER.

38



ATTENTION SHOULD BE PLACED ON THE
INTERNAL CUSTOMER FIRST

TQM IS DOING THE RIGHT JOB.

39



IS HE DELIGHTED?
WHO IS YOUR CUSTOMER?
40



WHO IS THE CUSTOMER
The next person (individual of function/group) in the work
place; the receiver of output and the next to act on it.

A customer may be either external or
internal.



External customers are those who buy our
products/services.
Internal customers. are individuals/departments who use
our output as their input and we become their suppliers.

41



Example of Internal Customers
Supplier Department
Purchase

Customer Department
Operations/ Manufacturing

Manufacturing
Product Management
Finance

Marketing
Sales
Manufacturing , Marketing,
Sales etc.

42



THE QUALITY CHAIN




In an organization all of us
are both supplier and
customer to one another
like a chain.
Customer Orientation
means keeping customer
requirement in minds.

Outside Organization
External Customer

Supplier - Customer

Supplier - Customer

Customer - Supplier

External Supplier
Outside Organization
43



The customer wants ………






Right Quality
Right Quantity
Right Time
Right Cost

44



The Definition

Customer


Anyone dependent on you
for supply of goods or a
service.

45

Supplier


People who supply you
what you need in order
for you to do your job.



MEETING CUSTOMER REQUIREMENTS

46



Quality is Cooperation

47



Quality is Teamwork

48



TEAMWORK

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



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

All team members actively participate.
Members communicate openly.
Conflict is effectively managed.
Domination by one or two members is avoided.
Decisions are critically analyzed.
All members share team leadership.
Disruptive behavior is confronted by the team.
Team membership is rewarding and enjoyable.

49



50



ZIA AHMED DEVELOPMENT INITIATIVE
WWW.ZIAAHMEDKHAN.COM
 zia@milestonevision.com
 WE ARE JUST CLICK AWAY
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 Small Business , Big Opportunities
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• Shariah Compliant Acquisition Structures
• Feasibility Studies
• All Your Corporate Finance Needs
51



Quality is Customer Satisfaction

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