TQM Chapter 8

Customer Focus & Customer Satisfaction
Chp- 8
Sec- I
Authors
DR. GUNMALA SURI

DR. PUJA CHHABRA SHARMA
Total Quality Management

Dr. Gunmala Suri & Dr. Puja Chhabra Sharma
Chp- 8
Sec- I
Section - II
Chapter
8
Customer Focus
& Customer
Satisfaction
Chp- 8
Sec- I
INTRODUCTION
In TQM perspective, a customer is anyone who receives
and uses what an organization or individual provides. This
definition
indicates
an
important
dimension-that
customers are not beyond the organization. They are not
just outside the organization that supplies goods and
services but also within it. TQM concept tries to point that
everybody in any organized endeavor has customers.

Chp- 8
Sec- I
CUSTOMER FOCUS
The customer of any assembly line worker is the worker to
whom he/she provides the goods or services. A doctors
customer is a patient. A teachers customers are students.
It is imperative that all internal customers are satisfied to
ensure complete satisfaction of the external customers. If
one of the customers is dissatisfied, he/ she can create
havoc in business process. One of the basic requirements
of TQM is to pro-actively satisfy demands of internal
customers. The specifications of a requirement made by
the internal customers should, ultimately, satisfy the
external customer.

Chp- 8
Sec- I
CUSTOMER QUALITY
One of basic concepts of TQM philosophy is continuous
process improvement. This concept implies that there is no
acceptable quality level because the customers needs,
preferences and expectations are constantly changing.
The American Society for Quality conducted a survey on how
end-users perceive improvement. The survey listed out the
factors that influence a customers buying decisions. These
are:
Performance
Features
Service
Warranty
Price
Reputation
Chp- 8
Sec- I
CUSTOMER FEEDBACK
Customer feedback must be continually solicited and
monitored. Customers change all the time, as do their
minds and expectations. Customer feedback is an
ongoing and active probing of the customers mind.
Feedback enables to:
Discover customer dissatisfaction.
Discover relative priorities of quality.
Compare its performance with competition.
Determine improvement.

Chp- 8
Sec- I
Purpose of Feedback
Discover Customer Dissatisfaction

Discover Relative Priorities of Quality
Compare Performance With Competition
Identify Customers Needs
Determine Opportunities for Improvement

Chp- 8
Sec- I
SERVICE INDUSTRY AND QUALITY

Service is a major sector in world economy today in
complex international economy. More services are
demanded to address problems of law, health, accounting
and education. These are professional service areas that
parallel retail stores, financial institutions and charitable
organizations.
The challenge of business is to deal effectively with
customers. Customer standards are usually transitory and
changing. Identifying and controlling the factors that
govern standards is difficult. The challenge of service is
translating customer needs such as timeliness,
cleanliness and friendliness into service standards.
Chp- 8
Sec- I
VALUE IN SERVICE INDUSTRY

Like their manufacturing counterparts more successful
service organizations have adopted a new model since the
1980s. They have shifted emphasis from optimizing assets
to customer satisfaction. Emphasis has shifted from olddesign manufacturing to making core technology flexible
making responsible the front-line employees to satisfy
customers.
Service standards are more demanding because
customers are becoming increasingly sensitive to quality.
The focus has shifted from efficiently measured service
items to a more flexible model of responding to a more
quality sensitive customer. Quality processes are directly
related to value.
Chp- 8
Sec- I
BUYER-SUPPLIER RELATIONSHIP
Every company purchases products, supplies or services
frequently which equal to around 50 per cent of its sales.
Many of these companies follow the lowest bidder
practice where price is the critical decision making
criterion. But the focus on price, is shifting as companies
have begun to realize that careful concentration of
purchases, together with long-term supplier-buyer
relationships will reduce costs and improve profit. Deming
realized this and suggested that a long-term relationship
between purchaser and supplier is necessary for the best
result.

10
Chp- 8
Sec- I
Several guidelines will benefit both supplier and the

customer from a long term partnership. These are:
Implementation of TQM by Supplier and Customer
Long- term Commitment to TQM
Supplier Base
Involve Suppliers in Research, Development and
Design

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Chp- 8
Sec- I
CUSTOMER SATISFACTION
Satisfying customers requires adoption of PDCA. Every
organization needs to carry out PDCA as given below:
Plan for satisfying customers,

Implement identified measures,
Check whether they are really satisfied,
If not take corrective action,
If so take preventive action.

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Chp- 8
Sec- I
Service quality is also very important for customer

satisfaction. It is applicable to every organization,
irrespective of the nature of business, whether engaged in
manufacturing the products or providing services. We will
discuss the following in this regard:
Service Quality,
Customer Delight,
Kano Model,
Agreed Customer Requirement,
Customer Perceived Quality; and
Customer Feedback and Complaints Resolution.

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Chp- 8
Sec- I
Definition
Definition of service as per international standard ISO 9000
is as follows:
The results generated, by activities at the interface between
the organization and the customer and by the organizations
internal activities, to meet customer needs. The result
generated in case of manufacturing is a product. In case of
service, it may be a product or may not be a product.
There are numerous service providers, such as colleges,
schools, Internet cafes, hospitals, restaurants, hotels, banks,
government departments, transport organizations, insurance
agencies, chartered accountants, publishers, software
organizations,
telecommunication
services,
security
services, housekeeping services, taxi services etc.
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Chp- 8
Sec- I
CUSTOMER ORIENTATION
Any organization should identify customers and orient
their business towards satisfying the customers.
Customer orientation means, running a business with the
sole motive of serving more and more customers and
satisfying them. This happens when there is a win-win
situation between the organization and the buyer. The
business will be successful only if it can give the highest
return on investment. This is possible only if the
enterprise is oriented towards customers.

15
Chp- 8
Sec- I
KANO MODEL
Kano Model is very interesting depiction of how an
unsatisfied customer can be turned to a satisfied
customer by properly implementing quality goals. In
bottom left quadrant lies the most unsatisfied customer.
This can be because of many reasons. The product is not
fulfilling customer need or the product is not matching his
expectations. When the customer moves to the bottom
right quadrant then he is just a mute buyer of the product.
He may be buying the product because that is his
necessity. The product is just fulfilling certain basic needs
of the customer. This can be compared by how customers
must have been feeling when Ambassador and Fiat cars
were the only major brands available in the Indian market.
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Chp- 8
Sec- I
KANO Model

17
Chp- 8
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Kanos Three Levels of Quality

Basic Quality
Performance Quality &
Excitement Quality
Each level indicates different type of responses from the
customer in relation to particular product or service.

18
Chp- 8
Sec- I
CUSTOMER REQUIREMENTS
It is not easy to comprehend and understand customer
requirements. In service industry customer requirements
are unique and they change in each case. Hence it is
imperative that companies must invest time and money in
this context. In the absence of knowledge of exact
customer requirements no projects can succeed & may
result in failure, legal cases and uncalled for
correspondence. The organizations should therefore
invest enough funds for ascertaining exact requirements
of the customers.

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Chp- 8
Sec- I
MEASURING CUSTOMER SATISFACTION

Unless an organization evolves methods for measuring
customer satisfaction and quantify the results, it may be
difficult to say whether the customers are satisfied and
whether customer satisfaction is improving. It is essential
to measure customer satisfaction so as to stay ahead of
competition. Each business unit has to conduct its
business in a way that it is able to achieve more customer
satisfaction than its competitors at all times. To face and
win the competition, every organization should continue
to improve their products and services and attain higher
levels of customer satisfaction.

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Chp- 8
Sec- I
End of Chapter
8
THANKS
PPTs By: Afaque Alam

21

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Customer Focus & Customer Satisfaction

DR. GUNMALA SURI

Total Quality Management

Customer Focus & Customer Satisfaction

Customer Focus & Customer Satisfaction

Total Quality Management

Customer Focus & Customer Satisfaction

Total Quality Management

Customer Focus & Customer Satisfaction

Customer Focus & Customer Satisfaction

Total Quality Management

Customer Focus & Customer Satisfaction

Discover Customer Dissatisfaction

Total Quality Management

Customer Focus & Customer Satisfaction

SERVICE INDUSTRY AND QUALITY

Customer Focus & Customer Satisfaction

VALUE IN SERVICE INDUSTRY

Customer Focus & Customer Satisfaction

Total Quality Management

Customer Focus & Customer Satisfaction

Several guidelines will benefit both supplier and the

Total Quality Management

Customer Focus & Customer Satisfaction

Plan for satisfying customers,

Total Quality Management

Customer Focus & Customer Satisfaction

Service quality is also very important for customer

Total Quality Management

Customer Focus & Customer Satisfaction

Customer Focus & Customer Satisfaction

Total Quality Management

Customer Focus & Customer Satisfaction

Customer Focus & Customer Satisfaction

Total Quality Management

Customer Focus & Customer Satisfaction

Kanos Three Levels of Quality

Total Quality Management

Customer Focus & Customer Satisfaction

Total Quality Management

Customer Focus & Customer Satisfaction

MEASURING CUSTOMER SATISFACTION

Total Quality Management

Customer Focus & Customer Satisfaction

Total Quality Management

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