TOTAL QUALITY

MANAGEMENT
PRESENTATION

Presented to
Sir. Sibtay Aamir
PRESENTED BY:

FATIMA AKHTER-V
SANA IMTIAZ- VII
CUSTOMER FOCUS
AND SATISFACTION
Contents
• Customer Focus. • Can and Should CS be
• Customer Satisfaction. Measured?
• Process Vs Customer. • Major Issues in CS
• Measurement .
Internal Customer
Conflict. • Possible Reasons for
• Defining Quality. Measuring CS .
• • The Role Of
A Quality Focus. Marketing And Sales.
• Break points. • The Sales Process.
• A central theme. • Service Quality And
• The driver of Customer Retention.
customer satisfaction. • Customer Retention
• Getting employee And Profitability.
input. • Buyer-Supplier
Relationships
Customer Focus.
• It is important to focus on customer by
any organization to lead in the market.

• Many companies today have a customer

focus (or customer orientation). This
implies that the company focuses its
activities and products on consumer
demands.

• There are three ways of doing this: the

customer-driven approach, the sense of
identifying market changes and the
product innovation approach.
Contd…
• In the consumer-driven approach,
consumer wants are the drivers of
all strategic marketing decisions.
No strategy is pursued until it
passes the test of consumer
research.
• A formal approach to this
customer-focused marketing is
known as SIVA (Solution,
Information, Value, Access).
Contd…
• The SIVA Model provides a
demand/customer centric version
alternative to the well-known 4Ps
supply side model (product, price,
place, promotion) of marketing
management.

• Product -> Solution

Promotion -> Information
Price -> Value
Place ->Access
Customer Satisfaction
• Customer satisfaction, a business
term, is a measure of how
products and services supplied by
a company meet or surpass
customer expectation.
• It is seen as a key performance
indicator within business and is
part of the four perspectives of a
Balanced Scorecard.
Process Vs Customer
• From the company’s point of view,
customer satisfaction is a result of
three part system :
2.Company’s processes(operations)
3.Company’s employees who
deliver the product and service is
consistent.
4.Customer expectations.
Contd…
• The extent to which this condition
is achieved depends on the
effectiveness of :-
2.The process
3.Employees
4.Determination of what constitutes
“satisfaction”.
Internal Customer Conflict
• These are the people, the
activities, and the function within
the company.
• Conflict frequently arises between
the needs of internal and external
customers.
• The solution is to determine the
real needs of each and design the
process to meet both.
Defining Quality
• Quality in everyday life and business, engineering
and manufacturing has a pragmatic interpretation
as the non-inferiority, superiority or usefulness of
something.

• Good packaging, timely and accurate shipping,

and the ability to meet deadlines matter as much
as the quality of product itself.

• Many different techniques and concepts have

evolved to improve product or service quality,
including SPC, Zero Defects, Six Sigma, Malcolm
Baldrige National Quality Award, quality circles,
TQM, Theory of Constraints (TOC),
Quality Management Systems (ISO 9000 and
others) and continuous improvement.
A Quality Focus
• A quality focus mainly focuses on
customer satisfaction and product
quality.
• Many firms back up a satisfaction
guarantee with promises of a
reward if they fail to meet their
own standards or those of the
customer.
• For e.g at Pizza Hut you get it free
if not served in 5 minutes.
Break Points
• The need to improve customer
satisfaction in measurable amounts
is well known.
• Zero to 1 minutes is outstanding.
• On-time delivery below 90% is
unacceptable, while over 98% is
considered outstanding.
• These are market break points ,
where improving performance will
change customer behavior ,
resulting in higher prices or sales
volume.
A Central Theme
• Individuals and teams may have
targets that are directed at
process improvement in their
specific activities.

• For e.g. General Electric no part

will be produced that cannot meet
a one-part-in-a-million defect rate.
The Driver Of Customer
Satisfaction
• To build customer satisfaction are to
acquire satisfied customers, know
when you have them and keep them.

• The most obvious way is to

determine what makes customers
satisfied is simply to ask them.

• IBM is one company that has

identified the key excellence
indicators for customer satisfaction.
Getting Employee Input
• Employee input can be solicited
concurrent with customer
research.
• It can also help identify barriers
and solutions to service and
product problem.
• Employees surveys are conducted
that can measure:-
Contd…
• TQM effectiveness.
• Skills and behaviors that need
improvement.
• The effectiveness of the team
problem-solving process.
• The outcomes of training
programs.
• Needs of internal customer.
MEASUREMENT OF CUSTOMER
SATISFACTION
 Can and Should CS be
Measured?

If a company does not measure CS, it
probably will not manage CS very well.

That which is measured gets managed.

The major issue is not the importance of
measuring CS, but how to effectively use
the resulting data to improve
organizational effectiveness to yield
higher customer loyalty.
 Major Issues in CS
Measurement
• Goal Clarification: Why do we want to
measure CS?
• What problems are we trying to solve?
•Which goals are we trying to
achieve?
• For example:Before you start on the
journey, it is helpful to get out the map
and plot your route.
 Possible Reasons for Measuring
CS

As an “early warning system” to alert
you to problems as early as possible.

As a competitive analysis process to
determine how well you stack up against
the competition.

As a customer relationship tool to show
customers how much you care about their
satisfaction and loyalty.
The Role Of Marketing And
Sales

Marketing is perhaps the most important
activity in a business because it has a direct
effect on profitability and sales. Larger
businesses will dedicate specific staff and
departments for the purpose of marketing
client.

A research and development department will
need to work very closely with the marketing
department to understand the needs of the
customers and to test outputs of the R&D
section.
Shortcomings in marketing as
identified by critics include:

• Partnering arrangement with dealers and

distribution channels
• Focusing on the physical characteristics
of products and overlooking the related
services
• Losing a sense of customer price
sensitivity
• Not measuring or certifying suppliers
such as advertisers
• Failing to perform cost/benefit analyses
on promotion costs
• Losing markets to generics and house
brands
The Sales Process
• A sales process is a systematic
approach for performing product
or service sales. The reasons for
having a sales process include
seller and buyer risk management,
standardized customer interaction
in sales, and scalable revenue
generation.
The Sales Process
TQM become a part of sales
and marketing, managers and
employees must move toward a
deeper understanding of it
processes.
sales a process that lends itself
to analysis and improvement for
customer satisfaction.
 service quality
The manner in which service is
provided as it influences the degree
of satisfaction with a good or
service.
customer retention:
Means simply keeping customers
and not losing them to competitors.
Techniques to maintain
relationships with existing
customers
 Service Quality And Customer
Retention

– Service companies measure cost of

customers who will not come back because
of poor services.
– These are customer defections and they

have a substantial impact on cost and profit.

– Determine the cause of defections, and

improve the process to reduce defections.

Customer Retention And Profitability
Internal Service Quality

Employee
Employee Retention Customer
Satisfaction
Retention
External Service Quality
Profit
Customer Satisfaction

system

Profitability and customer Retention

29
Buyer-Supplier Relationships

Your Your Your

Suppliers Inputs Processes Outputs Customers

Requirements Requirements
and feedback and feedback

30