TQM PRINCIPLES & STRATEGIES

CUSTOMER SATISFACTION
It is a measure of how products and services
supplied by a company meet or
surpass customer expectation. Customer
satisfaction is defined as "the number of
customers, or percentage of total customers,
whose reported experience with a firm, its
products, or its services (ratings) exceeds
specified satisfaction goals.
 SERVICE QUALITY

The results generated by activities at

the interface between the organization
and the customer, and by the
organization’s internal activities, to
meet customer needs.
 FEATURES OF SERVICES
 Speed
 Deliver schedule
 Care in handling
 Each service offering is different
 Psychology of customer
 Difficulty in
Understanding requirements
Estimating cost
Measuring performance
Measuring customer satisfaction
Marketing
 CUSTOMER DELIGHT

The very favorable experience of

the client of a business when they
have received a good or service that
significantly surpasses what they
had initially anticipated.
 THE KANO MODEL

The Kano Model of product development and customer satisfaction

was published in 1984 by Dr Noriaki Kano, professor of quality
management at the Tokyo University of Science.
Kano says that a product or service is about much more than just
functionality. It is also about customers' emotions.
For example, all customers who buy a new car expect it to stop when
they hit the brakes, but many will be delighted by its voice-activated
parking-assist system.
THE KANO MODEL
 THREE TYPES OF RESPONSES

Basic quality
Performance quality
Excitement quality
BASIC QUALITY
Threshold Quality
Unspoken or minimum expected requirements
Customers are expecting his requirements will be
implemented
Customers will complain if basic quality attributes are
not fulfilled but they will not appreciate the supplier
for fulfilling the same.
Basic Quality Measurements
 Customer Complaints
 Warranty Data
 Product Recalls
 Number of Lawsuits
 Things gone wrong
 Other failure reports
PERFORMANCE QUALITY

Voice of customer
Quality function deployment
The better the performance, the
greater the satisfaction.
EXCITEMENT QUALITY

Customers received some feature or

attribute they did not expected or think
of
Reason for customer loyalty.
AGREED CUSTOMER REQUIREMENTS

Finding out requirements right first time

 customers may mean something and say
something else.
Service provider should be inquisitive.
Use checklist
Contains all the relevant details
Model checklist
 Review of requirements
Review contract before service request is given
 Foresee and provide for amendments
Additional requirements with additional costs
 Documented policy
Procedures and methodology in customer service
 Code of good customer handling practices
Result of past experiences
 Customer perceived quality
No hard and past rules for identifying measures
Identify vital few measures
Arrived at quantitative measures
Parameters in determining perceived quality
Defects in the product in delivery
Number of requirements fulfilled
Number of misunderstood
requirement
Frequency of defects
Time taken for repair
CUSTOMER PERCEIVED QUALITY
CUSTOMER FEEDBACK AND
COMPLAINTS RESOLUTION
 CUSTOMER FEEDBACK

Difficult to get
Design simple feedback forms
Ensure confidentiality
Analyze and display results
 COMPLAINT RESOLUTION
 To be handled by senior management
 Analyze independently
 Give benefit of doubt to customers
 Satisfying annoying customers
 Establish complaint recovery process
Process of receiving complaints, processing them,
communicating to customer and resolving the issue
Problems have to be recorded
COMPLAINT RECOVERY PROCESS