week 4 QUALITY

• CUSTOMER FOCUS might be the most important principle of quality management
• CUSTOMER is the ultimate judge of the quality goods and services.
• CUSTOMER SATISFACTION – is defined as the result of delivering a product or service that meets customer requirements.
• CUSTOMER ENGAGEMENT – refers to customers’ investment in or commitment to a

  brand and product offerings.
• The first step in being customer focused is to understand who your customers are.
• Most employees think that “customers” are those people who ultimately purchase and use a company’s products. These end users, or CONSUMERS, certainly are an important group
• • Within an organization, the recipient of another’s output is called an INTERNAL CUSTOMER.
• Internal customers could be other departments or processes within the organization or individual workers.
• EXTERNAL CUSTOMERS – those who fall between the

  organization and the consumer, but not part of the organization.
• SEGMENTATION – allows a company to prioritize customer groups, for instance by considering for each group the benefits of satisfying their requirements and the consequences of failing to satisfy their requirements.
• Customer Segmentation

  • Organizations that segment customers into natural groups and customize the products or services are better able to respond to customers’ needs
• Juran suggested classifying customers into two main groups:

  • The vital few

  • The useful many
• Another way of segmenting customers with an eye toward business results is by PROFITABILITY.
• Profit potential can be measured by the NET PRESENT VALUE OF THE CUSTOMER (NPVC)
• • PERFORMANCE – a product’s primary operating characteristics
• FEATURES – the “bells and whistles” of a product
• RELIABILITY – the probability of a product’s surviving over a specified period of time under stated conditions of use
• CONFORMANCE – the degree to which physical and performance characteristics of a product match pre-established standards
• • DURABILITY – the amount of use one gets from a product before it physically deteriorates or until replacement is preferable
• SERVICEABILITY – the speed, courtesy, and competence of repair work
• AESTHETICS – how a product looks, feels, sounds, tastes, or smells.
• VOICE OF THE CUSTOMER – customer requirements, as expressed in the customer’s own terms.
• COMMENT CARDS AND FORMAL SURVEYS – typically concentrate on measuring customer satisfaction and often include questions pertaining to the customers’

  perception of the importance of particular quality dimensions.
• FOCUS GROUPS – a panel of individuals who answer questions about a company’s products and services as well as those of competitors
• DIRECT CUSTOMER CONTACT – in customer, driven organizations, top executives

  commonly visit with customers personally
• FIELD INTELLIGENCE – any employee who comes in direct contact with customers,

  such as salespeople, repair technicians, telephone operators, and receptionists,

  can obtain useful information simply by engaging in conversation and listening to

  customers
• COMPLAINTS – allow an organization to learn about product failures and service

  problems, particularly the gaps between expectations and performance
• INTERNET AND SOCIAL MEDIA MONITORING – offer organizations a fertile arena for

  finding out what consumers think of their products
• services

  RELIABILITY

  ASSURANCE

  TANGIBLES

  EMPATHY

  RESPONSIVENESS