presntation tqm(2)

8/3/2019 presntation tqm(2)

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MBA HRM

Semester autumn 2011Total qualitymanagementAssignment 2


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.

Translating needs intorequirement is one of the

important techniques used inthis technique in continuousquality improvementmanagement by studying aprivate sector organization
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Contents;IntroductionCustomer satisfactionCustomer relationship management

SQC, statistical control techniquesCQU, continuous quality improvement;Techniques for customer satisfaction


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Role of techniques in continuous qualityimprovement managementPractical studySwot analysisConclusion & recommendationsReferences

Introduction;Total Quality management is a management

approach by customers satisfaction for success. It is about culture,

attitude and organization of a company that provides customers,

products and services for their needs. The culture requires rightdecision in first and ends waste.

TQM is the base for activities, which include:

Agreement by senior management and all employees.

Meeting customer needs n wants

Satisfaction of customers.

Time/Demand Flow Manufacturing.

Improvement schemes.

Minimising product and service costs.

Systems to facilitate improvement.


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Line Management ownership.

Employee involvement and empowerment.

Recognition and celebration.

Challenging quantified goals and benchmarking.

Customer satisfaction;Definition of customer;

The word derives from "custom,"meaning "habit"; a customer is someone who participates to aparticular shop, who made it a habit to purchase goods of the sort theshop sold there rather than elsewhere, and with whom theshopkeeper had to maintain a relationship to keep his or her"custom," meaning expected purchases in the future.

Customer needs or Expectations;

Customer need or requirements are product and services arenecessary to buy i.e. food. These expressed in terms of value,product, feature, customer service and after sales services.

Customer satisfaction;

A term frequently used in marketing, is ameasure of how products and services supplied by a company meetor surpass customer expectation. Customer satisfaction is defined as"the number of customers, or percentage of total customers, whosereported experience with a firm, its products, or its services (ratings)
http://www.answers.com/topic/marketinghttp://www.answers.com/topic/marketing


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exceeds specified satisfaction goals." In a survey of nearly 200 seniormarketing managers, 71 percent responded that they found acustomer satisfaction metric very useful in managing and monitoringtheir businesses.

It is seen as a key performance indicator within business and is oftenpart of a Balanced Scorecard. In a competitive marketplace wherebusinesses compete for customers, customer satisfaction is seen asa key differentiator and increasingly has become a key element ofbusiness strategy.

Within organizations, customer satisfaction ratings can have powerfuleffects. They focus employees on the importance of fulfillingcustomers expectations.

Customer satisfaction data;

Customer relationship management;

Customer relationship management (CRM) is a combination oforganizational strategy, information systems, and technology that isfocused on providing better customer service. CRM uses emergingtechnology that allows organizations to provide fast and effectivecustomer service by developing a relationship with each customerthrough the effective use of customer database information systems.

The objectives of CRM are to acquire new customers, retain the rightcurrent customers, and grow the relationship with an organization'sexisting customers. An integrated business model that ties togethertechnology, information systems, and business processes along theentire value chain of an organization is critical to the success of CRM.

SQC, statistical control techniques;
http://www.answers.com/topic/balanced-scorecardhttp://en.wikipedia.org/wiki/File:Customer-satisfaction-scale.pnghttp://www.answers.com/topic/balanced-scorecard


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Monitoringstatistically representative production samples for the purpose ofdetermining quality. Careful sample monitoring helps to improveoverall quality by locating defect sources. Dr. W. Edwards Deminghas been instrumental in assisting companies to implement SQC.

Statistical Process Control;

It is the use of charts called"control charts" to monitor a process. It is a very objective method ofmonitoring. It involves the collection data from the process. It makesidentification of the cause of problem in the process easier.

Six sigma;The term six sigma (6) defined as a performance

measure or a measure of quality. Using six sigma, process goals areset in parts per million in all areas of the production process. Since itsorigin, six sigma has now evolved into a methodology for improvingbusiness efficiency and effectiveness by focusing on productivity,cost reduction, and enhanced quality.

Six sigma concentrates on measuring and improving those outputs

that are critical to the customer.

Everything is a process. All processes have variations that are inherent within them. Data analysis is a key tool in understanding the variations in the

process and in identifying improvement opportunities.

Defineat the first stages of the process we look for andidentify poorly performing areas of a company. We then targetthe projects with the best return and develop articulated

problem and objective statements that have a positive financialimpact on the company.

Measureat this stage we are trying to tie down the processunder consideration. Where does it start and end? What shouldwe be measuring to identify the deviation? What datacharacteristics are repeatable and identifiable? What is thecapability of the process? We use tools like process mapping,


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flow charting, and FEMA (Failure Model Effects Analysis). Wedevelop a baseline for the targeted area and implement anappropriate measurement system.

Analyzehaving identified the who and what of this problem,we now target the where, when, and why of the defects in theprocess. We use appropriate statistical analysis tools, scatterplots, SPC and SQC, Input / Output matrixes, hypothesistesting, etc., and attempt to accurately understand what ishappening in the process.

ImproveAt this point we should have identified the criticalfactors that are causing failure in the process. And, through theuse of experiments, we can systematically design a correctiveprocess that should generate the desired level of improvement.This improvement will then be monitored to assure success.

Controlin the control phase we implement process controltools that can manage and monitor the process on an ongoingbasis. The DMAIC process is now in full operation, but it doesnot stop here. The continuous monitoring of the process will notonly assure the success of this change process, but it will alsoidentify future opportunities for improvement.


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Techniques for customer satisfaction;

Having a highcustomer satisfaction rate is one major characteristic of well-runbusinesses. It costs five to six times more to attract a new customerthan it does to keep one, so it makes a lot of sense for any businessto commit a fair amount of time and effort to keep existing customershappy.


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Exceed customer expectations;

It is not always possibleto keep all customers happy but a business can go a long way in

achieving this goal by trying to exceed the customer's expectations.This may be accomplished by giving more value or service then whatwas initially agreed on, delivering on a promise earlier than expectedor by making a follow-up call to see if the customer has a problem orissue.

Exceeding the customer's expectations can be more easilyaccomplished if the initial expectations are kept lower than what canbe delivered upon. If, for example, the delivery of a product ispromised within 10 days, (though it could be done in less time) the

customer should be pleasantly surprised and pleased to have theproduct delivered on day 6 or 7. However, in situations wherecompetitors are setting the standards, it would be best to find an areathey are weak in and compete there.

Help customers help themselves;

One of the mosteffective customer service strategies a business can use is

anticipating customer's questions and providing answers to them. Aneasy way to do this is through a Frequently Asked Questions (FAQ)page. To make this resource effective, compile a list of frequentqueries and issues customers often raise and construct shortquestions and answers based on these issues.

Hire the best customer service reps;

Customer servicereps are often the voice and faces of the business, when customers

interact with your business they expect to get a quality product orservice. It is therefore very important that customer service repsmake a good impression and stay calm and professional, even whendealing with difficult or unreasonable customers. Because of this fact,only highly motivated, even-tempered, professional and people-oriented individuals should be considered for these critical positions.


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Use Tours and Demos;

At other times, no amount of sweet-talking or crafty sales pitches can make someone purchase if they

don't understand your products or service. When this is the case, ademo or product tour can help a potential customer see how yourproduct or service work before they commit to buying. This isespecially useful if your offering is technical in nature, is softwarebased or is sold online. Interaction with demos may also answersome lingering questions a customer may have, without the need tocontact customer support.

Fortunately, putting together demos can be quite simple, thanks tosolutions from demo-builder.com and techsmith.com, to name a few.

These products allow for the creation of interactive demos andwalkthroughs that can be used to show product features andadvantages. These solutions can simulate click procedures and step-by-step operating instructions, in high quality audio and videoformats.

Fix recurring problems;

Less than 1 in 25 customers will express their dissatisfaction directlyto the business, instead they will more readily tell others of anyunpleasant experience they had with your product or service.Therefore, it is to be assumed that each complainant represents alarger group and so a genuine effort should be made to address any

issue a customer raises. Actually, a customer does a business afavor by telling it what may need fixing or tweaking. Businesses mustbe especially vigilant in recognizing frequent complaints and fix themquickly, in the long run it reduces the burden on customer service andmakes the customer's experience much more pleasant.


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It is not enough to simply deliver the product that was ordered by acustomer. Invariably customers will have questions, concerns andmisunderstanding, these must be addressed promptly. Increasingand maintaining high customer satisfaction won't always be easy, butif the customer service department, a well written FAQ page or aneasy to understand product demo answers their questions quickly,they are more likely to stay with the business and make otherpurchases.

Role of techniques in continuousquality improvement managementIntroduction;The term Quality management has a specific meaning within manybusiness sectors. This specific definition, which does not aim to

assure 'good quality' by the more general definition (but rather toensure that an organization or product is consistent), can beconsidered to have four main components: quality planning, qualitycontrol, quality assurance and quality improvement.[1] Qualitymanagement is focused not only on product/service quality, but alsothe means to achieve it. Quality management therefore uses quality
http://en.wikipedia.org/wiki/Quality_controlhttp://en.wikipedia.org/wiki/Quality_controlhttp://en.wikipedia.org/wiki/Quality_assurancehttp://en.wikipedia.org/wiki/Quality_management#cite_note-0http://en.wikipedia.org/wiki/Service_qualityhttp://en.wikipedia.org/wiki/Quality_controlhttp://en.wikipedia.org/wiki/Quality_controlhttp://en.wikipedia.org/wiki/Quality_assurancehttp://en.wikipedia.org/wiki/Quality_management#cite_note-0http://en.wikipedia.org/wiki/Service_quality


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assurance and control of processes as well as products to achievemore consistent quality.

What is Continuous Quality Improvement?

CQI is an approach to quality management that builds upontraditional quality assurance methods by emphasizing theorganization and systems: it focuses on "process" rather than theindividual; it recognizes both internal and external "customers"; itpromotes the need for objective data to analyze and improveprocesses.

CQI is a management philosophy which contends that most thingscan be improved. This philosophy does not subscribe to the theory

that if it aint broke, doesnt fix it." At the core of CQI is serialexperimentation (the scientific method) applied to everyday work tomeet the needs of those we serve and

PrinciplesQuality management adopts a number of management principles[3]

that can be used by top management to guide their organizationstowards improved performance.

The principles include:
http://en.wikipedia.org/wiki/Quality_management#cite_note-2http://en.wikipedia.org/wiki/Quality_management#cite_note-2


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Customer focus

Leadership

Involvement of people

Process approach

System approach to management

Continual improvement

Factual approach to decision making

Mutually beneficial supplier relationships

Core Concepts of CQI

Quality is defined as meeting and/or exceeding theexpectations of our customers.

Success is achieved through meeting the needs of those we

serve. Most problems are found in processes, not in people. CQI does

not seek to blame, but rather to improve processes. Unintended variation in processes can lead to unwanted

variation in outcomes, and therefore we seek to reduce oreliminate unwanted variation.


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It is possible to achieve continual improvement through small,incremental changes using the scientific method.

Continuous improvement is most effective when it becomes anatural part of the way everyday work is done.

Core Steps in Continuous Improvement

Form a team that has knowledge of the system needingimprovement.

Define a clear aim. Understand the needs of the people who are served by the

system. Identify and define measures of success. Brainstorm potential change strategies for producing

improvement. Plan, collect, and use data for facilitating effective decision

making. Apply the scientific method to test and refine changes.


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Practical studySuzuki MotorCorporation

Suzuki Motor Corporation;is a Japanese multinational corporation

headquartered in Hamamatsu, Japan that specializes in
http://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Hamamatsu,_Japanhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Hamamatsu,_Japan


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manufacturing compact automobiles and 4x4 vehicles, a full range ofmotorcycles, all-terrain vehicles (ATVs), outboard marine engines,wheelchairs and a variety of other small internal combustion engines.Suzuki is Japan's 4th largest automobile manufacturer afterToyota,Nissan, Honda and the 9th largest automobile manufacturer in theworld by production volume, employs over 45,000 people, has 35main production facilities in 23 countries and 133 distributors in 192countries. According to statistics from the Japan AutomobileManufacturers Association (JAMA), Suzuki is Japan's second-largestmanufacturer of small cars and trucks.

Pak Suzuki Motors Company Ltd;It is a company

assembling and distributing Suzuki Japan's cars in Pakistan.

Currently they are one of the most successful motor companies inPakistan.The firm was founded in 1983 as a joint venture betweenPAK and Suzuki, formalizing thearrangement by which AWAMI AutoLtd. had produced the Suzuki SS80 from 1982. Suzukioriginallyowned 25% of the stock, and has gradually increased their holding;they now own73.09%. The company now assembles a wide range ofSuzuki vehicles and aims to produce150,000 vehicles per year.(2005 production was 100,000)

VisionTo be Excellent All Around

MissionTo provide automobile of international quality at competitive price

History;

In 1909, Michio Suzuki (18871982) founded the Suzuki Loom Worksin the small seacoast village ofHamamatsu, Japan. Businessboomed as Suzuki built weaving looms forJapan's giant silk industry.In 1929, Michio Suzuki invented a new type of weaving machine,which was exported overseas. Suzuki filed as many as 120 patents
http://en.wikipedia.org/wiki/All-terrain_vehiclehttp://en.wikipedia.org/wiki/Outboard_motorhttp://en.wikipedia.org/wiki/Wheelchairhttp://en.wikipedia.org/wiki/Internal_combustionhttp://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/Nissanhttp://en.wikipedia.org/wiki/Hondahttp://en.wikipedia.org/wiki/Hamamatsuhttp://en.wikipedia.org/wiki/Loomhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/All-terrain_vehiclehttp://en.wikipedia.org/wiki/Outboard_motorhttp://en.wikipedia.org/wiki/Wheelchairhttp://en.wikipedia.org/wiki/Internal_combustionhttp://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/Nissanhttp://en.wikipedia.org/wiki/Hondahttp://en.wikipedia.org/wiki/Hamamatsuhttp://en.wikipedia.org/wiki/Loomhttp://en.wikipedia.org/wiki/Japan


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and utility model rights. The company's first 30 years focused on thedevelopment and production of these exceptionally complexmachines.

Products;
http://en.wikipedia.org/wiki/File:Suzuki_Suzulight_01.jpg


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Cultus

Alto

Mehran

Swift

Bolan Van

Liana

Suzuki Suzuki SX4 Sport Back
http://www.paksuzuki.com.pk/Automobile/Pages/AutomobileProducts/CultusProduct.aspxhttp://www.paksuzuki.com.pk/Automobile/Pages/AutomobileProducts/MehranProduct.aspxhttp://www.paksuzuki.com.pk/Automobile/Swift/main.htmlhttp://www.paksuzuki.com.pk/Automobile/Pages/AutomobileProducts/BolanProduct.aspxhttp://www.paksuzuki.com.pk/Automobile/Pages/AutomobileProducts/LianaProduct.aspxhttp://autos.yahoo.com/suzuki/sx4-sportback/2011/;_ylt=Avgjo7dKD9bYlD.RdqCOpHkBfb8F;_ylv=3http://upload.wikimedia.org/wikipedia/commons/4/43/Maruti_Suzuki_Swift_4456.JPGhttp://www.paksuzuki.com.pk/Automobile/Pages/AutomobileProducts/CultusProduct.aspxhttp://www.paksuzuki.com.pk/Automobile/Pages/AutomobileProducts/MehranProduct.aspxhttp://www.paksuzuki.com.pk/Automobile/Swift/main.htmlhttp://www.paksuzuki.com.pk/Automobile/Pages/AutomobileProducts/BolanProduct.aspxhttp://www.paksuzuki.com.pk/Automobile/Pages/AutomobileProducts/LianaProduct.aspxhttp://autos.yahoo.com/suzuki/sx4-sportback/2011/;_ylt=Avgjo7dKD9bYlD.RdqCOpHkBfb8F;_ylv=3


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Techniques in continuous qualityimprovement management in SuzukiCorporation;

Mehran Cash cow Middle n lower class Suzuki Mehran VXR Safety Suzuki Mehran VXR Exterior Suzuki Mehran VXR Interior

Suzuki maruti Kizashi

For elite class Six Speed manual Transmission

Tilt and telescopic adjustable Steering

Dual-zone climate control

Force limiter and height adjusters

Child safety locks

sound-absorbing material Energy-absorbing trim on pillars

Roof-side rails

3-point ELR (Emergency Locking Retractor) Integrated Bluetooth

Wireless mobile phone integration

USB/iPod input port

Electronic stability program

Anti-lock Braking System

Brake assist function

Dual-zone automatic climate control

Adjustable rear heater vents


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Swot

analysis


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Strength:

Highest Market Share

Low Price Vehicles

Resale of Local Assembled Cars

Large Distribution Channels

Rising per capita income with changing demographic distribution

Highly Innovative and deep product line

Highly maintained supply chain

Well defined organizational structure

Easy availability of spare parts

Weakness; Scarcity of raw material Lack of coordination and linkage with Government/semi

government supporting bodies

Less focus on Looks and Design

Less Technical Training Institutes


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Less distribution channels in sub urban area

Opportunity;

Increasing Demand for Cars Efficient EFI engines Large Market size to operate Global spare part market Space saving Small size CNG cylinders

Threats:

Tough Competitors like Toyota and Honda Foreign Investment and setup production facilities Smuggling of Auto Parts Inflation rate Heavy Taxes Competition from cheaper imported cars Increase in Fuel Prices


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Conclusion & recommendation;

Product Development is the selected strategy at this point of timefor Pak Suzuki Motor Company Limited that we observed from ourstrategic analysis of the firm.

In product development strategy we recommend the company to

focuses on having the highest level of product performance, the

highest level of functionality or functions and features, the latest

technology or the highest level of product innovation.

This strategy might have some risk for the company as innovative

products are involved but proper research and development will cater

the risk and company can pursue with the strategy to be the market

leaders and get on top.

One major setback to PSMC was in the shape of Suzuki LIANA,

which was not able to meet the expectations and couldnt hold the

market it was made for.

But company didnt stop its journey there, and now Suzuki SWIFT

has recently been launched in the market, which seems to be an

attractive offer for the market in the 1300cc class. The Suzuki needs

to enter into the 1600cc and 1800cc market to expand its market

share and market growth. But for that purpose they need to put more

efforts of product development as the new product must have all the

required features and technology that is needed to compete with

giant competitors.

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