Quality Management and Customer Care BS 3008 : Quality Management and Customer Care BS 3008 Best / Common Sense, Practice
Kenneth R Batty, MSc(QM), DCR(R) MIQA.
What Is Quality? : What Is Quality? The degree of excellence of a thing.
Concise Oxford Dictionary.
Totality of features and characteristics of a product or service that bears upon its ability to satisfy stated or implied needs.
International Standards Organisation.
What is Quality? : What is Quality? Means many things to many people - it is usually associated with cost.
Fitness for purpose - J M Duran
Conformance to requirements - P B Crosby
Providing customers, both internal and external, with products and services that fully satisfy their negotiated requirements.
Fitness for purpose and use, and foreseeable misuse
What is Quality? : What is Quality? Conformance quality - conforming to specifications; having a product or service that meets predetermined standards.
Requirements quality - meeting total customer requirements; having perceived attributes of a service or product that meet or exceed customer requirements.
Quality of kind - quality so extraordinary that it delights the customer; having perceived attributes of a product or service that significantly exceed customer expectations, thereby delighting the customer with its value.
What is Quality? : What is Quality? 1. "Quality is conformance to specifications.“ British Defence Industries Quality Assurance Panel
2. "Quality is conformance to requirements.“ Philip Crosby
3. "Quality is fitness for purpose.“ Dr Juran
4. "Quality is synonymous with customer needs and expectations.“ R J Mortiboys
What is Quality? : What is Quality? 5. "Quality is a predictable degree of uniformity and dependability, at low cost and suited to the market.“ Dr Edwards Deming
6. "Quality is meeting the (stated) requirements of the customer- now and in the future.“ Mike Robinson
What is Quality? : What is Quality? 7. "Quality is the total composite product and service characteristics of marketing, engineering, manufacturing and maintenance through which the product and service in use will meet the expectations by the customer."
Armand Feigenbaum
8. "Totality of characteristics of an entity that bear on its ability to satisfy stated and implied needs.“ ISO 8402 : 1994
Talking Quality - (Perceptions) : Talking Quality - (Perceptions) What Quality is perceived to mean to:
Your Customers - Getting something for nothing
Your Suppliers - You want something for nothing
Employees - More work
Management - Additional COST
What Quality means in: : What Quality means in: JAPAN - Perfection
GERMANY - Conformance to Specification
FRANCE - A Luxury
AMERICA - It Works Doesn't It!
The Four Absolutes of Quality : The Four Absolutes of Quality Quality is conformance to requirements
Do what you said you would do.
The system for producing quality is NOT prevention, NOR is it appraisal.
Solve problems permanently
The performance standard is ZERO defects.
Right first time and every time.
Quality is measured by the cost of Non-Conformance.
Repair / re-work is paid for out of profits.
GARVIN “Quality is Defined from the Customer’s point of view” : GARVIN “Quality is Defined from the Customer’s point of view” Performance
Features
Reliability
Conformance Durability
Serviceability
Aesthetics
Perceived quality
Zeithaml, Parasuraman, Berry (1985) : Zeithaml, Parasuraman, Berry (1985) Tangibles
Reliability
Responsiveness
Competence
Courtesy Credibility
Security
Access
Communication
Understanding the Customer
Dimensions of Service Quality : Dimensions of Service Quality Evaluative dimensions (SERVQUAL)
Tangibles, reliability, responsiveness, assurance & empathy
Procedural dimensions
Timing, flow logic, accommodation, anticipation, communication, feedback
Personal dimensions
Appearance, attitude, attentiveness, tact, guidance, gracious problem solving.
Quality Eras (History of Quality) : Quality Eras (History of Quality) Inspection
Quality Control
fire-fighting
Quality Assurance
prevention, Co. wide approach, ZERO defects
Strategic Quality Management
market place / customer focus, integrative approach
Competitive Continuous Improvement
Quality Eras : Quality Eras
History of Quality Management : History of Quality Management Middle ages: Europe
Skilled craftsmen - carpenters, blacksmiths, shoemakers etc
Contact with customer and complete lifecycle very direct
i.e. Customer/Design/Manufacture/Inspect/
Maintain
History (cont.) : History (cont.) Industrial Revolution:
Eli Whitney established the concept of interchangability
applied to the manufacture of rifles for the US Army
Made high demands on the manufacturing process
Quality Assurance imperative (especially for large buyers)
History (cont..) : History (cont..) Early 1900’s: Taylorism
The philosophy of job decomposing which separated the tasks of the craftsman into deskilled isolated operations
The links between Customer/Design/Manufacture/Inspection were broken
History (cont..) : History (cont..) 1920’s: Bell Telephone Labs
A group was formed to develop new theories and methods of inspection to improve and maintain quality
This is were the term Quality Assurance was first used
Developed
Control Charts
Sampling Techniques
Economics of quality
History (cont..) : History (cont..) 1930’s: the first books on Quality Control
World War 2: the US military adopts a system of statistical sampling and the imposition of strict standards to be met by suppliers.
In the UK the establishment of a statistical advisory unit of the ministry of supply.
History (Cont..) : History (Cont..) 1950’s: Deming and Juran’s introduction to Japan of Statistical Quality Control Techniques http://www.deming.org/deminghtml/wedi.html http://www.juran.com/drjuran.html
History (Cont..) : History (Cont..) US domination of global production
US development of NATO quality standards
UK defense standards 05-21, 05-24, 05-29 based on NATO standards
History (Cont..) : History (Cont..) 1960’s and 70’s : Increasing Japanese domination of large sectors of world trade in manufacturing
In the UK BS5179 was developed for industry
History (Cont..) : History (Cont..) 1972 Institute of Quality Assurance (IQA) established
The Ministry of Defense adopts the AQAP standards (Allied Quality Assured Publication)
History (Cont..) : History (Cont..) 1979: First version of the British Standard BS5750
Guide to the development and specification of the standard of a quality management system
1982: Dti ran the “British National Campaign for Quality”
1987: BS5750 is revised and is now also being referred to as the ISO9000 series of standards.
History (Cont..) : History (Cont..) Early 90’s: Japan still increasing its domination of manufacturing sectors and services; with one of the fastest growing economies
The West in recession and focussing heavily on quality systems
Late 90’s: Consolidation and a much reduced manufacturing base means that UK is doing comparatively well
Quality? Or are we just cheap?
History (Cont..) : History (Cont..) Despite the collapse of the Pacific rim tigers and the faltering of the Japanese economy (with the likelihood of the rest of the world following suit) Total Quality Management (TQM) the ISO9000 series of Quality Standards are still being heavily touted as being the prerequisite to surviving in an ever increasing market.
US adopting the standard (especially in motor manufacturers)
Quality no longer an issue for Japan, is it an issue here?
Millennium new set of ISO standards introduced, still filtering into the workplace
Quality : Quality Quality Improvement The Pursuit of
QUALITY
is a JOURNEY
not a DESTINATION! Where are you; on your
STARTING
blocks? QUALITY starts here and NOW!
Who Are Our CUSTOMERS? BS 3008 : Who Are Our CUSTOMERS? BS 3008 Customer Care: Philosophy and Procedures
Customer Care: Philosophy and Procedures : Customer Care: Philosophy and Procedures Why is customer care important ?
Increasing market competition
Globalisation
Rise of consumerism
Customer relationship marketing (CRM) as important an asset as capital and labour
Reflects on how well staff themselves are treated
Customer Care: Philosophy and Procedures : Customer Care: Philosophy and Procedures Why are customers valuable ?
Think of customers as an income stream e.g. How much is spent over 12 years by a family spending £80 per week on groceries
60% customers are repeat business
Much cheaper to retain customers than attract new ones
Customer Care: Philosophy and Procedures : Customer Care: Philosophy and Procedures Succinctly…
“We had a simple goal, find the right customers, learn what they want, sell it to them, service all their needs”
Gabrielle Battista, President of Cable and Wireless
Customer Care: Philosophy and Procedures : Customer Care: Philosophy and Procedures But central problems to be solved are:
Enterprise information and customer information must be integrated into a single whole
New kinds of customer behavioural information must be captured and processed
Customers and employees must share a common knowledge base
Customer Care: Philosophy and Procedures : Customer Care: Philosophy and Procedures Aspects of service
The product (e.g. mortgage package, meal)
The process (how handled)
The programmes (when dealt with)
The plant (types of equipment and particular usage)
The people (trained, motivated, rewarded)
Customer Care: Philosophy and Procedures : Customer Care: Philosophy and Procedures Characteristics of service industries…
Consumed at point of production
Customer is present
Mistakes cannot be hidden
Greater importance of ‘right first time’
Process is hard to control with customer there
Customers react to situations
Customer Care: Philosophy and Procedures : Customer Care: Philosophy and Procedures “Almost all services depend, in one way or another, on other services, as part of the input, throughput or output and sometimes all three “
“Quality.. applies as much to the relationships along the chain as it does to the ultimate link”
Lucy Gaster, (1995) Quality in Public Services
Customer Care: Philosophy and Procedures : Customer Care: Philosophy and Procedures Complaint Handling
Help customers to complain accurately (know exactly what has gone wrong)
Have a well established and speedy procedure
How are ‘customers from hell’ dealt with?
How do we interpret numbers of complaints?
Customer Care: Philosophy and Procedures : Customer Care: Philosophy and Procedures Web-based Customer Care.
Historically, we use a cost-free call-centre.
Virtually every area of customer support (information, support, maintenance, warranties, upgrades, status) can be handled over the Internet.
E-commerce allows possibilities for accessing information for life-time value.
Customer Care: Philosophy and Procedures : Customer Care: Philosophy and Procedures Customer Relationship Marketing…
Creates dialogues with customers to supply needs rather than sell products
Not meant to be a ‘quick fix’ but a change in marketing strategy
Long term aim is to build customers for life
Be capable of delivering real solutions
Customer Care: Philosophy and Procedures : Customer Care: Philosophy and Procedures Be on Time
Follow Up on Promises
Under-promise,over-deliver
Go the extra mile
Offer Customer Options Express Sympathy
Give Customers highest priority
Treat co-workers as customers
Give Customer your name and number
Develop good telephone manner
10 Good Customer Habits to Develop
Customer Care: Philosophy and Procedures : Customer Care: Philosophy and Procedures Start the day right
Discuss Feelings
Do the Right thing
Support Staff’s decisions
Be willing not to know the answer
Learn to listen
Take time to socialise
Good telephone etiquette
Thank staff often
Say what you mean (mean what you say) 10 Good Ways to be a role model
Customer Care: Philosophy and Procedures : Customer Care: Philosophy and Procedures ‘I don’t know’
‘No’
‘That’s not my job’
‘You’re right – this stinks’
‘That’s not my fault’
‘You need to talk to my manager’
‘You want it when?’
‘Calm down’
‘I’m busy just now’
‘Call me back’ 10 Major Don’ts (and Do’s)
Customer Care: Philosophy and Procedures : Customer Care: Philosophy and Procedures De Bono’s ‘Six Hats’