Total quality management

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TOTAL QUALITY SERVICE
FRONTLINE EMPLOYEES NOT ONLY DELIVER THE GOODS IN SERVICE ORGANIZATIONS, THEY ARE THE GOODS. TQS SOUNDS GOOD, BUT HOW DO YOU DO ITESPECIALLY IN THE INTANGIBLE SERVICE BUSINESS?

DEFINITION OF TOTAL QUALITY SERVICE
“SERVICE QUALITY FOCUSES ON SATISFYING YOUR CUSTOMERS’ NEEDS IN THE HUNDRED OF LITTLE “MOMENTS OF TRUTH” THAT MAKE UP THE CUSTOMERS’ PERCEPTION OF YOU”. JANCARLZON, CEO OF SCANDINAVIAN AIRLINES SYSTEM, FIRST PUT THESE MOMENTS OF TRUTH INTO FOCUS. HE DESCRIBED THOSE MOMENTS WHEN THE CUSTOMER COMES EYE TO EYE WITH YOUR ORGANIZATION, THROUGH BILLING, ADVERTISING, TELEPHONE CALLS, RESERVATIONS, COMPLAINTS, AND USE OF THE SERVICE OR PRODUCT. EACH MOMENT PROVIDES A WINDOW INTO THE REST OF THE ORGANIZATION. CUSTOMERS GENERALIZE ABOUT THE ENTIRE ORGANIZATIONBASED ON THAT ONE MOMENT OF TRUTH.

IMPACT ON PROFITS OF 5% INCREASE IN CUSTOMER RETENTION
BOOST IN PROFIT INDUSTRY 81 % 84% 85% 85% 89% 90% 93% 95%

AUTOMOTIVE SERVICE AUTO/HOME INSURANCE BANK BRANCH DEPOSITS PROFESSIONAL PUBLISHING CREDIT CARDS LIFE INSURANCE CORPORATE INSURANCE BROKERS ADVERTISING AGENCIES

TQS COMPONENTS
IF CUSTOMER SERVICE IS THE MAIN GOAL, WHAT ARE THE COMPONENTSOF TQS?

SCIENTIFIC SYSTEMATIC TEAMWIDE

SCIENTIFIC
IT MEANS THAT MANAGERS USE DATA RATHER THAN THEIR GUTLEVEL INTUITION TO MAKE COMPLEX DECISIONS. MANAGERS USE DATA ON QUALITY - NOT SLOGAN AND EXHORTATIONS - TO DRIVE DECISIONS. MANAGERS SURVEY CUSTOMERS ON THEIR NEEDS AND LEVELS OF SATISFACTION. MANAGERS DO NOT ASSUME THEY KNOW THEIR CUTOMERS. MANAGERS AND TEAMS SET SERVICE QUALITY GOALS,MONITOR THEM, AND USE THE RESULTS TO FEED INTO THE PLANNING PROCESS. RESULTS, RATHER THAN GRANDSTANDING, ARE REWARDED.

SYSTEMATIC
CUSTOMER SURVEYS ARE SENT OUT REGULARLY RATHER THAN WHEN SOMEONE GETS AROUND TO IT. SYSTEMATIC QUESTIONS ARE INCLUDED TO DETERMINE TRENDS. FEEDBACK IS USED TO SET SERVICE QUALITY GOALS AND CREATE INNOVATIONS TO MEET NEEDS. SOLUTIONS ARE MONITORED TO SEE WHETHER THEYARE WORKING. CRITICAL SYSTEMS THAT SUPPORT QUALITY ARE EXISTING, (SUCH AS HIRING, TRAINING, RECOGNITION, PROMOTIONS, ETC…).

TEAMWIDE
EVERYONE IS ON BOARD. SERVICE QUALITY STRETCHES FROM THE TOP OF THE ORGANIZATION TO THE BOTTOM. IT STRETCHES THROUGH THE VARIOUS DEPARTMENTS OF THE ORGANIZATION AS WELL. A MAJORITY OF FIRMS USED QUALITY PRACTICES IN THEIR MANUFACTURING AREAS BUT NOT INADMINISTRATION, PROCUREMENT, MATERIALS, AND OTHER SUPPORT GROUPS. RECENT STUDIES FOUND THAT OVER 75 PERCENT OF CUSTOMERS WHO LEFT THEIR SUPPLIERS, DO SO, BECAUSE OF THE QUALITY OF THE SERVICE, NOT BECAUSE OF THE QUALITY OF THE PRODUCT.

MAJOR QUESTIONS
THE FIRST QUESTION MANY PEOPLE ASK IS, HOW LARGE DOES A COMPANY HAVE TO BE BEFORE THIS MUCH WORK PAYS OFF? THE ANSWER IS ONE PERSON. PLANS ARE SHORTERAND SO IS THE COORDINATION PROCESS WITH SMALL ORGANIZATIONS. THE SECOND QUESTION IS USUALLY, HOW MUCH MONEY DOES IT COST? IF DONE CORRECTLY, IT WILL SAVE THE COMPANY. THE OUTLAY IS MAINLY IN THE QUALITY OF THINKING, NOT IN THE VOLUME OF PAPER.

THE BALDRIGE AWARD
THERE ARE SEVEN CATEGORIES. 1. LEADERSHIP 2. INFORMATION AND ANALYSIS 3. CUSTOMER FOCUS SATISFACTION 4. STRATEGIC PLANNING 5. HRDEVELOPMENT & MANAGEMENT 6. PROCESS MANAGEMENT 7. BUSINESS RESULTS 90 POINTS 75 POINTS 250 POINTS 55 POINTS 140 POINTS 140 POINTS 250 POINTS 1000 POINTS

GOALS SYSTEMS
• CUTOMER SATISFACTION • CUSTOMER SATISFACTION • RELATIVE TO COMPETITORS

DRIVERS

MANAGEMENT OF PROCESS QUALITY
5.0

CUSTOMER FOCUS AND SATIFACTION
7.0

• MARKET SHARE

SENIOR EXECUTIVE LEADERS
1.0

HUMAN RESOUCESDEVELOPMENT & MANAGEMENT
4.0

MEASURES OF PROGRESS
• PRODUCT & SERVICE QUALITY • INTERNAL QUALITY & PRODUCTIVITY • SUPPLIER QUALITY

STRATEGIC QUALITY PLANNING
3.0

QUALITY AND OPERATIONAL RESULTS
6.0

INFORMATION & ANALYSIS
2.0

THE BALDRIGE AWARD INGREDIENTS
WITHIN EACH OF THE SEVEN CRITERIA, THE BALDRIGE AWARD EXAMINATION PROCESS LOOKS FOR THESE TERMS AS DEFINED BELOW:...
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