Page 75 - DMGT524_TOTAL_QUALITY_MANAGEMENT

Total Quality Management

Notes Performance involves “fitness for use” – a phrase that indicates that the product and
service is ready for the customer’s use at the time of sale.

An emphasis on customer service is emerging as a method for organization to give the
customer-added value.
The product warranty represents an organization’s public promise of a quality product
backed up by a guarantee of customer satisfaction.
Customers are constantly evaluating one organization’s products and services against
those of its competitors to determine who provides the greatest value.

Customer feedback must be continually solicited and monitored.
Some managers monitor the discussions that take place on the internet to find out what
customers are saying about their products.

The American Customer Satisfaction Index (ACSI), established in 1994 as a joint project
between the University of Michigan and the American Society of Quality quantifies quality
and customer satisfaction and relates them to firm’s financial performance.
The index measures eight sectors of the economy, which include more than 40 industries
and more than 200 individuals companies and agencies.

Customer service quality elements are: Organization, Customer Care, Communication,
Front-line people, Leadership.

Kano model shows us how an unsatisfied customer can be converted to a satisfied customer
by implementing quality goals.

5.5 Keywords

Comment Card: Comment card is sent out at the completion of each job. This gives us immediate
feedback as to the satisfaction of our work.
Customer Satisfaction Index: It is the overall satisfaction rating for the retailers that covers all
the key players’ individual performances on the satisfaction scale.

Customer Satisfaction: Customer satisfaction means customer’s perception of the degree to
which the customer’s requirements have been fulfilled.
Employee feedback: Employee feedback is to know opinions of employee about things which
happened or not happen in organization.
Feedback: Information about reactions to a product, a person’s performance of a task, etc., used
as a basis for improvement is known as feedback.
Focus Groups: A demographically diverse group of people assembled to participate in a guided
discussion about a particular product before it is launched, or to provide ongoing feedback on a
political campaign, television series, etc is known as focus group.
Front Line Employee: Any employee with direct contact with customers and/or with direct
involvement with the money making process in their respective company.
Mass Customization: A process whereby small lots of individualized parts or products are
produced. The opposite of mass production whereby large numbers of identical parts or products
are produced is referred to as mass customization.
Perceived Quality: Perceived quality refers to the consumer’s opinion of a product’s (or a brand’s)
ability to fulfill his or her expectations.

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