Total Quality Management

Chapter 5: Customer Satisfaction What is Customer Satisfaction? It is the lifeblood of any organization, because satisfied customers pay their bills promptly which greatly improves cash flow. If an organization can’t satisfied their customers their customers, they may switch to another brand or services which may give satisfaction to them. So the impact to the business is a loss on profit. What is Customers? Customers are the most important asset of any organization, because without customer the business organizations are nothing. 2 TYPES OF CUSTOMER 1. External Customer- outside the organization, business customers, suppliers, partners, end consumers. 2. Internal Customer - inside the organization, e.g., other departments, fellow employees. SERVICE QUALITY What is SERVICE? The definition of Service as per the international standard, ISO 9000 follows: “The results generated, by activities at the interface between the organization and the customer and by the organization’s internal activities, to meet customer needs”. The results generated in the case of manufacturing is their product produce, while in service organizations the results generated by them is what services they offer to their customers like in case of salon the services they offer are Rebonding, haircut and etc. What is the importance of SERVICE? There are numerous service providers, such as colleges, schools, internet café, hospitals, restaurants, hotels, banks, chartered accountants and many more. Many persons are engaged in providing services. For instance, a service that hires a large number of people in every country is the government service. Nothing is manufactured in government department. They only provide various kinds of services. According to Deming, in the United States of America, 75% of the people are employed in service organizations. In addition, even in the manufacturing industries, some people are engaged