Total Quality Management

Topics: Management, Customer, Service Pages: 40 (11296 words) Published: May 12, 2013
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.
1. External Customer- outside the organization, business customers, suppliers, partners, end consumers. 2. Internal Customer - inside the organization, e.g., other departments, fellow employees.

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 in providing service. If this is also taken into account, 86% of persons are engaged in providing services. This is the importance of service.

The requirements are always made known to the service providers only at the last moment. Hence, it becomes imperative to the service providers to offer the service as fast as possible without compromising on quality. Furthermore, the demand will be fluctuating and there will be peak periods.

Usually the service is directly delivered to customers. Every delivery is associated with a delivery schedule. Adhering to a time schedule is quite critical in service industry. Many projects fail due to the failure to keep up to a time schedule. The customer may not accept a service if the delivery is delayed. Such delays result in loss of money and can even lead to the disclosure of the service organization.

The deliverables have to be handled carefully. The customers should also be handled carefully. If the deliverables are not handled carefully, they may break or perish. The mishandling of customers will also cause hardship in form of the loss of goodwill and repetition of orders.

This is true in the case of services and usually not true in the case of manufacturing. In case of manufacturing, production of products per specification is made in a bulk of quantities. However, in service industries, each service requirements is different as it depends upon the personal preferences of individual.

Since service offering is different, service organizations and manufacturing has to make efforts to understand the requirements of each customer correctly. One has to communicate effectively with the customer to know his true requirements. Therefore, it requires a lot of tact and intelligence to understand the requirements. Understanding the customers...
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