Total Quality Management - CII Institute of Logistics

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Total Quality Management processes and reducing costs at the expense of the needs of external customers. Understanding customer requirements is an essential part of any QIP. Understanding the Customer It is essential that a comprehensive picture of customer requirements is determined. This is not restricted to the product or service delivered to the customer, but covers the total service required from the organization as a supplier. There may be a number of different customers to consider, even within the same organization. The person who places the order has requirements; the receiving department where goods are delivered has requirements; the person who pays the invoice has requirements. A company, which wishes to succeed, must be aware of all these requirements and constantly improve its ability to meet them. There are a number of sources of information on customer requirements. Examples include: Customer surveys Trade surveys Working with selected customers Competitor analysis Focus groups Benchmarking Customer complaints Legal and guideline standards (for example, ISO 9000) Informal customer, or potential customer comments received from sources such as: the sales force after customer visits; feedback from other employees and comments heard at conferences, training courses and trade exhibitions Every contact with an existing, or potential, customer at any level in the organization is an opportunity to learn more about their requirements. It is important that this CII Institute of Logistics 22 Website: www.ciilogistics.com
Total Quality Management information is tapped and used to improve the ability of the business to meet customer requirements. Internal Processes An external customer requirement can only be met if internal processes within an organization are set up effectively to deliver the requirement. A breakdown in the internal supply chain often results in failure to meet external customer requirements. An important part of Quality Improvement is the analysis of the whole organization to ensure that it is set up effectively to meet the requirements of its customers. The following steps are useful guide to achieve this: Identify the basic purpose and objectives of the business. What customer requirements does it exist to fulfill? Identify existing and potential future customers of the business. Tap as many sources as possible to ensure their requirements are understood. This includes understanding why potential customers are not actual customers! Identify the overall role each department plays in meeting customer requirements and business objectives. This may reveal that changes are required in the roles of departments within the organization Identify the internal processes, which link together to meet the external customer requirements. Ensure the external customer requirements flow back through the supply chain to determine the customer requirements for each internal process. Only by doing this at each stage in the supply chain can the external customer requirements are met? Measure overall performance for each process Introduce improvements to each process to improve performance CII Institute of Logistics 23 Website: www.ciilogistics.com
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