Total Quality Management - CII Institute of Logistics

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Total Quality Management There are a number of sources of information on customer requirements. Examples include: Customer survey s and trials Trade surveys and trials 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 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 it is set up effectively to meet the requirements of its customers. The following steps are useful guide to achieving this: CII Institute of Logistics 48 Website: www.ciilogistics.com
Total Quality Management 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 be met? Measure performance overall, and for each process Introduce improvements to each process to improve performance 3.4 Identifying quality costs The objective of the Quality Improvement Program is to develop an approach, which ensures goods, and services are produced which meet customer requirements for the minimum cost. The objective is to eliminate the costs associated with not getting this right the first time, the cost of non-conformance (CONC). The Importance of Identifying the CONC Recognizing the amount of money devoted to the CONC at the beginning of a QIP frequently underlines the strategic necessity of introducing the program. Findings from a number of businesses suggest that the CONC can amount to as much as 25 per cent of CII Institute of Logistics 49 Website: www.ciilogistics.com
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Total Quality Management - CII Institute of Logistics

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