CUSTOMER SATISFACTION &
 BUSINESS EXCELLENCE
     A.N.Chandramouli
   ( MD Of Starrag India)
     SDM 4th June 2012
                            Berthiez
                            Dörries
                            Droop+Rein
                            Heckert
                            Scharmann
                            Starrag
                            SIP
                            TTL
                            WMW
MBA PROGRAM OBJECTIVES ( my views)


1. HOLISTIC KNOWLEDGE of GENERAL MANAGEMENT
 Cross functional perspectives
 Organisational Development
 Strategic Perspectives


2. STRATEGIC ANALYSIS for DECISION MAKING of CORPORATIONS
 Competitive advantage theory
 Longterm business perspective
 Resource Fit to company mission


3.   CUSTOMER SATISFACTION & BUSINESS EXCELLENCE
    Customer delight criteria in modern business
    Balanced approach to management issues
    Operational improvement is a way of life


                                                            2
THE THREE GOALS OF MANUFACTURING-QDC

Customer expectation is three fold: QDC
 QUALITY
                                             QUALITY-Better
 DELIVERY
 COST                                    firm
Customer is satisfied                                    customer

The Firm’s response should be: BFC
 BETTER
                                          DELIVERY   -
                                                         COST-
 FASTER
 CHEAPER
                                          Faster         Cheaper
Firm develops competitive advantage


                                                                    3
“BUILDING A CHAIN OF CUSTOMERS”


Business enterprise is a chain of
customers
 DESIGN TO SERVICE
Integration of operational excellence
to strategic goals of a business
enterprise


            QDC



                                QDC

          Design
          &Dev
                              Supply      QDC

                              Chain
                                        Sales& Service   4
QDC DEFINITIONS & CONCEPTS

QUALITY( Phil Crosby)
 It is “conformance to customers requirements”   QUALITY-Better
 Its target is “zero defect”
 Its measure is “cost of nonconformance”
 Its system is “prevention”         firm
DELIVERY( Ohno-TPS)                                        CUSTOMER
 Meeting the promised time
 Delivering by expected time
 Crashing leadtimes & cycletimes
 Meeting schedules
COST( Porter)
                                              DELIVERY-    COST-
 Value derived by customer                   Faster       Cheaper
 Driver of Competitive advantage
 Nonvalue adding activities(NVA)-Waste



                                                                      5
EXCELLENCE IN EFFECTIVENESS & EFFICIENCY-EEE & QDC

EFFECTIVENESS-Q &D
 Fulfillment of External purpose of the      Q&D                     C
  firm
 Do the right things
EFFICIENCY-C
 Internal purpose of the firm
 Do things right                                                  EFFICIENCY
                                           EFFECTIVENESS
 Resource deployment
                                                                 FIRM’S GOALS
 Resource Utilisation                     CUSTOMER GOALS

EEE measures Business as well as
Operational Excellence                              Balancing Act Of QD &C



                                                                                6
COMPETITIVE STRATEGIES AND QDC




                            DIVERSIFIED




                                                                     FOCUSSED
Unique and Intense
Q &D performance leads to                 Differentiation strategy
DIFFERENTIATION STRATEGY




Unique and Intense                    Cost Leadership Strategy
C performance leads to
COST LEADERSHIP STRATEGY




                                                                                7
IMPROVEMENT ;INTERNAL CONSISTENCY


Improve over time
                                   Mutual Forces &
 Firm’s own past record         Stress at Nodal points

Improve over space
 Competitive benchmark


 Leadtime  reduction
 Waste Reduction
 Quality improvement


All three can go hand in hand
Stress at nodes can be
relieved through Kaizen
                                                          8
World Class Manufacturing & QDC


QUALITY
 QA,TQC,TQM, ISO
 ZD,COQ,PDCA, 6σ
DELIVERY
 SCM, ERP
 CELL, JIT,KANBAN
COST
 5S,VE,WoW
 Value Chain, Cost drivers
 TCM,LEAN,TPM




                                  UMBRELLA OF WCM
                                                    9
JIT, CELL MFG & QDC


3 JIT CONCEPTS
 PULL: Kanban
 SMALL LOTSIZE: Single Pc Flow
 FLOW: No online buffers


3 CELL benefits
 Q: Dynamic & Autonomous quality
  correction
 D: Shorter throughputs
 C: Lower rework, Higher productivity




                                         CELL MFG
                                                    10
KAIZEN( Improvement) & QDC

                      QUALITY-MURA
 Man
 Machine
 Material
 Method


        DELIVERY-MURI                COST-MUDA

            4Mx3mu=12 point improvement opportunity
                                                      11
WHY MFG EXCELLENCE LEADS TO BUSINESS EXCELLENCE?


1.   TO ESTABLISH THE LINK BETWEEN OPERATIONAL
     EXCELLENCE AND CUSTOMER SATISFACTION & COMPETITIVE
     ADVANTAGE
2.   TO ESTABLISH THE UNIVERSAL NATURE OF THE VARIOUS
     WORLD CLASS MANUFACTURING PRACTICES FOR VARYING
     INDUSTRY NEEDS
3.   TO EMPHASISE HOW BEST PRACTICES CAN BE SUSTAINED
     THROUGH EMPLOYEE INVOLVEMENT ACROSS FUNCTIONS



             MANUFACTURING                   BUSINESS
              EXCELLENCE                    EXCELLENCE




                                                          12
MBA PROGRAM OBJECTIVES ( my views)


1. HOLISTIC KNOWLEDGE of GENERAL MANAGEMENT
 Cross functional perspectives
 Organisational Development
 Leadership Perspectives


2. STRATEGIC ANALYSIS for DECISION MAKING of CORPORATIONS
 Competitive advantage theory
 Longterm business perspective
 Resource Fit to company mission


3.   CUSTOMER SATISFACTION & BUSINESS EXCELLENCE
    Customer delight criteria in modern business
    Balanced approach to management issues
    Operational improvement & Leadership


                                                            13
Thank you




            14

Customer satisfaction & business excellence sdm college-4th june 2012

  • 1.
    CUSTOMER SATISFACTION & BUSINESS EXCELLENCE A.N.Chandramouli ( MD Of Starrag India) SDM 4th June 2012 Berthiez Dörries Droop+Rein Heckert Scharmann Starrag SIP TTL WMW
  • 2.
    MBA PROGRAM OBJECTIVES( my views) 1. HOLISTIC KNOWLEDGE of GENERAL MANAGEMENT  Cross functional perspectives  Organisational Development  Strategic Perspectives 2. STRATEGIC ANALYSIS for DECISION MAKING of CORPORATIONS  Competitive advantage theory  Longterm business perspective  Resource Fit to company mission 3. CUSTOMER SATISFACTION & BUSINESS EXCELLENCE  Customer delight criteria in modern business  Balanced approach to management issues  Operational improvement is a way of life 2
  • 3.
    THE THREE GOALSOF MANUFACTURING-QDC Customer expectation is three fold: QDC  QUALITY QUALITY-Better  DELIVERY  COST firm Customer is satisfied customer The Firm’s response should be: BFC  BETTER DELIVERY - COST-  FASTER  CHEAPER Faster Cheaper Firm develops competitive advantage 3
  • 4.
    “BUILDING A CHAINOF CUSTOMERS” Business enterprise is a chain of customers  DESIGN TO SERVICE Integration of operational excellence to strategic goals of a business enterprise QDC QDC Design &Dev Supply QDC Chain Sales& Service 4
  • 5.
    QDC DEFINITIONS &CONCEPTS QUALITY( Phil Crosby)  It is “conformance to customers requirements” QUALITY-Better  Its target is “zero defect”  Its measure is “cost of nonconformance”  Its system is “prevention” firm DELIVERY( Ohno-TPS) CUSTOMER  Meeting the promised time  Delivering by expected time  Crashing leadtimes & cycletimes  Meeting schedules COST( Porter) DELIVERY- COST-  Value derived by customer Faster Cheaper  Driver of Competitive advantage  Nonvalue adding activities(NVA)-Waste 5
  • 6.
    EXCELLENCE IN EFFECTIVENESS& EFFICIENCY-EEE & QDC EFFECTIVENESS-Q &D  Fulfillment of External purpose of the Q&D C firm  Do the right things EFFICIENCY-C  Internal purpose of the firm  Do things right EFFICIENCY EFFECTIVENESS  Resource deployment FIRM’S GOALS  Resource Utilisation CUSTOMER GOALS EEE measures Business as well as Operational Excellence Balancing Act Of QD &C 6
  • 7.
    COMPETITIVE STRATEGIES ANDQDC DIVERSIFIED FOCUSSED Unique and Intense Q &D performance leads to Differentiation strategy DIFFERENTIATION STRATEGY Unique and Intense Cost Leadership Strategy C performance leads to COST LEADERSHIP STRATEGY 7
  • 8.
    IMPROVEMENT ;INTERNAL CONSISTENCY Improveover time Mutual Forces &  Firm’s own past record Stress at Nodal points Improve over space  Competitive benchmark  Leadtime reduction  Waste Reduction  Quality improvement All three can go hand in hand Stress at nodes can be relieved through Kaizen 8
  • 9.
    World Class Manufacturing& QDC QUALITY  QA,TQC,TQM, ISO  ZD,COQ,PDCA, 6σ DELIVERY  SCM, ERP  CELL, JIT,KANBAN COST  5S,VE,WoW  Value Chain, Cost drivers  TCM,LEAN,TPM UMBRELLA OF WCM 9
  • 10.
    JIT, CELL MFG& QDC 3 JIT CONCEPTS  PULL: Kanban  SMALL LOTSIZE: Single Pc Flow  FLOW: No online buffers 3 CELL benefits  Q: Dynamic & Autonomous quality correction  D: Shorter throughputs  C: Lower rework, Higher productivity CELL MFG 10
  • 11.
    KAIZEN( Improvement) &QDC QUALITY-MURA Man Machine Material Method DELIVERY-MURI COST-MUDA 4Mx3mu=12 point improvement opportunity 11
  • 12.
    WHY MFG EXCELLENCELEADS TO BUSINESS EXCELLENCE? 1. TO ESTABLISH THE LINK BETWEEN OPERATIONAL EXCELLENCE AND CUSTOMER SATISFACTION & COMPETITIVE ADVANTAGE 2. TO ESTABLISH THE UNIVERSAL NATURE OF THE VARIOUS WORLD CLASS MANUFACTURING PRACTICES FOR VARYING INDUSTRY NEEDS 3. TO EMPHASISE HOW BEST PRACTICES CAN BE SUSTAINED THROUGH EMPLOYEE INVOLVEMENT ACROSS FUNCTIONS MANUFACTURING BUSINESS EXCELLENCE EXCELLENCE 12
  • 13.
    MBA PROGRAM OBJECTIVES( my views) 1. HOLISTIC KNOWLEDGE of GENERAL MANAGEMENT  Cross functional perspectives  Organisational Development  Leadership Perspectives 2. STRATEGIC ANALYSIS for DECISION MAKING of CORPORATIONS  Competitive advantage theory  Longterm business perspective  Resource Fit to company mission 3. CUSTOMER SATISFACTION & BUSINESS EXCELLENCE  Customer delight criteria in modern business  Balanced approach to management issues  Operational improvement & Leadership 13
  • 14.