Performance Measurement (4) Flashcards
Since TQM embraces every activity of a business?
Performance measures cannot be confined to production process but must also cover work of sales and distribution departments, suppliers, customers
Three types of performance controls for TQM?
Measuring the quality of incoming supplie
Monitoring work done as it proceeds
Measuring customer satisfaction
What should quality controls include?
Procedures for acceptance and inspection of goods inwards and measurement of rejects
What do “in-process” controls include?
Statistical process controls and random sampling
How can measuring customer satisfaction be monitored?
Through letters of complaint, returned goods, penalty discounts, claims under guarantee, requests for visits by service engineers
How is service quality measured principally?
Using qualitative measures
Example of quality of service measurement?
lawyers use proportion of time spent with clients
Measures of customer satisfaction (market research)
Market research info on customer preferences and customer satisfaction with specific product features
Measures of customer satisfaction (defective units)
Number of defective units supplied to customers as a percentage of total units supplied
Measures of customer satisfaction (customer complaints)
Number of customer complaints as a percentage of total sales volume
Measures of customer satisfaction (products)
Percentage of products which fail early or excessively
Measures of customer satisfaction (delivery)
On-time delivery rate
Measures of customer satisfaction (customer)
Average time to deal with customer queries
Measures of customer satisfaction (accounts)
New customer accounts opened
Measures of customer satisfaction (repeat)
Repeat business from existing customers
