TQM CONCEPTS

THE INTERNAL CUSTOMER CONCEPT

The concept of Internal Customer has developed out of a need to build quality into the product rather than inspect the product for quality. The earlier practice was to inspect the product thoroughly just before it left the factory so that only the product meeting specifications could reach the customer. The meaning of customer now has been expanded. Even within an organization the product is processed in various stages. After each stage the product goes to the next stage for further processing. Now each stage is seen as a supplier to the next stage and a customer to the preceding stage. This way the product is sought to be inspected and the process controlled at each stage to ensure that the next stage gets a quality product. Each department also continuously communicates with other related departments within the organization about its requirements and capabilities. This control at each stage ensures that the organization itself works as an integrated whole. It also ensure that there are fewer regrading, rejects, reworks or scrap due to mistakes committed by the previous stage.

HOW DOES IT WORK ?

The internal customer concept works through a system of communication between the supplier and customer departments as illustrated below:

The output of the supplier department, be it a product or a service is received as an input by the customer department. The customer department uses this input for further processing. Depending on his experiences with the input and its suitability, the customer gives a feedback to the supplier about how to improve the input so as to make it more suitable to his need. This feedback is used by the supplier to further improve his output resulting in an improved input to the customer. This cycle is repeated over and over again to continuously improve the input to the customer. This whole process is dependent on free flow of unambiguous communication between the supplier and the customer.

A STEP-BY-STEP APPROACH FOR IMPLEMENTING

STEP-1:Identify your customers and suppliers

The chart may be used for identifying various customers for the Products/Services of your Group/Department and your perceptions about their expectations from you as well as different suppliers to your Group/Department and your expectation from them.

DEPARTMENT:

STEP-2:Identify your Customers’ Requirements and Measures of Customer Satisfaction

Clear identification of internal customer needs is a test for the efficiency of the communication process within the organization. The need of the internal customer must be unambiguously stated because this forms the basis on which the supplier can improve himself. All means of communication are acceptable for this purpose. Measures should be as the customer measures them. Based on the situation and need a combination of the following could be used.

• Forms and Formats
• Suggestion Schemes
• Inter-Department Meetings
• KAIZEN Groups
• Project Teams
• Project Postmortems
• Specifications/Instructions
• QFD, etc.

STEP-3:Grasp the current Status

The objective of this step is to understand our current position vis-à-vis the requirement of the customer. Here, after collecting data about the current status we analyze it so that we can pin-point where we are lagging and by how much, e.g., if components are being delayed from our department alone we can analyze where they are being delayed and for how long. We can also analyze the causes for the delay and segregate them based on their importance. Process flow charts, pareto-charts, trend charts, control charts, histograms, process capability indices, etc., may be used.

STEP-4:Analyze the cause and determine the corrective action

Once the problem area has been identified, we have to find out the root cause so as to plan the corrective action. The item to examine is selected. This can be the first two or three bars in a pareto diagram, the outcome of a control chart or trend chart, etc. Tools such as a cause and effect diagram and pareto chart can be employed in this step. Once the problem area has been identified, we have to find out the root cause so as to plan the corrective action. The item to examine is selected. This can be the first two or three bars in a pareto diagram, the outcome of a control chart or trend chart, etc. Tools such as a cause and effect diagram and pareto chart can be employed in this step.

STEP-5:Implement the solution

The objective here is to implement the plan and eliminate the root causes of the problem. Employees who execute the correction must understand the corrective action. Good communication and training will be necessary. The following are the recommended sub-steps.

a)Prepare Instructions and Flow Charts for Complicated Procedures

b)Adequate Training to all Concerned

c)Follow the Implementation Plan exactly

d)Record any Deviations from the Plan and Collect Data on Results

STEP-6:Check the effects of the improvement

The effect of the improvement can be analyzed on two inputs.

• Self Analysis
• Customers’ Feedback

In the process of Self Analysis, the overall results before and after implementation are compared. The before and after results should be compared on all the items selected for study during Step-3 using the same

tools as those used in that step. Tools such as Bar Graphs, Paired Pareto Diagrams, Trend Charts, Control Charts, Histograms and Process capability indices may be used.

In the case of failure due to improper implementation, we must go back to Step-5, otherwise we go to Step-4, and again analyze the cause for the problem.

In case the result is as good or better than the existing conditions, we should also check to ensure that there are no adverse side-effects, particularly, with respect to other departments.

Customer Feedback in various forms such as Forms Feedback Forms, Review Meetings, Project Postmortems, etc., can also be a source of improving the service of the department with respect to other departments.

STEP-7:Take Appropriate Action

There are two alternative courses of action to be taken up:

a) Standardize and Institutionalize:

b) Further Improve (Go to Step-3)

The improvement in the Method or Process has to be standardized and institutionalized so that the benefits of the improvement are maintained. For this the new method should be documented in operating procedures or standards. Poor documentation can result in recurrence of the problem in future. The information about method or process change must also be shared with other connected departments so as to ensure that they can tailor their operations to suit the new method.

In implementing the improvement the implementing department must also identify critical parameters to be controlled. The intention is to monitor the appropriate parameters and to detect any deviation from the new standards with a view to analyze and correct them at the earliest. Trend Charts, Control Charts or Check sheets may be used as appropriate.

The documentation should be reinforced with training of employees wherever appropriate.

In case we find that there is further scope for improvement, we should go back to Step-3 and then follow the procedure outlined above.