Internal and External Customers PDF

 TRADITIONAL VIEW OF SUPPLIERS CUSTOMERS SHOWING THAT CUSTOMERS AND SUPPLIERS ARE STRICTLY EXTERNAL ENTITIES supplier supplier supplier supplier The Company...

 TRADITIONAL VIEW OF SUPPLIERS CUSTOMERS SHOWING THAT CUSTOMERS AND SUPPLIERS ARE STRICTLY EXTERNAL ENTITIES supplier supplier supplier supplier The Company And its processes Customer Customer Customer Customer CONTEMPORARY VIEW OF SUPPLIERS &CUSTOMERS SHOWING THAT EMPLOYEES ARE SUPPLIERS AND CUSTOMERS TO EACH OTHER supplier supplier supplier supplier C& C& S S C& C& S S Customer Customer Customer Customer Internal customer External customer The next person the final customer in the process WHO IS THE CUSTOMER?
Who is the Customer?
The customer can be classified to either an external customer or an internal customer.
An external customer exists outside the organization and buys its products or services 
Every employee in the business must know how their job affects and/or enhances the total satisfaction of the external customer. 
An internal customer is just as important.
Every function, whether it be engineering, order processing, or production has an internal customer— each receives a product or service and in exchange, provides a product or service.
Every person in a process is considered a customer of the preceding operation 
Every employee in the business must know how their job affects and/or enhances the total satisfaction of the external customer.
Performance must be continually improved to retain existing customers and gain new ones. 
One basic concept of TQM is an unwavering focus on customers, both internal and external.
Most employees know about the external customer or end user but may not think of other employees as internal customers of their output ARE ALL CUSTOMERS COMPLAINTS CAUSED BY DEFECTIVE PRODUCTS OR SERVICES?? Not all of them  OTHER CAUSES THAT LEAD TO CUSTOMER COMPLAINTS
Customers incorrectly use the product or service
Customers have unrealistic expectations of the product or service
The marketing department makes promises that cannot be lived up to
The organization's marketing campaign is misleading 
What does the customer do with our product?
How is it used?
Is our product part of a large assembly?
Does the customer use our product in the way we expect or in some different way?
What processes does the customer use in working with our product?  By knowing a customer's operations suppliers might Suppliers might also be able be able to modify to add attributes their products that will make to better fit in the product with these operations even more attractive to the customer By knowing a customer's operations Suppliers might be able to propose process modifications that will improve their productivity By knowing a customer's operations Suppliers might learn facts that lead to Internal improvement in Quality, Productivity, design in their own organization  CUSTOMER/SUPPLIER RELATIONSHIPS
In the ideal organization, every employee would have direct contact with customers and be effective in meeting their needs.
But the reality is that most employees are shielded from customers by organizational layers.
For example, the first-line supervisor in a computer factory may never speak with the business person who buys and depends on the organization's product. However, that supervisor and countless other employees who lack direct contact must still contribute to the business person's satisfaction 
The formula for successful internal customer/supplier relationships varies.
But it always begins with people asking their internal customers three basic questions: 1. What do you need from me? 2. What do you do with my output? 3. Are there any gaps between what you need and what you get? 
Before making a major purchase, some people check consumer magazines that rate product quality.
During the period 1980 to 1988, the quality of the product and its performance ranked first, price was second and service was third.
During the period 1989 to 1992, product quality remained the most important factor, but service ranked above price in importance  FACTORS THAT AFFECT CUSTOMER SATISFACTION
Factors that Affect Customer Satisfaction An American Society for Quality Control (ASQC) survey on end user perceptions of important factors that influenced purchases showed the following ranking: 1- Performance 2. Features 3. Service 4. Warranty 5. Price 6. Reputation 
Performance involves “fitness for use” —a phrase that indicates that the product and service is ready for the customer's use at the time of sale. 
Identifiable features or attributes of a product or service are psychological, time-oriented, contractual, ethical and technological.
Features are secondary characteristics of the product or service. 
An emphasis on customer service is emerging as a method for organizations to give the customer added value.
However, customer service is intangible—it is made up of many small things, all geared to changing the customer's perception. 
The product warranty represents an organization's public promise of a quality product backed up by a guarantee of customer satisfaction. 
Today's customer is willing to pay a higher price to obtain value.
Customers are constantly evaluating one organization's products and services against those of its competitors to determine who provides the greatest value. 
Most of us find ourselves rating organizations by our overall experience with them.
Total customer satisfaction is based on the entire experience with the organization, not just the product 
Customer feedback must be continually monitored.
Listening to the voice of the customer can be accomplished by numerous information- collecting tools.
The principal ones are comment cards, questionnaires, focus groups, toll-free telephone lines, customer visits, report cards, the Internet, employee feedback, and mass customization 1. Comment Card:
A comment card can be attached to the warranty card and included with the product at the time of purchase.
The intent of the card is to get simple information, such as name, address, age, occupation and what influenced the customer's decision to buy the product. 2- Customer Questionnaire:
A customer questionnaire is a popular tool for obtaining opinions and perceptions about an organization and its products and services.
However, they can be costly and time- consuming. 3- Focus Groups:
Customer focus groups are a popular way to obtain feedback, but they too can be very expensive.
These groups are very effective for gathering information on customer expectations and requirements.
The people selected to participate have the same profile as the customers that the organization is trying to attract.
As an incentive to participate, these people are reimbursed for their time. 4- Toll-Free Telephone Numbers:
Toll-free telephone numbers are an effective technique for receiving complaint feedback.
Organizations can respond faster and more cheaply to the complaint. 5- Customer Visits:
Visits to a customer's place of business provide another way to gather information.
An organization can proactively monitor its product's performance while it is in use and thereby identify any specific or recurring problems. 6- Report Card:
Another very effective information-gathering tool is the report card.
It is usually sent to each customer on a quarterly basis.
The data is analyzed to determine areas for improvement.
For instance, the University of California in San Diego uses a report card to grade the quality of campus business services, such as the payroll department and the bookstore. 7- The Internet and Computers:
Some managers are beginning to monitor discussions that take place on the internet to find out what customers are saying about their products.
Internet users frequently seek advice regarding their everyday activities or activities related to specific interests, hobbies, or sports 8-Employee Feedback:
Employees are often an untapped source of information. Companies are listening more to the external customer but still are not listening to employees.
Employees can offer an insight into conditions that inhibit service quality within the organization. Employee groups can brainstorm ideas to come up with solutions to problems that customers have identified.
Although customer research reveals what is happening, employee research reveals why it is happening. Employee feedback should be proactively solicited, instead of checking the wooden suggestion box once a year 9-Mass Customization:
The ultimate in customer satisfaction is giving customers exactly what they want. In the past, the price tag for this was prohibitive, but mass customization is a way to provide variety at an affordable cost.
Mass customization is a direct result of advances made in manufacturing, such as flexible manufacturing technologies, just-in-time systems, and cycle time reduction.
It has been applied in the car industry for years. Customers determine what type of seat coverings, color and stereo system they want