Customer service

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(2) Customer service
 To start : Definition of customer requests in Q, C and
D
Needed, wanted and attractive services
 Root causes of customer complaints
* Quality
* Cost
* Delivery

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  Approaches
Seven Steps of Improving Customer Service
(plant-wide) Step 7

Checking Step 6 Fully satisfied

of results customers and
•Definition of Implement newly
customer ation of attracted
requirements in Q, counter- Step 5 Action and
customers
C, D Gap measures standardization
• Investigation of analysis
customer service between set
situation CS targets Step 4
• Claim collection and actual
and classification Benchmark
levels
comparison
• Investigation of
with Q : Materials – input material control
the reasons of lost
competitors
Step 3
orders Man - no errors
in Q, C, D
Q : QA matrix Method - SOP
Recognition of
customer
Step 2 C : CD Machine - X matrix QM matrix
requirements C : Action based on CD
D : Flexibility
Set CS targets D : Shorter lead times
Step 1 deployment

Reactive Preventive Proactive

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1. Recognition of customer requirements
 Definition of customer requirements in Q, C, D
(1) The most important point when working to
improve customer service is to understand our
customers.
(2) It is important to identify customer needs and
wants and to separate the two.
(3) Our product or service must satisfy the
customer need or else it will not be bought a second
time.
(4) By understanding customer wants we can be
assured of continued purchases into the future.
(5) Identify the customer needs in terms of Quality,
Cost and Delivery. Try to identify customer wants in
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terms of cachet, performance and style.
 Investigation of customer service situation
Do we capture details of on-time delivery performance,
delivered quality and the number and type of customer
claims and complaints?
Showing clients how quality is built in at the process
with delivering documents
 Claims and complaints and classification measured in
money

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Investigation of the reasons of lost orders
(1) Ask questions about lost orders and try to find
out why? This exercise requires an understanding
of the market and an analysis of competitor
performance.
(2) Determine what is the closing rate for orders
made versus quotations issued.
(3) Work with the sales team to develop their
forecasting performance and customer management
systems.
 Shipping situation : shipping errors, etc.

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2. Benchmark comparison with competitors in Q, C, D

To be able to compete, we need to know who we are

competing against and what the level of competition is.
Carry out a competitor profile and look closely at the
competitor’s products initially in terms of Quality, Cost and
Delivery.
Look for axes of movement, or ways in which we can move
against our competitor on characteristics of customer
service. Where do we have or can gain an advantage?

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  Identify the strategic opportunity

[ Quality ]

Current

Future Margin
opportunity

Cost of claims Sales and profit

and complaints (EURO)
(EURO) 8
 Step Contents

Reactive 1 • Definition of customer requirements in Q, C, D

• Investigation of customer service situation
• Claim collection and classification
• Investigation of the reasons of lost orders

Preventive 2 - 5 Re. Q
• Establishment of operating standards to
assure quality
• Establishment of quality defects detection
system
Proactive 6 - 7 • Re-define customer service standards in
terms of Q, C and D

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 Classification of subjects

Reactive Preventive Proactive

AA Very highly needed Very highly Very highly attractive

service wanted service service

A Highly needed Highly wanted Highly attractive

service service service
B Needed service Wanted service Attractive service
(Medium) (Medium) (Medium)
C Needed service Wanted service Attractive service
(Low) (Low) (Low)

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[ Cost (Price)]

Current

Future Margin
opportunity

Prices Sales and profit

(EURO) (EURO)
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[ Delivery (lead time)]

Current

Future Margin
opportunity

Lead time (days) Sales and profit

(EURO)

 Set CS target : strategic issue 12

3. Gap analysis between set CS targets and actual l
evels
Identify the scale of the gap between the two and to dec
ide a series of actions with a programme to close the ga
p.
The Quality activity will probably center on the develop
ment of a Quality Assurance Matrix, looking to find ways
to enhance quality and reduce defects.
The Cost issue should be tackled using Cost Deploym
ent to objectively and logically identify wastes and reduc
e cost.
The Delivery target will be tackled by looking for ways
to enhance the flexibility of the operation so that custom
ers’ demands can be met on time, every time.
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Quality : QA matrix
Cost : Cost deployment (the rule of
30/20/6)
Delivery : Flexibility deployment

To understand our problems

correctly, we need a global view,
meaning the necessity of
integrating sales and
manufacturing functions
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4. Roles of the managing director

The managing director needs to use the rule of 30/20/6 and

correctly apply it.
The managing director needs to drive the integration to
implementation. He needs to tackle the issues and move
his people and processes to better levels of performance.
Sometimes solutions that looked certain on paper do not
work in practice. He needs to help, facilitate and lead his
people around such obstacles.

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The managing director will plan for regular reviews where
the results achieved to date will be compared against the
projected results. These review check points should
include input from the sales and marketing people.
These inputs are important to ensure the full business
team, are pulling in the same direction and are a key part
of effective communications.
It is important to keep all team members aware of any
changes that may have occurred in the market in relation
of changed customer requirements or competitor actions.

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5. Follow up, standardization and looking ahead
It is very difficult on people to say that what has already
been achieved is not good enough, but the fact of the
matter is that this is true.
The standards of product and customer service that were
acceptable three years ago are not acceptable today.
We need to continue to define today’s standard to ensure
that we have a base from which to improve and this
requires the definition and standardization of the
Customer Service Process, from the point of earliest
contact, through the sales point, delivery, payment, and
warranty.
This standardization provides a solid benchmark for future
improvement activity as well as providing a means of
capturing corporate knowledge in a clear and concise 17
6. The seven control items on the shop floor to
satisfy customers
1. Display board
2. Operation availability
3. Production progress and inventory control
4. Production performance analysis sheet
5. Quality control chart
6. Standard operation procedure
7. Kaizen plan sheet

7. Fully satisfied customers and newly attracted

customers
 Showing clients how quality is built in at the process with
delivering documents 18
7. Fully satisfied customers and newly attracted
customers
 Showing clients how quality is built in at the process with delivering
documents

Stratification of
Investigation of Map of quality Investigation of
current quality
causes defects Causes (PPA, etc.)
defects

Establishment of operating
1. Audio & visual standards to assure quality
alarm
2. Automatic
control

Daily checking Establishment of Selection of

Checking the Identification of
Quality mainte- tentative operating proper sensors and
results measuring items
nance standards their installation

Establishment of quality
Improvement of customer service defects detection system
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