A Business Study on How to Improve Quality and Achieve Customer Satisfaction

A Business Study on How to Improve Quality and Achieve Customer Satisfaction

Document details
Category: Business Studies Essay
Subcategory: Business Administration
Words: 546
Pages: 2

According to Stevenson, TQM is defined as a process that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction. TQM involves three philosophies. There are continuous improvement, involvement of everyone in the organization, and customer satisfaction. Continuous improvement involves making continuous improvements to the process of converting inputs into outputs. The philospphy of customer satisfaction involves giving the customer what he or she wants and exceeding his or her expectations. The TQM approach involves finding out what the customer wants, designing a product or service that will meet the customers want, designing processes that will complete the job right the first time, keeping track of the result to make better improvements, and extending these concepts to suppliers and distribution. Other elements of TQM include the following competitive benchmarking, employee empowerment, team approach, decisions based on facts rather than opinions, knowledge of tools, supplier quality, champion, quality of service, and suppliers. This case is about the Jones Accounting Service. The Jones Accounting Service provides accounts receivable and accounts payable services for small and medium-sized businesses. The accounting staff is paid according to how many transactions they process. The more transactions they process, they more the accounting staff receive in earnings. The accounting service had been successful for the past ten years, but there was no competition. When competitors entered into the market, the Jones Accounting Service started losing customers. So, the President talked with twenty customers who had been with the company for a good period of time to see why they left the Jones Accounting Service. The following chart from the case study shows the percent of customers who left the Jones Accounting Service and why. Reason 45 Inaccurate accounting errors 35 Poor response time to customer complaints and delay...

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