The Customer Satisfaction Index represents the overall satisfaction level of that customer as one number, usually as a percentage. Plotting this Satisfaction Index of the customer against a time scale shows exactly how well the supplier is accomplishing the task of customer satisfaction over a period of time.
Since the survey feedback comes from many respondents in one organization, the bias due to individual perception needs to be accounted for.
This can be achieved by calculating the Satisfaction Index using an importance weighting based on an average of 1.
Calculate the average of all the weightings given by the customer. Divide the individual weightings by this average to arrive at the weighting on the basis of average of 1. Customer's higher priorities are weighted more than 1 and lower priorities less than 1. The average of the Customers Importance Scores are calculated and each individual score is expressed as a factor of that average. To understand the calculations consider following example:
The following table shows the Weightings & Scores assigned on a scale of 1 - 10 by the Customer.
Parameter(P) Weighting (A ) Score( B)Weighting (avg. of 1) C Weighting (avg. of 1) * Score D = B *C
P1 7 8 1.17 9.24
P2 5 4 0.83 3.33
P3 9 8 1.50 12.00
P4 3 3 0.50 1.50
P5 6 4 1.00 4.00
Average = 6.00 Average = 5.40 CSI = 6.01
A = Average Weighting assigned by all respondents for each parameter
B = Average Score assigned by all respondents for each parameter
Avg. Weighting = (7 + 5 + 9 + 3 + 6) / 5 = 6
C = Weighting based on avg. of 1 = Individual Weighting / avg. Weighting
D = Weighted Score = Score * Average Weighting = B * C
Satisfaction Index CSI = Average of (Weighted Scores)
CSI = (9.24 + 3.33 + 12 + 1.5 + 4.0) / 5 = 6.01
Since the scale used was 1 - 10, CSI = 60.10%
Thus Customer Satisfaction can be expressed as a single number that tells the supplier where he stands today and an Improvement plan can be chalked out to further improve his performance so as to get a loyal customer.
Monday, September 20, 2010
Top Management
In bringing any change, management of the organizational undertakes or any new initiative the the company plans to implement down the line the grudge is that top management is not giving its right attention or poor involvement.
Many initiative during the startup the Management is fully involved and it hands over to the experienced and competent people in the team. This infact is the right way in doing the things.
I once met the CEO of one of the leading real estate players of India. There was an discussion about the systems failure and we say the top management involvement was low and hence the system failed. Be it Quality, Environment or any other Management systems, the fact being the failure is the benefits of the systems that the company should or ROI of the systems are not measured. However never does anyone thinks why these are not realized ? Its because everyone in the organization failed.
What is top Management means?Highest ranking executives (with titles such as chairman/chairwoman, chief executive officer, managing director, president, executive directors, executive vice-presidents, etc.) responsible for the entire enterprise. Top management translates the policy (formulated by the board-of-directors) into goals, objectives, and strategies, and projects a shared-vision of the future. It makes decisions that affect everyone in the organization, and is held entirely responsible for the success or failure of the enterprise.
This means everyone in the organization is responsible for the success or failure, because the top management delegates its responsibilities.
I was discussing an issue with Sr. Manager of one of the organization, and i informed that the system should be reviewed with help of top management. I was surprised to get an response saying yes the top management should review !
so then what is the use of Sr. Manager ? or its just an designation without any responsibility and authority. !
Many initiative during the startup the Management is fully involved and it hands over to the experienced and competent people in the team. This infact is the right way in doing the things.
I once met the CEO of one of the leading real estate players of India. There was an discussion about the systems failure and we say the top management involvement was low and hence the system failed. Be it Quality, Environment or any other Management systems, the fact being the failure is the benefits of the systems that the company should or ROI of the systems are not measured. However never does anyone thinks why these are not realized ? Its because everyone in the organization failed.
What is top Management means?Highest ranking executives (with titles such as chairman/chairwoman, chief executive officer, managing director, president, executive directors, executive vice-presidents, etc.) responsible for the entire enterprise. Top management translates the policy (formulated by the board-of-directors) into goals, objectives, and strategies, and projects a shared-vision of the future. It makes decisions that affect everyone in the organization, and is held entirely responsible for the success or failure of the enterprise.
This means everyone in the organization is responsible for the success or failure, because the top management delegates its responsibilities.
I was discussing an issue with Sr. Manager of one of the organization, and i informed that the system should be reviewed with help of top management. I was surprised to get an response saying yes the top management should review !
so then what is the use of Sr. Manager ? or its just an designation without any responsibility and authority. !
Friday, September 17, 2010
Does CB audits add value to organisation ?
I had opportunity to be an auditor for one of the leading certification bodies, I did not enjoy the job of conducting the audits at the clients place when I found the inputs which I gave were sidelined. I came to know that the Certification bodies could not raise any Non Conformity due to varied reason and main reason is that certification bodies wanted the clients in good books.
In one of the surveillance audit, the CB auditor was just dragging to find the fault. He just wanted to know the change that was due to clients and he wanted to know the exactly how we find then? He wanted to know the change in the position of cutouts. At the end of three hours of drill down they were able to exactly match.
During closing meeting, the auditor said all things are systematic and good. ?
What was the value added in this whole cycle.
Expert should accompany the auditors and external audit should give some time of value addition to the company. Internal audits at least come out with observations or non conformity that the process is deviated. When will the external audits come with findings ??
In one of the surveillance audit, the CB auditor was just dragging to find the fault. He just wanted to know the change that was due to clients and he wanted to know the exactly how we find then? He wanted to know the change in the position of cutouts. At the end of three hours of drill down they were able to exactly match.
During closing meeting, the auditor said all things are systematic and good. ?
What was the value added in this whole cycle.
Expert should accompany the auditors and external audit should give some time of value addition to the company. Internal audits at least come out with observations or non conformity that the process is deviated. When will the external audits come with findings ??
Thursday, September 2, 2010
Good definition of Quality
Came across good definition of Quality....very relevant to our way of working also.....
A gentleman was once visiting a temple under construction.
In the temple premises, he saw a sculptor making an idol of God.
Suddenly he saw, just a few meters away, another identical idol was lying.
Surprised he asked the sculptor, do you need two statutes of the same idol. No said the sculptor. We need only one, but the first one got damaged at the last stage. The gentleman examined the statue. No apparent damage was visible. Where the damage is? Asked the gentleman. There is a scratch on the nose of the idol.
Where are you going to keep the idol? The sculptor replied that it will be installed on a pillar 20 feet high.
When the idol will be 20 feet away from the eyes of the beholder, who is going to know that there is scratch on the nose? The gentleman asked. The sculptor looked at the gentleman, smiled and said, ' The God knows it and I know it '.
The desire to excel should be exclusive of the fact whether someone appreciates it or not. Quality is a drive from Inside not Outside.
A gentleman was once visiting a temple under construction.
In the temple premises, he saw a sculptor making an idol of God.
Suddenly he saw, just a few meters away, another identical idol was lying.
Surprised he asked the sculptor, do you need two statutes of the same idol. No said the sculptor. We need only one, but the first one got damaged at the last stage. The gentleman examined the statue. No apparent damage was visible. Where the damage is? Asked the gentleman. There is a scratch on the nose of the idol.
Where are you going to keep the idol? The sculptor replied that it will be installed on a pillar 20 feet high.
When the idol will be 20 feet away from the eyes of the beholder, who is going to know that there is scratch on the nose? The gentleman asked. The sculptor looked at the gentleman, smiled and said, ' The God knows it and I know it '.
The desire to excel should be exclusive of the fact whether someone appreciates it or not. Quality is a drive from Inside not Outside.
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