External Customer Satisfaction Research Articles

Six Sigma DMAIC phases application in Y company: a case study

Six Sigma has been used by large organisations to improve the performance of their manufacturing processes. The objective of this paper is to analyse the problem of increasing demand of flour in wafer biscuit production in Y Company. This problem leads to decrease profit and external customer satisfaction. In this study, define, measure, analyse, improve and control (DMAIC) methodology of Six Sigma is used to develop the solutions for the problem. Root causes are determined by using cause-and-effect analysis. Pareto chart helped to focus attention on the major important root causes. Moreover, a brainstorming concept was conducted with experts from the production, maintenance and quality control departments, which helped in formulating the solutions. The study presents the applicability, feasibility and impact of DMAIC methodology on the company, which carried out the reduction in deviation rate of flour material usage from approximately 27.55-10.45% on the production line.

Letter From the Editor

Letter From the Editor

The Influence of the Internal Marketing on the Behavior of the Expatriate Employee and on the Determination of the External Customer Satisfaction

Several studies have examined the relationship between internal marketing and external customer satisfaction. Our research examined the relationship of the expatriate in his capacity as internal customer, considering the culture’s role on the latter in determining the perceived quality of service. Our study will reveal the mysterious relationship between culture and quality of service perceived through the internal marketing of the company. An empirical study of 378 expatriates working in service companies has helped revealing the employee’s role in the customer’ satisfaction through his culture.

The effect of system design type on ISO 9001 implementation outcome: a proposed conceptual framework and future research agenda

This paper aims to discuss ISO 9001 based quality management system design type and propose a conceptual model that explains the effect of the design type on the ISO 9001 implementation outcomes, namely product quality, external customer satisfaction, and internal customer satisfaction. Furthermore, this paper aims to identify future research agenda on the topic of ISO 9001 based management system design type. This paper is a conceptual paper which is formulated based on the analysis of ISO 9001 standard, ISO 9001 standard’s supporting documents, and the result of previous empirical studies on ISO 9001 and/or quality management. We propose two ISO 9001 based quality management design system types namely “Procedural Approach” system design type and “Process Approach” system design type. We then formulated a conceptual model and three propositions to explain the effect of the design type on the ISO 9001 implementation outcomes, namely product quality, external customer satisfaction, and internal customer satisfaction. Future research agenda was identified. The conceptual models and the propositions have to be empirically tested. Furthermore, future research should empirically address the research agenda identified. This paper is believed to be the first paper that specifically discusses ISO 9001 based quality management design system type.

Quality Improvement in the Aerospace Industry: Investigation of the Main Characteristics

This paper investigates the main characteristics, results, and factors that facilitate or complicate the implementation and maintenance of quality improvement programmes in the aerospace supply chain organisations in Brazil. This topic is extremely relevant to the scenario of actual aerospace supply chains, considering that organisations in this sector continuously invest in quality improvement programs, but face difficulties in evaluating the strategic effects on the product quality. We use a quantitative research methodology based on a survey for our investigation. We extensively review the literature to develop our measurement instrument and confirm its reliability and validity through an assessment by experts and a pilot test. The research results indicate that most organisations employ programmes based on the ISO 9001 and AS 9100 standards. We further describe the factors that facilitate or complicate the implementation or maintenance of the quality improvement programmes. We find that most organisations intend to either expand the actual programmes or implement new ones. Our findings suggest that, in general, the implementation of quality improvement programmes yield results beyond expectations in terms of product quality and the satisfaction of external customers.

Quality in Brazilian Academic Libraries: Proposal of Indicators from the Customers' Point of View

The management of quality in academic libraries, as a management method that allows the improvement of performance, has been the object of interest for the managers of these services. In this context, the identification of indicators that may take into account the social-economical and political context that permeate the reality of the information services is essential to better adequate the quality proposals. A search aiming to identify and validate proper indicators for academic libraries in developing countries was developed by a group of researches and professionals involved with many teaching units of São Paulo Academic. Based on a bibliographic survey about the application of quality on information services, the research aimed to validate 16 indicators appointed in the literature and considered, by the research staff, as belonging to Brazilian reality (communication, access, reliability, courtesy, effectiveness/ efficiency, quality, response, tangible, reliability, security, extension, warranty, external customer satisfaction, cost/benefit and response time). From the data collection performed with 7 academic libraries in the Dentistry field, that served as environment to apply and validate the indicators, a proposal for its adequacy to the characteristics of the Brazilian academic environment was elaborated. It was concluded that the indicators tested in the dentistry libraries made possible the identification and characterization of the main elements that must be present during the evaluation of the quality of an information service of academic nature, and may be adapted and seen in the context of other environments, as well as to be used to permanently monitor the information services inserted in the Brazilian context.

Taking an innovative approach to quality practices: exploring the importance of a company’s innovativeness on the success of TQM practices

Quality management practices such as total quality management (TQM) are continuously applied to improve firm performance. However, recent quality researchers have found contradictory performance evidence highlighting that the success of TQM might depend on various contextual factors. Specifically, researchers and practitioners have recognised similarities and considerable overlap between TQM and innovative practices, which suggests that innovativeness plays a contextual role. However, this putative relationship remains unexplored. The purpose of this study is to assess the importance of innovativeness to the success of TQM practices through applying contingency theory. Using data collected through a large-scale survey, we carry out an empirical study and produce robust results that strongly confirm such a contextual role of innovativeness. Specifically, we identify that the seven practices closely related to TQM, namely visionary leadership, internal and external cooperation, learning, process management, continuous improvement, employee fulfilment, and customer satisfaction, have a significantly stronger impact on operational performance in companies characterised by a high level of innovativeness.

Examining the Relationships Between Internal Service Quality, External Service Quality and Customer Satisfaction: An Empirical Analysis of Department Store in Taiwan

Examining the Relationships Between Internal Service Quality, External Service Quality and Customer Satisfaction: An Empirical Analysis of Department Store in Taiwan

차별적인 교육품질이 학생만족과 학생 충성도에 미치는 영향

Purpose: The paper presents research that examine relationship difference education quality, satisfaction, loyalty in university education sector. Specifically, the effects of difference education quality on student satisfaction and loyalty in the context of education quality are examined. Methods: A model of difference education quality effect on student satisfaction and loyalty is introduced and tested in the university using student perceptions of provider. Questionnaire was developed, and data was collected and analyzed for this study with SEM(Structural Equation Modeling). Results: The results are as follows: Education capability, BNIE(Business Newspaper In Education) are significantly influenced on student satisfaction. In addition, student satisfaction is significantly influence on external customer satisfaction, professor image. Professor image is significantly influence on student loyalty. Conclusion: Upon learning of student need and want, professor can focus on development of difference education quality based on student need and want.

Methodological orientation of service quality: development of integrated framework of internal/external customer satisfaction for Islamic banking in Pakistan

This study investigates factors of internal and external customer satisfaction and explains the causal relationship between internal and external customer satisfaction in Islamic banking sector of Pakistan in comparative way between Islamic and conventional banks offering Islamic banking services. 560 usable responses were collected from internal and external customers by visiting 50 Islamic branches of both type of banks, conventional and Islamic, in three major cities of Pakistan (Karachi, Lahore and Multan). Principle component factor analysis and linear regression analysis were carried out to analyse responses. Internal customer satisfaction is explained by four factors (Islamic work ethics, salary, management commitment and workability), external customer satisfaction is explained by four factors (responsiveness, empathy, cost of products and services and tangibility). Regression analysis indicated that internal customer satisfaction has significant positive influence on external customer satisfaction in Islamic branches of full fledge Islamic banks and conventional banks. Both types of bank should satisfy internal customers (bank employees) to enhance market share and to satisfy external customers. Satisfied employees (internal customers) will be source of satisfactory level of service experience of external customers in both type of banks and more customers will be attracted toward Islamic banking services.

Indicators for measuring performance of building construction companies in Kingdom of Saudi Arabia

Slow economic growth, high competition, and construction industry restructuring have put a strong pressure on construction companies to continually improve their productivity and performance. Many studies on performance measurement have been carried out at the project level. However, recently, the demand for performance evaluation and management at the company level has increased. This paper aims to identify a set of KPIs that can be implemented by construction executives in measuring the performance at the company level in Saudi Arabia. List of 47 potential performance indicators have been identified through the literature review. A survey questionnaire was conducted on a randomly selected sample of large construction firms in Saudi Arabia. The statistical analysis of the collected responses was provided in 10 significant KPIs. Findings indicate that the traditional financial measures can no more be the sole determinant of firm success. Other performance indicators such as external customer satisfaction, safety, business efficiency, and effectiveness of planning are increasingly becoming important. The results of the study is a set of KPIs that are useful as a first step in developing a national benchmarking system for enhancing the performance of construction firms in the Kingdom of Saudi Arabia.

Use of the Six Sigma by the 500 Largent Companies in Portugal

The Six Sigma had its genesis in big industrial companies that have implemented it as a tool for reducing defects. The initial success encouraged its application in other areas and we see today successful implementation in other sectors such as services, and within their own organizations in other areas beyond production, setting; this has contributed to Six Sigma being recognized as a new management model. In order to determine the extent to which Six Sigma is present in Portuguese companies, a questionnaire has been designed to target the 500 largest, non-financial companies, operating in Portugal. From the analysis of the results, we can conclude that top management support and the level of involvement of employees in developing and implementing Six Sigma projects are perceived as critical factors in successful implementations. In terms of impact on the organization's adoption of Six Sigma, research conducted showed that after its implementation there have been gains in productivity and, in general, a greater satisfaction of external customers. Furthermore, findings evidenced that Six Sigma still has little expression in the large Portuguese companies, although there is an interest in this approach, only superseded by ISO 9001 and the Balanced Scorecard approach.Key words: Six Sigma. Management control. Quality. Firms in Portugal.

Corporate Governance Evaluation: Garanti Bankasi in Turkey as a Case Study

This report has been prepared based upon information available by Garanti Bankasi web site and according to the Corporate Governance Principles by the Turkish Capital Markets Board as amended on 2005. Evaluation includes the following main elements: (1) Shareholders rights: Under this heading the following sub-elements can be scored positively: facilitating the exercise of shareholders’ statutory rights, shareholders right to obtain and evaluate information, the right to participate in the general shareholders’ meeting, voting rights, dividend rights and transfer of shares. While there is lack of minority rights and lack equal treatment of shareholders can be scored negatively. (2) Disclosure and Transparency: Public announcements are made via all communications channels and are in accordance with the CMB and ISE’s rules and regulations. Under this heading the following sub-elements can be scored positively: principles and means for public disclosure, periodical financial statement and reports in public disclosure, functions of external audit, significant events and developments that must be disclosed to the public, and the concept of trade secret and insider trading. But the bank does not make any public disclosures about individuals who are ultimate controlling shares after eliminating the indirect-shareholding and cross-shareholding relations is not included in the footnotes of the financial statements and in the annual report. And lastly, public disclosure of relations between the bank and its shareholders, the board of directors and bank executives can be scored negatively. (3) Stakeholders: On the topic of Stakeholders heading the following sub-elements can be scored positively: protection of bank assets, bank policy on human resources, relations with customers, ethical rules and social responsibility. Unfortunately, Garanti bank hasn't declared a policy document regarding stakeholders. The Bank, taking into consideration all stakeholders, aims to improve product and service quality and to achieve internal and external customer satisfaction. Stakeholders are all the parts which have a positive or negative effect on the bank, and limited to the customers. The participation in management is limited through Customer Care Line. (4) Board of directors: From the perspective of the Principles regarding the Board of Directors heading the following e sub-elements can be scored positively: Vision, mission and strategic goals of the company are clearly defined. The Garanti board is effective and highly qualified members; Remuneration of the board of directors is just attendance fees. Audit Committee, The Credit Committee, Assets and Liabilities Committee, Liquidity Risk Management Committee (LRMC), and Sub-committees for market risk, credit risk and operational risk are established. Chief Executives Officer and board chairman positions are separately chaired. The Bank Directors & key management officers are fit to their positions. But board majority are executive and the board doesn't have any independent members at all. Garanti Board responsibilities and duties are just a part of what is mentioned in CMB principles. The board meetings and achievement are not evaluated. The Executive Management Committee and The Corporate Governance and Social Responsibility Committee are two basic committees which are not established yet.

Exploring quality management for business services from a buyer's perspective using multiple case study evidence

PurposeThis paper aims to investigate how buying companies manage the quality for their externally sourced business services. It explores how quality management for business services influences the performance of the buying company and what the major determinants of quality management are. The paper presents case evidence on which a conceptual model with preliminary propositions is built upon.Design/methodology/approachThe paper uses case study evidence from eight manufacturing and eight service companies. Drawing on the findings of these case studies, a conceptual model with propositions is presented.FindingsThe paper suggests that buying companies do not yet use quality management for externally sourced business services to its full potential. However, buying companies using quality management practices for business services report positive effects on service quality and satisfaction of internal or external customers. The major determinants affecting the intensity of quality management are the usage of the service by the buying company, the risk associated with quality failures, the degree of standardization, and volume of the purchased service.Research limitations/implicationsThe research is based on information from 16 companies located in Germany and the conducted study is exploratory in nature. The collection of statistical data will be subject to future research as suggested in this paper.Practical implicationsThe insights obtained from this paper can assist purchasers in their decision on how to design quality management practices. By understanding, what determines the quality management practices of buying companies, service providers may better adjust their service offerings to customers' requirements.Originality/valueQuality management for business services in professional procurement has not attracted much academic attention so far, as literature on quality management has mainly adopted the perspective of a goods or service provider. Literature on the purchasing of services concentrates on the differences between the purchasing of goods and services and literature on service quality focuses on consumer services. This paper fills this gap conceptually with a multiple case study and offers guidance for further research.

Strategic performance measurement in a healthcare organisation: A multiple criteria approach based on balanced scorecard

The Balanced Scorecard (BSC) methodology focuses on major critical issues of modern business organisations: the effective measurement of corporate performance and the evaluation of the successful implementation of corporate strategy. Despite the increased adoption of the BSC methodology by numerous business organisations during the last decade, limited case studies concern non-profit organisations (e.g. public sector, educational institutions, healthcare organisations, etc.). The main aim of this study is to present the development of a performance measurement system for public health care organisations, in the context of BSC methodology. The proposed approach considers the distinguished characteristics of the aforementioned sector (e.g. lack of competition, social character of organisations, etc.). The proposed measurement system contains the most important financial performance indicators, as well as non-financial performance indicators that are able to examine the quality of the provided services, the satisfaction of internal and external customers, the self-improvement system of the organisation and the ability of the organisation to adapt and change. These indicators play the role of Key Performance Indicators (KPIs), in the context of BSC methodology. The presented analysis is based on a MCDA approach, where the UTASTAR method is used in order to aggregate the marginal performance of KPIs. This approach is able to take into account the preferences of the management of the organisation regarding the achievement of the defined strategic objectives. The main results of the proposed approach refer to the evaluation of the overall scores for each one of the main dimensions of the BSC methodology (i.e. financial, customer, internal business process, and innovation-learning). These results are able to help the organisation to evaluate and revise its strategy, and generally to adopt modern management approaches in every day practise.

Satisfaction with employee relationship management systems: the impact of usefulness on systems quality perceptions

The ability to effectively manage external customer satisfaction through IT-based Customer Relationship Management systems (CRM) is well documented in the literature. The concept of applying such technologies in Business to Employee relationships to manage the firm's relationships with its employees is not. By extending the CRM paradigm to consider the service of internal customers, we characterize the emergent concept of Employee Relationship Management systems (ERM) for investigation. We find that employee satisfaction with ERM systems designed to provide access to benefits and other important employee services is largely a function of systems quality perceptions, as moderated by employee perceptions of system usefulness. Specifically, we believe our results suggest that high-quality systems implementations will not produce high degrees of employee satisfaction with ERM systems unless such systems are also found by the employee to be highly useful for their intended purpose. This highlights the critical role of accurate assessments of user requirements matched to specific needs from human resources-based systems support in the analysis phase of system design.

Applying six sigma to manufacturing processes in the food industry to reduce quality cost

In recent years, an increasing number of companies have used different types of quality programs in order to increase internal and external customer satisfaction as well as to reduce quality cost. Among all of these programs, Six Sigma is perhaps the most widely-accepted initiative by all a broad range of organizations. The DMAIC (define-measure-analyze-improve-control) approach has been followed here to solve an underlying problem of reducing process variation and the associated high defect rate. This paper explores how a food company in Taiwan can use a systematic and disciplined approach to move towards the goal of Six Sigma quality level. The DMAIC phases are utilized to decrease the defect rate of small custard buns by 70% from the baseline to its entitlement. At the beginning of this project, the defect rate was 0.45% (Baseline), and after the improvement actions were implemented during a six-month period this fell to below 0.141% (goal). The critical successful factors for Six Sigma projects, especially those in the food industry, are discussed at the conclusion of this paper. Key words: Six sigma, food industry, process improvement, DMAIC.

A structural model of supply chain management on firm performance

PurposeThe purpose of this paper is to examine the relationships among supply chain management (SCM) practices and their impacts on firm financial and non‐financial performance. This paper contributes to SCM literature by exploring a structural model connecting the relationships among external customer‐firm‐supplier integration, internal SCM contextual factors, and various dimensions of firm performance.Design/methodology/approachIn order to understand the interactions between SCM practices and firm performance, this paper considers four internal contextual factors, namely: human resource management, quality data and reporting, design management, and process management. Three levels of firm performance are also examined in this paper, including internal operational performance, external customer satisfaction, and firm financial performance. A structural model was further constructed by integrating external SCM, internal SCM contextual factors, and firm performance. The sample data were collected from Taiwan information‐related industries, where firms are facing increased global competitive pressure and heavily utilize SCM to retain their competitive advantages.FindingsThe results presented in this paper show that external customer‐firm‐supplier relation management positively impacts firm internal contextual factors, which in turn have positive effects on firm performance. This finding suggests that a successful implementation of SCM not only directly improves operational performance, but also indirectly enhances customer satisfaction and financial performance. In addition, higher financial performance is also attributable to better customer value resulting from the achievement of better customer satisfaction.Originality/valueThis paper provides empirical evidence on the relationships among SCM practices and how they affect various levels of firm performance, which in turn, provides strategic insights on the relationship between SCM practices and firm performance.

Examining the relationships between internal service quality and its dimensions, and internal customer satisfaction

Although it has been widely accepted that internal customer service quality leads to internal customer satisfaction and in turn external customer satisfaction, relatively little research has focused on the dimensions of internal customer service quality and their differing impacts on internal customer satisfaction. This empirical study identifies six key internal service quality dimensions as perceived by the purchasing department's internal customers: customer intimacy, team-based continuous improvement, communication, reliability/competence, requisition process and tangibles. In addition, this study reveals the following factors. First, customer intimacy is the most influential dimension to achieve both high internal customer service quality and satisfaction. Second, team-based continuous improvement and requisition process are the second and third most important dimensions of service quality but not significantly associated with internal customer satisfaction. Third, conversely, communication is the second most influential dimension for internal customer satisfaction but not with internal customer service quality. Finally, there is a significantly positive association between internal customer service quality and satisfaction. Managerial implications and recommendations are also presented.

Implementing service excellence in higher education

PurposeThe purpose of this paper is to provide a critical analysis of the importance of service excellence in higher education.Design/methodology/approachThe research upon which this paper is based employed a phenomenological approach. This method was selected for its focus on respondent perceptions and experiences. Both structured and semi‐structured interviews were conducted to collect relevant data on service excellence. The focus of the research study was on achieving and implementing service excellence in higher education. Findings are analysed and results are grounded in relevant theories and the principle of service excellence.FindingsPreliminary results suggest that implementing service excellence establishes a direct link between a workforce and successful competitive strategies. In order to compete efficiently and effectively in their niche market, higher education institutions need to implement service excellence to ensure both internal and external customer satisfaction. A strong institutional culture that values internal customers can help achieve a motivated workforce, loyalty, high performance, innovation and a distinctive institutional competitive advantage.Research limitations/implicationsThe qualitative data collected for this study reflect respondent perceptions and opinions. Individuals perceive and experience things differently. Although the service excellence approach is applicable to service organisations, its transferability to other sectors might affect its validity.Originality/valueThe paper investigates how service excellence is achieved in industry and how it could be applied to promote competitive advantage in higher education.