How To Listen and Learn?

How to Listen and Learn?

Group 1Sec A

Our Agenda……

Whom to Listen? Why to Listen and Learn? How to Listen and Learn? Recommendation

Whom to Listen? All stake holders

Who are the stake holders? External• End User, Distributor/Dealer, Supplier, Govt Regulatory

bodies, Society

Internal• Employee

Why to listen and learn? Customer retention

Cost to acquire a customer is 7 to 10 times the amount of retaining an existing customer.

5% improvement in customer retention can result up to a 75% increase in profitability

- L&T’s customer-focused approach helps to retain huge customer base.

To understand strength and weaknesses of suppliers Know their bargaining power Helps to maintain certain quality standard. Build up relationships.

Why to listen and learn?....Contd.

Strengthen communication channels with distributors Learn about the potency of the products. Easy to forecast Enhanced linkage between value chains.- Asian Paints forecasts more quantity before festive seasons as per dealers

information

To increase awareness about the latest Government Regulation that may affect business

- Nike was criticized for violating labor and overtime law in China, Indonesia. - Any Project company’s dealing with Govt projects becomes crucial(e.g. L&T)

To resolve potential issues like land/site acquisition

To achieve higher operational efficiency.

Why to listen and learn?....Contd.

To develop new products and to improve existing product.

- Nike has come out with many customized product from customers’ ideas.

- Asian Paints came out with small packets of size 50ml/100ml/200ml as per customer requirement.

What could organisations do?........

Leadership Commitment Focus on Customer Orderliness, Safety & Environment Visual Controls Asset Care Operational Flexibility Internal Competence Innovation /Adaptation Quality Systems Inventory Management Supply Chain

How to listen and learn?

Listening to Customers- A firm’s competitive advantage is to respond to the customer requirements, faster than The competitor, with highest quality, at lowest possible cost

Business CTQ

Customer CTQ

Internal CTQ

Sources of customer CTQ’s Survey results Service reviews Meetings. Market Research

How to listen and learn?...Contd.

Identifying the Critical To Quality characteristics

Kano Analysis CTQ Drill down

QFD

A typical Survey Questionnaire for home-painting customers:

How do you decide on painting-color options for your home:a) Refer interior design/furnishing magazine

If option (a), Please specify the source:b) Hire an interior designerc) Inspired by what you see other places:

If option (c), Please specify the source:d) By options available in product cataloguee) By visiting the hardware/paint shop and pick among the options availablef) Go to Asian Paints retail showroomg) Based on advice offered by our in-house experts at Home Painting Serviceh) Sample boxes available at Asian Paints Retail outletsi) Go by your own aesthetic judgment (don’t refer anyone) j) Others

If option (e), Please provide details: How did you decide on Asian Paints for painting options for your home:

Based on your previous experience with Asian paintsReferred by architecture/Interior designer Referred by painter/contractor hired for home painting jobReferred by friends/relativesCompany websiteShopkeeper at paint-hardware shopOther : ………………………….


Co-Creation:

Share Customers’ ideas

- Nike provides a platform for customers to share their ideas about improvements to existing products or about creating new products. These ideas go through a rigorous idea selection, design, development, and testing process, with Nike sharing due credits with the customers sharing such ideas.

- Asian Paints launched ColorNext, the first India specific color forecast, involving interactions with direct consumers, designers and thought leaders.


Suppliers/Distributors:

Ensure frequent market visit by Company’s Sales Manager Periodical feedback from Suppliers/Distributors Discuss and explore the areas of improvement.

Employees:

Suggestion schemes. Timely implementation of recommendations. Documented policies. Open house communication sessions by the top management. Knowledge Sharing. JIT methodology of Training and development. Job rotation


Sample format of knowledge sharing

Management Systems/Improvement Initiatives/Regulations:

• Implementation of Quality Management Systems-ISO9000.• Implementation of EMS(ISO 14000) & OHSAS/Integrated Management

Systems(ISO 27000).• Improvement Initiatives such as TPM , TQM, Kaizen, Six sigma.• Proper Liasoning with regulatory bodies for site/land acquisition,

environmental clearance.

Shareholders:

• Send regularly Financial Statements of the company.• Implement suggestions/feedbacks given by share holders during

AGM/Half yearly/Quarterly meetings

Society/People:• Enhance quality engagement with society/people. - ITC uses e-choupal to get the pulse of rural consumers.


Recommendations:

Ensure regular feedback from customers and try to implement those. Online Customer feedback system might be an effective means. Ensure visit of Area Managers to interact with Distributors/Dealers. Develop Vendor relationships Educate employees about different Regulatory systems. Ensure proper following of Standards. Proper Training and Development of employees. If possible, encourage job rotation. Build up relationship with stakeholders Quality engagement of people/society.

Sample Questionnaire• What are the new products resulting from customer feedback? What is the NPI process?• How safe are you products? Can we see your labels? Can you show product Material Safety Data Sheet?• What is the 5S level of your plant/office?• How do you prioritize the batch manufacture for various sizes and segments? What’s your scheduling

method?• How do macroeconomic downturns affect you and how do you cope up with them?• How do you handle cyclical nature of a portion of business? (application of glues goes down during

monsoons, some part of furniture driven business related to housing which is macroeconomic)• Can you give example (from last five years) of forecast being off target, resulting in losses? What have you

changed in forecasting as a result of that? • You have grown by acquisition over the last few years. What are the best practices you noticed in the

acquired companies and were you able to blend them into your work processes as well? • How did you bring down cash conversion cycle in year 2009?• What are the quality standards that you adopt on finished products, WIP and raw materials, if any?• How sensitive are you to raw material quality? Does this modify your process? Is checking done at the

supplier gate or your gate?• How many raw material suppliers do you have? Do you have strengths in most of raw materials? Do you

have any strategic alliances with any supplier?• Do you have an employee suggestion scheme? What is the percentage implementation?• What is you production lead time? How does it compare to industry average? What steps did you to take to

improve it?• Are there alternative routes for production of your finished products? If yes, why did you chose the one that

you have employed?• How do u audit your suppliers ? Can you show the supplier quality rating for strategic suppliers for the last

2years?What improvement initiatives are carried out by you in your supplier & distributor areas?• What are the critical functions /processes and how do you measure its reliability?

THANK YOU

Documents

How To Listen and Learn?