Management of Quality Case Study - Whirlpool Customer Satisfaction and Customer Delight

1. Management of Quality
Whirlpool Case Study
Group No – V
PGDM11

2. Whirlpool
 Whirlpool Corporation of the USA is a
leading manufacturer of major home
appliances. Its has units in13 countries and
markets in 170 countries under the brand
names Whirlpool, Kitchen Aid, Roper, Estate,
etc.
 Whirlpool's pervasive vision, “Every Home,
everywhere, with pride, passion and
performance”
 This vision rests on the pillars of innovation,
operational excellence, customer-centric
approach and diversified talent.
 These are embedded within the business
goals, strategy, processes and work culture.

3. Consumer Durables
 The Indian Consumer Durables is
segmented in 3 groups -

4. Core Competencies of Whirlpool
 Innovation: Unique and compelling solutions valued by
our customers and aligned to our brands create
competitive advantage and differentiated shareholder
value.
 Operational Excellence (OPEX): WES (Worldwide
Excellence System) methodology for solving problems
& continuous improvement of products & processes
through pursuit, acquisition, and utilization of knowledge
using critical thought and planned experimentation
helps us achieve operational excellence.
 Customer Excellence: Excelling the customer
expectation from the company, its brands, products and
services are a three-step process. The three steps are:
Know a customer, Be a customer, Serve a customer.

5. Customer Satisfaction by
Innovation

6. Customer Satisfaction by
Innovation
The development of a specific innovation typically follows a flow:
 Idea generation – Idea Labs are formed which are driven by I-
teams in Whirlpool.
 Basic business case formation – E.g. In health and wellness
domain, short-term (water filters on our existing refrigerators), Mid-
term (develop appliances with anti-microbial surfaces), Long term
(whole home sanitizer)
 Competition for development of the idea – Out of 10 prototype
only 1 is to be taken further by I-Boards who make Idea to Action.
 Testing and experimentation of the ideas – The testing of
assumptions and working of prototype is measured for performance
and modifications are made if required.
 Launch, Scale & Large scale commercialization – Once the
product is ready it is introduced into market for customers.

7. Customer Satisfaction by
Innovation

8. Customer Satisfaction by
OPEX

9. Customer Satisfaction by
Operational Excellence (OPEX)
What is Quality?
• In simple terms Quality is meeting or exceeding
the customer’s expectations. Quality can be
quantified as: Q=P/E
(Q=Quality, P=Performance, E=Expectations)
What is Quality Control?
• According to Juran – QC is Evaluation of actual
performance, compare actual performance with
quality goals & act on the difference to rectify the
differences.
Quality
Quality
Control
Quality
Assurance
Quality
Manual

10. Customer Satisfaction by
Operational Excellence (OPEX)
Quality
Quality
Control
Quality
Assurance
Quality
Manual
What is Quality Assurance?
•Quality assurance proactive procedures are planned,
developed, documented and communicated to all employees
as per organisational requirements. E.g. Supplier Selection is
done by Supplier Survey, Audit, Sample Use, Supplier
material inspection.
What is Quality Manual?
•Quality Manual means the documents that describe your
quality system and say how it should operate. It is written
down or captured in some form: written procedures, policies,
checklists, forms, or graphics, drawings, flowcharts,
diagrams, even IT systems.

11. Customer Satisfaction by
TQM
 Whirlpool TQM is based on
Manufacturing Quality Products but
also keeping Customer Focus – So it
is also known as Six Sigma Customer
Centric Approach
Quality
System
Quality
Product/
Service
Customer
Satisfaction
Customer
Focus

12. Customer Satisfaction by
Operational Excellence (OPEX)
 Whirlpool uses Six Sigma tool as one of
the centrepieces for managing Quality.
 Six Sigma is a disciplined, data-driven
approach and methodology for
eliminating defects.
Benefits of Six Sigma –
 Reduces Variability in Process
 Reduces cost
 Improves Productivity

13. Customer Satisfaction by Six
Sigma
At Whirlpool, Six Sigma was used to improve
design processes for Duet washer and dryer.
 The Team developed various
new metrics for how
customers evaluate product
quality.
(Performance, Durability,
Reliability)
 Based on this metrics the
model was developed.
www.isixsigma.com

14. Customer Satisfaction & Delight
by Customer Excellence

15. Customer Satisfaction & Delight
by Customer Excellence
Know the customers - Internal customers,
External customers.
 Internal Customers
◦ Customers inside the company.
◦ Every person in the process.
◦ Each dept. is customer of another.
 External Customer
◦ Who uses the product
◦ Who purchases the product
◦ Who influences the sale of product

16. Customer Satisfaction & Delight
by Customer Excellence
How is Customer Buying Behaviour for
Whirlpool?
 Buying consumer durable is lengthy
process, lengthy decision.
 Customer will have need/ requirement of
durable products.
 Customer gives more importance for
research and available options.
 Customer has high involvement.
 Customer is Quality and Price conscious.

17. Customer Satisfaction & Delight
by Customer Excellence
Factor influencing level of Customer
involvement -
 Personal factor – Need of person for washing
machine or fridge, Advertisement creating
interest in a person.
 Situational factor- Unavailability of maid for
washing clothes or discount offer.
 Object factors – Better features than other
brands

18. Customer Satisfaction & Delight
by Customer Excellence
Elements Customer Seeks in terms of being satisfied for product/ service
 Service
◦ Provided with the service at right time, even though the customer haven’t
given any complaint.
◦ On time Delivery.
 Warranty
◦ Represents a promise of a quality product for customer to buy with
assurance
◦ It builds a trust if customer is given replacement immediately in warranty
period.
 Price
◦ High price towards Quality is accepted by customer.
◦ Expects to get good product in medium and lower price too.
◦ Customer’s perception of value is always changing and org should identify
it.
 Reputation
◦ Customer will buy product from a known company.
◦ Reputation brings customers and loyalty.

19. Customer Satisfaction & Delight
by Customer Excellence
Steps for customer needs & solving
problems
 Survey Customers - Discover customer
needs, requirements, dissatisfaction, etc
 Understand Expectations - Discover
priorities of Quality, Price, Features.
 Find Out Where You’re Failing – Make
teams, determine key performance indicators,
Analyze them on weekly basis, compare
products with the competition.
 Pinpoint Specifics and Find Solutions –
Improvement in after sales service can be
done by hiring more trained engineers.

20. Customer Satisfaction & Delight
by Customer Excellence
Roles of Customer Service –
◦ Get the customers point of view.
◦ Meet the customer’s expectations.
◦ Deliver what is promised.
◦ Make the customer feel valued.
◦ Respond to all complaints.
◦ Time limits to respond to the customer.
◦ Customer feedback has to be
continuously sought and monitored
(comment cards, surveys, toll free nos.)

21. Customer Satisfaction based on
Product Attributes

22. Customer Satisfaction based on
Product Attributes
THE KANO MODEL OF QUALITY
 The Kano Model of Customer
(Consumer) Satisfaction classifies
product attributes based on how they
are perceived by customers and their
effect on customer satisfaction.
 These classifications are useful for
guiding design decisions in that they
indicate when good is good enough,
and when more is better.

23. Customer Satisfaction based on
Product Attributes
Customer
Satisfaction
Degree of
Achievement
Basic Quality
(unspoken)
Fully Automatic Washing of
Clothes
Excitement
Quality
(unspoken)
Least Power Consumption
(5 Stars)
Adapted from Kano et al (1984)

24. Customer Satisfaction based on
Product Attributes
Threshold / Basic Attributes:
(Washing Machine) Washing Section or Container with certain capacity to wash
clothes (This is the basic function required, i.e. section which does actual cleaning or
cleansing of cloths automatically)
One Dimensional Attributes (Performance/Linear):
Washing Machine:
1. Effective cleaning of clothes
2. 100% removal of stain or dirt
3. Dryer in machine may serve as increased functionality
Other functionality
1. Time setting
2. Drainer
3. Different mode for different clothes
(These are the additional features added to a core need which results in more
customer satisfaction)
Attractive attribute (Exciters/Delighter)
Washing Machine:
1. Light weight machine
2. Less power/electricity consumption
3. Damage warranty
4. Toughened glass
(These are unknown or unexpected features of the machine which presented or
pitched right by sales executive may result as delighter)

25. Customer Satisfaction based on
Voice Of Customer
 VOC data is effectively ‘dialog’ data that
may be collected in a company via
customer service call centers, customer
warrantee claims, surveys, e-mail, web
forms, etc.
 It can be structured (in the form of coded
customer contact data), or unstructured (in
the case of free form comments on
warrantee claims or surveys responses).
 Benefits – Customer Satisfaction,
Customer Retention, Service/Product
Improvement, New Product Development,
Cross Selling.

26. Recommendations
 Using WiFi Hub & Smartphone
Technology to control appliances.
 This is innovation for the entire product
line of whirlpool connected and give
premium customers value added service

27. Recommendations
For Customer Service:
 Starts when customer enters the showroom –
Salesman will be of Whirlpool employee to exclusively
sell whirlpool products only.
 Employees – Reward program for employees who have
given best.
 Logistics – Control over logistics facility of Distributor to
deliver goods in time without delay.
 Providing Easy Finance from Bank at which customer
has account.
For Customer Delight:
 Ask birth date – Giving customer free service coupons
on that date.
 Discount on next purchase – Giving Rs1000/- discount
on next purchase.