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Case study of whirlpool quality management

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Tushar G
Tushar G

Whirlpool is a leading home appliance manufacturer with a vision of pride, passion and performance in every home. It focuses on innovation, operational excellence and customer centricity. For quality management, Whirlpool uses tools like Six Sigma and the Kano model to understand customer needs and improve products and processes. It aims to satisfy customers through attributes like effective products, good service, reasonable prices and a strong reputation. Whirlpool seeks customer feedback to address issues and enhance the customer experience.

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Management of Quality Whirlpool Case Study Group No – V PGDM11
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.
Consumer Durables  The Indian Consumer Durables is segmented in 3 groups -
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.
Customer Satisfaction by Innovation
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.
Customer Satisfaction by Innovation
Customer Satisfaction by OPEX
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
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.
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
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
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
Customer Satisfaction & Delight by Customer Excellence
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
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.
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
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.
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.
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.)
Customer Satisfaction based on Product Attributes
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.
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)
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)
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.
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
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.
Case study of whirlpool quality management

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Case study of whirlpool quality management

  • 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.
  • 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.
  • 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.