07-10-2016, 03:32 PM
IMPROVEMENT IN PERFORMANCE OF PRIVATE SECTOR BANKS WITH THE HELP OF QUALITY FUNCTION DEPLOYMENT
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ABSTRACT
The Indian banking sector has been continuously expanding still it has facing tough competition
between public sector and private sector banks. as well as national and international level. In current
scenario the performance of private sector bank is increasing but still it need more improvement
because customer wants fast services in short of time therefore private sector banks need
improvement in service/ facilities. In private sector banks increased more waiting in service counter
and Less space for sitting/writing/waiting and more time taken in sanctioning of loans and higher
interest rate. These activities increased customer dissatisfaction that is adversely impacting our
quality of life and increasing the potential for long delays. To fight and mitigate delays in banking.
The professionals are working in all over world towards increasing the productivity of existing
banking sector through the use of advanced techniques as like quality function deployment. The QFD
is a method for developing a design quality aimed at satisfying the customer and then translating the
customer demand into design targets Hence an attempt has been made to meet the customers demand
by applying the quality concept (QFD) in Indore-city banking services. In this paper “Quality
Function Deployment (QFD)” has been reviewed. A comprehensive perspective of QFD and its
potential parameter for improvement has been provided. For private sector banks
INTRODUCTION
Use of ATM cards, Internet Banking, and Mobile Banking are the new innovative channels of
banking which are being widely used as they result in saving the time and money, Moreover
private sector banks are aligning its infrastructures, marketing quality and technology to build
deep commitment in building consumer and retail banking. The main focus of these banks is
on innovative range of services, there are two essential things that, identifying customer
needs and transferring this information along to the product design phase is essential for any
business to be able to stay in competition to the market This study describes the following
two issues as the two goals that bank must accomplish to be competitive: {1} Accurate
identification of customer requirements and {2} simultaneous design of multiple
products/services. But translation of identified customer requirements into simultaneous
design of products/services is not easy task, why because there is a gap between customer requirements and transfer of these requirements in product design,. the quality function
deployment (QFD) is a methodology to aid the planning and realization of quality
products/services to meet customer expectations by bridging the communication gap between
customer requirements and technical requirements and help to translate customer what’s to
designers how’s
WHAT IS QFD
Quality Function Deployment is a customer-oriented approach to product and service
innovation. It guides managers through the conceptualization, creation, and realization of new
products and services. The QFD process encourages you to gain an in-depth understanding of
the requirements of your customer needs and expectations thus enabling you to prioritize the
features/benefits of your product/service to these requirements;
QFD METHODOLOGY
The QFD methodology provides a structured framework for concurrent engineering that
propagates the “voice of the customers” through all phases of product development QFD
utilizes a progression of matrices to link operational processes and decisions to customer
needs
VOICE OF CUSTOMER DEPLOYMENT (phase-1) often referred to as the{ House of
Quality) in this phase Qualitative customer requirements are translated into design
independent, measurable quality characteristics of the product The quality characteristics are
prioritized from the customer„s perspective and target values for desired level of performance
are selected based on competitive benchmarking
PARTS DEPLOYMENT (phase-2): After the selection of a design concept or alternative,
Phase 2 examines the relationship between the quality characteristics and the various
components or parts of the design. The result of Phase 2 is a prioritization of the component
parts of the design in terms of their ability to meet the desired quality characteristic
performance level.
PROCES DEPLOYMENT (phase-3): this explores the relationship between the part and
the manufacturing processes utilized in the production of the part. The goal of Phase 3 is to
identify the manufacturing operations that control the component target value and variation
and correlate component specifications with process target values and specifications. The
Phase 3 is a prioritization of manufacturing processes and specifications for key process
parameters that are deployed to the fourth phase
TASK DEPLOYMENT (Phase-4):In this phase the key manufacturing processes and
associated parameters are translated into work instructions, control and reaction plans, and
training requirements necessary to ensure that the quality of key parts and processes is
maintained. Ideally, these four phases combined provide a traceable link from the shop floor back to customer requirements that provides workers insight into how their job function
impacts customer satisfaction
CASE STUDY
The survey have done in Indore city, 100 in public sector banks and 100 in private sector
banks to compare the performance of public sector and private sector banks with the help of
questionnaires, the result has been abstained. The performance of private sector banks is
batter as compare to public sector banks but still private sector banks need more improvement
.in this case study the author have to identified potential parameter that will improve the
service level of private sector banks and also create a proper sequence for implementation of
technical requirements. The questionnaire are designed for urban areas to capture the voice of
customer and indentify more appropriate parameter that will improve the service level of
private sector banks
SUGGESTION AND RECOMMENDATIONS
As per result obtained from the deployment of voice of the customer, it has been indentified
that the most important parameter has higher relative weight than the less important
parameter that have lower relative weight comparatively. So it is recommend that the bank
should give first preference to the parameter which have higher relative weight as compare to
the other parameter for the improvement of service quality of banks in less quality
improvement cost. The bank should first focus in improving the parameter which have higher
relative weight, after that the preference should be given as per the weight of the parameter
obtained from the result of deployment ofvoice of customer. As per the importance, the
proper parameter sequence is given below:
1. As per the survey result first preference is given to the performance of technology driven
services because it has highest relative weight of {861} and weightage of {18.61 %}.
Therefore it is recommended that the private sector banks should first improve the
performance of technology driven services.
2. The aspect easy availability of service dispensers is given second level priority having
maximum relative weight of {693} and weightage of {15.23%}. Therefore it is recommended
the private sector bank should improve more facilities of service dispensers.
3. Third priority is given for the parameter separate exchange and separate loan department
having maximum relative weight of {612} and weightage of {13.44%}. Therefore banks
should provide separate facilities for foreign exchange and separate loan department for
efficient service.
4. Friendly behavior of staff is put in the fourth level having maximum relative weight of
{426} and weightage of {9.40%}.
5. In private sector bank one of the most important customer requirements is to provide
service facilities beyond normal working time having maximum relative weight of {386} and
weightage of {8.47%}. Therefore it is recommended the private sector banks should provide
service facilities over normal working time or some branches should be open in shifts or on
Sunday.
6. Customer friendly layout is put in the sixth level of priorities having maximum relative
weight of {298} and weightage of {6.54%}.
7. Efficient service of retail banking is put in the seventh level of priorities having maximum
relative weight of {293] and weightage of {6.43%}.
8. Activities like attentiveness towards customer problem, self currier FAX facilities and
unique cheque ID for clearance of outstation cheques are put in the eight level of priorities
having maximum relative weight of {234} and weightage of {5.13%}.
9. Parameter like separate locker facilities is put in the ninth level of priorities having relative
weight of {156} and weightage of {3.42 %}.
10. The improved housekeeping and use of digital display is put in the tenth level of priorities
of important factors having maximum relative weight of {126} and weight age of {2.76 %].
CONCLUSION
With the result obtained from deployment of voice of customer it is concluded that
performance of technology driven services have maximum relative weight is (732) and
weightage (15.67%) for public sector banks and .The Separate exchange and separate loan
department having maximum relative weight (673), and weightage (14.39%) and Little focus
is to be done on cleanliness layout, visibility of signboard and customer friendly layout for
increasing the market size in order to fulfill the need of the customer and to create a high
level service, there is need to improve the service quality according to following parameters:
1. To increase the performance of technology driven services
2. To do separate exchange and separate loan department
3. Providing service facilities beyond a normal working time
4. Improvement in easy availability of service dispensers
5. Co-operative and friendly behavior of staff, customer friendly layout and efficient service
of retail banking