Performance Management Problem Solving - Research Paper Example

This may occur when an organization releases products to the market without carrying out satisfactory tests for quality. This can cause considerable loss to market share of an organization. Performance management system is important in addressing such organizational problems. Benchmarking forms one of the most crucial components of the performance management system of many organizations. The benchmarking of performance index of products and services, processes, and performance gauges is effectively done using the statistical process control (SPC).

The paper will present a discussion of performance index benchmarking by considering the statistical process control (SPC), Six-Sigma concept, and total quality management (TQM), in an effort to realize customer satisfaction. A case example of Hills Industries is discussed to emphasize performance-related problem solving tactics. Problem statement The problem to be addressed was indentified through the process of undertaking a study on the major factors that helps business managers in monitoring and managing their businesses.

The study indicates that customer satisfaction or dissatisfaction is the major indicator of market perceptions and trends (Draghici & Petcu, 2010). This leads to the identification of customer dissatisfaction, as a problem, which can be addressed through the six-sigma methodology approach of problem solving. Managers can also identify a problem through time-evaluated approach by visiting places where actual production take place, delivery points or customers’ facilities to gain first-hand observation of how production is carried out and use of manufactured products.

The organization can conduct consumer surveys on its products. The organization can select its customers on a random basis and administer questionnaires or conduct telephone interviews in order to gauge its satisfaction with its latest products or services. The company must respond to customer complaints. This is because customers tend to evaluate the complaint response in the current condition of dissatisfaction with organizations transactions. Even for customers who are satisfied, failure of transaction can occur.

This is an indication that there exists overall evaluation of satisfaction with relationship when the customer encounters a problem transaction or a company’s response to complaint (Riesenberger & Sousa, 2010). Addressing customer dissatisfaction problem requires a problem identification technique that gives an analysis of the current product status. This helps in developing a management intervention useful in guiding the organization towards achieving the desired state in the future. The customer dissatisfaction problem can be identified using the benchmarking, statistical process control (SPC) or a time-evaluated management-by-walking around.

SPC is more useful in recurrent manufacturing settings although can also be applicable to any service delivery organization. An effective SPC program helps managers become aware of how operational processes are performing and anomalies that may arise during the production process, which ultimately affect process outputs. SPC helps to identify flaws in performance. Identification of performance outliers in the course of production may inspire the organization to make necessary changes in the process and product in order to improve customer satisfaction.

The SPC helps to benchmark a performance index. The statistical approach must take into account the effects of