Quality ensures high profitability

The industry worldwide has accepted Ms Elizabeth Keim as the authority in Quality Control. Ms Keim is the past President and Chairperson of the American Society for Quality. A Six Sigma Master Black Belt holder, she has imparted training regimes for international corporate giants like General Motors, American Express, IBM and Ford. In an exclusive with Retailer, Ms Keim talks about the significance of quality control practice in retailing.

Retailer: What kind of quality control programmes do you have for retailers?  

Elizabeth Keim (EK):   The retail segment has intrinsic bondage with the manufacturing sector, so quality control is indispensable for any retail operation. Apart from this, quality control programmes ensure high profitability. Nowadays, for self-sustenance of any retail organisation, the business operation has to be modelled on customer lifecycle instead of product lifecycle, which is a relatively old business concept. Quality control programmes facilitate enhancement of customer satisfaction and customer experience.    

Retailer: What are the areas in retail where the Lean Six Sigma programme can contribute in quality improvement?

EK: A quality control programme like Lean Six Sigma in retail can actuate waste reduction, minimise errors in operation, reduce customer dissatisfaction, shrinkage and pilferage, and overhead or operating costs of an organisation.

Retailer: How do you conduct your training programmes? In a small organisation of 50-60 staff strength, how many employees should undergo such training?

EK: Through our training programmes, we prescribe the methodology, not just the control, based on projects, so that a trainee can implement the same in the real work environment. We use various tools like process mapping, string diagram for inventory monitoring, data analysis and tools for the betterment of supplier-retailer relationships.

Ideally, for a small organisation, one or two persons should be picked up for the training - employees who would drive the financial growth of the organisation.

Retailer: Is quality control totally a back-end operation in retail or does it have applications at the front end too?

EK: Quality control exercise has definite applications at the front-end operations too, like it can be used as a preemptive measure against pilferage at store level, and to improve the customers’, as well as, the sales persons’ satisfaction. 

Retailer: How can Indian retailers avail of these programmes?

EK: FICCI (The Federation of Indian Chambers of Commerce and Industry) has tied up with ASQ (American Society for Quality) to set up the Foundation for Innovation & Excellence to impart training programmes. One should remember that Six Sigma certifications are global benchmarks given to an individual, not to an organisation. Those who are at the helm of an organisation should undergo such programmes for rectifying and refurbishing internal operations.

Retailer: How do you ensure customer satisfaction?

EK: A retailer should understand the requirement of customers. It is not what products a retailer has to offer, but what customers want. Quality has to be integrated in the process on the basis of customer feedback which will enhance customer loyalty. Also, we stress on pricing strategy to capture a larger section of customers.