Case Study on Cimb

Chapter 1 INTRODUCTION

Quality of a product or service refers to the perception of the degree to which the product or service meets the customer's expectations. In other words, quality can be interpreted as "Customer's expressed and implied requirements are met fully". Other versions include: "the totality of features and characteristics of a product or service that bears on its ability to meet a stated or implied need" [ISO, 1994], "fitness for use" [Juran, 1988], and "conformance to requirement" [Crosby, 1979]. From here, it is important to realize we can see that satisfying the customers' needs and expectations are the main factors in all these definitions. Hence, a company must learn to identify such needs as early as possible in the product and service development cycle. The needs relate to price, product design, performance, safety features, after sale service and delivery are among the most important factors that will place firms ahead of its competitors in the market.

Productivity, on the other hand, is a measures of output from production processes and is meansured as per unit of input. Productivity may be viewed as a form of efficiency of production. Companies can increase productivity in a variety of ways. The most obvious methods involve automation and computerization which can minimize tasks that must be performed by employees. Technology and its exportation via trade, as well as domestic usage are all in high demand.The modern techniques are that involve ergonomic design and worker comfort. A comfortable employee, most theories maintain, can produce more than a counterpart who struggles through the day. Increases in productivity also can influence society more broadly, by improving living standards, and creating income.

Traditionally, quality and productivity are always in conflict. Hence, in the tradition view you can never have both quality and productivity existing together. However, in the modern view, it is viewed that lasting productivity gains are only as a result of quality improvement. Also, modern view requires satisfying customer needs and exceeding the expectations. In modern view, good quality is a measure of high performance benchmark for customer service and continuous improving performance. Modern view advocates that excellent quality normally achieves through good design and effective productivity control. It is therefore believed that 80% of the product problems are due to poor management. Lastly, modern view values supplier's relationship as long term and quality oriented rather than short term and cost driven as seen from the traditional perspective.

This paper will focus on stock broking industry with a study of the environment of a major stockbroker in the Malaysian market - CIMB Investment Bank (CIMB) and on how it has managed to achieve TQM.