PRO1ECT REPORT ON INTERNAL

CUSTOMER SATISFACTION

INTRODUCTION
Customer is the king, this is all the more apt Ior today's business environment
where, all other Iactors remaining more or less constant, it is the value addition to the
customer that is making all the diIIerence.
Customer satisfaction depends on the performance relative to a expectations.
A key premise in customer satisIaction is understanding the needs and meeting or
exceeding the expectations oI customers. Further more, this is done while optimally
using resources. While most companies have developed strategies to improve quality
and external customer service, internal customer satisIaction is a much neglected
component oI quality improvement. To this end, it is important to emphasize that total
customer satisIaction can be attained only iI all employees devoted to external
customer satisIaction can work together and assist each other to achieve the common
objective, when the internal customer isn't satisIied, Relationships with the external
customer suIIer. So, it is suggested to adopt customer oriented approach to keep the
internal customer satisIied and motivated, who in turn will Iocus their attention and
energy upon meeting the requirements oI their customers, thereby maximizing the
customer, thereby maximizing the customer satisIaction.
Customer satisIaction survey is the process to monitor the satisIaction quotient
oI their people. In internal satisIaction surveys thereIore tracks the return on your
investments in keeping your people happy, high salaries, a quality culture, a healthy
work environment.
ast, but not the least internal customer satisIaction survey helps in Iinding the
critical areas, which need Iurther improvement.
NEED OF INTERNAL CUSTOMER SATISFACTION SURVEY ARISES DUE
TO FOLLOWING REASONS.
O Rapidly growing organization.
O High or growing turnover rate.
O Excessive rumor's
O Highly competitive industry.
O Planned and recent organizational changes.

BENEFITS OF A INTERNA CUSTOMER SATISFACTION SURVEY
O It creates better teamwork and much improved work process.
O It leads to higher output and superior quality product.
O It decreases the turnover.
O Reduced overheads, and increase customer satisIaction level's inter
departmental.
O It enhance communication and hence helped in team building, hence there is less
wasted eIIort caused by lack oI common purpose and poor communication.
O A good employee Ieedback survey improves employee attitude and boosts
morals.
INTERNAL CUSTOMER-SUPPLIER RELATIONSHIP
In an organization, Irom procuring an order to delivering the Iinal product, a
series oI activities takes place. There are diIIerent deptts. To which these activities are
assigned eg. Raw material Ior production is purchased by one deptt. And supplied to
other deptt. Where the production initiates. Thus every deptt. play an important role
oI a customer and supplier as well.
The importance oI a customer is well known Irom the maxim, ' Customer is the
king. Earlier, organizational administrators concentrated only on the satisIaction oI
external customers i.e. the target market. But now it is being realized that iI the
internal customer is satisIied the quality as well as the quantity is also appreciable.
Higher the customer satisIaction index, higher will be the quality oI the production.
This results in the satisIaction oI external customers and ultimately brings proIits &
prosperity to the organization. It can beneIit the organization in Iollowing ways:-
There will be less employee turnover.
2 Optimum utilization oI available resources will take place.
3 High job satisIaction and Ieeling oI belongingness in employees.
4 Qualitative product.
5 east conIlicts in the departments.
6 Good reputation in the market and many more beneIits can be accrued.
Thus, every deptt. should ensure that the customer deptt. is satisIied with the product
and services provided by it as it will result into an overall improvement oI the
organization.

To serve a Iinal customer Iirst oI all a company has to satisIy his employees. II
employees are satisIied then they will ultimately satisIy the Iinal customer. Three
types oI marketing arises. These are a Iollows:-
Internal marketing:
It is deIined as when company communicates its policies to the employees.
In this understands their employees & provides good working condition,
compensation and incentives so as to satisIy their employees. Company satisIy
their employees because they are the person in touch with the Iinal users.
2 External marketing:
When company communicates with its Iinal end user regarding the product
complaints & suggestions so as to satisIy them.
3 Interactive marketing:
In this employees communicate company product to its Iinal end users.
INTRODUCTION TO CUSTOMER SATISFACTION
Today`s companies are Iacing their toughest competition ever. These
companies can outdo their competition iI they can move Irom product and sales
philosophy to a marketing philosophy. We spell out in detail how companies can go
about winning customers and outperIorming competitors. The answer lies in doing a
better job oI meeting and satisIying customers needs. Only customer-centered
companies are adept at building customers, not just building product. They are skilled
in market engineering, not just product engineering.
Too many companies think that it is the marketing/sales department`s job to
procure customers. II that department cannot, the company draws the conclusion that
its marketing people aren`t very good . but in Iact, marketing is only one Iactor in
attracting and keeping customers. The best marketing department in the world cannot
spell products that are poorly made or Iail to meet anyone`s need. The marketing
department can be eIIective only in companies whose various departments and
employees have designed and implemented a competitively superior customer value-
delivery system.
Although the customer oriented Iirms seek to create high customer satisIaction,
its main goal is to maximize customer satisIaction ,Iirst the company can increase
customer satisIaction by lowering its prices, but results may be lower proIits second
the company might be able to increase prices. Third the company has many stake-
holders including employees, dealers, suppliers and stock holders spending more to
increase customer satisIaction might divert Iunds Irom increasing the satisIaction oI
other partner. Estimate the company must operate on the philosophy that it is trying to
deliver a high level oI satisIaction to the other stake-holder within the constrains oI its
resources. From the past studies oI last three decades we observed that the company`s
Iirst task is to create and satisIy customers. But today`s customers Iace a vast array oI
product and brand choice prices and suppliers.
It is generally believed that customers estimate which oIIer will deliver the most
value customers are like value maximizes, within the bounds oI search costs and
limited knowledge, mobility income, they Iorm an expectation oI value and act on it,
whether or not the oIIer lives up to the value expectations aIIects customer`s
satisIaction and their repurchase probability.
CUSTOMER VALUE
Customer delivered value is the diIIerence between the total customer value
and total consumer cost. Consumer value is the bundle oI beneIits customers expect
Irom a given product or service. Total consumer cost it the bundle oI costs consumer
expect to incur in evaluating, obtaining and using the product.
That two customers can report being 'highly satisIied Ior diIIerent reasons.
one may be easily satisIied most oI the time and other might be hard to please but was
pleased on this occasion. Companies should also note that managers and salespeople
can manipulate their ratings on customer satisIaction. They can be especially nice just
beIore the survey. They can also try to exclude unhappy customers Irom the survey.
Another danger is that iI customers will know that the company will go out oI its way
to please customers, some customers may express high dissatisIaction (even iI
satisIied in order to receive more concession.
DELIVERING CUSTOMER VALUE AND SATISFACTION:
The value chain is a tool Ior identiIying ways to create more customer value.
every Iirm is a collection oI activities that are perIormed to design, produce, market,
deliver and support its product. The value chain identiIies nine strategically relevant
activities that create value and cost in a speciIic business. These nine value-creating
activities consist oI Iive primary activities and Iour support activities.
INTERNAL RECORD SYSTEM
Marketing managers rely on internal reports on orders, sales, prices, cost,
inventory levels, receivables, payables, and so on. By analyzing this inIormation, they
can spot important opportunities and problems.
THE MARKETING INTELLIGENCE SYSTEM
A marketing intelligence system is a set oI procedures and sources used by
managers to obtain everyday inIormation about developments in the marketing
environment. Marketing managers collect marketing intelligence by reading books,
newspapers and trade publications; talking to customers, suppliers and distributors;
meeting with other company mangers.
First, it can train and motivate the sales Iorce to spot and report new
developments. Sales representatives are positioned to pick up inIormation missed by
other means.
Second, the company can motivate the distributors, retailers, and other
intermediaries to pass along important intelligence.
Third, companies can collect competitive intelligence by purchasing
competitors` products; attending open houses and trade shows; reading competitors`
publishing reports; attending stockholders` meeting; talking to employees, dealers,
distributors, suppliers, and Ireight agents; collecting competitors` ads; and looking up
news stories about competitors on the internet.
SOURCES OF INTERNAL DATA
Sources oI internal data are oI two types:
. Internal or primary data
2. External or secondary data.
Internal Sources
Company proIit-loss statements, balance sheets, sales Iigures, sales call reports,
invoices, inventory reports and prior research reports.
External Sources
A Government publications
B Periodicals and books
C Commercial data

OB1ECTIVESS OF STUDY
C 1he maln ob[ecLlve of Lhe sLudy ls Lo flnd ouL Lhe level of saLlsfacLlon among
Lhe lnLernal cusLomers
C 1o know Lhe presenL sLaLus of Lhe suppllers ln Lerms of Lhelr supplled maLerlal
servlces
C 1o collecL and evaluaLe ldeas/vlews and expecLaLlons of Lhe lnLernal cusLomers
for Lhe lmprovemenL ln suppllers performance
C 1o make companys lnLernal suppllers aware abouL Lhe dlssaLlsfacLlon parL of
Lhelr cusLomers
C 1o flnd ouL Lhe mosL promlnenL area of dlssaLlsfacLlon
C 1o enhanced Lhe communlcaLlon cooperaLlon beLween Lhe lnLernal
suppllers and Lhelr cusLomers
RESEARCH METHODOLOGY
1he quallLy and rellablllLy of research sLudy ls dependenL on Lhe
lnformaLlon collecLed ln a sclenLlflc and meLhodologlcal manner SclenLlflc
plannlng of deslgnlng of research meLhod ls a blue prlnL for any research sLudy
1herefore proper Llme and aLLenLlon should be glven ln deslgnlng Lhe plan of
research Whlle proper deflnlLlon of problem Lells Lhe researcher where he has Lo
go proper deslgn Lells hlm how he should go SelecLlon of meLhodology for a
parLlcular pro[ecL ls made easy by sorLlng ouL a number of alLernaLlve approaches
each of Lhem havlng lLs own advanLage and dlsadvanLages LfflclenL deslgn ls LhaL
whlch ensure LhaL Lhe relevanL daLa are collecLed accuraLely
1he researcher has Lo Lhlnk abouL whaL procedure and Lechnlques should
be adopLed ln Lhe sLudy Pe should arrlve aL Lhe flnal cholce by seelng LhaL Lhe
meLhodology chosen for pro[ecL ls lndeed Lhe besL one when compared wlLh
oLhers
kLSLAkCn DLSIGN
8esearch deslgn ls Lhe flrsL and foremosL sLep ln meLhodology adopLed and
underLaklng research sLudy lL ls overall plan for Lhe collecLlon and analysls of daLa
ln Lhe research pro[ecL 1hus lL ls an organlzed sysLemaLlc approach Lo be Lhe
formulaLlon lmplemenLaLlon and conLrol of research pro[ecL
lnfacL a well planned and well balanced research deslgn guards agalnsL
collecLlon of lrrelevanL daLa and achleves Lhe resulL ln Lhe besL posslble way
SAMLL DLSIGN
1he unlverse of sLudy belng large researcher has Lo resorL Lo sampllng
meLhod of daLa collecLlon Cn Lhe basls of a secLlon of Lhe unlverse selecLed ln a
prescrlbed manner one ls able Lo deduce for Lhe unlverse lor Lhe sample resulLs
Lo be appllcable on Lhe unlverse sample should be adequaLely chosen so Lo make
lL represenLaLlve and rellable
opu|at|on Ceneral Managers ln Lhe operaLlon
Samp|e Sample covers Lhe respondenLs of 20 deparLmenLs
C uA1A CCLLLC1lCn ML1PCu
uaLa are Lhe brlcks wlLh whlch Lhe researcher has Lo make a house Whlle
Lhe quallLy of research flndlngs depend on daLa Lhe adequacy of approprlaLe daLa
ln Lurn depends upon proper meLhod of daLa collecLlon A number of meLhods are
aL Lhe dlsposal of Lhe researcher of whlch one has Lo selecL Lhe mosL approprlaLe
one for vlsuallzlng Lhe research ob[ecLlve 1hus he has Lo see LhaL Lhe meLhod
adopLed ls compaLlble wlLh Lhe resources and research sLudy
a) r|mary Data uaLa whlch are collecLed fresh and for Lhe flrsL Llme and
Lhus happens Lo be orlglnal ln characLer rlmary daLa are gaLhered for
speclflc purpose
b) Secondary data uaLa LhaL collecLed from prlmary daLa le Lhey are
already exlL some where lor Lhe purpose of our sLudy we collecLed boLh
Lhe daLa
C Ior the purpose of th|s study we co||ected
Secondary daLa Lhrough lnducLlon manual magazlnes corporaLe
[ournals and web slLe
rlmary daLa Lhrough
a) CuesLlonnalre meLhod
b) lnLervlew meLhod
ln our sLudy Lhe maln emphasls was on Lhe quesLlonnalre meLhod We used
quesLlonnalre meLhod whlch conslsLed of 4 aLLrlbuLes and agaln Lhey were furLher
dlvlded lnLo 12 parameLer CuesLlon whlch were asked were of mulLlple cholce
ln naLure and were of closed ended
ersonal lnLervlew were also conducLed 1here was face Lo face
conversaLlon beLween researcher and Lhe respondenLs All Lhe answers were
recorded whlle lnLervlew was ln progress 1hrough lnLervlewlng addlLlonal
lnformaLlon was recelved regardlng our sLudy
C uaLa Analysls
uaLa collecLed lf noL sub[ecLed Lo analysls ls meanlngless lor Lhe purpose
daLa afLer collecLlon has Lo be presenLed ln Lhe form of Lables dlagrams and
graphs lL ls only afLer presenLaLlon LhaL daLa can be analyzed lnLerpreLed and
lnferences can be drawn
1he llkerL scale has been used for geLLlng Lhe responses Lhrough
quesLlonnalre
We used 3 polnL scale whlch are asslgned Lo degree of saLlsfacLlon level of
Lhe respondenL wlLh regard Lo Lhe effecLlveness of Lralnlng whlch was lmparLed Lo
Lhem durlng Lhe lasL year
1 2 3 4 3
oor Average Cood v Cood LxcellenL
1he responses were collecLed and analyzed on Lhe above menLloned 3 polnL
scale We used welghLed score and welghLed average for Lhe purpose of
presenLlng our flndlngs ln Lhe 8adar CharL and yramld CharL
WelghLed Score 1hls score was observed for every lndlvldual aLLrlbuLe for each
deparLmenL 1he score was obLalned as
No. of rexponxe X Welghtx
1hese score were used Lo make 8adar charL Lype (splder charL) for Lhe
presenLaLlon of Lhe performance of a parLlcular deparLmenL on 12 arameLers
1he purpose of maklng Splder CharL ls Lo locaLe Lhe poslLlon of deparLmenL on
each parameLer
C WelghLed Average
We geL Lhe WelghLed Average for each aLLrlbuLe by
WelghLed Score / 1oLal deparLmenL (respondenL) score
1hrough Lhls meLhod Lhe welghLed average for each lndlvldual parameLer of
a parLlcular deparLmenL was obLalned And Lhrough Lhese WA we calculaLed Lhe
mean of Lhe welghLed average of a depL Sum of Lhe welghLed averages of all Lhe
deparLmenL
C @ota| No of attr|butes
1hls ls Lhe requlred welghLed average whlch we geL for a deparLmenL as a
represenLaLlve of Lhe performance wlLh respecL Lo oLhers
1hls welghLed average was Lhen used Lo make a pyramld charL Lo show Lhe
performance of Lhe deparLmenLs on 3 polnL scale

Departmentw|se ana|ys|s
We derlve a raLlng scale ln conLlnuous serles wlLh a common class lnLerval
by uslng Lhe followlng meLhodology
We Lake dlfference beLween hlghesL and lowesL raLlng obLalned by Lhe 2
deparLmenLs (P8u333 Clvll213) furLher dlvlded by 4 so LhaL Lo make a
conLlnuous serles of 4 classes wlLh a common dlfference of 0293 and asslgn lL Lhe
measuremenL crlLerla
kat|ng Sca|e Measurement Cr|ter|a
213 243 8elow average performance
243 274 Average erformance
274304 Cood erformance
304333 Plgh erformance
We used Lhe above measuremenL crlLerla ln our deparLmenLwlse Analysls charL
also show Lhe performance of each lnLernal suppller as compared Lo oLher
MeLhods of evaluaLlon
1 1he oplnlon and [udgmenL of head of Lhe deparLmenL
2 Asklng Lhe head of Lhe deparLmenL Lo flll up evaluaLlon forms
3 use of quesLlonnalre
4 Clvlng oral and wrlLLen LesL
3 Comparlng deparLmenLs performance
Analysls of efflclency effecLlveness of Llme
7 Measurlng level of CuallLy uellvery lnnovaLlon and roducLlvlLy

LIMI@A@ICNS CI @nL S@DD
As no person ls perfecL ln Lhls world ln Lhe same way no sLudy can be consldered
as fully rellable aL one glance Lhere are a number of unconLrollable facLors acLlng
as llmlLaLlons ln conducLlng Lhe sLudy some of such llmlLaLlons encounLered by
me ln our sLudy are
1 non avallablllLy of secondary daLa compelled me Lo sLarL from Lhe very
mlnuLe lnformaLlon
2 8espondenLs ln some deparLmenL gave blased responses for fear of Lhelr
poslLlon ln Lhe company 1hls may have lnfluenced Lhe resulLs
3 Some people aL Lop level were afrald and showed compleLe relucLance Lo
glve responses Lo some quesLlons

CCNCLDSICNS
AfLer conducLlng Lhe survey and analysls Lhe daLa collecLed lL can be
concluded LhaL
1 1he employees are noL much aware of lnLernal cusLomer suppller concepL
2 Lmployees of dlfferenL deparLmenLs belleve ln concenLraLlng only upon
Lhelr deparLmenLal funcLlons
3 1hlngs are seen from deparLmenL polnL of vlew and noL from organlzaLlon's
polnL of vlew
4 CerLaln problems whlch are faced by almosL every deparLmenL are
a) lnconslsLency ln quallLy of producL/servlce supplled by Lhe respecLlve
suppllers
b) no group dlscusslons workshops or cusLomer care programmes Lake
place beLween Lhe cusLomer suppller depLLs
c) 8equlremenL of a loL of follow up Lo Lhe work done
3 CuallLy of Lhe producL servlce provlded needs lmprovemenL
Lacklng of cusLomer Lralnlng knowledge sharlng
7 need of lmprovemenL ln feedback communlcaLlon
8 1here ls a need for Lhe adopLlon of lnnovaLlve Lools and Lechnlques
9 CommunlcaLlon coordlnaLlon and feedback Lo lnLernal cusLomer Lo be
sLrengLhened
10 1here was no flexlblllLy ln adopLlng cosL conLrol Lechnlques
11 LoL of wasLage of resources and under uLlllzaLlon machlne/menhours
12 1here was no prompLness of servlce/response Lo Lhe cusLomer
deparLmenL
13 lrregular avallablllLy of daLa records and dlagnosLlcs approach Lo Lhe
cusLomer depLL
14 1here was no conslsLency ln servlces and lengLhy sLrengLh
13 lnLerneL was llmlLed
1 no rouLlne checkup of pc and prlnLers
17 Lacklng ln Lhe besL Lechnology llke Cn LlnL 18ACklnC" of each baLch of
fabrlc eLc
SDGGLS@ICNS
Ceneral suggesLlons for lmprovlng lnLernal cusLomer saLlsfacLlon Lo be
followed by Lhe organlzaLlon Lo be really successful ln explolLlng Lhe fullesL
poLenLlal of Lhelr employees are as follows
1 CosL conLrol measures
2 rompLness
3 redeLecLlon proper malnLenance of old dg seLs
4 ConslsLency ln quallLy of sLeam
3 Adherence Lo dellvery commlLmenLs
arLlclpaLlve plannlng wlLh cusLomers
7 CommunlcaLlon and coordlnaLlon should be more effecLlve
8 CpLlmlzlng of machlne and menhours
9 needs lmprovemenL ln quallLy of producL and servlces provlded
10 Submlsslon of summarlzed quallLy reporLs dally
11 1o hlghllghL problem and record Lhe soluLlon
12 8eslsLance ln accepLlng Lhe feedback regardlng damages
13 Advanced lnformaLlon regardlng any new quallLy ls needed
14 1o be more effecLlve ln lnvenLory conLrol and orderlng Lhrough dlagnosLlc
approach
13 1ralnlng and knowledge sharlng of flnanclal reporLs
1 rovlde advanced lnformaLlon abouL Lhe fallure
17 needs beLLer plannlng of procuremenL of packlng maLerlal
18 lmprove cusLomer servlce ln all respecLs
19 8esolve day Lo day problem qulckly
20 lmprovemenL ln Llmely paymenL

IN@LkNAL CDS@CMLk SA@ISIAC@ICN SDkVL
lnLernal cusLomer depL_____________________________________________
lnLernal suppller depL_____________________________________________
Supply/Servlce recelved___________________________________________
kate the answer on a sca|e S
S
oor Average Good Very
Good
Lxce||ent

Sr
No
Parameters
S
Quality
a) CuallLy of roducL/Servlce
b) CuallLy of feedback/communlcaLlon
c) ConslsLency of servlces

Delivery S
a) rompLness of response/servlce
b) AccesslblllLy avallablllLy of
documenLs

c) Adherence of dellvery
commlLmenLs



Innovation
S
a) 8ecepLlvlLy for lnnovaLlon / new
ldeas

b) AdopLlon of lnnovaLlon Lools
Lechnlques

c) Analysls of daLa/dlagnosLlc
approach



Productivity
S
a) AdopLlng cosL conLrol measures
b) Mlnlmlzlng wasLage of
resources/Llme

c) CpLlmlzaLlon of machlne/men
hours


klndly glve your expecLaLlon from Lhe servlce deparLmenL whlch has noL
meL
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________