HG086 2.12.1 Presentation Quality Awareness

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    Quality Awareness

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    Introduction to Quality

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    Modern Importance of Quality

    The first job we have is to turn out uality

    merchandise that consumers will buy and !eep

    on buyin"# If we produce it efficiently andeconomically$ we will earn a profit$ in which

    you will share#%

    & 'illiam (ooper )rocter

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    *

    Quality Assurance

    Quality Assurance refers to the process

    used to create the appropriate deliverables$

    and can be performed by a mana"er$ client$or even a third&party reviewer#

    +,amples of uality assurance include

    process chec!lists$ visual aids$ and projectaudits$ mista!e proofin"$ etc#

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    -

    Quality (ontrol. Quality (ontrol refers to uality related

    activitiesassociated with the project

    deliverables

    . Quality control is used to verifythat

    deliverables are of acceptable uality and

    that they are complete and correct#

    . +,amples of uality control activities

    include inspection$ audit and the testin"

    process#

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    Qualitative vs. Subjective

    . Qualitative uality can be measured$ and

    compared usin" values that are specific$

    blac! and white. 0ubjective uality cannot be measured$ and

    comparisons are intuitive$ "ut level$ hard to

    define

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    'or!shop

    Quality (omparison

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    Mikasa fine china :$70.00 for 5 piece place

    setting

    Corelle inner!are : $"0.00

    for # piece place setting

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    %00& 'yunai Sonata

    $#()000

    %00& *aguar +*(

    $&)000

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    14

    5istory of Quality Assurance

    . 0!illed craftsmanship durin" Middle A"es

    . Industrial 6evolution7 rise of inspection and

    separate uality departments. 0tatistical methods at 8ell 0ystem

    . Quality control durin" 'orld 'ar II

    . Quality mana"ement in 9apan

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    5istory of Quality Assurance (2 of 2)

    . Quality awareness in :#0# manufacturin"industry durin" 14s7 Total Quality

    Mana"ement%. Malcolm 8aldri"e ;ational Quality

    Award

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    (ontemporary Influences on

    Quality. )artnerin"

    . >earnin" systems

    . Adaptability and speed of chan"e

    . +nvironmental sustainability

    . ?lobali@ation

    . nowled"e focus

    . (ustomi@ation and differentiation

    . 0hiftin" demo"raphics

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    >eaders in the Quality 6evolution

    . '# +dwards Bemin"

    . 9oseph M# 9uran

    . )hilip 8# (rosby

    . Armand C# Dei"enbaum

    .

    aoru Ishi!awa. ?enichi Ta"uchi

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    Bemin" (hain 6eaction

    Improve uality

    (osts decrease

    )roductivity improves

    Increase mar!et share with better

    uality and lower prices

    0tay in business

    )rovide jobs and more jobs

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    Bemin"Es 0ystem

    of )rofound nowled"e. Appreciation for a system

    . :nderstandin" variation

    . Theory of !nowled"e

    . )sycholo"y

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    0ystems

    . Most or"ani@ational processes are

    cross&functional. )arts of a system must wor!

    to"ether

    . +very system must have a purpose

    . Mana"ement must optimi@e the

    system as a whole

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    Cariation

    . Many sources of uncontrollable variatione,ist in any process

    . +,cessive variation results in product

    failures$ unhappy customers$ andunnecessary costs

    . 0tatistical methods can be used to

    identify and uantify variation to helpunderstand it and lead to improvements

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    Theory of nowled"e. nowled"e is not possible

    without theory. +,perience alone does not

    establish a theory$ it only

    describes. Theory shows cause&and&effect

    relationships that can be used for

    prediction

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    )sycholo"y. )eople are motivated intrinsically and

    e,trinsically

    . Dear is demotivatin"

    . Mana"ers should develop pride and joy

    in wor!

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    Bemin"Es 1* )oints

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    Bemin"Es 1* )oints (2 of 2) #Fptimi@e tea, an iniviual efforts#14# +liminate e-hortationsfor wor! force#

    11# +liminate nu,erical uotas an M./.#

    Docus on i,prove,ent#12# 6emove barriers that rob people of prie

    of !ork,anship.

    13# +ncoura"e eucation an self1i,prove,ent#

    1*# 2ake actionto accomplish the transformation#

    www#demin"#or"

    http://deming.org/deminghtml/wedi.html
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    9uranEs Quality Trilo"y

    . Quality plannin"

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    . Quality 5andboo!

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    )hillip 8# (rosby

    Quality is free . . . 7

    Quality is free# ItEs not a "ift$ but it is free# 'hatcosts money are the un-uality thin"s && all the

    actions that involve not doin" jobs ri"ht the first

    time#%

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    )hilip 8# (rosby

    Absolutes of Quality Management:

    . Quality means conformance to reuirements

    . )roblems are functional in nature

    . There is no optimum level of defects

    . (ost of uality is the only useful

    measurement

    . Gero defects is the only performance

    standardwww#philipcrosby#com

    http://www.philipcrosby.com/http://www.philipcrosby.com/
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    A#C# Dei"enbaum

    . Three 0teps to Quality

    . Quality >eadership$ with a stron"

    focus on plannin"

    . Modern Quality Technolo"y$

    involvin" the entire wor! force. Fr"ani@ational (ommitment$

    supported by continuous trainin" and

    motivation

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    . Total Quality

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    aoru Ishi!awa

    . Instrumental in developin" 9apanese

    uality strate"y

    . Influenced participative approaches

    involvin" all wor!ers

    . Advocated the use of simple visualtools and statistical techniues

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    2

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    ?enichi Ta"uchi

    . )ioneered a new perspective on uality

    based on the economic value of bein" on

    tar"et and reducin" variation anddispellin" the traditional view of

    conformance to specifications7

    No Loss LossLoss

    Tolerance

    0.500 0.5200.480

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    'hy QualityH

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    'or!shop

    'hy QualityH

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    If you settle for # uality

    . Fne hour per month has unsafe drin!in" water

    . Fver 24$444 wron" prescriptions per year

    . -44 wron" sur"ical operations per wee!

    . 1/$444 lost articles of mail every hour

    . 22$444 chec!s from wron" accounts per hour

    . 32$444 missed heartbeats per year per individual

    . 2 lon" or short landin" everyday at each majorairport

    . -4 babies dropped by the doctor each day

    . ;o electricity for 2 hours each month

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    (ompetitive Advanta"e

    . Is driven by customer wants and needs

    . Ma!es si"nificant contribution to businesssuccess

    . Matches or"ani@ationEs uniue resources withopportunities

    . Is durable and lastin"

    .

    )rovides basis for further improvement. )rovides direction and motivation

    Quality supports each of these characteristics

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    Quality and )rofitability

    Improved uality

    of desi"n

    5i"her perceived

    value

    Increased mar!etshare

    5i"her

    prices

    Increasedrevenues

    Improved uality

    of conformance

    >ower

    manufacturin" and

    service costs

    5i"her profitability

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    +vidence that Quality Impacts

    8usiness 6esults. ?eneral Accountin" Fffice study of

    8aldri"e Award applicants

    . 8aldri"e stoc! study

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    ?AF TQ Model

    Product andservice quality

    Customersatisfaction

    Leadership for

    continuous

    improvement

    uality systems and

    employee involvement

    Competitiveness

    !r"ani#ation $enefits

    %elia$ility

    !n&time delivery

    'rror(defects

    !verall satisfaction

    Customer retention

    Complaints

    Costs

    Cycle time

    Turnover

    )atisfaction

    )afety * health

    Productivity

    +ar,et shareProfits

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    'hat is QualityH

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    'or!shop

    'hat is Quality

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    Quality is ;otJ

    . 144 inspection

    . Mana"ement fad

    . 0tatistical )rocess (ontrol

    . +mployee involvement

    . Another e,cuse for a mana"ement retreat%

    . Fnly applies to manufacturin"

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    *2

    Quality isK

    . A philosophic way of thin!in"

    . All thin"s can be loo!ed at from a uality

    perspective. Manufacturin"

    . Mana"in"

    . Brivin"

    . :sin"

    .

    >ivin"

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    3i,ensions of Quality

    . 3efinitions of Quality

    Qualitymeans fitness for use

    & uality of desi"n

    & uality of conformance Qualityis inversely proportional to

    variability#

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    3i,ensions of Quality

    . Quality 4,prove,ent

    Quality improvementis the reductionof variability in processes and

    products#

    Alternatively$ quality improvementis

    also seen as waste reduction%#

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    3i,ensions of Quality

    2rans,ission 6-a,ple

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    Quality 2er,inology

    Quality Characteristics

    . hysical& len"th$ wei"ht$ volta"e$

    viscosity

    . Sensory& taste$ appearance$ color

    . 2i,e rientation & reliability$

    durability$ serviceability

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    Quality 2er,inology

    Quality engineeringis the set of

    operational$ mana"erial$ and

    en"ineerin" activities that a company

    uses to ensure that the uality

    characteristics of a product are at thenominal or reuired levels#

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    Quality 2er,inology

    2!o types of ata

    . 8ttributes 3ata & discrete data$ often

    in the form of counts#

    . 9ariables 3ata & continuous

    measurements such as len"th$ wei"ht#

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    Quality 2er,inology

    Specifications

    Quality characteristics bein" measured are

    often compared to standards orspecifications#

    . ;ominal or tar"et value

    . :pper 0pecification >imit =

    . >ower 0pecification >imit 0>=

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    Quality 2er,inology

    . 'hen a component or product does

    not meet specifications$ they areconsidered to be nonconforming#

    . A nonconformin" product is

    considered defectiveif it has one ormore defects.

    . Defectsare nonconformities that mayseriously affect the safe or effective

    use of the product#

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    -1

    Quality 2er,inology

    . Concurrent 6ngineering

    Team approach to desi"n# 0pecialists

    from manufacturin"$ uality

    en"ineerin"$ mana"ement$ etc# wor!

    to"ether for product or processimprovement#

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    -2

    Befinitions of Quality

    . Transcendentdefinition7 e,cellence

    . )roduct&based definition7 uantities of

    product attributes. :ser&based definition7 fitness for intendeduse

    . Calue&based definition7 uality vs# price

    . Manufacturin"&based definition7conformance to specifications

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    -3

    Quality )erspectives

    CustomerCustomer

    -istri$ution-istri$ution

    productsproducts

    andand

    servicesservices

    needsneeds

    transcendenttranscendent&&

    product-basedproduct-based user-baseduser-based

    manufacturing-manufacturing-

    basedbased

    value-basedvalue-based

    +ar,etin"+ar,etin"

    -esi"n-esi"n

    +anufacturin"+anufacturin"

    nformation flo/nformation flo/Product flo/Product flo/

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    (ustomer&Briven Quality

    . Meetin" or e,ceedin" customer

    e,pectations%

    . (ustomers can be###

    . (onsumers

    . +,ternal customers

    . Internal customers

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    --

    3i,ensions of Quality

    . )erformance

    . 6eliability

    . (onvenience and

    Accessibility

    .

    Deatures. +mpathy

    . (onformance to

    0tandards

    . 0erviceability

    . Burability

    . Aesthetics

    . (onsistency

    . Assurance

    . 6esponsiveness

    . )erceived

    Quality

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    Bimensions of Quality # of ;

    . PERFORMANE

    5ow well the output does what it is

    supposed to do#

    . RE!"A#"!"$%

    The ability of the output

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    Bimensions of Quality% of ;

    . ON&EN"ENE and AE''"#"!"$%

    5ow easy it is for a customer to use the product

    or service#

    . FEA$(RE'

    The characteristics of the output that e,ceed the

    outputEs basic functions#

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    . EMPA$)%

    The demonstration of carin" and individualattention to customers#

    . ONFORMANE

    The de"ree to which an output meets

    specifications or reuirements#

    Bimensions of Quality" of ;

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    . 'ER&"EA#"!"$%

    5ow easy it is for you or the customer tofi, the output with minimum downtime or

    cost#

    . D(RA#"!"$%

    5ow lon" the output lasts#

    . AE'$)E$"'

    Bimensions of Quality& of ;

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    /4

    . ON'"'$EN%

    The de"ree to which the performance chan"es

    over time#

    . A''(RANE

    The !nowled"e and courtesy of the employeesand their ability to elicit trust and confidence#

    Bimensions of Quality5 of ;

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    . RE'PON'"&ENE''

    'illin"ness and ability of employees to

    help customers and provide proper

    services#. PERE"&ED Q(A!"$%

    The relativeuality level of the output

    Bimensions of Quality of ;

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    /2

    'hy Is Quality ImportantH

    . )rofit and mar!et share

    . (ompetitiveness

    . (ompanyEs reputation

    . (ustomer e,pectations

    .

    )roductLservice comple,ity. )otential liability

    . +mployee satisfaction

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    /3

    Total Quality

    . )eople&focused mana"ement system

    . Docus on increasin" customer satisfaction

    and reducin" costs. A systems approach that inte"rates

    or"ani@ational functions and the entiresupply chain

    . 0tresses learnin" and adaptation to chan"e

    . 8ased on the scientific method

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    /*

    )rinciples of Total Quality

    . (ustomer and sta!eholder focus

    .

    )articipation and teamwor!. )rocess focus and continuous

    improvement

    ###supported by an inte"rated or"ani@ationalinfrastructure$ a set of mana"ement practices$

    and a set of tools and techniues

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    (ustomer and 0ta!eholder Docus

    . (ustomer is principal jud"e of uality

    . Fr"ani@ations must first understand

    customersE needs and e,pectations in orderto meet and e,ceed them

    . Fr"ani@ations must build relationships with

    customers. (ustomers include employees and society at

    lar"e

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    )articipation and Teamwor!

    . +mployees !now their jobs best andtherefore$ how to improve them

    . Mana"ement must develop the systemsand procedures that foster participationand teamwor!

    .

    +mpowerment better serves customers$and creates trust and motivation

    . Teamwor! and partnerships must e,istboth hori@ontally and vertically

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    )rocess Docus and (ontinuous

    Improvement. A process is a seuence of activities

    that is intended to achieve some result

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    (ontinuous Improvement

    . +nhancin" value throu"h new products and

    services

    . 6educin" errors$ defects$ waste$ and costs

    . Increasin" productivity and effectiveness

    . Improvin" responsiveness and cycle time

    performance

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    Bemin"Es Ciew of a

    )roduction 0ystem)uppliers ofmaterials and

    equipment

    %eceipt and test

    of materials

    -esi"n and

    %edesi"nConsumer

    research

    A

    8

    (

    B

    Production assem$ly

    inspection

    Tests of processes machines methods

    -istri$ution

    Consumers

    "NP($' PROE''E' O($P($'

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    >earnin". The foundation for improvement K :nderstandin"

    why chan"es are successful throu"h feedbac!

    between practices and results$ which leads to new

    "oals and approaches

    . >earnin" cycle7

    . )lannin"

    . +,ecution of plans

    . Assessment of pro"ress

    . 6evision of plans based on assessment findin"s

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    1

    Infrastructure$ )ractices$ and

    Tools

    Leadership )trate"ic 1%+ Process -ata and informationLeadership )trate"ic 1%+ Process -ata and information

    Plannin" m"t. mana"ementPlannin" m"t. mana"ement

    Performance Trainin"Performance Trainin"

    appraisalappraisal

    Trend chartTrend chartToolsTools

    PracticesPractices

    InfrastructureInfrastructure

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    2

    TQ Infrastructure

    . (ustomer relationship mana"ement

    . >eadership and strate"ic plannin"

    . 5uman resources mana"ement

    . )rocess mana"ement

    . Bata and information mana"ement

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    Three >evels of Quality

    . Fr"ani@ational level7 meetin" e,ternal

    customer reuirements

    . )rocess level7 lin!in" e,ternal and

    internal customer reuirements

    .

    )erformerLjob level7 meetin" internalcustomer reuirements

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    *

    Quality and )ersonal Calues

    . )ersonal initiative has a positive impact

    on business success

    . Quality be"ins with personal attitudes

    . Quality&focused individuals often e,ceed

    customer e,pectations

    . Attitudes can be chan"ed throu"hawareness and effort

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    ?rowth of Modern

    Quality Mana"ement

    +anufacturin"

    quality

    mproved

    product desi"ns

    )ervice

    quality

    Performance

    ecellence

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    The (osts ofQuality

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    'or!shop

    (ost

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    The (ost of Quality

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    Quality (ost (lassification

    . )revention

    . Appraisal

    . Internal failure

    . +,ternal failure

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    Quality (ost Mana"ement Tools

    . (ost inde,es

    . )areto analysis

    . 0amplin" and wor! measurement

    . Activity&based costin"

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    6eturn on Quality

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    Mana"in" Bata and Information

    . Calidity Boes the indicator measurewhat it says it doesH

    . 6eliability 5ow well does anindicator consistently measure thetrue value% of the characteristicH

    . Accessibility Bo the ri"ht peoplehave access to the dataH

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    Analysis.

    0tatistical summaries and charts. Trends over time

    . (omparisons with !ey benchmar!s

    . A""re"ate summaries and inde,es

    . (ause&and&effect lin!a"es and

    correlations

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    Interlin!in"

    . Quantitative modelin" of cause and

    effect relationships between e,ternal

    and internal performance criteriacustomer

    satisfaction

    rating

    time on hold (telephone)

    O O

    O O

    O

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    -

    (ommunication

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    /

    'or!shop

    >istenin"

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    >istenin"

    . The most difficult thin" to do

    . 'e have not been tau"ht to listen

    . 'e have a preset bias

    . 'e drift to thin"s that have happened to

    us

    . 'e apply our e,periences to another

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    . Certical communication

    . 5ori@ontal communication

    . Multi&communicaation

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    8arriers to communication

    . Bifferences in perception

    . Bifferences in listenin" ability

    . Bifferences in interpretation of wordsLsymbols

    . Bifferences in status

    . )ersonal bias due to race$ se, or nationality

    .

    )sycholo"ical climate or communicationenvironment

    . >ac! of clarity

    . >ac! of definite communication plans

    .

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    4

    5uddles

    . Conuct ay1to1ay co,,unications an

    business. Make a ecision

    . Correct a proble, or proble,s

    . 8ssign uties

    . Confer an ,ake an ajust,ent

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    1

    (ommunication (ycle

    . (ommunicate

    . 6eceive

    . Interpret

    . Action

    . 6eceive

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    2

    8alancin" Quality

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    3

    'or!shop

    8alancin" Act

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    *

    . The ?olden ?oose

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    -

    'hen is there too much Quality

    . The cost of uality eroes the profit

    . The uality is too far e-ceeing custo,er

    e-pectations. 6ational turns to 4rrational

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    /

    6is! Analysis

    . #. 3efine the proble, or issue for the group

    . %. 6valuate the issue

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    8alancin" the (ustomer and

    (ompany. 0ettin" up a 6eview 8oard

    . 'hen a 8oard should be used

    . Becision ma!in"

    . 6ules of decision ma!in"

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    6eview 8oards

    . )resent each areasperspectives on the

    problem

    . Allow each to wei"h the severity anrepercussion of ecision

    . 0ee if there is a resolution that will ensure

    the problem will never happen again#. Betermine if the resolution has value

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    Meetin" (ustomers +,pectation

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    144

    'or!shop

    'ho is the (ustomerH

    Importance of (ustomer

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    141

    Importance of (ustomer

    0atisfaction and >oyalty. 0atisfaction is an attitudeP loyalty is a behavior%

    . >oyal customers spen ,ore$ are willin" to pay

    higher prices$ refer ne! clients$ and are lesscostlyto do business with#

    . It costs five ti,es ,oreto find a new customerthan to !eep an e,istin" one happy#

    American (ustomer

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    142

    American (ustomer

    0atisfaction Inde,. Measures customer satisfaction at national level

    .

    Introduced in 1* by :niversity of Michi"anand American 0ociety for Quality

    . (ontinual decline in inde, from 1* throu"h

    1 with a small improvement into 2444

    su""ests that uality improvements have not!ept pace with consumer e,pectations

    A(0I Model

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    143

    A(0I Model

    of (ustomer 0atisfactionPerceived

    quality

    Customer

    complaints

    Perceivedvalue

    Customersatisfaction

    Customer

    expectations Customerloyalty

    (ustomer&Briven Quality (ycle

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    14*

    Q y y

    measurement and feedback

    (ustomer needs and e,pectations

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    14-

    >eadin" )ractices (1 of 2)

    . Befine and se"ment !ey customer "roups

    and mar!ets

    . :nderstand the voice of the customer

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    14/

    >eadin" )ractices (2 of 2)

    . 8uild relationships throu"h commitments$

    provide accessibility to people and

    information$ set service standards$ and

    follow&up on transactions

    . +ffective complaint mana"ement processes

    .

    Measure customer satisfaction forimprovement

    ( ?

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    14

    ey (ustomer ?roups

    . Fr"ani@ation level

    . consumers

    . e,ternal customers

    . employees

    . society

    . )rocess level. internal customer units or "roups

    . )erformer level

    . individual internal customers

    Identifyin" Internal (ustomers

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    14

    Identifyin" Internal (ustomers

    .

    'hat products or services are producedH. 'ho uses these products and servicesH

    . 'ho do employees call$ write to$ or answer

    uestions forH. 'ho supplies inputs to the processH

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    14

    ATT (ustomer&0upplier Model

    %equirements

    and feed$ac,

    %equirements

    and feed$ac,

    Your

    Suppliers

    Your

    Processes

    Your

    Customers

    nputs !utputs

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    114

    ano Model of (ustomer ;eeds

    . 3issatisfiers7 e,pected reuirements

    . Satisfiers7 e,pressed reuirements

    . 6-citersBelighters7 une,pected

    features

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    (ustomer 6elationship

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    112

    p

    Mana"ement

    . Accessibility and commitments

    . 0electin" and developin" customer contact

    employees. 6elevant customer contact reuirements

    . +ffective complaint mana"ement

    . 0trate"ic partnerships and alliances

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    113

    Measurin" (ustomer 0atisfaction

    . Biscover customer perceptions of

    business effectiveness

    . (ompare companyEs performancerelative to competitors

    . Identify areas for improvement

    . Trac! trends to determine if chan"esresult in improvements

    )erformance Importance Analysis

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    11*

    )erformance&Importance Analysis

    )erformance

    Importance

    >ow 5i"h

    >ow

    5i"h

    *+o cares, Over-ill

    &ulnerale 'trengt+s

    Bifficulties with (ustomer

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    11-

    0atisfaction Measurement

    . )oor measurement schemes

    . Dailure to identify appropriate uality

    dimensions. Dailure to wei"ht dimensions appropriately

    . >ac! of comparison with leadin" competitors

    .

    Dailure to measure potential and formercustomers

    . (onfusin" loyalty with satisfaction

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    11/

    (ontinuous Improvement

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    11

    'or!shop

    Improvin" the )rocess

    0ources of Cariation

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    11

    in )roduction )rocesses

    +aterials

    Tools

    !perators +ethods+easurement

    nstruments

    Human

    InspectionPerformance

    'nvironment+achines

    NP3T) P%!C')) !3TP3T)

    Cariation

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    11

    Cariation

    . Many sources of uncontrollable variatione,ist

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    124

    Importance of :nderstandin"

    Cariation

    time

    PREDICTABLE

    UNPREDICTABLE

    Two Dundamental

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    121

    Two Dundamental

    Mana"ement Mista!es1# Treatin" as a special cause any fault$

    complaint$ mista!e$ brea!down$ accident

    or shorta"e when it actually is due to

    common causes

    2# Attributin" to common causes any fault$

    complaint$ mista!e$ brea!down$ accident

    or shorta"e when it actually is due to a

    special cause

    C ti bl S l i

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    Creative roble, Solving

    . Mess ining identify symptoms

    . act ining "ather dataP operational

    definitions

    . roble, ining find the root cause

    . 4ea ining brainstormin"

    . Solution ining evaluate ideas andproposals