DR Jegak Uli Assignment 4 DCE5131

DCE 5131 GROUP ASSIGNMENT
QUESTION 7 (ASSIGNMENT 1)
What is a process? What are the process characteristics? Why to we need to

continuously improve our business processes? Identify and document a
process of your choose with the aid of a flow chart. How could this process be
improved to make it simpler and/or more efficient or effective? How might
you collectively develop an improved process?
1.0 What is a process?
A process is a collection of interrelated work tasks initiated in response to an
event that achieves a specific result for the customer of the process.
Adding more specific detail to that general definition:
 that achieves a specific result:
o must deliver a specific result
o this result must be individually identifiable and countable
o a good process name clearly indicates the result or end state of the
process
 for the customer of the process:
o a customer receives the result or is the beneficiary of it
o the customer can be a person or an organization
o customer can be identified and can pass judgment on the result and
process
o customer point of view helps identify and name the process
accurately
 initiated in response to a specific event:
o the process must be initiated in response to a specific event
o multiple events can initiate a process

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o having an event AND a result allows the tracing of the sequence of
tasks that turns the event into the result
 work tasks:
o a collection of actions, activities, steps or tasks make up a business
process
o a step in the initial workflow will probably be divided into more
detailed steps later
 a collection of interrelated:
o the process steps must relate to each other
o interrelationship is through sequence and flow...the completion of
one step leads to (flows into) the initiation of the next step
o also interrelated by dealing with the same work item
o steps related by being traceable back to the same initiation event
According to Joel E.Ross & Vincent K.Omachonu (2004), a process is a series of
activities or steps used to transform inputs into outputs. An input or output may exist
or occur in the form of data, information, raw material, partially finished units,
purchased parts, a product or service, or the environment. It is the steps used by an
individual or a group to perform work or complete a task. It is sometimes referred to
as a technique, method, or procedure. In order to do it right the first time and do the
right things right, processes must be effectively managed. When processes are not
adequately managed, quality will regress to mediocrity. An organization is a
collection of sub-processes. A customer is affected by one or more processes at any
given time. Every process has customers those who depend on it or are affected by it
and suppliers who provide the necessary input for that process.
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According to Prof Dr.Jegak’s note, process is a bound set of interrelated work
activities, each having prescribed inputs and outputs. Can be material, equipment,
other tangible objects, or various kinds of information, are converted by a series of
activities into an output provided to a recipient. According to him, recipient, can be
either an external or internal customer. An external customer is a person or
organization that pays for the service or products received. He also explain that an
internal customer is can be a department, a group such as in case of an internal
operation, or some other processing equipment and machinery. According to Prof Dr
Jegak, recipient also can be a location where the process’s outputs are stored for
future use such as a warehouse.
TRANSFROMATION
INPUT PROCESS OUTPUT
Diagram 1 : Transformation Model (Slack, 2005)
The diagram above inserted to explain process in detail. Operations managers manage
transformation processes, with inputs and output. If the above process managed
effectively below listed advantages could be achieved
• Minimizing cost
• Maximizing revenue
• Avoiding excess investment
• Developing capabilities for future innovation
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2.0 What are the process characteristics?
Whether a process involves transformations of a physical, locational, or
transactional nature, it has 10 common characteristics.
2.1 Clearly defined ownership
Traditionally, the ownership of physical and locational processes has been
clear and explicit. The process owner was the departmental manager.
Understood the organizational mission and the process’s output & had
personal responsibility and accountability for the process and its output. The
manager’s performance was judged by quantifiable standards, such as cost,
schedule and quality. Recently, process ownership has gradually shifted
towards empowered work groups and self directed work teams. And in these
teams, employees are assuming some traditional roles of management. The
basic ideas remain the same. The process owner, whether an individual or a
team, is responsible for yield, cost, quality, and schedule. The process owner
must manage the process to the target set on this standard. The process owner
has the authority to change the process to maintain its desired outputs.
2.2 Boundaries
Boundaries are the beginning and end of a process. Physical and locational
processes have clearly defined boundaries. The final output from and the
inputs required by these processes are clear and unambiguous. However, the
boundaries of transactional processes are harder to identify. Further, output
specifications for transactional processes may not truly reflect customer
requirements, and input specifications may not achieve the desired output
specifications with the existing processes. A lack of understanding about the
input specifications and the output specifications is common in many business
processes. But in a well managed transactional process, specification problems

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are minimized through conscious effort aimed at classifying the work product
as it proceeds from one operation to another. Thus, the boundaries of a well
managed process are well defined and controlled.
2.3 Capacity
Capacity is the output rate of the process. Capacity is usually expressed in
terms of design, or theoretical, capacity and effective capacity. Thus, design
capacity is stated without consideration for such matters as equipment
reliability, maintenance, or personnel factors such as learning curves,
absenteeism, illness, and so on. These consideration, when allowed for, enable
effective capacity to be calculated.
2.4 Documentation
A detailed record of work flow in a processes. Can be written in great detail,
or it can be a collection of various bits of data. Provides a permanent record of
the physical transformation taking place in a production process. Provides a
reference point from which the repeatability of a process can be measured, and
it provides a baseline from which any changes can be measured. Serves as
both a training and reference aid for the personnel involved in the process.
Typical documents include process flowcharts, assembly drawings, and
routings. Process flowcharts graphically describe the sequence of operations in
the process. Assembly drawings show how a product is constructed. Routing
describe operational steps that accompany the process flowchart.
2.5 Control points
Regulate the quality of work or provide feedback. Established to manage the
natural variation that occurs in physical processes.
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2.6 Effectiveness
It measures feedback against process goals. Effectiveness is best assessed by
measurement, both internal and external. External effectiveness measures must
reflect customer requirements. Internal effectiveness measurements must
reflect both external and internal customer requirements. It should proceed
from the external boundary to the starting boundary of the process. Integrated
flow diagrams that reflect established requirements are useful for measuring
effectiveness. Ineffectiveness is often easier to identify than effectiveness.
These are some symptoms that suggest an ineffective process; customer
complaints, inconsistent output quality, lack of awareness of output quality,
absence of a corrective action system, lack of interest in the customer and long
response times in correcting problems.
2.7 Efficiency
Efficiency as a measure of the output against the resources required to achieve
that output. It reflects how productive the internal operations are and how
effectively resources are used in the process. A traditional measure of
efficiency is the ratio of output to the capacity of a process. Inefficiency is
easier to identify than efficiency. These are some symptoms of inefficiency,
multiple off-line inspections, redundant, unnecessary, or nonvalue-added
activities, corrective actions such as rework and reconciliation, supplier
problems e.g poor quality or late deliveries, Excessive costs of value-added
activities e.g high production costs.
2.8 Adaptability
Adaptability is the ability of the process to adjust to change either
technological or output changes. A process responses to changing conditions
such as output requirements, internal constraints, and input quality. A process

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is adaptable if it can be changed to meet new requirements without significant
modifications. May require some work flow, personnel, and equipment
changes when a process change is needed, but the process should remain
largely intact. Processes that lack adaptability tend to be limited in nature
equipment capability capacity, throughout, & cycle times or human aspects
skills, flexibility, resistance to change & other human factors.
2.9 Measurements
Measurement is a statistical basis for controlling the flow or work and
managing variation @ provide a basis for feedback. Continuous measurements
are inherent in any well managed process meet specifications. Process adapt to
the natural variations that occur. Relied only on end of line measurements, or
final quality controls approach costly in terms of scrap and rework. Statistical
techniques e.g Pareto analysis and variation charts, are useful for managing
repetitive operations. Need to measure products against the requirements of
the process without removing the product from the process.
2.10 Corrective action an input-output phenomenon.
Corrective action is eliminating the problems that caused of non-conformance
in a process input-output phenomenon. According Peter Merrill (1997), in its
simplest form, it may just be two people agreeing to a missing requirement in
their day to day transaction. At its most complex, it may be multidisciplinary
team involving people from inside and outside the organization working on a
problem that effects a wide range of processes. Either way, corrective action is
removing the root cause of a problem, and not just applying the quick fixes
with which the fast guns.
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3.0 Why do we need to continuously improve our business processes?
A standardized process improvement methodology allows us to look at how
we perform work. When all of the major players are involved in process
improvement, they can collectively focus on eliminating waste of money,
people, materials, time, quicker, easier and most importantly is safer. A
teamwork approach is intrinsic to life in the Navy. Using total quality tools
and methods reinforces teamwork. Using team members collective knowledge,
experiences, and efforts is a powerful approach to improving processes.
Through teamwork, the whole becomes greater than the sum of its parts.
(Refer Balanced score card website).
According to Carol, Dale, Glen and Mary (2003), quality based organizations
should strive to achieve perfection by continuously improving the business
and production process. This is of course, perfection is impossible because the
race is never over, however, we must continually strive for its attainment.
That is why we need to continuously improve our business processes.
4.0 Identify and document a process of your choose with the aid of a flow
chart.
To identify and document a process we are commonly used the tool for
describing the process. Using tool we are enable to perform for improving
activities which that we can identify the participants in the process, either by
name, by position, or by organization. Using tool, enable us to provide all the
participants in the process with a common understanding both of all steps in
the process and of their individual roles. Through tools, we enable to
identifying inefficient, wasteful and redundant steps. Further from of these
step by step will be offer us a framework for defining the process
measurement.
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The tools we will be using here to show the process which that can explain the
improving activities, are flowcharts. Flowcharts are graphical representations
of a process which detail the sequencing of the materials, machinery, and
operations that make up that process. They are an excellent means of
documenting what is going on in a process and communicating that
information to everyone. Below are the flowchart of a business unit of an
organizations which where I am working currently. The flowchart shown are
the activity that should be done by the business leaders as a team, and they
need to agree on who owns which process.
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5.0 How could this process be improved to make it simpler and / or more
efficient or effective?
There are three different approaches for improving the efficiency or
effectiveness of a process to make it simpler.
5.1 Continuous improvement
According to Carol, Dale, Glen and Mary (2003), continuous improvement is
a ladder and used step by step approach, also know as Kaizen. As we known,
Kaizen is a Japanese word that defines management’s role in continuously
encouraging and implementing small improvements involving everyone. It is
the process of continuous improvement in small increments that make the
process more efficient, effective, under control, and adaptable. It focuses on
simplification by breaking down complex processes into their sub-processes
and then improving them.
5.2 Benchmarking
According to Joel (1999), the process is more than a mean of gathering data on
how well company performs against others both in and outside the industry. It
is a method of identifying news ideas and new ways of improving processes
and hence meeting customer expectations. Cycle time reduction and cost
cutting are but two process improvements that can result. The ultimate
objective is process improvement that meets the attributes of customer
expectation. This improvement, of course, should meet both strategic and
operational needs. Also search for and emulate the best available practices and
processes.
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5.3 Reengineering
According to Hammer and Champy in , Dale, Glen and Mary (2003),
reengineering is the fundamental rethinking and radical redesign of business
processes to achieve dramatic improvements in critical, contemporary
measures of performance, such as cost, quality, service and speed. According
to James & Michael (1993), reengineering a company means tossing, aside old
systems and starting over. It involves going back to the beginning and
inventing a better way of doing work.
The first key word of fundamental which that explain in doing
reengineering, business people must ask the most basic questions about their
companies and how they operate. Why do we do what we do? And why do we
do it the way we do? Asking these fundamental questions forces people to
look at the tacit rules and assumptions that underlie the way they conduct their
businesses. Reengineering first determines what a company must do, then how
to do it.
The second key word of radical redesign means getting to the root of things:
not making superficial changes or fiddling with what is already in place, but
throwing away the old. In reengineering, radical redesign means disregarding
all existing structures and procedures and inventing completely new ways of
accomplishing work.
The third key word of dramatic means reengineering about achieving quantum
leaps in performance. Reengineering should be brought in only when a needs
exists for heavy blasting. Marginal improvement requires fine tuning; dramatic
improvement demands blowing up the old and replacing it with something
new.
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The fourth key word of processes is most important. Business process as a
collection of activities that takes one or more kinds of input and creates an
output that is of value to the customer.
6.0 How might you collectively develop an improved process?
Process could be improved through three components, planning, control and
improvement, this is what Dr. Joseph Juran said in Juran Trilogy in Carol,
Dale, Glen and Mary (2003).
6.1 Planning
Through planning component begins with external customer. Once quality
goals are established, marketing determines the external customers, and all
organizational personnel determine the internal customers. Once the customers
are determined, their needs are discovered. This activity requires the
customers to state needs in their own words and from their own viewpoint.
The next step in the planning process is to develop product and/or service
features that respond to customer needs, meet the needs of the organization
and its suppliers, are competitive, and optimize the costs of all stakeholders.
Develop the processes also enable the product and/or service features.
Activities include determining the necessary facilities, training, and operation,
control, and maintenance of facilities. Of particular concern will be the scaling
up from the laboratory or prototype environment to the real process
environment. additional activities include process capability evaluation and
process control type and location.
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6.2 Control
Secondly, is control, which that used by operating to help meet the product,
process, and service requirements. It uses the feedback loop and consist of the
following steps:
• Determine items/subjects to be controlled and their units of measure.
• Set goals for the controls and determine what sensors need to be put in
place to measure the product, process, or service.
• Measure actual performance.
• Compare actual performance to goals.
• Act on the difference.
6.3 Improvement
Finally, the third component is improvement. This is the higher level from the
two components has discussed. Process improvement begin with the
establishment of an effective infrastructure as following duties;
• Develop, with input from all personnel, the core values, vision statement,
mission statement, and quality policy statement.
• Develop the strategic long term plan with goals and the annual quality
improvement program with objectives.
• Create the total education and training plan.
• Determine end continually monitor the cost of poor quality.
• Determine the performance measures for the organization, approve those
for the functional areas, and monitor them.
• Continually determine those projects that improve the processes,
particularly those that affect external and internal customer satisfaction.
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• Establish multifunctional project and departmental or work group teams
and monitor their progress.
• Establish or revise the recognition and reward system to account for the
new way of doing business.
7.0 Conclusion
A process is rather abstract. It describes the essentials of the purpose,
structure, rationale, roles and timing, leaving plenty of implementation
freedom. The power of a process is its abstraction, which enables its
application in a wide range of applications, by tailoring its implementation to
the specific application. A process can be tailored and elaborated in one or
more procedures that describe cookbook-like what needs to be done when and
by whom. The why in a procedure has often disappeared, to be replaced by
practical information for the execution. The implementation of a procedure
can be supported by tools, notations, templates and other means. In practice
managers and employees ask for tools (means) and procedures (what and
how). However, without understanding of the thinking behind the procedure
(why), as given in the process, these tools and procedures can be meaningless.
The process captures the rationale behind procedures, tools, notations,
templates, and other means.
References
Carol Besterfield-Michna, Dale H.Besterfield, Glen.H.Besterfield, Mary

Besterfield-Sacre (2003), Total Quality Management, Third Edition,
Prentice Hall.
Joel E.Ross, Vincent K. Omachonu (2004), Principles of Total Quality, Third

Edition, Boca Raton, London, New York Washington D.C.LLC. CRC
Press
Joel E.Ross (1999), Total Quality Management, Text, Cases and Readings, Third
Edition. CRC Press LLC.
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James Champy, Michael Hammer (1993), Reengineering The Corporation,

Thomson, South-Western.
Prof. Dr. Jegak Uli’s Module / Notes.
Peter Merrill (1997), Do It Right, The Second Time Benchmarking Best Practices
in The Quality Change Process. Productivity Press.
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QUESTION 3 (ASSIGNMENT 2)
Choose a quality guru and summarize his or her key contributions to modern
quality thinking especially quality philosophies and principles
1.0 SELECTED QUALITY GURU
Philip Crosby
1.1 BIODATA OF THE GURU
Philip Bayard Crosby was born June 18, 1926 in Wheeling, West Virginia. His
parents were Mary and Dr. Edward K. Crosby. His father was a Podiatrist. He had
one brother, David. He attended public schools in Wheeling, graduating from
Triadelphia High School in 1944. He joined the Navy and became a hospital
corpsman.
In the fall of 1946 Mr. Crosby entered the Ohio College of Podiatric Medicine in
Cleveland. After graduation he returned to Wheeling and practiced podiatry with his
father. He soon discovered this was not his field. He was recalled to military service
during the Korean conflict, this time he served as a Marine Medical Corpsman. In
1952 Mr. Crosby went to work for the Crosley Corporation, (Richmond, Indiana) as a
junior electronic test technician. He was asked to join the American Society for
Quality Control, the Richmond section, and this is where his early concepts
concerning "quality" began to form.

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In 1955 he moved to South Bend, Indiana, and went to work for Bendix Corporation
as a reliability technician. Bendix and the U.S. Navy were developing and testing the
TALOS missile. As a quality engineer, Mr. Crosby was to investigate defects found
by the testers and inspectors. In 1957 he was offered a job as a senior quality
engineer with Martin Marietta Company in Orlando, Florida. During his eight years
with Martin Marietta Mr. Crosby developed his "Zero Defects" concepts, began
writing articles for various journals, and started his speaking career.
In 1965 ITT, International Telephone and Telegraph, hired Mr. Crosby as a vice
president in charge of corporate quality. During the fourteen years with ITT Mr.
Crosby worked with many of the world's largest industrial and service companies,
implementing his pragmatic management philosophy, and found that it worked.
In 1979 he founded Philip Crosby Associates, Inc., with headquarters in Winter Park,
Florida. Over the next ten years it grew into a publicly traded corporation with 300
employees around the world and $80 million dollars in revenue. Philip Crosby
Associates taught management how to establish a preventive culture to get things
done right the first time.General Motors, Chrysler, Motorola, Xerox, many hospitals,
and hundreds of corporations worldwide came to Philip Crosby Associates to
understand quality management.
In 1991 he retired from Philip Crosby Associates and founded Career IV, Inc., a
company that provided lectures and seminars aimed at helping current and
prospective executives grow. In 1997 he purchased the assets of Philip Crosby
Associates and established Philip Crosby Associates II, Inc. with offices at 1954
Howell Branch Road, Winter Park, Florida.Philip B. Crosby died August 18, 2001.
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2.0 QUALITY PHILOSOPHIES AND PRINCIPLES
2.1 PRINCIPLES OF ZERO DEFECTS
Zero Defects began in the aerospace and defense industry, started at Martin Marietta
in the 1960s, thirty years later it was regenerated in the automotive world. During the
1990s, large companies in the automotive industry tried to cut costs by reducing their
quality inspection processes and demanding that their suppliers dramatically improve
the quality of their supplies. This eventually resulted in demands for the "Zero
Defects" standard. It is implemented all over the world. Zero defects” doesn’t mean
mistakes never happen, rather that there is no allowable number of errors built into a
product or process and that you get it right first time.
Philip Crosby believes management should take prime responsibility for quality, and
workers only follow their managers’ example. He defined the Four Absolutes of
Quality Management.
The Four Absolutes of Quality Management
Quality is conformance to requirements
Quality prevention is preferable to quality inspection
Zero defects is the quality performance standard
Quality is measured in monetary terms – the price of non-conformance
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1. Quality is conformance to requirements
Every product or service has a requirement: a description of what the customer needs.
When a particular product meets that requirement, it has achieved quality, provided
that the requirement accurately describes what the enterprise and the customer
actually need. This technical sense should not be confused with more common usages
that indicate weight or goodness or precious materials or some absolute idealized
standard. In common parlance, an inexpensive disposable pen is a lower-quality item
than a gold-plated fountain pen. In the technical sense of Zero Defects, the
inexpensive disposable pen is a quality product if it meets requirements: it writes,
does not skip nor clog under normal use, and lasts the time specified.
2. Defect prevention is preferable to quality inspection and correction
The second principle is based on the observation that it is nearly always less
troublesome, more certain and less expensive to prevent defects than to discover and
correct them.
3. Zero Defects is the quality standard
The third is based on the normative nature of requirements: if a requirement expresses
what is genuinely needed, then any unit that does not meet requirements will not
satisfy the need and is no good. If units that do not meet requirements actually do
satisfy the need, then the requirement should be changed to reflect reality.
4. Quality is measured in monetary terms – the Price of Nonconformance
(PONC)
The fourth principle is key to the methodology. Phil Crosby believes that every defect
represents a cost, which is often hidden. These costs include inspection time, rework,
wasted material and labor, lost revenue and the cost of customer dissatisfaction. When
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properly identified and accounted for, the magnitude of these costs can be made
apparent, which has three advantages. First, it provides a cost-justification for steps to
improve quality. The title of the book, "Quality is free," expresses the belief that
improvements in quality will return savings more than equal to the costs. Second, it
provides a way to measure progress, which is essential to maintaining management
commitment and to rewarding employees. Third, by making the goal measurable,
actions can be made concrete and decisions can be made on the basis of relative
return.
2.2 CROSBY'S 14 STEPS TO QUALITY IMPROVEMENT
Quality Guru Philip Crosby has developed 14 steps for an organization to follow in
building an effective quality program:
1. Management is committed to quality – and this is clear to all
2. Create quality improvement teams – with (senior) representatives from all
departments.
3. Measure processes to determine current and potential quality issues.
4. Calculate the cost of (poor) quality
5. Raise quality awareness of all employees
6. Take action to correct quality issues
7. Monitor progress of quality improvement – establish a zero defects
committee.
8. Train supervisors in quality improvement
9. Hold “zero defects” days
10. Encourage employees to create their own quality improvement goals
11. Encourage employee communication with management about obstacles to
quality
12. Recognise participants’ effort

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13. Create quality councils
14. Do it all over again – quality improvement does not end
14 steps in details
1. Management is committed to quality – and this is clear to all: Clarify where
management stands on quality. It is necessary to consistently produce conforming
products and services at the optimum price. The device to accomplish this is the use
of defect prevention techniques in the operating departments:
- Engineering
- Manufacturing
- Quality Control
- Purchasing
- Sales and others.
2. Create quality improvement teams – with representatives from all workgroups
and functions: These teams run the quality improvement program. Since every
function of an operation contributes to defect levels, every function must participate
in the quality improvement effort. The degree of participation is best determined by
the particular situation that exists. However, everyone has the opportunity to improve.
3. Measure processes to determine current and potential quality issues:
Communicate current and potential nonconformance problems in a manner that
permits objective evaluation and corrective action. Basic quality measurement data is
obtained from the inspection and test reports, which are broken down by operating
areas of the plant. By comparing the rejection data with the input data, it is possible to
know the rejection rates. Since most companies have such systems, it is not necessary
to go into them in detail. It should be mentioned that unless this data is reported
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properly, it is useless. After all, their only purpose is to warn management of serious
situations. They should be used to identify specific problems needing corrective
action, and the quality department should report them.
4. Calculate the cost of (poor) quality: Define the ingredients of the COQ and
explain its use as a management tool.
5. Raise quality awareness of all employees: Provide a method of raising the
personal concern felt by all personnel in the company toward the conformance of the
product or service and the quality reputation of the company. By the time a company
is ready for the quality awareness step, they should have a good idea of the types and
expense of the problems being faced. The quality measurement and COQ steps will
have revealed them.
6. Take actions to correct quality issues: Provide a systematic method of
permanently resolving the problems that are identified through previous action steps.
Problems that are identified during the acceptance operation or by some other means
must be documented and then resolved formally.
7. Monitor progress of quality improvement – establish a zero defects committee:
Examine the various activities that must be conducted in preparation for formally
launching the Zero Defects program - The quality improvement task team should list
all the individual action steps that build up to Zero Defects day in order to make the
most meaningful presentation of the concept and action plan to personnel of the
company. These steps, placed on a schedule and assigned to members of the team for
execution, will provide a clean energy flow into an organization-wide Zero Defects
commitment. Since it is a natural step, it is not difficult, but because of the
significance of it, management must make sure it is conducted properly.
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8. Train supervisors in quality improvement: Define the type of training
supervisors need in order to actively carry out their part of the quality improvement
program. The supervisor, from the board chairman down, is the key to achieving
improvement goals. The supervisor gives the individual employees their attitudes and
work standards, whether in engineering, sales, computer programming, or wherever.
Therefore, the supervisor must be given primary consideration when laying out the
program. The departmental representatives on the task team will be able to
communicate much of the planning and concepts to the supervisors, but individual
classes are essential to make sure that they properly understand and can implement
the program.
9. Hold zero defects days: Create an event that will let all employees realize through
personal experience, that there has been a change. Zero Defects is a revelation to all
involved that they are embarking on a new way of corporate life. Working under this
discipline requires personal commitments and understanding. Therefore, it is
necessary that all members of the company participate in an experience that will make
them aware of this change.
10. Encourage employees to create their own quality improvement goals: Turn
pledges and commitments into action by encouraging individuals to establish
improvement goals for themselves and their groups. About a week after Zero Defects
day, individual supervisors should ask their people what kind of goals they should set
for themselves. Try to get two goals from each area. These goals should be specific
and measurable.
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11. Encourage employee communication with management about obstacles to
quality (Error-Cause Removal): Give the individual employee a method of
communicating to management the situations that make it difficult for the employee
to fulfill the pledge to improve. One of the most difficult problems employees face is
their inability to communicate problems to management. Sometimes they just put up
with problems because they do not consider them important enough to bother the
supervisor. Sometimes supervisors don’t listen anyway. Suggestion programs are
some help, but in a suggestion program the worker is required to know the problem
and also propose a solution. Error-cause removal (ECR) is set up on the basis that the
worker need only recognize the problem. When the worker has stated the problem, the
proper department in the plant can look into it. Studies of ECR programs show that
over 90% of the items submitted are acted upon, and fully 75% can be handled at the
first level of supervision. The number of ECRs that save money is extremely high,
since the worker generates savings every time the job is done better or quicker.
12. Recognize participants’ effort: Appreciate those who participate. People really
don’t work for money. They go to work for it, but once the salary has been
established, their concern is appreciation. Recognize their contribution publicly and
noisily, but don’t demean them by applying a price tag to everything.
13. Create quality councils: Bring together the professional quality people for
planned communication on a regular basis. It is vital for the professional quality
people of an organization to meet regularly just to share their problems, feelings, and
experiences, with each other.
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Primarily concerned with measurement and reporting, isolated even in the midst of
many fellow workers, it is easy for them to become influenced by the urgency of
activity in their work areas.
Consistency of attitude and purpose is the essential personal characteristic of one
who evaluates another’s work. This is not only because of the importance of the work
itself but because those who submit work unconsciously draw a great deal of their
performance standard from the professional evaluator.
14. Do it all over again – quality improvement does not end: Emphasize that the
quality improvement program never ends. There is always a great sign of relief when
goals are reached. If care is not taken, the entire program will end at that moment. It is
necessary to construct a new quality improvement team, and to let them begin again
and create their own communications.
According to Crosby, five characteristics of an highly successful organisations are:
- People routinely do things right first time
- Change is anticipated and used to advantage
- Growth is consistent and profitable
- New products and services appear when needed
- Everyone is happy to work there
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2.3 QUALITY MANAGEMENT MATURITY GRID
Crosby's "Quality Management Maturity Grid" consists of five stages of management
maturity (Uncertainty, Awakening, Enlightenment, Wisdom, and Certainty),
measured against six dimensions, to complete the matrix:
1. Management understanding and attitude [towards quality management]
2. Quality organization status
3. Problem handling experience
4. Cost of quality as a percentage of sales
5. Quality improvement actions
6. Summation of company quality posture
Crosby suggests the model does not require inordinate management sophistication. He
recommends the Grid measurement be used in two ways: (1) a comparison tool, i.e.,
where an organization is, where it was, and where it wants to be; (2) a directional
compass, always pointing (and motivating) the organization in the right direction.
The grid is a simple 6 x 6 matrix that shows different stages of maturity of the
company’s quality management against six different quality management categories
(management understanding of quality, problem handling, cost of quality, etc).
The lowest stage of maturity is called ‘Uncertainty’ – the organisation is
inexperienced, quality management is a low priority and reactive, etc – then as quality
management matures it goes through the stages of ‘Awakening’, ‘Enlightenment’,
‘Wisdom’, then the highest level, ‘Certainty’.
26
27
2.4 WRITTEN WORKS
He was an author of thirteen (13) best selling books. In this total update of his classic,
quality guru Philip Crosby revisits and ultimately reaffirms the thinking he introduced
in the tradition-shattering Quality is Free. In that volume, he took quality precepts
learned at ITT and adapted in his great entrepreneurial experiment, Philip Crosby
Associates (PCA), and rolled them out for the business world's lasting benefit. Now,
after 16 years of intense change in one of the hottest areas of business, he shares his
current thoughts on some of his most enduring contributions.
Philip Crosby's Essays and Writings
Essay ~ The Changing of Quality in

Essay ~ The Views of Quality - 2000
America
Essay ~ It's Not Easy Being A Guru Essay ~ To Be A Quality Fanatic
Essay ~ Quality Is Free - If You
Essay ~ The Magnificent Seven Revisited
Understand It
Essay ~ Quality: The Changing Of Essay ~ Essentials Of The Reliable
Minds Organization
Essay ~ The Circle of Doing Something
Essay ~ The Eternally Successful About Quality (A mini-history of
Organization managing quality in the 20th Century and
a solution for the future)
Essay ~ The Cultural Platform of a
Essay ~ The Future of Quality
Reliable Organization
28
Essay ~ Consultant: The CEO's Friend Essay ~ Does It Go To The Bottom Line?
Essay ~ Quality Professionals and the Essay ~ The Concept of Systems Integrity
Future - An Overview
Essay ~ Call 911 - For History Essay ~ Bottom Line Economics
Essay ~ Faith Is The Determinant Of
Essay ~ Disasters According To Size
Success
Essay ~ Examples Essay ~ The Heart of Consulting
Essay ~ The Great Quality Myste
Some of the original articles are embedded in Appendix
Bibliography
• Crosby, Philip (1994). Completeness: Quality for the 21st Century. Plume.
ISBN 0-452-27024-3.
• Crosby, Philip (1995). Philip Crosby's Reflections on Quality. McGraw-Hill.

ISBN 0-07-014525-3.
• Crosby, Philip (1996). Quality is still free: Making Quality Certain in

Uncertain Times. McGraw-Hill. ISBN 0-07-014532-6.
• Crosby, Philip (1997). The Absolutes of Leadership (Warren Bennis Executive

Briefing). Jossey-Bass. ISBN 0-7879-0942-4.
• Crosby, Philip (1999). Quality and Me: Lessons from an Evolving Life.
Jossey-Bass. ISBN 0-7879-4702-4.
ASSIGNMENT 3 (QUESTION 1)
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Give the various definitions of quality. Explain why a single definition does
not suffice. Discuss why quality is important to an organization. Discuss also
the various dimensions of either product quality or service quality and
illustrate your answers with appropriate examples
1.0 INTRODUCTION
Quality has a variety of interpretations and uses. It also has different
perspectives of definitions. In describing and jotting down definitions of quality, it
is just like the tale of three blind men describing an elephant - One of them
confidently described this jumbo as a forest of trees because he had only touched
the elephant’s legs. The second blind man was shocked to find out that the elephant
was like a snake ( the trunk ) but it was opposed by the last person because he found
that the elephant was like a rope ( the tail ). Of course , all of the descriptions given
by those three men were correct based on what they had experienced, but as we
already knew, none had a complete description of the elephant ( Richard:1999).
We are facing the same experience with the definitions of “ QUALITY ” .
Certain groups of people define quality as a statistical process control. Others view
quality as conformance to requirements ( Crosby:1984) or freedom from
deficiency ( Juran :1988) . There are some who believe that quality only applies to
manufacturing processes and inspection (Winder :1993). All of these definitions are
correct in their own perspectives but by themselves are not complete.
Incomplete understanding of quality, leads to lack of leadership in quality
implementation and absence of the sustaining power that will keep continuous
improvement as a central focus of the organization.
30
2.0 VARIOUS DEFINITIONS OF QUALITY
Based on the linear model – Quality is defined as a set of components
which comprised of statistical process control, systems thinking, human resource
management, leadership and customer satisfaction. These components are pieced
together to form a quality system. Hence, these components can be planned,
controlled and improved in the same manner as a firm’s finances are planned,
controlled and improved ( Juran :1988).
American National Standard ( 1987 ) has defined “Quality” as the totality
of features and characteristics of a product or service that bear on its ability to
satisfy stated or implied needs. On the other hand, Winder (1993) stated that it is a
dimension of process which illustrates its systemic nature. In other words, the quality
is “ Doing the right thing correctly, on time, every time.”
In order to complete the understanding of quality, we need to look into the
dynamic definition of quality which describes it as “ the process of moving
people and organization from a state of limitation, punishment, captivity or
victimization to a state of liberation, participation, captivation or actualization.”.
This is done through the anticipation and fuflfillment of stated or implied needs of
the individual or organization ( Winder:1993).
This dynamic definition of quality is clearly stated and can be best
understood through the paperwork “ Fulfilling Quality’s Five Dimensions” prepared
by Winder (1993). The first dimension of quality is experienced. He stressed
that the quality of product or service will not exist until it is translated into experience
which has primary and secondary impact. The primary impact is known for its
ability to translate the vision of the quality into reality. It is the actualization of the
vision which provides the basis determining whether a system is or is not
accomplishing its intended mission. ( Winder :1993)

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The secondary impact of experience is the learning it provides. Organizations
are considered successful if they can utilize their experience and learn from it
( Byrne:1992). It is supported by Peter Senge (1990) in his new perspective on the
value of experience as the source of learning in an organization.
The second dimension of quality introduced by Winder (1993) is
“Measurement”. It gives quality the first of its multidimensional characteristics. It
also provides the ability to determine the performance of the system using statistical
measures to understand operational processes of the quality (Deming: 1986).
According to Deming ( 1986), any improvement in quality must come from
changes to the systems which is made by the management itself, rather than from
operator changes. Examples of statistical tools that provide us with knowledge of
the system and permit us to the greatest efficiency are the check sheets, the Pareto
Chart, histogram, the run chart and the control chart ( Winder :1993).
The third dimension on defining quality is relationship and systems
thinking. Deming (1986) has classified the systems thinking into two types – static
and dynamic. The earlier type captures the flow process or system of goods or
services at one point to another. Static methods include flow charting and
“fishbone” cause-effect diagram .
The flow chart indentifies physical components of a system by showing how
the system is working at each point in the process. On the other hand, the cause-effect
diagram indentifies the logical points in a system by assisting and determining the
root cause of a problem in a system. It also indentifies the various parts of the system
that might account for the result achieved and shows those in relationship to the other
parts of the system (Winder : 1993).
Dynamic systems thinking, on the contrary, captures the relationship among
all parts of the system as they dynamically interact with one another in their own
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environment. These interrelations generate underlying forces which provides us with
knowledge about the underlying paradigms or rules or frames of reference in which
the system is operating (Senge:1990).
As the first three dimensions thinking give us the ability to establish a
system, measure the results of relationships among various parts of the system and
last but not least modify the systems in order to produce the desired results, the
fourth dimension suggested by Winder (1993) provides the underlying logic
and also the inter-connectivity of the system.
It provides us the ability to look beyond those three dimensions thinking to
the inter-connectivity of all systems and processes. By using this ability, it gives us
the power to comprehend the paradigm, set of rules or guidance that system is based.
Baker (1992) in his book titled – A Future Edge, noted that, when a system reaches
the point at overwhelming inconsistencies, we begin to search for a new paradigm
which will explain our current understanding of the system, account for
inconsistencies and resolve the unresolvable problems of the system. In the simple
explaination, inconsistency in a system represent less quality produced by the
organization.
The fifth dimension of quality introduced by Winder (1993) is “Value
Sharing”. This dimension is founded on a long-term relationship between the parties
in which they are willing to share and accept the value from both side.
According to Winder (1993), in quality, value sharing is expressed in the
phrase – “ Delight the customer ”. In other words, the organization is willing to give
the customer more than the customer is paying for. Thus it increases the relationship
with the customer.
The strength of relationships can be gauged through the willingness of
participants to share resources with other participants. The level of sharing among
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the participants is reflected by three measures of willingness by the participant to
( Senge :1990 ) :-
a. give more than is required;
b. become a long-term membership of the organization such as
through long-term employment or repeating purchases; and
c. invite others to participate in the business.
Winder (1993) stressed that, the five dimensions that we have just discussed are best
practiced with the integration and fulfillment of all parties.
Eventhough we have come out with lengthy explaination in defining quality, it
is still considered unfinished business if we do not include the Five Approaches in
definingquality by David Garvin (1988). The approaches are – transcendent,
product based, user based, manufacturing based and value based.
Product based perspective
According to this perspective, quality is viewed as a quantifiable or
measurable characteristic or attribute that can be measured to indicate higher
quality. Differences in quality reflect differences in quantity of some product
attributes (Evans & Lindsay:2005). For example, the number of stitches per inch on a
shirt or the number of cylinders in an engine.
It is also agreed by Ashok, Farshad, Ismael, John, Lawrence, Phyllis and
Robert (1996) in their Total Quality Management Journal – Quality is referred to a
durability or reliability of a product and it can be measured for instance, leather
upholstery for car seats is considered higher quality than vinyl, the lack of blemishes
in gems viewed using a 10X magnifying glass indicates a higher quality. In other
words, Quality is determined objectively. Although this approach has many benefits,
it has limitations as well. Disadvantage of this approach is without physical
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appearance of an attributes or characteristics of the product, it is considered low
quality (Evans & Lindsay:2005).
User based perspective
Second definition of quality is based on the presumption that the user
determines the quality of the goods. As individuals have different wants and
needs, and of course with a different standard of quality, so the quality can best be
defined as fitness for intended use or how well the product performs its intended
function (Evan & Lindsay:2005).
The product or service that best satisfies the user is the higher quality of
product. According to Juran in Ashok, Farshad, Ismael, John, Lawrence, Phyllis,
Robert (1996) the user based approach as fitness for use. It implies learning how the
user plans to use the product and making the product to fit that need. The user based
definition equates customers satisfaction with quality. Customer satisfaction reflects
the attitudes of the consumer.
An organization adopting this view of quality needs to accurately identify the
target market, ferret out its needs, and then design, construct, and deliver the
appropriate product. For success, all of the functions contributing to the value of the
product have to be involved. The ability to satisfy the customers requirement,
expectations, or wants is the sole criterion by which quality is determined.
Take the example from a US appliance company whose stoves and
refrigerators were admired by Japanese buyers. Unfortunately, due to the smaller
living quarters of majority Japanese home, there were not enough space in to
accommodate US stoves and refrigerators eventhough the products’ performance
were high standard.
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Value based perspective
This approach indicates that , quality is based on the relationship of
usefulness or satisfaction to price (Evans and Lindsay:2005). It is the degree of
excellence at an acceptable price and the control of variability at an acceptable cost.
In this definition, one attribute of value is quality. Thus, the customer’s purchase
decision is based on quality at an acceptable price.
From this perspective, a quality product is one that is as useful as competing
products and is sold at a lower price, or one that offers greater usefulness or
satisfaction at a comparable price. Thus, one might purchase a generic product, rather
than a brand name one, if it performs as well as the brand-name product at a lower
price.
One of good example of this perspective in practice is evident in a comparison
of the U.S and Japanese automobile markets. Leading Japanese brand - Toyota and
Honda – do not have to offer a huge incentives in marketing their cars compare to
their U.S. competitors – General Motor, Ford and Crysler – because of their good
reputation for long-term durability ( Taylor : 2002) in Evans and William (2005).
Manufacturing based perspective
Through this approach, the quality is defined in engineering and
manufacturing practices and uses the universal definition of “conformance to
requirement.” Requirements, or specifications, are established by design, and
any deviation implies a reduction in quality. The concept applies to services as well
as products.
According to Evans and Lindsay in their book - “The Management and
Control of Quality” (2005), quality is defined as the desirable outcome of engineering
and manufacturing practice or conformance to specifications. Specifications are
targets and tolerances determined by designers of products and services. Targets are
36
the ideal values for which production is to strive but tolerances are specified because
designers recognize that it is impossible to meet targets all of the time in
manufacturing.
An example for this approach (Evans & Lindsay:2005) - a target dimension or
the ideal value of part produce by manufacturer might be 0.236 centimetres, the
allowable variation is +/- 0.003 centimetres from the target. Thus, any dimension in
the range of 0.233 to 0.239 centimetres is still acceptable and is assumed conform to
specification, hence is considered good quality product.
Transcendent perspective
Transcendent means .. to rise above or extend notably beyond ordinary
limits. Walter Shewhart (1931) in Evans & Lindsay (2005) first defined quality as
the goodness of a product. He pointed out that, quality is absolute and
universally recognizable which means it is uncompromising standard and high
achievement. In other words, you just know it when you see it.
Extended definition related to this perspective was mentioned by Barbara
Tuchman’s (1980) in Ashok, Farshad, Ismael, John, Lawrence, Phyllis, Robert
(1996), as - a condition of excellence implying fine quality as distinct from poor
quality…Quality is achieving or reaching for the highest standard as against being
satisfied with the sloppy or the fraudulent.
However, as the concept of excellence is abstract and too subjective, the
standards of excellence may vary considerably among individuals. So, this
perspective has less practical value compare to the rest of perspectives mentioned
earlier.
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What is continuous improvement? Why continuous improvement is important to
an organization? Explain the three principles of continuous improvement. Discuss
briefly the various improvement strategies and methods/approaches.
“… It must be considered that there is nothing more difficult to carry out, nor more
doubtful of success, nor more dangerous to handle, than to initiate a new order of
things. For the reformer has enemies in all those who profit by the old order, and
only lukewarm defenders in all those who would profit by the new order, this
lukewarmness arising partly from fear of their adversaries, who have the laws in
their favor; and partly from the incredulity of mankind, who do not truly believe in
any thing new, until they have had actual experience of it. Thus it arises that on
every opportunity for attacking the reformer, his opponents do so with the seal of
partisans, the others only defend him half-heartedly, so that between them be runs
great danger…”
- Machieavelli, The Prince. in (Burill & Ledolter:1998)
1.0 What is continuous improvement?
A continuous improvement process (CIP or CI) is an ongoing effort to
improve products, services, or processes. These efforts can seek "incremental"
improvement over time or "breakthrough" improvement all at oncei. Delivery
(customer valued) processes are constantly evaluated and improved in the light of
their efficiency, effectiveness and flexibility.
According to Ashok, Farshad, Ismael, John, Lawrence, Phyllis, Robert (1996),
Continuous Improvement is the quality of work that can always be improved, and
this can be done gradually or through breakthroughs. This view is shared by Burill &
Ledolter ( 1998 ) in their book – Achieving Quality Through Continual
38
Improvement – Continual Improvement can bring tangible results, such as reduce
defect rates, a lower cost of quality, and an improved financial picture, as well as
intangible results, such as pride, esprit de corp and satisfaction.
Unions, professionals, health-care providers, academics and other groups
have been receptive to using continual improvement as the name for their quality
effort.
Continuous improvement according to ASQ (2010), is an ongoing effort to
improve products, services or processes. These efforts can seek “incremental”
improvement over time or “breakthrough” improvement all at once.
W. Edwards Deming (1992) in his book – Out Of the Crisis – had
differentiated between continuous improvement and continual improvement which
are frequently used interchangeably.
Continual improvement : a broader term refers to general processes of
improvement and encompassing “discontinuous” improvements—that is, many
different approaches, covering different areas. Whereas, Continuous improvement is
a subset of continual improvement, with a more specific focus on linear, incremental
improvement within an existing process. Some practitioners also associate continuous
improvement more closely with techniques of statistical process control.
Some successful implementations use the approach known as Kaizen (the
translation of kai (“change”) zen (“good”) is “improvement”). KAIZEN means
ongoing improvement involving everyone, including both manager and workers. The
KAIZEN philosophy assumes that our way of life be it our working life, our social
life, or our home life deserves to be constantly improved. (Masaaki Imai :1986) in
Ashok, Farshad, Ismael, John, Lawrence, Robert & Phyllis (1996). Everyone in the
organization has to be looking for a better way, but traditionally, this has often been
done in isolation by a few individuals. A quality organization has people working

39
together, and not making unilateral changes that will affect others in a negative
fashion. The goal is for people to accept a change generated elsewhere because they
organize it to the benefit of everyone. The desire to continuously improve is a
fundamental value in all quality organizations( Peter Merrill :1997).
The core principle of Continuous Improvement Process is the (self) reflection
of processes – feedback or response the organization should obtain after certain
action taken in the process.
The purpose of Continuous Improvement Process is to identify the level of
efficiency of certain procedures taken in the organization so that any weaknesses or
less important steps in the process can be reduced or eliminated. Thus, Continuous
Improvement Process emphasises on incremental, continuous steps rather than giant
leaps (ASQ :2010).
As for Carol, Dale, Glen and Mary (1995), the term continuous improvement
needs to be embedded in the way the organization functions. Being embedded means,
improvement is part of the daily work of all work units; improvement processes seek
to eliminate problems at their source; improvement is driven by opportunities to do
better as well as by problems that must be corrected.
They are also believed that to be succeeded in implementing continuous
improvement in any organization, these four major sources must be always in the
highest consideration - employee ideas, research and development, customer input,
and benchmarking or other comparative information on processes and performance.
( Carol, Dale, Glen & Mary :1995)
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2.0 Why continuous improvement is important to an organization?
Continuous improvement is important to an organization because it will
enhance the value to customers through new and improved products and services
(Carol, Dale, Glen and Mary : 1995). Organization that implementing the continuous
improvement in production or services will produce high quality outcomes and
automatically minimize errors, defects, and waste.
By having continuous improvement, any organization inculcates a high level
of confidence in itself, and the willingness to inspire individuals to be fearless and
constructively critical of everything they, and others, do. Continuous improvement is
a process of continually trying to achieve a better way eventhough not every attempt
will be a winner, the large number of attempts will result in plenty of successes
( Deming :1992 )
One thing is certain. Whether you use a consultant to guide you, or do it
yourself, applying the Continuous Improvement methodology is not an option. It's a
requirement for business survival. Get going, or get out of the way.
Last but not least, continuous improvement practices in any organization will
develop responsiveness and cycle time performance, strengthen the organization’s
performance and leadership position in fulfilling its public responsibilities and serving
as a role model corporate citizenship.
KAIZEN philosophy also has its points of view regarding the importance of
continuous improvement to the organization. According to Masaaki Imai (1986) in
his book Kaizen: The Key to Japan's Competitive Success, CI Process is important
because it easier to be implemented because the ideas to improve are initiate by the
workers themselves – they identify the problem, discuss the remedies or steps to
overcome the problems arise and they execute the improvement according to their
41
working condition and of course with the approval from the management. Making
small improvement, it will require less capital investment, thus less burden to the
organization itself.
Kaizen approach also gives the opportunity to their employees to continually
seeking ways to improve their own performance and helps to encourage workers to
take ownership for their work, and can help reinforce team working, thereby
improving worker motivation.
3.0 Explain the three principles of continuous improvement.
The three principles of continuous improvement are - customer focus, process
improvement and finally, total involvement.
3.1 Customer focus
It means that, the value of the work done is determined by the
customer ( Ashok, Farshad, Ismael, John, Lawrence, Phyllis, Robert : 1996).
According to Richard S. Johnson (1997), customers focus requires that both
internal and external customer needs be met. External needs of customers
won’t be achieved if internal needs are neglected. Employees tend to treat
customers exactly as their organization treats them. If they are ignored, they
will ignore their customers, if they are treated with hostility, they will be
hostiled toward their customers, if their needs are neglected, they will neglect
the customer, and if the internal system does not provide quality services, they
will not provide customers with quality services.
On the whole, every department and operation within an organization
must be engaged in the journey to excellence or results will be mediocre at
best. Workers whose pay or medical benefits are mixed up will not be excited
about providing superior customer service, at least not during the period of
42
their personal problems. Instead, they will focus on attaining their needs to the
exclusion of both internal and external customers.
Several considerations are important in the evolution to a customer
focused environment (Johnson :1997):-
i. Define expectations - the determination must be made as to what the
customer expects in the way of products and services. Several
factors will be on most customers lists: quality, competitive costs,
timelines, convenience, variety, pleasant and supporting attitudes.
ii. Define needs - need and expectations are not always the same. The
customer might expect one product, but, need something quite
different. The provider must know what is expected and needed and
then assists the customer in fulfilling both areas.
iii. Define the product and/or service - this definition should be
mutually arrived at and agreed on by provider and customer.
iv. Define quality standards - zero defects is a great goal but is not
easily attained. Six sigma or 3.4 defects per million is the current
goal of many organizations such as Motorola and IBM. The word
current is used because quality is a moving target continually
adjusted upward with continues improvement successes over time.
v. Provide products and customer services - products and services
must meet or exceed expectations and they must be constantly
improving. Solid customers relations will convey the provider’s
efforts to customers so that they know how important they are.
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3.2 Process improvement
There are four stages of process improvement. ( Merrill : 1997) -
process ownership, measurement, cost of quality and finally corrective
action.
3.2.1 Process ownership
Process ownership is the first activity that is overlooked by so
many who have entered the quality arena. This has to be done, first at
the business level, and then down into the departmental and
operational levels. In doing this, you will unearth many orphaned
processes, and just assigning owners will produce dramatic
improvements. You may find over half of your processes lack clear
ownership.
3.2.2 Measurement
It is the process in which owners can start agreeing on
requirements with their internal customers and suppliers, and flushing
out the requirements that are not being met. These nonconforming
requirements can then be measured. Too often, we can see the
companies that start measurement without doing the critical
foundation work of process ownership. Measurement must be
done by the owner of the process, who may well need the support of
the internal customer in collecting measurement data. This is where
we see the importance of the soft skills in enabling the
communication here to work freely and to cut finger pointing.
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3.2.3 Cost of quality
This is where the owner rectifies the root cause of the process
problems. Once the measurement data tells us the magnitude of the
process problems, cost of quality comes into play. Cost of quality
enables you to translate your measurement data into the common
language of business, and so to prioritize which process problems
should be the focus of your very finite business resources. Cost
quality is the language of business, and it is also a communication
tool.
3.2.4 Corrective action
This final stage is useful in order to trouble shoot the problems
as we go through previous stages of process improvement, and we
will then be left with a core of problems that typically run across the
different functions of our organization. This is where a systemized
approach to corrective action will be needed.
Using cost of quality to drive your corrective action system will
make it operate much more easily, and at the end of a corrective
action project, the team that tackled a problem will see the dollar
reward for their effort.
3.3 Total involvement
Its also known as an employee participation. The organization’s
success in improving depends increasingly upon the skills and motivation of
its work force. Employees’ success depends increasingly upon having
meaningful opportunities to learn and to practice new skills.
45
Organizations need to invest in the development of the work force
through education, training, and creating opportunities for continuing
growth. Increasingly, training, development, and work organization need to
be tailored to a more diverse work force and to more flexible, high
performance work environments (Carol, Dale, Glen and Mary : 1995).
4.0 Various Improvement Strategies And Methods/Approaches.
4.1 Benchmarking
It is the process of identifying "best practice" in relation to both
products (including) and the processes by which those products are created and
delivered. The search for "best practice" can taker place both inside a particular
industry, and also in other industries (for example - are there lessons to be
learned from other industries?)
( tutor2u.net :2010)
According to Michael, Raymond and Robin (1993), benchmarking is
the process of determining industry or world best practices and then studying
them to identify areas for improvement within our organization. For example,
Xerox Corporation benchmarked the warehousing operations of L.L. Bean as
part of the effort to improve their distribution of Xerox products.
The objective of benchmarking is to understand and evaluate the
current position of a business or organisation in relation to "best practice" and
to identify areas and means of performance improvement.
Benchmarking can help identify specific practices that need
improvement. After identifying these practices, an organization can provide this
information to employees to solicit specific ideas for improvements via the
EDIS. Benchmarking is a six step process involving such as set up the team,
46
clarify the benchmarking’s objective, find the targets to benchmark, identify
the performance gap, develop and implement the action (Improvement) plan and
evaluate and adjust.
According to Carol, Dale, Glen and Mary (2003), benchmarking is a
systematic method by which organizations can measure themselves against the
best industry practices. It promotes superior performance by providing an
organized framework through which organizations learn how the best in class
do things, understand how these best practices differ from their own, and
implement change to close the gap.
The essence of benchmarking is the process of borrowing ideas and
adapting them to gain competitive advantage. In other words, benchmarking is
the systematic search for best practices, innovative ideas, and highly effective
operating procedures. Benchmarking also considers the experience of
others and uses it. Indeed, it is the common sense proposition to learn from
others what they do right and then imitate it to avoid reinventing the wheel.
Benchmarking is a tool to achieve business and competitive objectives.
It is powerful and extremely effective when used for the right reasons and
aligned with organization strategy. It helps organizations to develop strengths
and reduce weaknesses. It will also notify the organization if it has fallen
behind the competition or failed to take advantage of important operating
improvements developed elsewhere. Can inspire managers and organizations to
compete.
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4.2 Re-engineering
Re-engineering is the "fundamental rethinking and radical redesign of
business processes to achieve dramatic improvements in critical, contemporary
measure of performance, such as cost, quality, service and speed," (Hammer
and Champy :1993). They have also extended their statement – re-engineering a
company means putting aside old system and starting over with a new one. It
involves turning back to the beginning and inventing a better way of doing
work. Reengineering has contained four key words, fundamental, radical,
dramatic and business processes ( Hammer & Champy :1993) in .J.C. White
(2010).
Fundamental means that it has to determine the very basic step what
the organization must do and how they are going to operate. In other words :- “
Why have we done that? ”, “ What have we done? ”, and “ Why do we do it
the way we do?” Asking these fundamental questions forces people to look at
the unspoken rules and assumptions that trigger the way they conduct their
businesses.
Radical means getting to the root of things: not making superficial
changes or fiddling with what is already in place, but throwing away the old. In
reengineering, radical redesign means disregarding all existing structures and
procedures and inventing completely new ways of accomplishing work.
Dramatic means reengineering about achieving quantum leaps in
performance. Reengineering should be brought in only when a need exists for
heavy blasting. Marginal improvement requires fine tuning; dramatic
improvement demands blowing up the old and replacing it with something new.
Finally, business processes - Reengineering evolves around business
processes – not tasks, job descriptions, people or structures. A business process

48
takes an input or inputs and generates an output which is of value to the
customer. A business process only works if it generates added value, not
internal activity.
Hammer & Champs (2000) in Summaries.com have in length
elaboration on the concepts of re-engineering in order to make the readers
understand better about this concept.
They stressed the readers not to be confused re-engineering with
automation, since doing the wrong things more efficiently will only make few,
if any, improvements to a business.
Re-engineering also is not restructuring or downsizing -- since
reengineering seeks to achieve more with less rather than scaling back what’s
being done. So our point of view, retrenchment of workers is not the option in
practicing re-engineering. It is also different from an attempt to
‘‘flatten’’ an organization – since the problems facing companies are deeper,
process based rather than superficial, organizational problems. Re-engineering
allows fragmented processes to be brought together -- thereby eliminating the
need for a business bureaucracy.
It also differs fundamentally from total quality management (TQM) or
similar programs -- since TQM seeks to enhance and improve the existing
processes through ongoing, incremental improvements whereas reengineering
seeks to discard existing processes entirely and replace them with break-
through processes delivering leaps in performance (Summaries.Com :.2000)
49
4.3 KAIZEN
The main goal of kaizen is to eliminate waste. This strategy is similar
to lean manufacturing, with a few differences. The kaizen approach focuses on
continuous improvement in all aspects of life. For a business; the kaizen
approach works at continually improving all the functions of a company from
the CEO down to the assembly line of workers. ( BusinessKnowledgeSource.com :
2003 – 2010 )
Masaaki Imai - Founder & Chairman, Kaizen Institute, Switzerland
writes in his article - The Kaizen approach to Quality, - Kaizen as everyday
improvement, everybody improvement and everywhere improvement.
Everyday improvement is a state of mind which is not satisfied with
the status quo and believes that things must be improved everyday. The
conventional interpretation of kaizen has been continual improvement but
everyday improvement brings to mind far more disciplined approach to
improvement.
Everybody improvement means that every one from top management
to the rank and file must be involved. Lastly, Everywhere improvement means
that Kaizen is cross-functional activities carried out not only on the shop floor,
but also in all managerial functions.
Kaizen has 3 main principles that must be implemented if it is to
operate properly. ii
Firstly, we must consider the process and the results. The process
and results will surface the actions needed to achieve the correct results. The
Toyota Production System is known for using kaizen. Within Toyota, all
50
personnel is expected to stop moving production lines if there is any slight
notification of abnormalities.
Secondly, you must have a systematic thinking of the entire process
instead of just the immediate problems. This is simply to avoid creating or
missing problems in other parts of the process. Toyota has several small groups
work at improving their area for productivity and overall efficiency. The group
is overseen by a line supervisor who reports to upper management. Within
Toyota kaizen delivers small improvements that add up to make larger
improvements. This is why kaizen is called a "continuous process
improvement" system or a "continual improvement".
Lastly, you need to approach kaizen with a non-judgmental, non-
blaming, and learning method. This allows for the re-examination of
assumptions that were part of the current process. In Toyota Production System,
employee is expected to suggest an improvement to resolve the abnormality
(this initiates kaizen) if there is anything goes wrong in the production lines.
4.4 PDCA Cycle
Deming (1992) generalized the PDCA cycle to any type of
improvement activity and made it an integral part of quality improvement.
According to him, the PDCA cycle as a model for Improvement and as a
procedure for finding special causes of variation.
It emphasises and demonstrates that improvement programs must start
with careful planning, must result-in effective action, and must move on
again to careful planning in a continuous cycle.
The detail explanations about the PDCA ( Plan-Do-Check-Action)
Cycle are as follows ( Paul Arveson :2010 ) :-
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Plan to improve your operations first by finding out what
things are going wrong (that is identify the problems faced), and come
up with ideas for solving these problems.
Do changes designed to solve the problems on a small or
experimental scale first. This minimises disruption to routine activity
while testing whether the changes will work or not.
Check whether the small scale or experimental changes are
achieving the desired result or not. Also, continuously Check
nominated key activities (regardless of any experimentation going on)
to ensure that you know what the quality of the output is at all times to
identify any new problems when they crop up.
Act to implement changes on a larger scale if the experiment is
successful. This means making the changes a routine part of your
activity. Also Act to involve other persons (other departments,
suppliers, or customers) affected by the changes and whose
cooperation you need to implement them on a larger scale, or those
who may simply benefit from what you have learned (you may, of
course, already have involved these people in the Do or trial stage).
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The Japanese Union of Scientists and Engineers expanded it into the seven
step method. The PDCA cycle and the seven step method correspond as follows:
(P) Plan :-
Step 1 - select a problem and describe it clearly
Step 2 - study the present system
Step 3 - identify possible causes.
(D) Do :-
Step 4 - plan and implement a solution.
(C) Check :-
Step 5 - Evaluate effects
(A) Action :-
Step 6 - standardize any effective solutions
Step 7 - Reflect on process and develop future plans.

53
The detail explanations of the seven steps method / approach for continuous
improvement are as follow:-
i. Step 1 - Select a problem and describe it clearly.
The problem is defined in terms of a gap between what is
currently happening and what would be happening under ideal
circumstances. The importance and relevance of the problems are
underscored. Preliminary data relevant to the problem are put forth.
Metrics that will be used to measure progress are determined.
Necessary operational definitions are developed. Goals are set, a team
is formed, a leader is chosen, and a schedule is developed.
ii. Step 2 - Study the present system.
The present system is flowcharted. Data are collected on how
the current system operates, including data on the metrics that were
selected for measuring progress. Variables that may be related to the
problem are identified, and data are collected on those variables. All
data are examined to find any relevant relationships.
iii. Step 3 - Identify possible causes
Potential causes for the problem are identified through
brainstorming by workers familiar with the process. A cause and effect
diagram is developed. Most likely causes are singled out by those same
experienced workers.
iv.Step 4 - Plan and implement a solution.
A list of possible solutions is developed, also through
brainstorming. The solutions are evaluated. One or more solutions are
54
selected for implementation. The implementation is planned and the
solutions are implemented.
v.Step 5 - Evaluate effects
Data on the metrics selected for measuring progress are
collected again. Other relevant data are also collected. The data are
analyzed, and a determination is made on the effectiveness of the
solutions that have been implemented.
vi.Step 6 - Standardize any effective solutions.
Solutions that proved effective are adopted permanently. They
are made part of standard operating procedures. The possibility of
instituting those better methods elsewhere is considered and analyzed.
vii. Step 7 - Reflect on process and develop future plans.
The completed problem solving effort is reviewed in order to
draw as many useful general conclusions as possible. A summary is
made of what has been learned. A decision is made on whether further
improvement is needed on the problem that was just tackled. If not,
other problems on which work is needed are identified.
4.5 The Breakthrough (Juran’s Improvement Program)
Joseph Juran emphasized the importance of developing a habit of making
annual improvements in quality and annual reductions in quality related costs. Juran
defined breakthrough as the accomplishment of any improvement that takes an
organization to unprecedented levels of performance. Breakthrough attacks chronic
losses or, in Deming’s terminology, common causes of variation. All breakthroughs
follow a common sense sequence of discovery, organization, diagnosis, corrective
action, and control. These breakthrough sequences are summarized below :-
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i. Proof of need
Juran (Bateman, Jesus, Troult : 1995) emphasizes the need to
convince top management of the importance, in financial terms if
possible, of quality improvement process. Managers, especially top
managers, need to be convinced that quality improvements are simply
good economics.
Through data collection efforts, information on poor quality,
low productivity or poor service can be translated into the language of
money – the universal language of top management – to justify a
request for resources to implement a quality improvement program.
ii. Project identification
All breakthroughs are achieved project by project, and in no
other way. By taking a project approach, management provides a
forum for converting an atmosphere of defensiveness or blame into one
of constructive action. Participation in a project increases the
likelihood that the participant will act on the results.
iii. Organization for breakthrough
Organization for improvement requires a clear responsibility
for guiding the project. The responsibility for the project may be as
broad as an entire division with formal committee structures or as
narrow as a small group of workers at one production operation. These
groups provide the definition and agreement as to the specific arms of
the project, the authority to conduct experiments, and implementation
strategies.
56
The path from problem to solution consists of two journeys :
One from symptom to cause (the diagnostic journey) and the other
from cause to remedy (the remedial journey), which must be performed
by different individuals with the appropriate skills.
a. Diagnostic journey
Diagnosticians skilled in data collection, statistics, and
other problem solving tools are needed at this stage. Some
projects will require full-time, specialized experts while others
can be performed by the work force. Management controllable
and operator controllable problems require different methods of
diagnosis and remedy.
b. Remedial journey
The remedial journey consists of several phases of
alternatives that optimize total cost (similar to one of Deming
implementing remedial action, and dealing with resistance to
change).
iv. Holding the gains
This final step involves establishing the new standards and
procedures, training the work force and instituting controls so that the
breakthrough will not fade over time.
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5.0 Conclusion
As a conclusion, Continuous Improvement ( CI ) is the quality of work
that can always be improved either doing it gradually or by breakthrough.
Scholars have given their different points of views regarding Continuous
Improvement but they are all sharing the basic idea about it – CI is the tool to
achieve perfection. Although no one can be perfect, perfection should be
the target - not just "satisfactory".
The combination of ideas contributed by – organization, employees
and of course customers – will develop the best synergy in achieving
improvement through continuous effort and it will not fade away through the
years to come.
58
59
i
6.0 Bibliography
ii
Ashok Rao, Farshad Raffi, Ismael Dambolena, John Martin, Lawrence P. Carr, Phyllis
Finemann Schlesinger, Robert J. Kopp (1996), Total Quality Management, A cross
Functional Perspective John Wiley & Sons Inc.
ASQ (American Society for Quality): Learn About Quality — http://www.asq.org/learn-about-
quality/continuous-improvement/overview/overview.html
Burrill, Claude W., and Ledolter, Johannes., (1998). Acieving Quality Through Continual
Improvement, John Wiley & Sons, Inc. New York.
BusinessKnowledgeSource.com (2003-2010),Continuous Process Improvement- The Kaizen Approach:
Extended Entry
Carol Besterfield –Michna, Dale H.Besterfield, Glen H. Besterfield, Mary Besterfield-Sacre (1995),
Total Quality Management, Prentice Hall
Carol Besterfield-Michna, Dale H. Besterfield, Glen H. Besterfield, Mary Besterfield-Sacre (2003),
Total Quality Management, Third Edition, Prentice Hall.
Deming, W. Edwards., (1992) . Out Of the Crisis, MIT Press
D.N.Bateman, Jesus A.Ponce De Leo, MD. Troult (1995), The Interplay Between Quality
Improvement Principles and The Employee Communication Process. Benchmarking: An
International Journal; Volume: 2 Issue 4. Research Paper.
http://www.reliableplant.com/Articles
http://www.tutur2u.com/benchmarking
Imai, Masaaki (1986). Kaizen: The Key to Japan's Competitive Success. New York, NY, USA:
Random House.
Imai, Masaaki . The Kaizen approach to Quality ( 1986). Kaizen Institute, Switzerland.
James Champy, Michael Hammer (1993), Reengineering The Corporation. A Manifesto for
Business Revolution, Nicholas Brealey, Publishing London.

Michael R. Beauregard, Raymond J. Mikulak, Robin E.McDermott (1993), Employee Driven
Quality. Releasing the Creative Spirit of Your Organization Through Suggestion Systems.
Quality Resources Engineering Inc.
Paul Arveson (2010), Balanced Scorecard Institute, a Strategy Management Group company
Peter Merrill (1997), Do It Right, The second time, Benchmarking best practices in the quality
change process, Productivity Press a division of productivity Inc.
Richard S. Johnson (1997), TQM: Management Processes for Quality Operations. Volume II of the
ASQC Total Quality Management Series Business Information Press.
ASSIGNMENT 3 ( QUESTION 6 )
What is customer satisfaction? Why does an organization measure customer satisfaction?
How to measure customer satisfaction? And why do many customer satisfaction efforts
fail?
1.0 What is customer satisfaction?
Satisfaction is the end result the customer experiences when we have done all that is necessary to
meet and exceed their expectations in a timely, responsible fashion, on a consistent basis. It is
ultimately the experience our customer has, that defines their level of satisfaction (Prof Dr. Jegak’s
note)
The definition of customer satisfaction has been widely debated as organizations
increasingly attempt to measure it. Customer satisfaction can be experienced in a variety of
situations and connected to both goods and services. It is a highly personal assessment that is
greatly affected by customer expectations. Satisfaction also is based on the customer’s experience
of both contact with the organization and personal outcomes. Some definitions are based on the
observation that customer satisfaction or dissatisfaction results from either the confirmation or
disconfirmation of individual expectations regarding a service or product (Refer website CSSP).
Customer satisfaction is the state of mind that customers have about a company when their
expectations have been met or exceeded over the lifetime of the product or service. The
achievement of customer satisfaction leads to company loyalty and product repurchase. (Kevin
Cacioppo, refer to website
www.shsu.edu~mgt_ves/mgt481/lesson1/sld001.htm)
According to Richard S.Johnson (1997), satisfaction is monitored as an ongoing process in terms of
progress toward goal through satisfied customers internal and external to the organization. (Carol,
Dale, Glen and Mary, 1995), an external customer exist outside the organization and buys its
products or services. Every employee in the business must know how their job effects and /or
enhances the total satisfaction of the external customer.
2.0 Why does an organization measure customer satisfaction?

According to James and William (2005), measure of customer satisfaction allow a business to do
the following;
a. Discover customer perceptions of how well the business is doing in meeting customer
needs, and identify causes of dissatisfaction and failed expectations as well as drivers of
delight.
b. Compare the company’s performance relative to competitors to support planning and better
strategic initiatives.
c. Discovers areas for improvement in the design and delivery of products and services, as
well as for training and coaching of employees.
d. Track trends to determine whether changes actually result in improvements.
According to Joel E.Ross (1999), an organization measuring customer satisfaction is to have
maintained a consistently high level of customer satisfaction in the areas important to the
customers. The target measures such as product quality, on time delivery, ease of access, index
price have been achieved in all cases and have exceeded the best of competitors. He also explained,
for example, leadership reviewed the 1991 survey results and identified responsiveness and
customer relationships as
opportunities for improvement. Programs were initiated in 1992 to improve these areas. In 1992,
customers reported improvements in customer partnerships, responsiveness, understanding of
customer requirements, and sales representatives. These improvements are also reflected in the
competitive comparison. He said, each of our specialty products businesses asked customers to rate
our year to year progress in overall performance in the areas of products, service, marketing
representative, and general business. Ninety four percent of the customers who rated us believe we
are performing better than or the same as we were last year. Clearly, why does an organization
measure customer satisfaction this is because to maintained a consistently high level of customer
satisfaction.
(Refer Assoc Prof Dr. Jegak’s notes/module), measuring customer satisfaction allowed a business
to discover customer perceptions of how well the business is doing in meeting customers needs.
Discover areas for improvement, both in the design and delivery of products and services. Track
trends to determine if changes actually result in improvements. An effective customer satisfaction
measurement system results in reliable information about customer ratings of specific product and
service features and about the relationship between these ratings and the customers likely future
market behaviour. Customer service standards form the basis of customer satisfaction measures.
Customer satisfaction measures may include product attributes such as product quality, product
performance , usability, and maintainability; service attributes such as attitude, lead time, on time
delivery, exception handling, accountability, and technical support; image attributes such as
reliability and price; and overall satisfaction measures.
3.0 How to measure customer satisfaction?
According to James and William (2005), surveys should be designed to clearly provide the users of
the survey results with the information they need to make decisions. From survey as a example
buyers, buyers provide feedback on their perceptions of the sales processes, managers provide input
on billing and other administrative processes, and users provide feedback on product performance
and technical support. They also said, formal written surveys are the most common means of
measuring customers satisfaction, although others techniques, such as face to face interviews,
telephone interviews and focus groups. They also has mentioned that the company assigns to an
employee or group of employees the responsibility and accountability for developing improvement
plans based on customer satisfaction results. For example, tie managers annual bonuses to customer
satisfaction results, this practice acts as an incentive for managers and a direction for their efforts.
According to Joel E.Ross (1999), some firms use the squeaky wheel or if it ain’t broke,
don’t fix it” approach and measure customer satisfaction based on the level of complaints. First,
it focuses on the negative aspects by measuring dissatisfaction rather than satisfaction. Second, the
measure is based on the complaints of a vocal few and may cause costly or un-needed changes
in a process.
There are two basic step how to measure customer satisfaction. Firstly, develop key indicators
that drive customer satisfaction. Secondly, collect data regarding the perceptions of quality
received by customers.
Firstly, key indicators of customer satisfaction are what the company has chosen to represent
quality in its products and services and the way in which these are delivered. The building blocks
that the system is design to track are expectations of the customer and company perceptions of
customer expectations.
Secondly, companies use a variety of methods, or listening posts, to collect information about
customer needs and expectations, their importance, and customer satisfaction with the company’s
performance to measure customer satisfaction. (Refer Assoc Prof Dr. Jegak Uli notes/module).
According to Prof Dr. Jegak’s note, comment cards and formal surveys are easy ways to solicit
customer information. These approaches typically concentrate on measuring customer satisfaction.
Formal surveys can be designed to scientifically sample a customer base. This survey asks
customers what they want from a supplier and covers areas of service, price, delivery, quality and
technology.
Measuring via focus group such as interview, a focus group is a panel of individuals which
customers or non-customers who answer questions about a company’s products and services as well
as those of competitors. This interview approach allows a company to carefully select the
composition of the panel and probe panel members about important issues, such as comparing
experiences with expectations, in depth. The key questions that companies ask include: what do you
like about the product or service? What pleases or delights you? What do you dislike? What
problems have you encountered? If you had the ability, how would you change the product or
service?
Measuring via direct customer contact; in customer driven companies, top executives commonly
visit with customers personally. Hearing issues and complaints firsthand is often and eye-opening
experience.
Measuring via field intelligence: any employee who comes in direct contact with customers, such
as sales people, repair technicians, telephone operators, and receptionists, can obtain useful
information simply by engaging in conversation and listening to customers. The effectiveness of
this method depends upon a culture that encourages open communication with superiors. As
another approach, employees simply observe customer behaviour.
Measuring via study complaints; complaints, although undesirable from a service point of view,
can be a key source customer information. Complaints allow an organization to learn about product
failures and service problems, particularly the gaps between expectations and performance. Studies
indicate that approximately one out of 25 customers complains. Thus to take full advantage of
complaints, companies must make it easy for customers to complain.

Why do many customer satisfaction efforts fail?
A.Blanton Godfrey in James R.Evans and William M.Lindsay (2005) suggested, there are several
reasons why customer satisfaction efforts fail;
Poor measurement schemes
Just tracking the percentage of satisfied and very satisfied customers on a 5 point Likert scale
provides little actionable information. Many surveys provide biased results because few dissatisfied
customers respond, or the surveys lack adequate sample sizes or randomization. Survey designers
need appropriate understanding of statistical concepts.
Failure to identify appropriate quality dimensions
Many surveys address issues the company thinks are important, not what customers think. This
error results from a lack of capturing reliable information about customer needs and expectations.
Failure to weight dimensions appropriately
Even if organizations measure the right things, they may not understand which dimensions are
important. As a result, they spend too much effort on dimensions with the lowest scores that may
not be important to the customers.
Lack of comparison with leading competitors
Quality and perception of quality is relative. Without appropriate comparative data, competitors
may be improving much faster than an organization realizes.
Failure to measure potential and former customers
Without an understanding of why non-customers do not do business with a company, or more
importantly, why customers leave, an organization risks losing market share to competitors and may
be headed for demise.

Confusing loyalty with satisfaction
Customer retention and loyalty provide an indication of the organization’s future.
According to Peter Merrill (1997), why customer satisfaction efforts fail, this is because poor
communication, unclear and changing requirements, lack of senior management commitment,
employee cynicism and poor morale, lack of training, bad suppliers, not sticking to procedures,
quick fixes, lack of time, lack of process ownership. These are in no special order, and will differ in
priority between companies. It is worth mentioning, though, that poor communication usually
comes at the top of the list. However, they all lead to wasted time and wasted cost that get in the
way of success. Any form of internal waste means you’re asking the customer to pay for something
they don’t want, and that you are paying for something you don’t want.
References
Carol Besterfield-Michna, Dale H.Besterfield, Glen H.Besterfield, Mary Besterfield Sacre (1995),
Total Quality Management, Prentice Hall, New Jersey.
Dr.Jegak Uli (Assoc Prof), Note/Module.
James R.Evans, William M.Lindsay (2005), The Management and Control of Quality, 6 Edition,
Thomson, South - Western
Joel E.Ross (1999), Total Quality Management, Text, Cases and Readings, Third Edition CRC
Press LLC USA.
Peter Merril (1997), Do It Right, The Second Time Benchmarking Best Practices in The Quality
Change Process, Productivity Press a Division of Productivity Inc.
Richard S.Johnson (1997), TQM – Management Processes for Quality Operations. Volume II of the
ASQC, Total Quality Management Series Business Information Press.
Why leadership is important for successful implementation of a quality improvement
program or initiative. Discuss what does it takes (or do you need to do) to be an effective
leader for a successful implementation of a quality improvement program or initiative.
Why leadership is important for successful implementation of a quality improvement
program or initiative.
James and William’s book (2006) has explained that strong leadership, especially from senior
managers, is absolutely necessary to develop and sustain a total quality culture. Leaders may seek to
motivate employees and develop enthusiasm for quality with rhetoric, but actions often speak
louder than words. Leaders create clear and visible quality values, and integrate these values into
the organization’s strategy. Strategies is the pattern of decisions that determines and reveals a
company’s goal, policies, and plans to meet the needs of its stakeholders. Through an effective
strategy a business creates a sustainable competitive advantage. The principle role of strategic
planning is to align work processes with strategic directions, thereby ensuring that improvement
and learning reinforce organizational priorities. In today’s business environment, quality is a key
element of strategic planning.
Conclusion, leadership is the ability to positively influence people and systems under one’s
authority to have a meaningful impact and achieve important results. Strategic planning is the
process of envisioning the organization’s future and developing the necessary goals, objectives, and
action plans to achieve that future. Here clearly, there was why the leadership is important for
successful implementation of a quality improvement program.
According to Roslina (2006), most quality expects agree that strong leadership is absolutely
necessary to develop and sustain a total quality culture. Leadership is the ability to positively
influence people and systems under one’s authority, which can have a meaningful impact and
achieve important results. Leaders create clear and visible quality values and integrate them into the
organization’s strategy. According to Evans and Lindsay (2005), leadership is the driver of the
quality system.
According to Armand V. Feigenbaum in Joel & Vincent (2004), getting quality results is not a short
term, instant pudding way to improve competitiveness; implementing total quality management
requires hands-on, continuous leadership.
With reference to Baldrige Award statement (1999) in Joel (1999), the concept of the leadership
system is summarized as follows, leadership system refers to how leadership is exercised, formally
and informally, throughout a company, the basis for and the way that key decisions are made,
communicated, and carried out. It includes structures and mechanisms for decision making,
selection and development of leaders and managers, and reinforcing values, practices and
behaviours.
According to Joel (1999), an effective leadership creates clear values that respect the capabilities
and requirements of employees and other company stakeholders and sets high expectations for
performance and performance improvement. It builds loyalties and teamwork based upon the values
and the pursuit of shared purposes. It encourages and supports initiative and risk taking,
subordinates organization to purpose and function, and avoids chains of command that require long
decision paths. An effective leadership includes mechanisms for the leaders, self examination,
receipt of feedback, and improvement.
According to James and William (2005), goods leader should to lead for quality, that is they should
ensure that the principles of TQ are adopted and used throughout their organizations. Some might
include the following;
a. Gathering data before expressing an opinion and backing up actions with facts.
b. Being aware that quality is defined by customers and acting on that awareness.
c. Using quality tools when appropriate and making their benefits visible to all.
d. Expecting and driving commitment and accountability throughout the organization.
According to Armand V. Feigenbaum in Joel & Vincent (2004), the passion is in living and
working in the spirit of a quality ethic which means having a deep belief that what you do to make
quality better makes everything in the organizations better.
According to James and William (2005), there are various elements why leadership is important
for successful implementation of a quality improvement.
They focus on creating and balancing value for customers and other stakeholders that serves as a
basis for setting business directions and performance expectations at all levels of the organization.
An organization;s vision and values emanates from senior leaders, and should revolve around
customers, both external and internal. For example, Fedex’s concise motto of People, Service,
Profits conveys that commitment to the people the employees of Fedex come first. If employees are
treated with respect and have empathetic leaders, they will provide exceptional service to
customers, and profits will follow. A three pronged approach to business excellence: a pervasive
customer focus, strong associate focus, and its internal quality management philosophy called the
“BI Way”. This philosophy, which includes training, problem solving techniques, process
improvement, incentives and a focus on results.
They create and sustain a leadership system and environment for empowerment, innovation, agility
and organizational learning.
Leaders provide an environment with few bureaucratic rules and procedures. Such an environment
encourages managers to experiment and take risks, permits employees to talk openly about
problems, supports teamwork and promotes employees understanding of their responsibilities for
quality.
They set high expectations and demonstrate substantial personal commitment and involvement in
quality, often with a missionary like enthusiasm.
A leader can inspire people to do things they do not believe they can do. The leader for today and
the future will be focused on how to develop quality, character, mind-set, values, principles and
courage. Leaders serve as a role models for the whole organization.
They integrate quality values into daily leadership and management and communicate extensively
through the leadership structure and to all employees.
Successful leaders continually promote their vision throughout the organization using many forms
of communications; personal interaction, talks, newsletters, seminars, e-mail, and video.
They review organizational performance including their own performance as leaders to assess
organizational success and progress, and translate review findings into priorities for improvement
and opportunities for innovation for the organization as a whole as well as their own leadership
effectiveness.
To maintain a commitment to improvement, leaders must maintain a sense of the organizations
energy level. This awareness requires a process for reviewing performance measure and using the
results to drive improvements. Review help to build consistency behind goals and allocation of
resources.
They create an environment that fosters legal and ethical behaviour, and a governance system that
addresses management and fiscal accountability and protection of stockholder and stakeholder
interests.
They integrate public responsibilities and community support into their business practices.
Leadership responsibilities include the protection of public health, safety, and the environment that
may be affected by a company’s products and services. Support of key communities, such as
educations, health care, professional organizations, and community services, are important roles for
companies and a leadership responsibility.
Here, clearly, leadership is important for successful implementation of a quality improvement.
Leadership is the driver of the entire quality system. Without leadership, a total quality initiative
simply becomes the flavour of the month, which is the major reason that total quality efforts fail in
many organizations.
Discuss what does it takes (or do you need to do) to be an effective leader for a successful
implementation of a quality improvement program or initiative.
Creating the leadership system
According to James and William’s book (2005) to make successful implementation of a quality
improvement , creating the leadership system. The leadership system is refer to how leadership is
exercised, formally and informally, throughout an organization. These elements include how key
decisions are made, communicated, and carried out at all levels. They include structures and
mechanisms for decision making, selection and development of leaders and managers, and
reinforcement of values, directions, and performance expectations. It builds loyalties and teamwork
based upon shared values, encourages initiative and risk taking, and subordinates organization to
purpose and function. An effective leadership system also includes mechanisms for leaders self
examination and improvement.
Strategic planning
According to them, through strategic planning, leaders hold an organization’s future and manage
change by focusing on an ideal vision of what the organization should and could be three, five, or
more year in the future. The objective of strategic planning is to build a posture that is so strong in
selective ways that the organization can achieve its goals despite unforeseeable external forces.
A strategy is a pattern or plan that integrates an organization’s major goals, policies, and action
sequences into a cohesive whole. A well formulated strategy helps to marshal and allocate an
organization’s resources into a unique and viable posture based on its relative internal competencies
and shortcomings, anticipated changes in the environment, and contingent moves by intelligent
opponents.
A focus on both customer driven quality and operational performance excellence, as opposed to
traditional financial and marketing goals, is essential to an effective strategy. To be competitive and
profitable, an organization must focus on the drivers of customer satisfaction, customer retention,
and market share and build operational capability, including speed, responsiveness, and flexibility,
to contribute to short and longer term productivity growth and cost competitiveness.
They also said, the effective leader was required five core leadership skills for a successful
implementation of a quality improvement. These core skills are vision, empowerment, intuition,
self-understanding and value congruence.
Vision
Leaders are visionaries, they manage for the future, not the past. Vision is crucial at every level
during times of change. Leaders recognize the radical organizational changes taking place today as
opportunities to move closer to total quality. Visionary leaders create mental and verbal pictures of
desirable future states and share these visions with their organizational partners, including
customers, suppliers, and employees.
Empowerment
Leaders empower employees to assume ownership of problems or opportunities and to be proactive
in implementing improvements and making decisions in the best interest of the organization. For
example, at my company GS Paper & Packaging currently which I worked, every department has
participative management process team consisting of 8-12 members who set objectives to support
corporate goals. Individual employees develop goals and plans, track progress, and receive bonuses
based on successful and timely achievement of goals. Empowerment threatens many managers who
are accustomed to wielding their power , often coercively through fear of punishment or sanctions.
True power is not based upon formal position and authority, but rather aids in spreading power
downward and outward and developing leadership at lower levels of the organization.
Intuition
Leaders are not afraid to follow their intuition. Even in the face of uncertainty and change, they
must anticipate the future and must be prepared to make difficult decisions that will help the
organization to be successful. For example, David Kearns from Fuji Xerox company, when he was
appointed as a CEO, he had already witnessed firsthand the implemented of TQM at Fuji Xerox. On
his return from Japan, he had begun listing the factors that made the Japanese better than American
counterparts. After eliminating those factors he felt were insignificant, three elements remained:
cost, quality and expectations. His intuition in this case led him to develop the leadership through
quality initiative at Fuji Xerox.
Self-understanding
Self-understanding requires the ability to look at one’s self and then identify relationships with
employees and within the organization. It requires an examination of one self’s weaknesses as well
as strength. An example, one manager told the chairman and CEO of GS Paper & Packaging,
“There are only five managers in this room who know how to listen.” The Chairman recognized the
need to do something. At the end of the meeting, the chairman stood up on a banquet chair, and
raising his right arm, asked all of the assembled executives to repeat after him:”I will listen. I will
not shoot the messenger. I recognize that management is the problem.” Many leaders have an
insatiable appetite for knowledge and self-learning as well as a drive to develop their skills and use
them effectively.
Value congruence
Value congruence occurs when leaders integrate their values into the company’s management
system. Values are basic assumptions and beliefs about the nature of the business, mission, people,
and relationships of an organization. Specifically, values include trust and respect for individuals,
openness, teamwork, integrity, and commitment to quality. They become standards by which
choices are made and create an organizational structure in which quality is a routine part of
activities and decisions throughout the organization.
Reference:
Evans, J.R and Lindsay, W.M (2005), The Management and Control of Quality, fifth Edition,
International Thomson Publishing.
James R.Evans, William M.Lindsay (2005), The Management and Control of Quality, Sixth
Edition, Thomson South-Western.
Joel E.Ross, Vincent K.Omachonu (2004), Principles of Total Quality, Third Edition, CRC Press
LLC USA.
Joel E.Ross (1999), Total Quality Management, Text Cases, and Readings, Third Edition, CRC
Press LLC USA
Roslina Ab.Wahid (2006), Quality Management: Principles, Systems and Tools, University
Publication Centre, UiTM.

DR Jegak Uli Assignment 4 DCE5131

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DCE 5131 GROUP ASSIGNMENT

What is a process? What are the process characteristics? Why to we need to

1.0 What is a process?

A process is a collection of interrelated work tasks initiated in response to an

Adding more specific detail to that general definition:

 that achieves a specific result:

o must deliver a specific result

o this result must be individually identifiable and countable

 for the customer of the process:

o a customer receives the result or is the beneficiary of it

o the customer can be a person or an organization

o customer point of view helps identify and name the process

 initiated in response to a specific event:

o the process must be initiated in response to a specific event

o multiple events can initiate a process

o having an event AND a result allows the tracing of the sequence of

tasks that turns the event into the result

o a collection of actions, activities, steps or tasks make up a business

o a step in the initial workflow will probably be divided into more

detailed steps later

o the process steps must relate to each other

o interrelationship is through sequence and flow...the completion of

o also interrelated by dealing with the same work item

o steps related by being traceable back to the same initiation event

According to Joel E.Ross & Vincent K.Omachonu (2004), a process is a series of

purchased parts, a product or service, or the environment. It is the steps used by an

individual or a group to perform work or complete a task. It is sometimes referred to

adequately managed, quality will regress to mediocrity. An organization is a

collection of sub-processes. A customer is affected by one or more processes at any

According to Prof Dr.Jegak’s note, process is a bound set of interrelated work

other tangible objects, or various kinds of information, are converted by a series of

activities into an output provided to a recipient. According to him, recipient, can be

either an external or internal customer. An external customer is a person or

internal customer is can be a department, a group such as in case of an internal

operation, or some other processing equipment and machinery. According to Prof Dr

future use such as a warehouse.

Diagram 1 : Transformation Model (Slack, 2005)

effectively below listed advantages could be achieved

• Avoiding excess investment

• Developing capabilities for future innovation

2.0 What are the process characteristics?

Whether a process involves transformations of a physical, locational, or

transactional nature, it has 10 common characteristics.

2.1 Clearly defined ownership

Traditionally, the ownership of physical and locational processes has been

manager’s performance was judged by quantifiable standards, such as cost,

schedule and quality. Recently, process ownership has gradually shifted

teams, employees are assuming some traditional roles of management. The

boundaries of transactional processes are harder to identify. Further, output

specifications for transactional processes may not truly reflect customer

specifications with the existing processes. A lack of understanding about the

input specifications and the output specifications is common in many business

processes. But in a well managed transactional process, specification problems

as it proceeds from one operation to another. Thus, the boundaries of a well

managed process are well defined and controlled.

Capacity is the output rate of the process. Capacity is usually expressed in

terms of design, or theoretical, capacity and effective capacity. Thus, design

capacity is stated without consideration for such matters as equipment

reliability, maintenance, or personnel factors such as learning curves,

effective capacity to be calculated.

A detailed record of work flow in a processes. Can be written in great detail,

or it can be a collection of various bits of data. Provides a permanent record of