Transcript Six types of customer

From symptoms to cause – the diagnostic journey
From cause to remedy – the remedial journey
Most errors go unreported because they are either felt to
be insignificant or for fear of blame and retribution
Very few people care enough about their own or another’s
organisation to report correctable errors
Costs of errors
Inspection costs
Prevention costs
The bitterness of poor quality remains long after the
sweetness of low price is forgotten
Quality is the art of getting people to buy your product or
service more than once
The cost of quality is the expense of doing things wrong
Nine out of ten dissatisfied customers don’t complain, they
just go elsewhere
Over three quarters of customers will pay more for a high
quality service
Attracting new customers can cost up to four times as much
as retaining them
What are we doing that you like?
What should we do that are not yet?
What are we doing that needs to be done better?
Denton
Review
Plan
Do
Developing strategies to improve the performance
of the organisation
Taking action to improve the performance
of the organisation
Evaluating the impact of the performance
of the organisation
Conformance to requirements performance
Prevention not appraisal
Zero defects
Measuring the cost of non-conformance
Philip Crosby
Conformance costs
Prevention costs
Appraisal costs
Non-conformance costs
Internal failure
External failure
Source: Steve Ball
The problem does not exist
The problem is not important
The problem cannot be solved
I cannot solve the problem
Repair
Refine
Renovate
Re-invent
Quality cannot be inspected in, it can only be created
by design
Most organisations are unaware of the true costs of
getting things wrong
Up to 85% of quality problems are created by people who
never touch the product or provide the service
The price of poor quality can amount to 20-40% of
turnover
Costs go down as we reduce variation in what we
produce or deliver
Concern for meeting customer needs will show in
what we do not just what we say
To improve a process we need to know what causes
its variation
A climate in which we feel unthreatened when
reporting bad news is a must
Andrew Gibbons
Setting quality standards
Appraising conformance to the standards
Acting when standards are not met
Planning improvements continuously to the standards
Define
Measure
Analyse
Improve
Prevention costs: including quality planning
Appraisal costs: including inspection
Internal failure costs: including scrap and rework
External failure costs: including warranty and complaints
Feigenbaum
Setting quality standards
Appraising conformance to the standard
Acting when standards are exceeded
Planning improvements in the standard
Feigenbaum
Challenge purpose
Compare performance
Consult the community
Compete with others
Understanding and fulfilling requirements
The need to consider process in terms of added value
Obtaining the results of process performance and
effectiveness
Continual improvement of process based on effective
measurement
Source: BSI
Respect
Credibility
Pride
Fairness
Camaraderie
What goes wrong?
What are the symptoms?
What are the effects?
What are the real causes?
What will resolve the problem?
Reduce resources
Reduce errors
Enhance customer perception of value
Make the process safer
Make the process more satisfying to those engaged
in that process
Non-conformance
Defects
Flaws
Deficiencies
Re-work
Source: Ishikawa
Initial
Repeatable
Defined
Managed
Optimising
Produce quality work first time
Focus on the customer
Have a strategic approach to improvement
Improve continuously
Encourage mutual respect and teamwork
E
P
D
C
A
vauate?
lan
o
heck
mend
Inquire
Decide
Expand
Analyse
Specify
Investigating possible areas for benchmarking
Select one area
Exploring key features of the chosen
area - causes, effects and possible solutions
Seeking expert opinion
Interpreting results to focus on the way forward
Source: Webster and Chen Lu
Functionality
Reliability
Usability
Efficiency
Maintainability
Portability
Produce quality work the first time
Focus on the customer
Have a strategic approach to improvement
Improve continuously
Encourage mutual respect and teamwork
A
C
C
E
P
T
im for customer satisfaction
ommunicate and co-ordinate all activities
o-operate at all levels and across functions
mpower all employees
romote the use of problem solving tools
raining for quality is forever
\
World class
Potential winners
Vulnerable
Promising
Room for improvement
Could do better
Complaints
Wasted time
Frustration
Hassle
Confusion
Overload
Underload
Steve Smith
Identify
Analyse
To find
Generate
Make
Anticipate
Prevent
Key areas
Symptoms
Causes
Alternatives
Decisions
Trouble
Recurrence
Points
Leadership
Strategic planning
Customer and market focus
Measurement, analysis, knowledge management
Human resource focus
Process management
Business results
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85
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450
Results orientation
Customer focus
Leadership and constancy of purpose
Management by processes and facts
People development and involvement
Continuous learning innovation and improvement
Partnership development
Corporate social responsibility
EFQM
Leadership
My manager
Personal growth
Well being
My team
My company
Fair deal
Giving something back
Know your climate and parameters
Define the problem
Collect data
Analyse the data
Generate possible solutions
Select the best solution
Implement the decision
Review and learn
Performance
Features
Reliability
Conformance
Durability
Servicability
Aesthetics
Perceived quality
Emphasis on short term profitability
Clamping down on cost but tolerating high waste levels
A ‘take it or leave it’ attitude towards customers
Treating employees as productive robots
Competing on price not sufficiently on quality
Buying at the lowest price
Anti - change but changing arbitrarily when forced
Macho management – the crisis manager
Source: UK Dept of Trade and Industry
Quality leads to lower costs and inspection is too late
The boardroom has ultimate responsibility for quality
Most defects are caused by the system
No process is optimised, it can always be improved
Fear degrades processes – provide job security
Managers must do more than respond to system failure
Build long term relationships with trusted suppliers
Prevention of variation and failure is the key
W E Deming
Five enablers:
Leadership
People
Policy and strategy
Partnership and resources
Processes
Four results:
People
Customers
Society
Key performance indicators
Identify who are our customers
Determine the specific needs of those customers
Translate those needs into our language
Develop products that respond to those needs
Optimise product features to meet our needs too
Develop processes able to produce the products
Fine tune and optimise the process
Improve the process under operating conditions
Transfer the process to operations
Source: Joseph Juran
”The cost of quality is the expense of
doing things wrong”
Source: UK Department of Trade and Industry