Assignment 1

TOTAL QUALITY
MANAGEMENT
(5575)
MBA Executive

ZAHID NAZIR
Roll No. AB523655
Semester: Autumn 2009

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 Question 1
a). Explain how each of the following relates
to quality:
Delivery Time
Time to get the product to market
Responsiveness to changes in the
market place
Low cost
(10)
b). What is the quality imperative
(10)

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 The Concept of Quality
People define quality in many ways. Some think of quality as superiority or
excellence, others view it as a lack of manufacturing or service defects, still
others think of quality as related to product features or price. Followings are
some of many ways to look at quality.
1. perfection
2. consistency
3. eliminating waste
4. speed of delivery
5. compliance with policies and procedures
6. providing a good, usable product
7. doing it right the first time
8. delighting or pleasing customers
9. total customers service and satisfaction

Today most managers agree that the main reason to pursue quality is to
satisfy customers. The American National Standards Institute (ANSI) and the
American Society for Quality (ASQ) define quality as:

“the totality of features and characteristics of a product or service that

bears on its ability to satisfy given needs.”

The view of quality as the satisfaction of customer needs is often called

fitness for use. In highly competitive markets, merely satisfying customer
needs will not achieve success. To beat the competition, organizations often

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must exceed customer expectations. Thus, one of the most popular
definitions of quality is meeting or exceeding customer expectations.

Why Focus on Quality?

To understand total quality, one must first understand quality. Customers of
businesses will define quality very clearly using specifications, standards, and
other measures. This makes the point that quality can be defined and
measured. Although few consumers could define quality if asked, all know it
when they see it. This makes the critical point that quality is in the eye of the
beholder. With the total quality approach, customers ultimately define
quality.

People deal with the issue of quality continually in their daily lives. We
concern ourselves with quality when grocery shopping, eating in a
restaurant, and making a major purchase such as an automobile, a home, a
television, or a personal computer. Perceived quality is a major factor by
which people make distinctions in the market place. Whether we articulate
them openly or keep them in the back of our minds. We all apply a number
of criteria when making a purchase. The extent to which a purchase meets
these criteria determines its quality in our eyes.

One way to understand quality as a consumer-driven concept is to consider

the example of eating at a restaurant. How will you judge the quality of the
restaurant? Most people apply such criteria as the following:
Service
Response time
Food preparation
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 Environment/atmosphere
Price
Selection
The example gets at one aspect of quality the results aspect. Does the
product or service meet or exceed customer expectations? This is a critical
aspect of quality, but it is not the only one. Total quality is a much broader
concept that encompasses not just the results aspect but also the quality f
people and the quality of processes.

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b).

Quality Imperative
Cheaper, faster, better and zero defects are today’s quality imperatives.
Organizations that use programs such as Six Sigma think in terms of “3.4
defects per one million parts”. In north America, we like to think that our
quality is superb and that of other manufacturing countries is lacking. This
was an attitude that existed about Japanese manufactured goods-until the
Japanese gained control of many of our markets (bicycles and motorcycles,
electronics, video and audio equipment) and after considerable persuasion,
agreed to use voluntary restraints to keep from over shipping and over
selling automobiles in Canada and the United States. Currently countries
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like India are gaining considerable footholds in the computer and data
processing fields. The moral is that if domestic companies are not willing to
provide what the customer wants at a price the customer is willing to pay,
there are many organizations in both the developed and the developing
world that will be glad to sell to those markets and customers instead.

Quality imperatives like cheaper, faster, better and zero defects can be
obtained by following the quality management principles.

Quality Management Principles

“A quality management principle is a comprehensive and fundamental

rule / belief, for leading and operating an organisation, aimed at
continually improving performance over the long term by focusing on
customers while addressing the needs of all other stake holders".

The eight principles are:

1. Customer-Focused Organization
2. Leadership
3. Involvement of People
4. Process Approach
5. System Approach to Management
6. Continual Improvement
7. Factual Approach to Decision Making
8. Mutually Beneficial Supplier Relationships.

1. Customer-Focused Organisation :

"Organisations depend on their customers and therefore should understand

current and future customer needs, meet customer requirements and strive
to exceed customer expectations".
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2. Leadership :

"Leaders establish unity of purpose and direction of the organisation. They

should create and maintain the internal environment in which people can
become fully involved in achieving the organisation's objectives."

3. Involvement of People :

"People at all levels are the essence of an organisation and their full
involvement enables their abilities to be used for the organisation's benefit".

4. Process Approach :

"A desired result is achieved more efficiently when related resources and
activities are managed as a process."

5. System Approach to Management :

"Identifying, understanding and managing a system of interrelated processes

for a given objective improves the organisation's effectiveness and
efficiency."

6. Continual Improvement :

"Continual improvement should be a permanent objective of the

organisation."

7. Factual Approach to Decision Making :

"Effective decisions are based on the analysis of data and information."

8. Mutually Beneficial Supplier Relationships :

"An organisation and its suppliers are interdependent, and a mutually

beneficial relationship enhances the ability of both to create value."

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References:

Total Quality Management AIOU

www.mindstool123.com

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 Question 2
a). Mintzberg’s research indicates that there
are three categories of roles of leaders, these
can be described in terms of 10 specific
quality roles. Explain each of them.
(10)
b). Differentiate between Leaders and
Managers.
(10)

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a).

MINTZBERG's RESEARCH
Mintzberg’s (1971) observations indicated that managers (leaders) behaviors
can be classified into three basic categories i.e.

i. Informational
ii. Interpersonal
iii. Decisional

Mintzberg’s Ten Management Roles are a complete set of behaviors or roles

within a business environment. Each role is different, thus spanning the
variety of all identified management behaviors. When collected together as
an integrated whole (gestalt), the capabilities and competencies of a
manager can be further evaluated in a role-specific way.

The Ten Management Roles

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The ten roles explored in this theory have extensive explanations which are
briefly developed here:

1. Figurehead: All social, inspiration, legal and ceremonial obligations.

In this light, the manager is seen as a symbol of status and authority.
2. Leader: Duties are at the heart of the manager-subordinate
relationship and include structuring and motivating subordinates,
overseeing their progress, promoting and encouraging their
development, and balancing effectiveness.
3. Liaison: Describes the information and communication obligations of
a manager. One must network and engage in information exchange to
gain access to knowledge bases.
4. Monitor: Duties include assessing internal operations, a department’s
success and the problems and opportunities which may arise. All the
information gained in this capacity must be stored and maintained.
5. Disseminator: Highlights factual or value based external views into
the organisation and to subordinates. This requires both filtering and
delegation skills.
6. Spokesman: Serves in a PR capacity by informing and lobbying others
to keep key stakeholders updated about the operations of the
organisation.
7. Entrepreneur: Roles encourage managers to create improvement
projects and work to delegate, empower and supervise teams in the
development process.

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 8. Disturbance handler: A generalist role that takes charge when an
organisation is unexpectedly upset or transformed and requires
calming and support.
9. Resource Allocator: Describes the responsibility of allocating and
overseeing financial, material and personnel resources.
10. Negotiator: Is a specific task which is integral for the spokesman,
figurehead and resource allocator roles.

As a secondary filtering, Mintzberg distinguishes these roles by their

responsibilities towards information. Interpersonal roles, categorized as the
figurehead, leader and liaison, provide information. Informational roles link
all managerial work together by processing information. These roles include
the monitor, the disseminator and the spokesperson. All the remaining roles
are decisional, in that they use information and make decisions on how
information is delivered to secondary parties.

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b).

LEADERS vs MANAGERS
Leader can be defined as

“A leader is a person who guides others toward a common goal,

showing the way by example, and creating an environment in which
other team members feel actively involved in the entire process.”

A leader is not the boss of the team but, instead, the person that is
committed to carrying out the mission of the Venture. Below are some
qualities a strong leader may possess. Some of the leader qualities are:

Good Listener:
Your teammates may have a great way to improve your idea. By keeping your mind
open to other ideas, you can come up with new ways to accomplish your goals. It is
your job to make sure that everyone in the group is being heard. Listen to their
ideas and accept their constructive criticisms.
Focused:
Constantly remind yourself and the group of your Venture’s goals and mission. If
you stay on track and keep others on track, the team will stay motivated and be
more productive. As leader of the group, it is important that you schedule time to
meet with your Venture Team to establish and check-in about the goals you hope
to achieve.
Organized:
A leader can set the tone for the team. A leader who is organized helps motivate
team members to be organized as well.
Available:
As a leader, you’re responsible for a lot and you’re probably going to be very busy
at times. However, you still need to find time to talk with your team. A good way
to do this is to set frequent group meetings, so that no question or concern goes
too long without attention.

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Include others:
A leader should not do all the work. Doing everything yourself is a poor use of time
and prevents your Venture from growing. Instead, a leader should work with
his/her teammates and learn how to delegate responsibility while being mindful of
everyone’s interests, goals, and strengths.
Decisive:
Although an important part of being a leader involves listening to the people
around you, remember that you are not always going to be able to reach a
compromise. When this happens, don’t be afraid to make the final decision, even if
some team members disagree with you.
Confident:
This could be the most important characteristic of a leader. If you don’t believe in
yourself and the success of your Venture, no one else will. Show others that you
are dedicated, intelligent, and proud of what you are doing.

Whereas Manger can be defined as

“An individual who is in charge of a certain group of tasks, or a certain

subset of a company.”

A manager often has a staff of people who report to him or her. As an

example, a restaurant often have a front of house manager who helps the
patrons and supervises the hosts. In addition, a specific office project can
have a manager, known simply as the project manager. Certain departments
within a company designate their managers to be line managers, while other
known as staff managers depending upon the functionality of the
department.

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Managers and Leaders - Comparison of Traits

Definition:
Managers . . . Leaders . . .
are analytical, structured, are experimental, visionary, flexible,
controlled, deliberate and orderly unfettered and creative
Primary Problem-Solving Method:
Managers . . . Leaders . . .
Use the power of the logical mind use the power of intuition
Competitive Strategy/Advantage Focus:
Managers . . . Leaders . . .
Concentrate on Strategy Nurture Culture
Consider Dangers Sense Opportunity
Follow Versions Pursue Visions
Isolate Correlate
Determine Scope of Problems Search for Alternative Solutions
Seek Markets Serve People
Think Rivals / Competition Think Partners / Cooperation
Design Incremental Strategies Lay Out Sweeping Strategies
Correct Strategic Weaknesses Build on Strategic Strengths
Organizational Culture/Capability:
Managers . . . Leaders . . .
Wield Authority Apply Influence
Seek Uniformity Pursue Unity
Administer Programs Develop People
Formulate Policy Set Examples
Instruct Inspire
Manage by Goals / Objectives Manage by Interaction
Control Empower
Easily Release Employees Would Rather Enhance Employees
Employ Consistency Elicit Creativity
External/Internal Change:
Managers . . . Leaders . . .
Yearn for Stability Thrive on Crisis
Duplicate Originate
Fasten Things Down Unfasten Them
Drive Toward Compromise Work to Polarize
See Complexity See Simplicity
React Proactive
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 Plan Experiment
Reorganize Redevelop
Refine Revolutionize

Individual Effectiveness Style:

Managers . . . Leaders . . .
Ask How (Seek Methods) Wonder Why (Seek Motives)
Think Logically Think Laterally
Perpetuate Hierarchies Strive for Equality
Are Skeptical Are Optimistic
Plan Around Confront
Take Charge Encourage Delegation
Like Formality Prefer Informality
Venerate Science Revere Art
Perform Duties Pursue Dreams
Bottom-Line Performance/Results:
Managers . . . Leaders . . .
Scrutinize Performance Search for Potential
Are Dependent Are Independent
Compensate People Satisfy Them
Conserve Assets Risk Them
Pursue the Tangible Seek the Intangible
Inhabit the Present Reside in the Future
Concentrate on Short-term Results Seek Long-term Results
Want Good Demand Better

Examples:
Managers . . .
Henry Ford, Ford Motor Company
Harold Geneen, ITT
John Akers, IBM
Tom Landry, Dallas Cowboys
Charles Knight, Emerson Electric
George Bush, President of the U.S.
Leaders . . .
Ray Kroc, McDonald's
Walt Disney, Disney Studios
Ross Perot, EDS and Perot Systems
Ted Turner, Turner Broadcasting
Steven Jobs, Apple Computer
Bill Clinton, President of the U.S.

References:

www.genv.net

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 Question 3
a). What is Customer Relationship
Management? Why is the concept important
to two different organizations, one that is a
purchaser and the second a supplier of the
services?
(10)
b). What assistance can a company expect
from its partners?
(10)

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 CUSTOMER RELATIONSHIP MANAGEMENT
Customer relationship management (CRM) is a term applied to processes
implemented by a company to handle its contact with its customers. CRM
software is used to support these processes, storing information on current
and prospective customers. Information in the system can be accessed and
entered by employees in different departments, such as sales, marketing,
customer service, training, professional development, performance
management, human resource development, and compensation. Details on
any customer contacts can also be stored in the system. The rationale behind
this approach is to improve services provided directly to customers and to
use the information in the system for targeted marketing.

Customer Relationship Management can be defined as:

“Customer relationship management (CRM) is a business strategy to

acquire and manage the most valuable customer relationships. CRM
requires a customer-centric business philosophy and culture to support
effective marketing, sales and service processes. CRM applications can
enable effective customer relationship management, provided that an
enterprise has the right leadership, strategy and culture.”

As is implicit in the above definition, the purpose of CRM is to improve

marketing productivity. Marketing productivity is achieved by increasing
marketing efficiency and by enhancing marketing effectiveness. In CRM,
marketing efficiency is achieved because cooperative and collaborative
processes help in reducing transaction costs and overall development costs
for the company. Two important processes for CRM include proactive
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customer business development and building partnering relationship with
most important customers. These lead to superior value creation. The basic
concept is that the customer is not someone outside the organisation, he is a
part of the organization.

Purpose of CRM

CRM, in its broadest sense, means managing all interactions and business
with customers. This includes, but is not limited to, improving customer
service. A good CRM program will allow a business to acquire customers,
service the customer, increase the value of the customer to the company,
retain good customers, and determine which customers can be retained or
given a higher level of service. A good CRM program can improve customer
service by facilitating communication in several ways:

Provide product information, product use information, and technical

assistance on web sites that are accessible 24 hours a day, 7 days a week.
Identify how each individual customer defines quality, and then design a
service strategy for each customer based on these individual requirements
and expectations.
Provide a fast mechanism for managing and scheduling follow-up sales calls
to assess post-purchase cognitive dissonance, repurchase probabilities,
repurchase times, and repurchase frequencies.
Provide a mechanism to track all points of contact between a customer and
the company, and do it in an integrated way so that all sources and types of
contact are included, and all users of the system see the same view of the
customer (reduces confusion).
Help to identify potential problems quickly, before they occur.
Provide a user-friendly mechanism for registering customer complaints
(complaints that are not registered with the company cannot be resolved,
and are a major source of customer dissatisfaction).

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 Provide a fast mechanism for handling problems and complaints
(complaints that are resolved quickly can increase customer satisfaction).
Provide a fast mechanism for correcting service deficiencies (correct the
problem before other customers experience the same dissatisfaction).
Use internet cookies to track customer interests and personalize product
offerings accordingly.
Use the Internet to engage in collaborative customization or real-time
customization.
Provide a fast mechanism for managing and scheduling maintenance, repair,
and on-going support (improve efficiency and effectiveness).

The CRM program can be integrated into other cross-functional systems and
thereby provide accounting and production information to customers when
they want it.

Why CRM is necessary?

Several companies are turning to customer-relationship management

systems and strategies to gain a better understanding of their customer's
wants and needs. Used in association with data warehousing, data mining,
call centers and other intelligence-based applications, CRM "allows
companies to gather and access information about customers' buying
histories, preferences, complaints, and other data so they can better
anticipate what customers will want. The goal is to instill greater customer
loyalty." Other benefits includes:

Faster response to customer inquiries.

Increased efficiency through automation.
Deeper understanding of customers.
Increased marketing and selling opportunities.
Identifying the most profitable customers.

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 Receiving customer feedback that leads to new and improved products or
services

Importance of Customer-Supplier Partnerships

In order for partnerships or strategic alliances to persist, both the customer

and supplier must see and obtain benefits. The ideal partnership is one
where partners complement each other, with each one contributing from an
area of strength and receiving support in areas where they are weaker. Some
explicit benefits usually sought in alliances are:

Cost and Time saving: The just in time (JIT) supply arrangements now
common in the automotive industry, where parts are delivered to the
production line just as they are needed for assemblies, is a good example
where a partnership between supplier and customer leads to significant
saving. Committing to an agreed quantity of parts on an agreed JIT schedule
allows for the reduction of inventories, both at the auto plant and at the
parts manufacturer – and both gain benefits from reduced investment in
inventory. To be effective, these JIT alliances requires a high degree of
mutual trust, even to the extent of sharing confidential company data on
matters such as production plans.
Improved Products or Services: A strong alliance leads to a sharing of
technology and expertise, which leads to improved products for both the
supplier and, eventually the customer. An extreme example of alliances
where technological advances have changed old patterns is illustrated by
NIKE, the world’s dominant provider of athletic shoes. This company has
evolved to become world class in design of shoes and in marketing and
transfer his technology to other and now NIKE hardly manufacturer any

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 shoes itself. Through highly integrated alliances, NIKE outsources all
manufacturing to more specialized and expert suppliers.
Improved Suppliers: Suppliers benefit from strategic alliances through the
support and expertise of their customers, as well as from the pressure for
continuous improvement which inevitably comes from their customers.

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b).

Role of Partners in CRM

From a company’s perspective, partners for a company are their suppliers who are
providing products and services to the company. In order for partnerships or
strategic alliances to persist, both the customer and supplier must see and
obtain benefits. The ideal partnership is one where partners complement
each other, with each one contributing from an area of strength and
receiving support in areas where they are weaker. Some of the assistances
which companies expect from their partners are:

Just in Time: Implementation of just in time system at supplier’s end is one

of the most important assistance that can provide to companies. The just in
time (JIT) supply arrangements now common in the automotive industry,
where parts are delivered to the production line just as they are needed for
assemblies, is a good example where a partnership between supplier and
customer leads to significant saving. Committing to an agreed quantity of
parts on an agreed JIT schedule allows for the reduction of inventories, both
at the auto plant and at the parts manufacturer – and both gain benefits
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from reduced investment in inventory. To be effective, these JIT alliances
requires a high degree of mutual trust, even to the extent of sharing
confidential company data on matters such as production plans.
A strong alliance leads to a sharing of technology and expertise, which leads
to improved products for both the supplier and, eventually the customer. An
extreme example of alliances where technological advances have changed
old patterns is illustrated by NIKE, the world’s dominant provider of athletic
shoes. This company has evolved to become world class in design of shoes
and in marketing and transfer his technology to other and now NIKE hardly
manufacturer any shoes itself. Through highly integrated alliances, NIKE
outsources all manufacturing to more specialized and expert suppliers.
Developing better communication channels.
Some of the mutual benefits which companies and their partners can enjoy
are:
increased sales through better timing due to anticipating needs based
on historic trends.
identifying needs more effectively by understanding specific customer
requirements.
cross-selling of other products by highlighting and suggesting
alternatives or enhancements.
effective targeted marketing communications aimed specifically at
customer needs.
a more personal approach and the development of new or improved
products and services in order to win more business in the future.
enhanced customer satisfaction and retention, ensuring that your
good reputation in the marketplace continues to grow.

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 increased value from your existing customers and reduced cost
associated with supporting and servicing them, increasing your
overall efficiency and reducing total cost of sales.

Reference:

http://www.is4profit.com

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 Question 4

What is HOUSE OF QUALITY for Human

Resource? House of Quality consists of four
important elements, explain them in detail.
(20)

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 HOUSE OF QUALITY FOR HUMAN RESOURCES

House of Quality is a graphic tool for defining the relationship between

customer desires and the firm/product capabilities. It is a part of the Quality
Function Deployment (QFD) and it utilizes a planning matrix to relate what
the customer wants to how a firm (that produce the products) is going to
meet those wants. It looks like a House with a "correlation matrix" as its roof,
customer wants versus product features as the main part, competitor
evaluation as the porch etc. It is based on "the belief that products should be
designed to reflect customers' desires and tastes". It also is reported to
increase cross functional integration within organizations using it, especially
between marketing, engineering and manufacturing.

House of Quality model that looks specifically at the human resources

function, the cornerstones are four:

The vision and mission of senior leadership.

The organizational culture.
The culture of the country itself.
Servant leadership.

The foundation on which everything else is built is the internal customers

and clients of the unit. It is for them that the department and management
of that function exist.

The four pillars in model are:

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 Continuous improvement
Product and process quality procedures, tools and measurement.
People development.
Speaking with facts (not opinions or political views) and measurement.

Rules &
Procedures Systems,
(Legal & Processes, Environmental
Strategy Political) Structure Constraints
CONTINUOUS IMPROVEMENT,

PRODUCT /PROCESS QUALITY

FACTS AND MEASUREMENT

PEOPLE DEVELOPMENT

Internal Stakeholders (Customers/Clients

Vision Org. National Servant

(Mission) Culture Culture Leadership

Fig: House of Quality for Human Resources

The roof forms the constraints. There are four identified, but others may
claim there are a fewer or greater number of barriers. The four constraints
are:

Strategy, both short term and long term.

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 Rules and procedures. Some of these are internal. Others are forced on the
organization and on human resources management by the legal and
political structure that exists at large and within the organization.
Systems, processes and structure.
Environment.

The mortar is the cement that holds the house together. It is based on:

Respect for the individual.

Ethical and moral behavior.
Respect for authority.

Now we will discuss the four pillar which are the most important in house of
quality for human resources.

1. Pillar One: Continuous Improvement

Continuous improvement is the process of making something better and

doing this over an extended period of time. It often involves
experimentation with processes, systems and structure to find the current
best method that will increase effectiveness and/or efficiency. Generally,
until the technique or replacement part is perfected, organizations prefer
to do this experimentation on a small scale.

Again the human resource department has two sets of responsibilities in

terms of activities that must be implemented before kaizen (a Japanese
word for continuous improvement) can occur. The first is to provide the
organization with the type of support needed to help in the

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implementation of any program or process. The second responsibility is
to implement such a program within its own area.

Petrick and Furr (1995) point out that there are three types of continuous
improvement processes i.e. cost reduction, best in class and breakthrough
dominance. Breakthrough dominance is also a method to outdistance
competitors. For the most part, it involves reengineering.

Cost reduction is more long term, and involves continuous and

incremental patterns. As the term states, it is aimed at greater efficiency
and lowering of costs. It tends to work well in a slow growth economy or
when a product is in the mature growth stage.

Best in class CI, on the other hand, is more short term in orientation.
Because considerable benchmarking is involved, some initial involvement
and commitment of both financial and human resources is required. This
style of CI is best suited to organizations that are on the cutting edge and
interested in fast growth.

Reengineering is not really CI because the attempt is to make quantum

leaps to outpace the competition. It usually involves a tearing down of
what exists and a complete restructuring (including downsizing and
delayering) often in very new directions. The process is seldom
incremental; instead it is revolutionary. By its very nature, a large initial
investment is required and considerable funds are necessary to maintain
product dominance.

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2. Pillar Two: Product/Process Quality

The second pillar is process improvement. It is different from continuous

improvement. The two are closely related but our emphasis are different.

Considerable disagreement existed in the past as to whether quality

improvement was a process or a program. Diehards did not like the
thought of a program, arguing that a program had a beginning and an
ending date. Processes, however, were, at least in definition, continuous.
In the recent years, the discussions appear to have decreased and the two
words are used inter changeably. Others, to the extent possible, avoid
their use entirely. In any event, the difference is more semantic than real.

One way that HR can be at the forefront is to ensure that its own database
is current and tied to other organizational software programs and
systems. This database must be more than just an employee information
system that gives the qualifications and experience of all employees; it
must provide HR with the heart and pulse of the organization.

The HRM database includes:

Internal rules and procedures.

The process improvement cycle.
Special problems and concerns.
Job redesign and reengineering.
Recognition systems.
Zero service ineffectiveness, reducing response time, privacy protection.

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3. Pillar Three – People Development

The third pillar is people development. HR has a special responsibility to

the rest of the organization to ensure that the right types of people are
available at the right time, in the right place, in the right quantity. This
also applies to quality management, in that employees have to be selected
and trained. For a successful QM program, employees need to understand
what the organization expects and what it will offer in exchange for
services, loyalty and commitment (psychological contract), and that a
change in their attitude may be required. They must also be able to solve
problem and work in teams. These last two activities require interaction
skills.

Psychological Contract: An employee’s work life starts with a

psychological contract. When a new employee is hired, that individual
has certain perceptions of what she will do for the company and what the
company will do for her. Part of that expectation will be career
progression and possible career paths. At the same time, the company or
organization has expectations of what it will do for employees in general,
and the new person in particular. It also knows how it plans to reward
the employees, what benefits and pre-requisites of office it plans or
giving. If the two psychological perceptions are in alignment, all is well
and good.
Change of Attitude: Effective QM usually requires a flat organization.
Flat organizations require different attitudes and ways of looking at
relationships. Employees must be willing to be their own bosses and
inspectors. This means that they have to be prepared to accept

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responsibility for ensuring that work is done in accordance with quality
expectations.
Problem Solving Skills: HR has a responsibility to ensure that all
employees receive the training that they need to perform to the
expectations of the organizations. Trainings that should be offered to
employees, from a problem solving point of view, includes the following:
 The new quality understanding- conformance to requirements,
prevention, zero defects and conformance to customer
expectations.
 Collecting data
 Charts and graphs – histograms, scatter diagrams.
 Cause and effect and process diagrams.
 Check sheets
 Pareto diagrams
 Control charts
 Sampling, sampling inspection and control
 Manufacturing vs service requirements
 Quality in profit vs non-profit organizations
 Measuring performance.
Employee involvement and team building: A crucial role of HRM is
the selection and training of people for employee involvement and for
teams. The first thing that must be understood is that a group of people
who are working together are not a team; nor all members of that group
involved. Considerable preparation must occur before a group begins to
function as a team and before there is a true employee involvement.
Team leaders and facilitators also need development. Additionally if

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 teams are to function properly, senior and middle management must be
trained in their new roles.

4. Pillar Four: Facts and Measurements

The fourth pillar involves gathering data so that discussion and analysis
can begin with what exists (the reality). We look at speaking with facts
and measurement.

Speaking with Facts: Speaking with facts means that required

resources and methods are available to determine what is actually
true within an organization. The process used to collect or obtain the
facts is as important as the data itself. A variety of tools, techniques
and instruments are used to obtain factual data. Every attempt is
made to eliminate barriers to fact finding in an accurate and honest
manner.
Measurement: Measurement is an important part in speaking with
facts. It ensure that everyone understands the situation that is being
discussed in the same way. It also invites questioning of those facts.
What does measurement means? It is the establishment and use of
performance indicators that evaluate what has been done through the
use of some type of assessment instruments. Measurements include
internal performance assessments and external stakeholder related
evaluations.

References:

Total Quality Management – AIOU

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 Question 5

A recent research over a question that

whether or not Voice of Customer is killing
off innovation because paying such close
attention to the VOC prevents the company
from being more creative. Do you think that
VOC is really killing off innovation?
(20)

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 VOICE OF THE CUSTOMER
Because QFD concentrates on customer expectations and needs, a
considerable amount of efforts is put into research to determine customer
expectations. This process increases the initial planning stage of the project
definition phase in the development cycle. But the result is a total reduction
of the overall cycle time in bringing to the market a product that satisfies the
customer.

The driving force behind QFD is that the customer dictates the attributes of
a product. Customer satisfaction like quality is defined as meeting or
exceeding customer expectations. Words used by the customer to describe
their expectations are often referred to as the Voice of the Customer.
Sources for determining customer expectations are focus groups, surveys,
complaints, consultants, standards and federal regulations. Frequently,
customer expectations are vague and general in nature. It is the job of the
QFD team to analyze these customer expectations into more specific
customer requirements. Customer requirements must be taken literally and
not incorrectly translated into what organization officials desire.

Is VOC Killing Innovation?

This is the much debated topic that whether voice of the customer is killing
innovation or not. Different peoples have different thoughts but most of the
experts have consensus on that VOC is the driver of innovation not the
killer. Below are the some opinions from experts:
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No way, VOC must help you to understand the needs of your customers,
you are not going to invent a need for your customer only because you are
to creative. Once you have understood what you customer requires, you use
your innovation process to find the more creative solution that satisfy your
customer in the best way. What it is possible is that your customer had not
identified some need, and then you could have a restricted answer, but
inclusive in this case, you have to be very creative to understand what your
customer have not identified.

VOC never substitutes Creativity and Innovation, Instead, Creativity

and Innovation are used to give answers to VOC.

VOC does not kill innovation but it helps in bringing about clear focus in
your directing your resources. First of all why organizations of any kind
exist? It is only to meet the aspirations and requirements of their Customers
and hence VOC is the logical means for staying on course.
Six Sigma process ensures that we meet our customer needs profitably
and VOC is the best way of understanding what the customers want. Being
innovative is good, but if the customer is not ready to pay for it, it doesn’t
mean anything for a business. Innovation may delight the customer but only
when his most essential needs are met and a good VOC process ensures that
we do the right things.
VOC is for capturing the requirements of a product which the customer
thinks as the minimum wants. This will help u in streamlining your
thoughts to think in that direction and will not kill your creativity. You can
be innovative in the following ways after capturing the VOC,

1. Innovative ways of achieving the specified wants of the customer

compared to the existing products in the market.
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 2. Innovative extra features in the product which the customer didn't even
dream of, apart from all the features the customer needs, to bring out
a product that can create waves in the market (customer WOW) and be a
'Game Changer' for the company's business.

To achieve the above said things you need lots of research and 'out of the
box' thinking. So I can assure you that by doing VOC you can be more
innovative and your product will be more successful in the market as you
will get a direction to think, a direction in which you need to be innovative.

I think we need to make a distinction between innovation and invention.

VOC is a very important input for working on innovations as this helps in

aligning the resources in the right direction.

Inventions like the walkman could depend on the perceived needs which
may not be stated explicitly by customers as they are not yet aware that
such a thing would be possible.

VOC is the driver of innovation, not the killer. Any confusion is over the
meaning of VOC. Unfortunately, a conventional view of VOC is finding out
what the potential customer wants. That doesn't work because, as you say,
that limits the supplier to the customer's level of creativity. Savvy
implementation of DFSS defines VOC as identifying and understanding
customer needs. The solution to those needs is the seller's responsibility.
The most creative solution wins the business - so innovation remains the
basis of competitive advantage.

Conclusion:

VOC enables the producer to prioritize the customer's needs, and to cope
with tradeoffs in existing products and services. That neither encourages nor

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discourages innovation in and of itself. That simply configures existing
offerings to maximize the benefit.

If that is as far as you go with VOC, then there is no opportunity for

innovation.

However, the best VOC efforts consider features in context with what
OUTCOMES the customers ultimately want. Couple that with the right
creativity tools and you have an environment ripe for high-power
innovation.

Once again, it all boils down to how VOC is managed, rather than the
technicalities or the methods.

Reference:

http://www.isixsigma.com

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