Defining Quality
1. Efficiently providing products and services
that meet or exceed customer expectations
2. Adding customer value
3. Continuously measuring the improvement of
processes and services for customers
4. Acting as promised and reporting failures
5. Doing the right thing at the right time in the
right way with the right people
6. Ensuring customers come back and products
do not
7. Providing the best value to customers by
improving everyday activities and processes
8. Beyond delivering what the customer wants,
anticipating what the customer will want when
he or she knows the possibilities
9. Delivering customer value across the
organization through best-in-class
products, services, and support
10. Meeting and exceeding the expectations of
clients, employees, and relevant constituencies in
the community
Formal Definitions of Quality
-The totality of features and characteristics of a
product or service that bears on its ability to
satisfy given needs - American Society for
Quality
1. Fitness for use
2. Meeting or exceeding customer expectations
3. Conformance to specifications
Performance Excellence
An integrated approach to organizational
performance management that results in
 delivery of ever-improving value to
customers and stakeholders, contributing to
organizational sustainability,
 improvement of overall organizational
effectiveness and capabilities, and
 organizational and personal learning.
Future Influences
 Global responsibility - an organization must
be aware of its impact such is: waste, labor
practices, human rights, fair operations, and
contribution to the company
 Consumer awareness - through technology
and social media, consumers’ choices are
being affected, they should be quick when
responding to their customers’ concerns and
match their products to customers’ wants
and needs.
 Globalization - competition across the globe
can disrupt supply chain, easy import and
export affects the quality of the product.
 Increasing rate of change - rapid
technological changes, advancement,
changing market dynamics that requires the
organizations to be agile and
adaptive, .“First in the market” & “The first
ever”
 Workforce of the future - with technology
advances, competition for talents increases,
hybrid, remote, and automation ex. robots
 Aging population - organizations think
about how to help and serve their old
employees ex. Healthcare & company face
higher costs for healthcare and social
welfare programs.
 21st century quality - not the same as many
years ago, quality is moving beyond the
organizations walls to encompass a
customer’s entire experience and not just the
quality of product/service
 Innovation - the pursuit of something
different and exciting. Innovation lies at the
heart of the organizatioinal survival.
Quality in Manufacturing
 Performance - primary operating
characteristics
 Features -"bells and whistles"
 Reliability - probability of operating for
specific time and conditions of use
 Conformance - degree to which
characteristics match standards
 Durability - amount of use before
deterioration or replacement
 Serviceability - speed, courtesy, and
competence of repair
 Aesthetics - look, feel, sound, taste, smell
 Perceived quality - subjective assessment
from image…
Quality in Services
 Time - how much time must a customer
wait?
 Timeliness - will a service be performed
when promised?
 Completeness - Are all items in the order
included?
 Courtesy - do frontline employees greet
each customer cheerfully?
 Consistency - are services delivered in the
same fashion for every customer, and every
time for the same customer?
 Accessibility and convenience - is the
service easy to obtain?
 Accuracy - is the service performed right
the first time?
 Responsiveness - can service personel
respond quickly and resolve unexpected
problems?
Differences Between Manufacturing and
Services
 Customer needs and performance standards
are often difficult to identify and measure
 The production of services typically
requires a higher degree of customization
 The output of many service systems is
intangible
 Services are produced and consumed
simultaneously
 Customers often are involved in the service
process and present while it is being
performed
 Services are generally labor intensive
 Many service organizations must handle
very large numbers of customer
transactions.
New Frontiers of Quality
 Health care
 Education
 Government
 Not-for-Profits
Principles, Practices, and Techniques
 Principles are the foundation of
philosophy
 Practices are activities by which
principles are implemented
 Techniques are tools and approaches that
help managers and employees make
practices effective
Quality Management Principles
 Customer focus
 Leadership
 Involvement of People
 Process Approach
 System Approach to Management
 Continual Improvement
 Factual Approach to Decision Making
Customer Focus
 Customer is the principal judge of quality
 Organizations must build relationships with
customers and increase customer
engagement
 Organizations must understand customer
needs and obtain feedback
 Customers are internal and external
Customer-Focused Practices
 Researching and understanding customer
needs and expectations;
 Ensuring that goods and services are linked
to customer needs and expectations;
 Communicating customer needs and
expectations throughout the organization;
 Measuring customer satisfaction and using
the results to improve;
 Systematically managing customer
relationships; and
 Ensuring a balanced approach between
satisfying customers and other stakeholders.
Leadership
 Leadership is the responsibility of top
management
 Senior leaders should be role models for the
entire organization
 An organization cannot sustain quality
initiatives without strong leadership
Leadership Practices
 Considering the needs of all stakeholders in
decisions;
 Establishing a clear vision of the
organization's future;
the  Setting challenging goals and targets;
 Creating and sustaining shared values,
the fairness, and ethics at all levels of the
organization;Establishing trust and
eliminating fear;
the  Providing workers with adequate resources,
training and freedom to make customer-
focused decisions; and
 Inspiring, encouraging, and recognizing
worker's contributions.
Involvement of People
 A company’ s success depends increasingly
on the knowledge, skills, and motivation of
its workforce.
 Engagement – workers have a strong
emotional bond to their organization, are
actively involved in and committed to their
work, feel that their jobs are important,
know that their opinions and ideas have
value, and often go beyond their immediate
 responsibilities for the good of the  Focusing on the factors such as resources,
organization methods, and materials that will improve
 Empowerment – having the authority to processes; and
make decisions  Evaluating risks, consequences and impacts
 “A sincere belief and trust in people” of activities on customers, suppliers, and
other stakeholders.
People-Focused Practices
 Understand the key factors that drive Systems Approach Practices
workforce engagement, satisfaction, and  Designing the organization to achieve its
motivation objectives in the most effective and efficient
 Design and manage work and jobs to way;
promote engagement  Understanding the interdependencies
 Create an environment that ensures and between processes;
improves workplace health, safety, and  Developing approaches that harmonize and
security integrate processes;
 Develop an effective performance  Providing a clear understanding of the roles
management system and responsibilities necessary for achieving
 Assess workforce engagement and objectives and reducing cross-functional
satisfaction barriers;
 Assess workforce capability and capacity  Understanding organizational capabilities;
needs defining how specific activities and
 Make appropriate investments in processes should operate; and
development and learning  Continually improving the system through
 Manage career progression and succession measurement and evaluation.
planning
Systems Approach to Management
Process Approach  Synthesis means looking at an organization
 A process is a sequence of activities that is as a whole and building on key business
intended to achieve some result attributes, including core competencies,
strategic objectives, action plans, and work
systems.
 Alignment means ensuring consistency of
plans, processes, measures, and actions
across the organization.
 Integration builds on alignment, so that the
Cross-functional Perspective individual components of the organizational
system operate in a fully interconnected
manner and deliver anticipated results.

Systems Approach Practices

Process-Focused Practices
 Systematically defining processes that
create desired outcomes; establishing clear
responsibility and accountability for
managing key processes;
 Analyzing and measuring of the capability
of processes;
 Identifying the interfaces of key activities
within and between the functions of the
organization;
 Designing the organization to achieve its
objectives in the most effective and efficient
way;
 Understanding the interdependencies
between processes;
 Developing approaches that harmonize and
integrate processes;
 Providing a clear understanding of the roles
and responsibilities necessary for achieving
objectives and reducing cross-functional
barriers;
 Understanding organizational capabilities;
defining how specific activities and
processes should operate; and
 Continually improving the system through  Recognizing and acknowledging
measurement and evaluation. improvements.

Continual Improvement
 Incremental and breakthrough improvement Factual Approach to Decision Making
-enhancing value to the customer through new  Organizations need good performance
and improved products and services; measures to drive strategies and change,
-improving productivity and operational manage resources, and continuously
performance through better work processes and improve
reductions in errors, defects, and waste;  Data and information support analysis at all
-improving flexibility, responsiveness, and cycle levels
time performance; and  Typical measures:
-improving organizational management  product and process outcomes,
processes through learning  customer-focused outcomes,
 workforce-focused outcomes,
 leadership and governance outcomes, and
Kano Model  financial and market outcomes.
 Dissatisfiers—those needs that are expected
in a product or service. Such items Mutually Beneficial Supplier Relationships
generally are not stated by customers but are  Suppliers include not only companies that
assumed as given. If they are not present, provide materials and components, but also
the customer is dissatisfied. distributors, transportation companies, and
 Satisfiers—needs that customers say they information, health care, and education
want. Fulfilling these needs creates providers.
satisfaction.  Key suppliers might provide unique design,
 Delighters/exciters—new or innovative technology, integration, or marketing
features that customers do not expect. The capabilities that are not available within the
presence of such unexpected features, if business and, therefore, can be critical to
valued, leads to high perceptions of quality. achieving such strategic objectives as lower
costs, faster time-to-market, and improved
Learning quality.
 Learning – why changes are successful
through feedback between practices and Supplier Management Practices
results  Recognizing the strategic importance of
 Learning Cycle: suppliers in accomplishing business
1. Planning objectives, particularly minimizing the total
2. Execution of plans cost of ownership;
3. Assessment of progress  Identifying and selecting key suppliers;
4. Revision of plans based upon assessment developing win– win relationships that
findings balance short-term gains with long-term
considerations;
Practices for Continual Improvement  Establishing trust through openness and
 Deploying a systematic approach to honesty, thus leading to mutual advantages;
continual improvement across the  Pooling expertise and resources with
organization; partners;
 Providing the workforce with training in the  Having clear and open communication that
methods and tools of continual information and future plans;
improvement;  Establishing joint development and
 Making continual improvement of products, improvement activities; and inspiring,
processes, and systems an objective for encouraging,
every individual;  Recognizing improvements and
 Establishing goals to guide, and measures to achievements of suppliers.
track, continual improvement; and
TQ and Agency Theory
 Agency relationship: a concept in which one
party (the principal) engages another party
(the agent) to perform work
 Key assumption: individuals in agency
relationships are utility maximizers and will
always take actions to enhance their self-
interests.
Contrast With TQ
 TQ views the management system as one
based on social and human values, whereas
agency theory is based on an economic
perspective that removes people from the
equation.
 Agency theory propounds the belief that
people are self-interested and opportunistic
and that their rights are conditional and
proportional to the value they add to the
organization. TQ suggests that people are
also motivated by interests other than self,
and that people have an innate right to be
respected.
 Agency theory assumes an inherent conflict
of goals between agents and principals, and
that agent goals are aligned with principal
goals through formal contracts. In TQ,
everyone in the organization shares
common goals and a continuous
improvement philosophy, and goals are
aligned through adoption of TQ practices
and culture.
 TQ takes a long-term perspective based on
continuous improvement, whereas agency
theory focuses on short-term achievement of
the contract between the principal and
agent.
 TQ leaders provide a quality vision and play
a strategic role in the organization; leaders
in agency theory develop control
mechanisms and engage in monitoring.
Principle 1: Customer Focus
Organizations depend on their customers and
therefore should understand current and future
customer needs, should meet customer
requirements, and strive to exceed customer
expectations.
Principle 2: Leadership
Leaders establish unity of purpose and direction
of the organization. They should create and
maintain the internal environment in which
people can become fully involved in achieving
the organization's objectives.
Principle 3: Involvement of People
People at all levels are the essence of an
organization and their full involvement enables
their abilities to be used for the organization's
benefit.
Principle 4: Process Approach
A desired result is achieved more efficiently
when activities and related resources are
managed as a process.
Principle 5: System Approach to Management
Identifying, understanding, and managing
interrelated processes as a system contributes to
the organization's effectiveness and efficiency in
achieving its objectives.
Principle 6: Continual Improvement
Continual improvement of the organization's
overall performance should be a permanent
objective of the organization
Principle 7: Factual Approach to Decision
Making
Effective decisions are based on the analysis of
data and information.
Principle, 8: Mutually Beneficial Supplier
Relationships
An organization and its suppliers are
interdependent and a mutually beneficial
relationship enhances the ability of both to create
value.
CHAPTER 2
DEMING PHILOSOPHY
The Deming philosophy focuses on continual
improvements in product and service quality by
reducing uncertainty and variability in design,
manufacturing, and service processes, driven by
the leadership of top management.
Deming Chain Reaction
I. Improve quality
II. Costs decrease
III. Productivity improves
IV. Increase market share with better quality
and lower prices
V. Stay in business
VI. Provide jobs and more jobs
Deming’s System of Profound Knowledge
 Appreciation for a system
 Understanding variation
 Theory of knowledge
 Psychology
Systems
 Most organizational processes are cross-
functional
 Parts of a system must work together
 Every system must have a purpose
 Management must optimize the system as a
whole
Variation
 Many sources of uncontrollable variation
exist in any process
 Excessive variation results in product
failures, unhappy customers, and
unnecessary costs
 Statistical methods can be used to identify
and quantify variation to help understand it
and lead to improvements
Theory of Knowledge
 Knowledge is not possible without theory
 Experience alone does not establish a
theory, it only describes
 Theory shows cause-and-effect relationships
that can be used for prediction
Psychology
 People are motivated intrinsically and
extrinsically; intrinsic motivation is the
most powerful
 Fear is demotivating
 Managers should develop pride and joy in
work
Deming’s 14 Points (Abridged) (1 of 2)
1. Create and publish a company mission
statement and commit to it.
2. Learn the new philosophy.
3. Understand the purpose of inspection.
4. End business practices driven by price alone.
5. Constantly improve system of production
and service.
6. Institute training.
7. Teach and institute leadership.
8. Drive out fear and create trust.
9. Optimize team and individual efforts.
10. Eliminate exhortations for work force.
11. Eliminate numerical quotas and M.B.O.
Focus on improvement.
12. Remove barriers that rob people of pride
of workmanship.
13. Encourage education and self-improvement.
14. Take action to accomplish the transformation.
JURAN PHILOSOPHY
Juran proposed a simple definition of quality:
“fitness for use.” This definition of quality
suggests that it should be viewed from both
external and internal perspectives; that is, quality
is related to “(1) product performance that results
in customer satisfaction; (2) freedom from
product deficiencies, which avoids customer
dissatisfaction.”
Juran’s Quality Trilogy
1. Quality planning
2. Quality control
3. Quality improvement
CROSBY PHILOSOPHY
Quality is free . . .
“Quality is free. It’s not a gift, but it is free.
What costs money are the unquality things -- all
the actions that involve not doing jobs right the
first time.”
Crosby’s Absolutes of Quality Management
 Quality means conformance to requirements
 Problems are functional in nature
 There is no optimum level of defects
 Cost of quality is the only useful
measurement
 Zero defects is the only performance
standard
MALCOLM BALDRIGE NATIONAL
QUALITY AWARD
 Help improve quality in U.S. companies
 Recognize achievements of excellent firms
and provide examples to others
 Establish criteria for evaluating quality
efforts
 Provide guidance for other American
companies
 Malcolm Baldrige, former U.S. Secretary of
Commerce
Quality Management Systems
 A quality management system (QMS) can
be considered a mechanism for managing
and continuously improving core processes
to “achieve maximum customer the lowest
overall cost to the organization.”
 A quality manual serves as a permanent
reference for implementing and maintaining
the system.
ISO 9000:2000
Quality system standards adopted by the
International Organization for Standardization in
1987; revised in 1994 and 2000 with minor
updates in other years.
Technical specifications and criteria to be used as
rules, guidelines, or definitions of characteristics
to ensure that materials, products, processes, and
services are fit for their purpose.
Rationale for ISO 9000
ISO 9000 defines quality system standards, based
on the premise that certain generic characteristics
of management practices can be standardized,
and that a well-designed, well-implemented, and
carefully managed quality system provides
confidence that the out-puts will meet customer
expectations and requirements.
Objectives of ISO Standards (1 of 2)
 Achieve, maintain, and continuously
improve product quality
 Improve quality of operations to continually
meet customers’ and stakeholders’ needs
 Provide confidence to internal management
and other employees that quality
requirements are being fulfilled
 Provide confidence to customers and other
stakeholders that quality requirements are
being achieved
 Provide confidence that quality system
requirements are fulfilled
Structure of ISO 9000 Standards
The standards consist of three documents
ISO 9000:2005— Fundamentals and vocabulary
ISO 9001:2008— Requirements
ISO 9004:2009— Guidance for performance
improvement
Benefits of ISO 9000
1. It provides discipline. The ISO 9001
requirement for audits forces an organization to
review its quality system on a routine basis. If it
fails to
2. It contains the basics of a good quality system,
such as understanding customer requirements,
ensuring the ability to meet them, ensuring
people resources capable of doing the work that
affects quality, ensuring physical resources and
support services needed to meet product
requirements, and ensuring that problems are
identified and corrected.
3. It offers a marketing program. ISO certified
organizations can use their status to differentiate
themselves in the eyes of customers.
Six Sigma – a business improvement approach
that seeks to find and eliminate causes of defects
and errors in manufacturing and service
processes by focusing on outputs that are critical
to customers and a clear financial return for the
organization.
 Based on a statistical measure that equates
to 3.4 or fewer errors or defects per million
opportunities
 Pioneered by Motorola in the mid-1980s
and popularized by the success of General
Electric
Key Concepts of Six Sigma
 Think in terms of key business processes,
customer requirements, and overall strategic
objectives.
 Focus on corporate sponsors responsible for
championing projects, support team
activities, help to overcome resistance to
change, and obtaining resources.
 Emphasize such quantifiable measures as
defects per million opportunities (dpmo)
that can be applied to all parts of an
organization
 Ensure that appropriate metrics are
identified early and focus on business
results, thereby providing incentives and
accountability.
 Provide extensive training followed by
project team deployment
 Create highly qualified process
improvement experts (“green belts,” “black
belts,” and “master black belts”) who can
apply improvement tools and lead teams.
 Set stretch objectives for improvement.
Six Sigma as a Quality Framework
 TQ is based largely on worker
empowerment and teams; Six Sigma is
owned by business leader champions.
 TQ activities generally occur within a
function, process, or individual workplace;
Six Sigma projects are truly cross-
functional.
 TQ training is generally limited to simple
improvement tools and concepts; Six Sigma
focuses on a more rigorous and advanced set
of statistical methods and a structured
problem-solving methodology DMAIC—
define, measure, analyze, improve, and
control.
 TQ is focused on improvement with little
financial accountability; Six Sigma requires
 a verifiable return on investment and focus
on the bottom line.
Six Sigma in Services
 The culture of services is usually less
scientific and service employees typically
do not think in terms of processes,
measurements, and data. The processes are
often invisible, complex, and not well
defined or well documented.
 The work typically requires considerable
human intervention, such as customer
interaction, underwriting or approval
decisions, or manual report generation.
 Service measures differ from
manufacturing: accuracy, cycle time, cost,
customer satisfaction
Comparing Baldrige, ISO 9000, and Six Sigma
 Baldrige focuses on performance excellence
for the entire organization in an overall
management framework, identifying and
tracking important organizational results
 ISO focuses on product and service
conformity for guaranteeing equity in the
marketplace and concentrates on fixing
quality system problems and product and
service nonconformities
 Six Sigma concentrates on measuring
product quality and driving process
improvement and cost savings throughout
the organization.
CHAPTER 3
QUALITY TRILOGY
Planning - design of goods and services that
customers want, as well as the processes that
create and deliver them.
Control - maintaining target levels of
performance.
Improvement- making goods, services, and
processes better.
Process management
 involves design, control and improvement
- the key activities necessary to achieve high
level of performance in key value creation and
support processes, identifying opportunities for
improving quality ande operational performance,
and, ulitimately, customer satisfaction.
Good process management
- helps to prevent defects and errors and
eliminate waste and redundancy and thereby
leads to better quality and improved company
performance through shorter cycle times,
improved flexibility, and faster customer
response.
* Process quality improvement focuses on the
end-to-end process.
* The mind-set of quality is one of prevention
and continuous improvement.
* Everyone manages a process at some level and
is simultaneously a customer and a supplier.
* Customer needs drive process quality
improvement.
* Corrective action focuses on removing the root
cause of the problem rather than on treating its
symptoms.
* Process simplification reduces opportunities for
errors and rework.
* Process quality improvement results from a
disciplined and structured application of the
quality management principles.
Design for Six Sigma (DESS) comprises a set of
tools and methodologies used in the product
development process for ensuring that goods and
services will meet customer needs and achieve
performance objectives and that the processes
used to make and deliver them achieve extremely
high levels of quality.
1. Concept development, in which product
functionality is determined based upon customer
requirements, technological capabilities, and
economic realities.
2. Design development, which focuses on
product and process performance issues
necessary to fulfill the product and service,
requirements in manufacturing or deliveries.
3. Design optimization, which seeks to minimize
the impact of variation in production and use,
creating a "robust design.
4. Design verification, which ensures that the
capablity of the production system meets the
appropriate level of performance.
Define, Measure, Analyze, Design, and Verify.
Define focuses on identifying and understanding
the market need or opportunity.
Measure gathers the voice of the customer,
identifies the vital characteristics that are most
important to customers, and outlines the
functional requirements of the product that will
meet customer needs.
Analyze is focused on concept development from
engineering and aesthetic perspectives.
Verify involves prototype development, testing,
and implementation planning for production.
1. Define Opportunities: Understand the purpose
of the process to be developed by goal
statements, generation plans, and resource
identification.
2. Measure Customer Needs: Understand the
outputs required of the new process by
examining customer needs and competitive
analysis.
3. Explore Design Concepts: Use creative
techniques to develop alternative concepts and
evaluate those ideas by validating customer
requirements.
4. Develop Detailed Design: Turn the concept
into reality by the use of process and product
designs, pilot programs, and testing.
5. Implement Detailed Design: Fully deploy the
new process and assess its value against the
desired outcome.
Three important approaches used for product
design are concept development, innovation, and
quality function deployment.
CONCEPT DEVELOPMENT is the process of
applying scientific, engineering and business
knowledge to produce a basic functional design
that meet both costumer needs and
manufacturing or service delivery requirements.
CREATIVITY is seeing things in new or noval
ways.
INNOVATION involves the adoption of an idea,
process, technology, product, or business model
that is either new or new to its proposed
application.
QUALITY FUNCTION DEPLOYMENT (QFD)
is a methodology used to ensure that customers’
requirements are met thoughout the product
design process and in the design and operation of
production systems,
A major benefit of QFD is improved
communications and teamwork among all
constituencies in the production process—
marketing and design, design and manufacturing,
and purchasing and supplies.
QFD allows companies to simulate the effects of
new design ideas and concepts.
The focus of OFD is translating customer
requirements into the appropriate technical
requirements for each stage of product
development and production. The customers
requirements expressed in their own terms--are
appropriately called the voice of the customer.
These are the collection of customer needs,
including all satisfiers, delighters/exciters, and
dissatisfiers--the "whats" that customers want
from a product.
Sometimes these requirements are referred to as
customer attributes.
The House of Quality relates customer attributes
to technical features to ensure that any
engineering decision has a basis in meeting a
customer need.
Building the House of Quality requires six basic
steps:
1. Identify customer attributes.
2. Identify technical features.
3. Relate the customer attributes to the technical
features.
4. Evaluate competing products.
5. Evaluate technical features and develop
targets.
6. Determine which technical features to deploy
in the production process.
Three other houses of quality are used to deploy
the voice of the customer to component parts
characteristics, process plan-ning, and production
planning. These are:
1. technical features deployment matrix, which
translates technical features of the final product
into design requirements for critical components;
2. process plan and quality control charts, which
translate component features into critical process
and product parameters and control points for
each; and
3. operating instructions, which identify
operations to be performed by plant personnel to
ensure that important process and product
parameters are achieved
The purpose of design, failure, mode, and effects
analysis (DFMEA) is to identify all the ways in
which a failure can occur, to estimate the effect
and seriousness of the failure, and to recommend
corrective design actions.

1. Failure modes - ways in which each element or
function can fail. This information generally
takes some research and imagination.
2. Effect of the failure on the customer-such as
dissatisfaction,potential injury or other safety
issue, downtime, repair requirements, and so on.
3. Severity, likelihood, occurrence, and detection
rating.
4. Potential causes of failure - often failure is the
result of poor design.Design deficiencies can
cause errors either in the field or in
manufacturing and assembly.
5. Corrective actions or controls - these controls
might include design changes, mistake proofing,
better user intruction, management responsibility,
and target completion.
Using DEMEA will not only improve product
functionality and safety but also reduce external
failure costs--particularly warranty costs, as well
as decrease manufacturing and service delivery
problems.
Product design can significantly affect the cost of
manufacturing (direct and indirect labor,
materials, and overhead), redesign, warranty, and
field repair, the effi ciency by which the product
can be manufactured, and the quality of the
output. A Samsung manager noted that 70 to 80
percent of guality, cost, and delivery time is
determined in the initial design stages. This is
one reason for the company's obsession with
reducing complexity early in the design cycle.
Design for manufacturability (DFM) is the
process of designing a product for efficient
production at the highest level of quality. DM is
typically integrated into standard design
processes, but because of the need for highly-
creative solutions, it might be addressed in
specialized "think-tank" departments in a
company.
DFE is the explicit consideration of
environmental concerns during the design or
products and processes and includes such
practices such as designing for recyclability and
disassembly.
Services are quite different from manufactured
goods. First, the outputs of service processes are
not as well defined. Services are intangible and
represent an interaction between the customer
and service provider; they cannot be inventoried,
moved, or inspected as can manufactured goods.
Second, most service processes involve a greater
interaction with the customer, often making it
more difficult to identify needs and expectations.
Services have three basic components: physical
facilities, processes, and procedures; employees’
behavior; and employees’ professional judgment.
Too much or too little emphasis on one
component will lead to problems and poor
customer perceptions.
Too much emphasis on behavior might provide a
friendly and personable environment at the
expense of slow, inconsistent, or chaotic service.
Too much emphasis on professional judgment
might lead to good solutions to customer
problems but also to slow, inconsistent, or
insensitive service. The design of the processes
that produce and deliver goods and services--to
bot external and internal customers-can have a
significant impact on cost (and hence
profitability), flexibility (the ability to produce
the right types and amounts o products as
customer demand or preferences change), and
quality.
1. Identify the product or service: What work do
I do?
2. Identify the customer: Who is the work for?
3. Identify the supplier: What do I need and from
whom do I get it?
4. Identify the process: What steps or tasks are
performed? What are the inputs and outputs for
each step?
5. Mistake-proof the process: How can I
eliminate or simplify tasks and prevent , defects
and errors?
6. Develop measurements and controls, and
improvement goals: How do I evaluate the
process? How can I improve further?
Agility is an important factor in being
competitive. Agility is a term that is commonly
used to characterize flexibility and short cycle
times.
Flexibility refers to the ability to adapt quickly
and effectively to changing requirements.
Poka-yoke is an approach for mistake-proofing
processes using automatic devices or methods to
avoid simple human error.
Poka-yoke is focused on two aspects: prediction,
or recognizing that a defect is about to occur and
providing a warning; and detection, or
recognizing that a defect has occurred and
stopping the process.
serious consequences, not only for the business,
but for customers as well.
Any control system has three components: (1) a
standard or goal, (2) a means of measuring
accomplishment, and (3) comparison of actual
results with the stan-dard, along with feedback to
form the basis for corrective action.

Server errors result from the task, treatment, or

tangibles of the service. Customer errors occur
during preparation, the service encounter, or
during resolution.

Task errors include doing work incorrectly, in the

wrong order, or too slowly, as well as doing
work not requested.

Treatment errors arise in the contact between the

server and the customer, such as lack of
courteous behavior, and failure to acknowledge,
listen, or react appropriately to the customer.

Tangible errors are those in physical elements of

the service, such as unclean facilities, dirty
uniforms, inappropriate temperature, and
document errors.

Customer errors in preparation arise when

customers do not bring necessary materials to the
encounter, do not understand their role in the
service transaction, or do not engage the correct
service.

Customer errors during an encounter can be

because of inattention, misunder. standing, or
simply a memory lapse, and include failure to
remember steps in the process or to follow
instructions.

Customer errors at the resolution stage of a

service encounter include failure to signal service
inadequacies, learn from experience, adjust
expectations, and execute appropriate
postencounter actions.

PROCESS CONTROL

Control is the activity of ensuring conformance

to the requirements and taking corrective action
when necessary to correct problems and maintain
stable perfor-mance. Lack of control can not only
cause customer dissatisfaction, but can result in