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Translating What the Customer Wants
Quality has become a survival issue in today's business world. While managers
today are keenly aware that quality is important to competitiveness, there
remains the problem of translating the desire for quality into a practical
program of action. The solution is the whole-hearted participation of company
senior management in quality policy and action. Management's ability to evaluate
and translate the critical customer requirements will allow everyone in
production and control to speak the same language: Quality.
Quality is often defined as delivering products or services that satisfy, or
preferably, delight the customer. So achieving quality necessitates
concentrating on critical customer requirements such as timeliness, accuracy,
format, size, etc. Adherence to these critical requirements reduces or
eliminates the subjectivity in evaluating the end product.
More than the absence of defects
Quality measures the extent of how well a supplier complies with the customer’s
critical requirements. Defects or discrepancies are counted with respect to the
agreed critical requirements.
Defects are instances of non-conformance to customer requirements that lead to
customer dissatisfaction. Not long ago companies considered a 1% defect rate
acceptable. But for any system with I million opportunities for error, a 1%
defect level meant some 10,000 errors. Today quality is considered in terms of
defects per million (DPM). Companies that used to have a 1% error rate (10,000
defects) have cut this figure to 2,000 or 3,000 defects per million, often with
the same personnel and equipment.
Rather than considering defects as inevitable, companies can conceptualize
zero-defect manufacturing. Some operations, notably Motorola, manufacture as few
as 3 or 4 defects per million. This level of quality production is commonly
known as "Six Sigma," or 99.99966% defect-free in the context of Motorola's
operations.
To approach zero-defect requires a policy that products be both designed and
manufactured without defects. All elements in the process have to match
specifications without deviation.
Defect rate, however, is not the whole quality story. Production organizations
that measure quality exclusively in the limited terms of defect/reject rate do
not take into account other cases that lead to less than optimal quality.
Workmanship or delivery of service may be flawless, but late. Or projects may be
completed on time, but over budget. These too, are non-conformance to the
customer's requirements.
A more realistic quality measurement approach consists of not one but three
elements: defects, on-time delivery, and budget compliance. Each of these
factors directly impacts customer satisfaction and an organization's prospects
for survival.
All three elements taken together will set and track progress toward quality
improvement goals.
Company-wide strategic goals
For continuous quality improvement, quality objectives must actually drive
company strategic plans. In practical terms, these objectives cannot be
accomplished by a select few in the corporate boardroom. Instead, strategic
goals must become the property of all managers and employees through a system of
policy deployment.
Policy deployment is a system of planning and communication, which is initiated
and controlled by senior management, yet capitalizes on all the innovation,
perspective, and problem solving capabilities available at each organizational
level.
In the policy deployment process, senior management develops, communicates. and
advocates a strategic vision. At the departmental level, this vision becomes
more specialized: middle managers, supervisors, and employees turn the quality
improvement vision into specific objectives and projects Department Management
action based on implementing suggestions taken from employees and suppliers is
truly quality-minded thinking. Along with setting quality improvement
objectives, corporate leaders must provide the tools needed to accomplish these
goals. Such system-support tools include quality improvement programs for line
workers, quality management skills training for managers and supervisors, and
quality awareness training for everyone in the organization. Of course, proper
job training and open communication are vital to this process.
Managers and employees, in turn, provide a pipeline of information and insights,
which senior executives can incorporate into a continually evolving quality
improvement strategy.
Surprisingly, only a few organizations have true systems-supported, continuous
quality improvement programs. This approach, then, offers an outstanding
opportunity to gain a quality advantage over the competition.
About the Author

Art Davis is principal of The Davis Group, a Chicago area
consultancy specializing in business process improvement and
total quality. He has delivered many training programs in Six
Sigma for Motorola, Caterpillar, ITW, Litelfuse and other firms.
For more information call: 800-959-0632.
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