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The Quality Specialist

Mark Randig (112)
Mark Randig

MAS Solutions LLC.

A Lot of Improvement - A Bit of Sense

Posted Wednesday, September 10, 2008 (1 year 75 days ago.) Viewed 29 times.

It seems that every business owner I've met lately is at least willing to acknowledge that, to remain competitive in today's marketplace, they must look for ways to continuously improve their programs, processes, products and/or services. As we begin to establish a dialogue on this subject however, the discussion rapidly turns to sales, profit margins and market share; little more is said on how such improvements would occur, or in the longer term, on how such a system of on-going improvements would be sustainable.

Saying that, "we'll do better", "we'll pay more attention", or "we won't do that again" are all noble intentions. If repeated enough times from the "C-Level" (executive management), we can create a level of awareness in our organization that hadn't existed previously. We can continue promoting this cause further using banners, plaques, newsletters and other fan-fare (free food always draws a crowd), and watch as the awareness of this issue within our organization skyrockets, at least momentarily. We'll make it a bullet-point for discussion as part of every meeting we have. If we print our intent on the back of enough business cards, we might even get our customers to believe it.

When we use such terms as "better", "less", and "more" however, it only serves to illustrate the fact that we really don't have a measurement or indicator of how we're actually performing in this area. Our initiatives subsequently fail, not because of our level of commitment or our promotion, but because do not know where we're going; worse yet, we don't even know where we're starting from. At this point, it's not about our sincerity or resolve, but rather the ability to define an ideal future state, and then figuring out how to get there.

Organizations don't budget based around simply wanting to make "lots" of money or incurring a "small" expense or perform strategic planning around gaining a "bit" of market share. These activities focus on objectives, goals and targets that are important to the shareholders of the company. At our finger-tips, we are then able to pull up information that shows us our progress towards meeting these desired outcomes. We can see if our business is operating at a profit or loss and what our margins are. On an on-going basis, we monitor and report our sales performance in terms of sales volume, our ability to reach quotas, our customer relations, expense account usage, time management and other measures .

Successful organizations thrive financially not solely because of commitment and promotion, but because they plan, they budget, they develop infrastructure, they assign responsibilities, they monitor and they adjust and/or correct on a continuous basis. Relatively few organizations however, can make a similar claim, as it relates to the management of their improvement initiatives.

Commitment and promotion are all fine in their own right, and are essential pieces to completing the improvement puzzle; however, none of these gestures do anything however to actually address the organization's present condition. While awareness can be an important catalyst for change, it's not enough for an organization to simply want to improve.

Why again then, are we managing our improvement efforts differently than the other areas of our business?


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The Value of Complaints

Posted Wednesday, September 10, 2008 (1 year 75 days ago.) Viewed 12 times.

While no organization wants to hear, particularly from its customers, that its products or services aren't up-to-par, remember this going forward - a complaint isn't simply a negative event; it's an opportunity for an organization to identify and develop those areas of their business that need improvement. From this perspective, a complaint just may be one of the most valuable things that your customers can actually do for you.
 
It's not unusual for organizations to pay large sums of money to outside consultants, for advice and guidance in determining where their business is failing. While there are countless approaches, methodologies and programs designed to promote such improvement, most have a tendency to gravitate inwards, focusing on internal issues such as the processes involved and their level of efficiency, while underperforming in terms of positively affecting outcomes. Paradoxically, from a customer perspective, it's only the outcome that really matters. How the end result is achieved isn't a concern to them.
 
In contrast to the above, customer feedback, however negative it may be, is free of charge and relates directly to the primary concern of the customer – the outcome. It relates to their degree of customer satisfaction. I'll save my full commentary on this subject for a later article, but needless to say, a satisfied customer is a happy customer, a happy customer is a repeat customer, and a delighted customer is a rich vein for referrals to be mined in the acquisition of new business. While process efficiency is important, it won't be for long if you don't have any customers.
 
When a customer complains, what they're telling you is that there has been a departure from their requirements; they aren't happy with the products or services provided by your organization. The fact that your customer is communicating this to you, rather than seeking a new supplier, indicates that the customer is interested in continuing their relationship with you, pending resolution of the issues identified. This is surely better than the customer who quietly walks away and simply "spreads the word" that your products and/or services are substandard.
 
Best-in-class organizations have realized that complaints form an essential part of their relationship with their customers and understand the importance of this information in the improvement of their products and/or services. They understand that, for the complaint process to be effective there must be a "loop" – a process of communicating-receiving-action. If there is no action when a complaint is received, then the communication you share with your customer is ultimately ineffective. Many organizations have found that by successfully working through an issue with a customer, they can actually grow and nurture their relationship, as such collaboration and partnership leads to greater levels of shared trust and the fulfillment of mutual goals.
 
I've always been amazed at how lesser-performing organizations fail to realize the true importance of customer complaints. I've seen organizations refuse to respond to complaints, rather insisting that the customer has expectations that are out-of-line, unreasonable, and/or impractical. Even worse, I've seen complaints ignored because the size of the account doesn't justify the time or action required to address the issue. Sure, it's up to the discretion of the organization on how to deal with complaints, but remember it's also up to the customer to determine who to do business with. Customers are looking for suppliers that are responsive to their unique needs and situation. If you're not actively working to address the needs and concerns of your customers, then you can be assured that your customer is actively looking for an alternative supplier.

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ISO 9001 - Your Management Review

Posted Sunday, June 22, 2008 (1 year 155 days ago.) Viewed 495 times.

Just as every organization undertakes an annual ritual of financial review, forecasting, planning and budgeting, a similar approach is specified in the ISO 9001:2000 standard for quality management. In the ISO 9001 standard, this process is referred to as a Management Review. Typically, such reviews are held as regularly scheduled events within an organization, with top management convening to review the performance of its quality management system against organizational goals and objectives, and other criteria as specified within the standard.

Specifically, as stated within the ISO 9001 standard, the purpose of a management review is to review the Quality Management System to ensure its continuing adequacy, suitability and effectiveness. This should include an evaluation of the performance of the system based on existing data (review inputs), and should also address any decisions or actions necessary to improve the program and its related processes (review outputs).

To further define the concepts of adequacy, suitability and effectiveness:

  • Adequacy – Sufficient to satisfy a requirement or meet a need*. A quality management system should be capable of satisfying applicable requirements including those specified by the organization, the customer, and any applicable standards and/or regulations.


  • Suitability – The quality of having properties that are right for the specific purpose*. A quality management system should be able to sustain the current performance levels of the organization utilizing an acceptable amount of organizational resources.


  • Effectiveness – Adequate to accomplish a purpose; producing the intended or expected result*. A quality management system should enable the organization to meet its own needs, those of the customer and those of other interested parties.


  • *Random House Unabridged Dictionary, © Random House, Inc. 2006.

    As a minimum, such reviews should be performed annually, although they may be performed on a more frequent basis, including quarterly or even monthly. I personally recommend that oganizations with “newer" systems perform this function on a more frequent basis, at least for the first 18-24 months.

    Records of these reviews should be maintained in accordance with documented record control procedures. These records should include, as a minimum, the date of the review, participants in the review, criteria by which the system is measured, strengths and weaknesses of the system, and any decisions or actions that are required.

    To assist the organization that is new to this process, I’ve attached the following management review template below. These topics should be considered as the “bare minimum" necessary, and this template should be further modified or expanded, as necessary, to address any additional issues or considerations that the organization may have.

    Sample Management Review Agenda

    1. ASSESSMENT OF QMS PERFORMANCE

    1.1. Management System

    1.2. QMS Policy

    1.3. QMS Objectives and Targets

    2. REVIEW INPUTS

    2.1. Results of Audits

    2.2. Communication from External Parties, Including Complaints

    2.3. Process Performance / Conformance

    2.4. Status of Preventive and Corrective Actions

    2.5. Follow-up actions from Earlier Management Reviews

    2.6. Personnel Status

    2.7. Changes That Could Affect this Management System

    3. REVIEW OUTPUTS

    3.1. Opportunities for Improvement of this Management System:

    3.2. Resource Needs:

    3.3. QMS Objectives for fiscal year:


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    Superior Quality

    Posted Friday, May 16, 2008 (1 year 193 days ago.) Viewed 19 times.

    My wife and I recently decided to have the interior of our house painted, so we contacted a painting contractor that had performed similar work for us before. When we received his quote, it was considerably higher than we had planned, however we did not hesitate to immediately give him a check for a down-payment. We wanted him to get started right away. We've used this contractor before, and even under extraordinary scrutiny, we've always found the results to be exceptional.

    I have to emphasize at this point, that the purpose of this story isn't to point out that I like to spend money. In fact, as I get older, I'm becoming quite cheap - each penny becomes much harder to part with (I must admit at this point, that I did manage to "haggle" down the price slightly, but this was done more as a matter of principle than by any other motivation). The fact that the quality of this contractor's work has always been so high merited the additional cost, from our perspective.

    I'm sure that at least one person reading this article will, by now, have noticed that I didn't mention getting any additional quotes from any other painting contractors. I didn't shop for the "best price" around. This is absolutely correct - I wasn't as concerned about competitive pricing as I was about superior service. This is our home, where we spend most of our free time, and we wanted it painted by the best painter we could find. We weren't looking for a commodity service; we were looking for a craftsman. When the work was completed, I didn't want to see (and wouldn't accept) paint spatters on my floors, over-run on the ceilings, or streaks on the walls.

    I'm presenting this story as I think it serves as a good example of the business advantages associated with providing the highest quality goods and services. If you consider your business, which category does your company fall into? Do you focus on providing commodity services/products at cost-competitive prices, or do you focus on providing superior results?

    While almost every organization commits to the latter (superior products and/or services), many organizations have great difficulty making inroads to realizing this objective. We continue to search for new ways to improve our competitive position in the marketplace; however we tend to focus more on competitive pricing and increased sales volume than on the results of our performance, often considering our quality failures as "part of doing business". In many cases, these failures are even considered as part of our budgeting process.

    While the connection should be obvious, many organizations fail to realize the true impact of product and process performance on the overall performance of the organization. Quality problems destroy customer trust, which in turn reduces our sales volume and/or causes us to lower our prices. Quality problems erode our profit margins as a consequence of rework, warranty repairs and customer back-charges.

    In contrast, superior performance creates a stronger brand image, builds customer loyalty, allows us to charge a fair price, and our profit margins become more robust, due to lower costs as a result of fewer quality problems. Increased sales are generated through referrals and word-of-mouth, instead of aggressive sales tactics and discounts. Instead of planning for poor quality, shouldn't we be focusing our resources on providing superior performance?

    Just as a final note, as of this writing, the painting of our house has been completed. The results are wonderful, and have well exceeded our expectations. We both got what we wanted: the painter got paid what they believed they were worth and we got the results we wanted, when we wanted them. In my mind, this worked out as a bargain, and it was money well spent. Not only would I refer them to others, I will use them again.


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