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Prepared by Arun Mohan, SNGCE, Kadayiruppu
Total Quality Management Module – III –61 –

Module – III
3.1 Quality assurance (QA)
Quality assurance (QA) is a way of preventing mistakes and defects in manufactured
products and avoiding problems when delivering products or services to customers. ISO 9000
defines it as "part of quality management focused on providing confidence that quality
requirements will be fulfilled". This defect prevention in quality assurance differs subtly from
defect detection and rejection in quality control, and has been referred to as a shift left as it
focuses on quality earlier in the process i.e. to the left of a linear process diagram reading left
to right.
Quality assurance comprises administrative and procedural activities implemented in a
quality system so that requirements and goals for a product, service or activity will be fulfilled.
Quality Assurance is a set of activities designed to ensure the development and maintenance
process is adequate to ensure a system will meet its objectives.It is the process of verifying or
determining whether products or services meet or exceed customer expectations. Quality
Assurance is a process driven approach with specific steps to help define and attain goals.
3.1.1 Total quality assurance
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TQA is a management philosophy that seeks to integrate all organizational functions
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(marketing, finance, design, engineering, and production, customer service, etc.) to focus on
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meeting customer needs and organizational objectives. TQA views organization as a collection
of processes. It maintains that organizations must strive to continuously improve these
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processes by incorporating the knowledge and experiences of workers. The simple objective of
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TQA is "Do the right things, right the first time, every time". TQA is infinitely variable and
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adaptable. Although originally applied to manufacturing operations, and for a number of years
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only used in that area, TQA is now becoming recognized as a generic management tool, just as
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applicable in service and public sector organizations. There are a number of evolutionary
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strands, with different sectors creating their own versions from the common ancestor.
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TQA, in a nutshell, means that everyone within an organization is responsible for

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quality. To make the goal of quality easier to achieve, responsibilities are broken up into small
pieces. It focuses on obtaining continuous feedback for making improvements and refining
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existing processes over the long term.

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Approach to quality that emphasizes continuous improvement, a philosophy of "doing

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it right the first time" and striving for zero defects and elimination of all waste. It is a concept
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of using quality methods and techniques to strategic advantage within firms.

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3.1.2 Quality assurance vs Quality control
Quality assurance Quality control
1. A part of quality management

1. A part of quality management focused focused on fulfilling quality
on providing confidence that quality requirements.
requirements will be fulfilled.
2. The operational techniques and
2. Planned and systematic activities activities used to fulfill requirements
Implemented within the quality system for quality.
provide confidence that a product or
service will fulfill requirements for 3. Quality Control Just measures and
quality 3.is a complete system to assure determines the quality level of
the quality of products or services. products or services. It Is a process
Itself.
3.1.2 Management principles in quality assurance
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"Fit for purpose" - Fitness for purpose has been a widely used approach by quality agencies.
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The notion derives from manufacturing industry that purportedly assesses a product against its
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stated purpose. The purpose may be that as determined by the manufacturer or, according to
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marketing departments, a purpose determined by the needs of customers.
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"Right first time" (mistakes should be eliminated). QA includes regulation of the quality of
raw materials, assemblies, products and components; services related to production; and
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management, production and inspection processes.

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It is important to realize also that quality is determined by the intended users, clients or
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customers, not by society in general: it is not the same as 'expensive' or 'high quality'. Even
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goods with low prices can be considered quality items if they meet a market need.
The Quality Assurance principles are based on the ISO 9001 standard and are intended
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to be used by senior Quality Managers to run a business based on continual improvement and
quality assurance.
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Principle #1: Customer focus

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The customer is always the most important factor for any business, which is why
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organisations need to understand current and future customer needs and aim to surpass
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expectations. Quality assurance relies on researching and understanding the customer’s needs
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and ensuring that the organisations objectives are in line with those expectations. A quality
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management system needs to be in place to manage customer relationships and communicate

those needs across the organisation.
Principle #2: Leadership
Quality assurance principles also suggest that an organisation needs leadership in order to have
purpose and direction. Quality assurance relies on a business having a clear vision of the future
– a vision which should consider the needs of all relevant parties including customers,
directions, employees, local community etc. Good leadership within an organisation should
establish trust and remove fear, whilst encouraging and recognising employee’s contributions.

Principle #3: Involvement of people
An organisation needs to be able to put quality management training into practice. People at all
levels of the business need to be motivated, committed and fully involved in the organisation.
This principle of quality assurance involves people evaluating their own performance and
identifying their constraints, as well as actively seeking opportunities.
Principle #4: Process approach
ISO 9001 training encourages that in order to achieve a desired result, resources and activities
should be managed as a process. The process should focus on resources, methods and
materials which affect the key activities within a business. In order to maintain quality
assurance within a service or product, risks, consequences, the impact on customers and
suppliers and other relevant parties should be continuously evaluated.
Principle #5: System approach to management
Quality assurance training demonstrates how to create a structured system which is designed to
achieve the organisations aims and objectives using the most effective and efficient methods.
Quality management system training should provide a better understanding of the roles and
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responsibilities necessary for achieving those objectives and should be continually improved
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by evaluating and measuring its performance.
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Principle #6: Continual improvement
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Another quality assurance principle is that continual improvement should always be an
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objective for any business. To maintain quality assurance, it is essential to provide people with
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the necessary tools and knowledge for continual improvement. Continual improvement of
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products, processes and systems should be promoted as an objective for every employee
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throughout all levels in the organisation.

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Principle #7: Factual approach to decision making

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This quality assurance principle simply ensures that decisions are based on analysed data and
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information. To comply with this quality management standard, data and information should
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be accurate and reliable, accessible to those who need it and analysed using valid methods.
Principle #8: Mutually beneficial supplier relationships
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The Quality management standard ISO 9001 encourages organisations to create mutually
beneficial relationships with its suppliers. These mutually beneficial relationships allow the
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organisation to benefit from optimised costs and resources, clear and open communication and
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being able to share knowledge and plans on market changes and consumer expectations.
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3.1.3 Objectives of quality assurance

 To maintain standards & specification for all raw material & finished product.
 To give service to company in all areas related to product quality includes trouble
shooting, visiting, production, facilities, designing and training Quality control panel.
 To produce information that is accurate, reliable and adequate for the intended
purpose.
 Evaluating performance, service, of the quality of a product against a system, standard
or specified requirement for customers
 Managing good manufacturing practices (GMP)including

 Managing good laboratory practices (GLP)
 Managing a safety programme
 Assuring the quality of raw materials
 Assuring the quality and traceability of finished product
 Evaluating plant environment
 Developing an HACCP plan
3.1.4 Hierarchical planning for Quality Assurance

Most quality assurance systems are designed with customers’ satisfaction in mind. It is
the procedures, processes, organization, and resources that are needed to keep the organization
focused on its goals and the activities it puts in place to achieve its goals.
Often these techniques lead to higher levels of customer satisfaction because
organizations have developed products, services and programs that not only please customers,
but also ensured the consistent delivery of what it promised. Though there are many steps in
the implementation of a Quality Assurance System, the following seven steps are essential:
Step 1: Identify Organizational Goals
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The process of quality assurance starts by defining how employees’ jobs are tied to
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your company or organizations goals. Employees need to know the organization’s mission,
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vision, values, how they relate to the company and their role in it. All new employees should
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receive a thorough orientation with regards to the company’s vision, mission, values and goals.
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Knowing their individual goals and how it relates to the organization’s goals is the first step in
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the process of quality assurance.
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Step 2: Identify Critical Success Factors
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The factors that make an organization’s quality assurance system successful should be
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identified. These factors can be a well-designed production process, great product, technical
support, customer support, financial security, or employee satisfaction. Make a list of the
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primary factors that influence the process of quality assurance in order to continuously and
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consistently manage those factors.

Step 3: Identify Internal and External Customers
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Identify the key groups of customers that make your quality assurance system work.
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Knowing these customers and their needs can help you develop programs and services for
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these people. Often customers are vendors, suppliers, employees, volunteers or direct
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customers.
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Step 4: Customer Feedback

Customer feedback is essential in the process of quality assurance. Consistent
customer feedback enables organizations to detect and solve quality problems before it become
a serious issue.
 Customer feedback could be obtained through regular customer surveys, by phone,
email, focus groups or in person.
 Calling customers after they buy a product or use a service is an easy feedback
mechanism to determine customer satisfaction.

 Another method to consider is in-person surveys directly after the work or product is
delivered.
 An important method of monitoring customer satisfaction (dissatisfaction) is to review
customer complaints and Returned Products.
Step 5: Implement Continuous Improvements
Quality assurance is synonymous with continuous improvement. The results or
information gleamed from an organization’s survey or other customer feedback tools must
now be used to make the necessary changes to the quality assurance process.
This could entail more leadership development, customer service training, higher
levels of staffing, corrections to the production process, changes to the product or service you
manufacture or deliver, etc. The essential factor is to study the feedback received and uses it to
continuously improve the organizations processes in delivering the products and services it
sells to its customers.
Step 6: Select Quality Management Software
Select quality assurance software that not only helps you to implement a quality
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assurance process, but also helps you to maintain and improve the process.
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Step 7: Measure Results
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Lastly, assess the progress and improvements brought on by the procedures and then
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adjust the quality assurance plan accordingly. Keep the initial goals in mind and determine
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whether or not these objectives have been met.
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3.2 Vendor rating

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A vendor is any person or company that sells goods or services to someone else in the
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economic production chain. Vendors or suppliers are given standing, status, or title according
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to their attainment of some level of performance, such as delivery, lead time, quality, price, or
some combination of variables. Vendor rating is a method to evaluate a vendor against certain
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parameters, related to these supplies. It may take the form of a hierarchical ranking from poor
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to excellent and whatever rankings the firm chooses to insert in between the two.
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Vendor rating is used as a tool for narrowing down the supplier base for productive
management of materials function. The same system is used continuously to assess strengths
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and weaknesses of short listed vendors for their effective development.

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3.2.1 Objectives of Vendor rating

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The main objective of the supplier evaluation process is to reduce purchase risk and
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maximize the overall value of the purchaser. It typically involves evaluating, at a minimum,
supplier quality, cost competitiveness, potential delivery performance and technological
capability. Some of the other criteria used in the preliminary evaluation of suppliers include
financial risk analysis, evaluation of previous performance, and evaluation of supplier
provided information. Vendor rating helps the buyer in the future selection of the vendor.
3.2.2 Methods of vendor rating
Following methods are suggested following methods for evaluating the performance of past
suppliers.

a) Categorical plan – Under this method, the members of the buying staff like quality control
department, manufacturing department, etc., are required to assess the performance of each
supplier. The rating sheets are provided with the record of the supplier, their product and
the list of factors for the evaluation purposes. This is a very simple and inexpensive
method. However, it is not precise. Its quality heavily depends on the experience and
ability of the buyer to judge the situation. As compared to other methods, the degree of
subjective judgment is very high as rating is based on personal judgment and the vague
impressions of the buyer. Such ratings are used for the future guidance.
b) Weighted-point method – The weighted-point method provides the quantitative data for
each factor of evaluation. The weights are assigned to each factor of evaluation according
to the need of the organization, e.g. a company decides the three factors to be considered-
quality, price and timely delivery. It assigns the relative weight to each of these factors as
under
Quality ......... 50 points
Price ......... 30 points
Timely delivery ......... 20 points
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The evaluation of each supplier is made in accordance with the aforesaid factors and
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weights.
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c) Cost ratio plan – Under this method, the vendor rating is done on the basis of various costs
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incurred for procuring the materials from various suppliers. The cost ratios are ascertained
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for the different rating variables such as quality, price, timely delivery etc. The cost ratio is
calculated in percentage on the basis of total individual cost and total value of purchase.
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For example, the total delivery cost is Rs. 5000 and the total purchases are Rs. 1,00,000
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then delivery cost ratio will be 5,000 / 1,00,000 x 100 = 10%.
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At the end, all such cost ratios, will be adjusted with the quoted price per unit. The plus
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cost ratio will increase the unit price a while the minus cost ratio will decrease the unit
price. The net adjusted unit price will indicate the vendor rating. The vendor with the
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lowest net adjusted unit price will be the best supplier and so on.
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3.2.3 Advantages of vendor rating

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 Helping minimize subjectivity in judgment and make it possible to consider all

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relevant criteria in assessing suppliers.


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Providing feedback from all areas in one package.

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 Facilitating better communication with vendors.

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 Providing overall control of the vendor base.

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 Requiring specific action to correct identified performance weaknesses.

 Establishing continuous review standards for vendors, thus ensuring continuous
improvement of vendor performance.
3.3 Quality Improvement
Quality improvement (QI) is a systematic, formal approach to the analysis of practice
performance and efforts to improve performance. It is a systematic approach to the elimination
or reduction of rework, waste, and losses in the production process.

3.3.1 Essential Components of Continuous Quality Improvement
Implementing a program of continuous quality improvement can increase customer
satisfaction, reduce production waste and improve company performance. To introduce such a
program, you have to make sure the essential components for success are in place. When all
employees are looking for ways to improve your processes, you can work to make sure your
quality program continues to function effectively.
1. Management Commitment
Continuous quality improvement requires an explicit commitment from management
and a continuous effort to improve company processes and output. All employees should be
aware of the importance of quality. Having key executives issue the applicable policies and
procedures and ensuring that they have approved the necessary resources demonstrates
commitment.
2. Documentation Control
Document control is a key component of quality. Any business owner has to know
who approves documents, who receives them and which versions are valid. For continuous
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quality improvement, such controls are even more critical because procedures change as
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problems are identified and company processes become more efficient.
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3. Employee Qualifications and Training
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Monitoring employee qualifications and assigning training as necessary is an
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important feature of quality assurance. When you want to continuously improve quality, the
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required qualifications may change as work becomes more demanding. Documenting what
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qualifications are needed to perform each job helps keep track of training requirements and lets
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you develop a training program that supports improved quality.

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4. Supplier Evaluation
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Your suppliers have to deliver material of increasing quality as your own output
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improves. Evaluate suppliers to make sure they have their own quality program in place.
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Inspect your inventory as it arrives to ensure parts and materials satisfy the specified
characteristics and the deliveries correspond to what you ordered. Incoming inspections allow
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you to evaluate whether your suppliers are performing to the level of quality you need and
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whether their quality programs are effective.

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5. Testing and Verification

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You can make sure the level of quality of your output improves continuously by
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adjusting your test procedures and verifying how your products improve. As you increase the
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relevant test parameters, such as robustness, finish durability, component tolerances and time
to failure, the quality of your products changes. Customer surveys verify to what extent your
products have improved.
6. Identification of Non-Conformities
When employees don't follow procedures, incoming material fails inspection or testing
reveals defects, the exact nature of the problem has to be documented with non-conformity
reports. The idea behind this process is to document in a neutral manner what aspect of the
quality program was ineffective, which helps track problem areas and improve quality.

7. Corrective Action
Non-conformity reports identify the root cause of problems and corrective action
changes procedures, training and testing to eliminate those causes. For example, if an
employee makes a mistake, it could be because he lacked training, the procedure wasn't clear
or the process was badly designed. Corrective action addresses such issues in a positive,
proactive fashion.
3.4 Quality Improvement programs
Quality improvement models present a systematic, formal framework for establishing
QI processes into practice. The most common QI models include the KAIZEN, PDCA cycle, 5S
and Quality circles.
3.4.1 Kaizen
Kaizen was created in Japan following World War II. The word Kaizen means
"Continuous Improvement". It comes from the Japanese words "Kai" meaning “change” and
"Zen " meaning “for better”. Kaizen is a system that involves every employee - from upper
management to the cleaning crew. Everyone is encouraged to come up with small
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improvement suggestions on a regular basis. This is not a once a month or once a year activity.
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It is continuous. Japanese companies, such as Toyota and Canon, a total of 60 to 70
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suggestions per employee per year are written down, shared and implemented.
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Kaizen means improvement, improvements without spending much money, involving
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everyone from managers to workers, and using much common sense. The Japanese way
encourages small improvements day after day, continuously. The key aspect of Kaizen is that
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it is an on-going, never-ending improvement process. It requires little investment, but great

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efforts are required to maintain it. The results obtained are long-lasting and on long term basis.
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In most cases these are not ideas for major changes. Kaizen is based on making little changes
on a regular basis: always improving productivity, safety and effectiveness while reducing
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waste. Suggestions are not limited to a specific area such as production or marketing. Kaizen
is based on making changes anywhere that improvements can be made.
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Kaizen in Japan is a system of improvement that includes both home and business life.
Kaizen even includes social activities. It is a concept that is applied in every aspect of a
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person's life. In business Kaizen encompasses many of the components of Japanese businesses
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that have been seen as a part of their success. Quality circles, automation, suggestion systems,
just-in-time delivery, Kanban and 5S are all included within the Kaizen system of running a
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business. Kaizen involves setting standards and then continually improving those standards. To
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support the higher standards Kaizen also involves providing the training, materials and
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supervision that is needed for employees to achieve the higher standards and maintain their
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ability to meet those standards on an on-going basis.

Benefits resulting from Kaizen :
1. Kaizen involves every employee in making change-in most cases small, incremental
changes. It focuses on identifying problems at their source, solving them at their source,
and changing standards to ensure the problem stays solved. It's not unusual for Kaizen to
result in 25 to 30 suggestions per employee, per year, and to have over 90% of those
implemented.

2. For example, Toyota is well-known as one of the leaders in using Kaizen. In 1999 at one
U.S. plant, 7,000 Toyota employees submitted over 75,000 suggestions, of which 99%
were implemented.
3. These continual small improvements add up to major benefits. They result in improved
productivity, improved quality, better safety, faster delivery, lower costs, and greater
customer satisfaction. On top of these benefits to the company, employees working in
Kaizen-based companies generally find work to be easier and more enjoyable resulting in
higher employee moral and job satisfaction, and lower turn-over.
4. Employees working in Kaizen-based companies generally find work to be easier and more
enjoyable, higher employee moral and job satisfaction, and lower turn-over Kaizen
Reduces Waste in areas such as inventory, waiting times, transportation, worker motion,
employee skills, over production, excess quality and in processes.
5. Kaizen Improves space utilization, product quality, use of capital, communications,
production capacity and employee retention.
6. Kaizen provides immediate results. Instead of focusing on large, capital intensive
improvements, Kaizen focuses on creative investments that continually solve large
numbers of small problems. Large, capital projects and major changes will still be needed,
and Kaizen will also improve the capital projects process, but the real power of Kaizen is
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in the on-going process of continually making small improvements that improve processes
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and reduce waste.
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3.5 Deming's P-D-C-A Cycle
Quality planning
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PDCA stands for Plan, Do, Check
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and Act. This tool is widely used for
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problem solving with never-ending cycle of
improvement. The P-D-C-A improvement
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Quality improvement
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cycle, as shown in figure above goes on and

Quality control
on, endlessly because TQM believes that
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there is no end for improvement. The PDCA

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cycle is also known as the Deming Cycle.

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PDSA (Plan-Do-Study-Act) cycle was

developed by Shewart and then it was
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modified by Deming to PDCA cycle.

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Process consists of :
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1. Step 1-Plan : Identify what changes you think will create improvement and then plan the
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test of the change. Plan the desired results i.e., targets clearly state the problem.
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Step 2 –Do : Put the plan into practice. Then test the change by collecting data. This
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2.
change involves carrying out the plans put forth in step1.
3. Step 3- Check : This phase consists of studying the results obtained.
4. Step 4- Act : This phase involves taking action to standardize or improve the process.
The Plan-Do-Study-and-Act or standardize cycle is never-ending; one improvement result
serves as the take-off point for another continuous improvement study.
Steps in PDCA cycle :
1. Identify improvement opportunity.

2. Evaluate the current process.
3. Analyze the problem.
4. Take action.
5. Study the result.
6. Standardize solution.
7. Plan for future.
Benefits of the PDCA cycle :
1. Daily routine management-for the individual and/or the team.
2. Problem-solving process.
3. Project management.
4. Continuous development.
5. Vendor development.
6. Human resources development.
7. New product development, and
8. Process trials.
3.6 Quality circles
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Quality circles can be defined as a small group of employees of the same work area,
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doing similar work that meets voluntarily and regularly to identify, analyze and resolve work
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related problems. Members of quality circles are allowed to meet periodically. The proposed
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solutions of various problems are presented to the management for consideration, approval and
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implementation. A senior officer from the same department (workshop) is nominated as
facilitator which guides the activities of the group. A management committee at senior level is
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also formed, which overview the progress of quality circles. Training of members and
facilities are given to improve the efficiency of the programme. Quality circles help to build
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mutual trust and greater understanding between management and the workers.
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3.6.1 Characteristics of quality circles

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1. Quality circle is a form of participative management.

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2. Quality circle is a human resource development technique.

3. The basic role of quality circles is to identify and solve work related problems for
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improving quality and productivity.

4. The memberships of quality circles are voluntary and are led by a supervisor.
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5. The members meet regularly or according to an agreed schedule.

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3.6.2 Objectives of quality circles

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1. To improve the quality and productivity and thus contribute to the improvements and
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developments of the enterprise.

2. To reduce the cost of products or services by waste reduction, safety, effective
utilization of resources, avoiding unnecessary errors and defects.
3. To identify and solve work related problems that interferes with the production.
4. To tap the creative intelligence of the persons working in the organization and to make
full use of its human resources.
5. To permit employees to develop and use greater amount of knowledge and skill and
motivate them to apply them to a wide range of challenging tasks.
6. To improve communication within the organization.
7. To increase employees loyalty and commitment in the organization and its goals.

3.6.3 Advantages of quality circles

1. Quality circles improve quality, productivity, safety and cost reduction.
2. Quality circles help to build team spirit among workers.
3. Quality circles improve quality of work-life and safety of employees.
4. Quality circles identify work related problems and solve them effectively.
5. Quality circles promote self-development and the mutual developments of their
members through co-operative management.
3.6.4 Limitations of quality circles
1. The chances of errors increase initially and hence overall productivity may decrease
initially.
2. Over-expectation of some employees who are too excited initially may turn to
disappointment.
3. Quality circles may threaten traditional authority structure.
4. Changes in system and control may become necessary.
3.7 5-S
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5-S is a method for organizing a workplace, especially a shared workplace (like a shop
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floor or an office space), and keeping it organized. It's sometimes referred to as a housekeeping
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methodology. These are also called housekeeping steps for quality improvement. 5S
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implementation helps to have improved morale, safety, productivity and maintenance. 5S
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implementation also helps in reduction of waste and maintenance. Principles of 5S are :-
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SL. Term E,
English version Activity
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No
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Get rid of disorder. Separate out what is

1 SEIRI Sort
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needed for the operations.

2 SEITON Tidiness/ Set in order Systematic Arrangement/Neatness
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3 SEISO Cleaning Clean the work area.

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Establish schedules and methods of

4 SEIKETSU Standardize
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performing the cleaning and sorting.

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Implement mechanisms to sustain the

gains through involvement of people,
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5 SHITSUKE Sustain integration into the performance

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measurement system, discipline, and

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recognition.
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1. SEIRI : It is natural tendency to retain things which might not be required at all. Unwanted
items can be salvaged. Obsolete or rejected items make the flow and surrounding untidy. If
the items are not removed from the spot it will be difficult to trace and locate any useful
thing in the lot of useless or rejected items. If the rejected items are removed from the spot,
space utilization can be improved. Cleaning and organizing the workplace helps the
organization to uncover problems. Thus steps for SEIRI are
a) Remove all garbage and tools rejected from the shop floor.
b) Remove all unnecessary papers from the file.
c) Discard old files and stationary not in use and clean walk ways.

2. SEITON : This deals with systematic storage of items so as to eliminate the need to look
for. This step stresses on orderly arrangement of all items in use. Identifying items such as
name plates, tags are to be used wherever necessary. Steps for SEITON are :
a) Ensure systematic lay out of equipments, products etc.
b) Place frequently used items at the point of use.
c) Use index for drawings and files.
d) Practice to place the items to put back at the same place.
e) Ensure first in first out.
3. SEISO : This involves cleaning the workplace making free from grease, oil, dirt etc. Steps
are :
a) Wiping grease, oil etc.
b) Polishing, painting etc.
c) Identifying rot cause and taking corrective action.
d) Assigning clear responsibilities and schedules for cleaning.
4. SEIKETSU : This is to attain standardized work procedures so as to maintain safe and
hygienic conditions at the work place. Steps are :
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a) Wear neat and clean uniform
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b) Wear protective clothing.
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c) Ensure standards.
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d) Provide adequate ventilation and lighting.
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5. SHITSUKE : Each employee has to follow certain procedures and principles. By
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following the procedures one can contribute significantly to personal and organizational
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success. Steps are :
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a) Prepare 5 S manual and develop action details for maintaining standards.

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b) Define responsibilities and maintain punctuality.

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c) Share success with others.

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Total Quality Management Module – IV –73 –
Module – IV
4.1 Quality Planning
The ISO 9000 definition states that quality planning is part of quality management
focused on setting quality objectives and specifying necessary operational processes and
related resources to fulfil the quality objectives. Juran goes further than this and defines quality
planning as “The activity of establishing quality goals and developing products and processes
required to meet those goals”. Putting product and process development in the same definition
creates an ambiguity. Although the definition is of quality planning, not product quality
planning, the explanation given by Juran is clearly focused on developing product features and
the processes needed to produce those product features therefore his definition is not quite as
precise as it could be.
There are two levels of planning – strategic and operational. Strategic quality planning
is concerned with establishing the long-range goals of the organization, its vision, mission,
values and the means to reach those goals while operational quality planning is concerned with
establishing product goals and the means to reach those goals. There is a universal sequence of
planning activities.
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1. Establish the goals (i.e. what it is you want to achieve).
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2. Identify who is impacted by these goals (i.e. the customers and other stakeholders).
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3. Determine the needs of these stakeholders relative to these goals and prioritize those
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for action.
4. Develop products or services with features that respond to stakeholders’ needs.
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5. Develop processes able to produce, promote and distribute the product features.
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6. Establish process controls and transfer the plans to the operating forces.
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There is no single output of such planning. Planning outputs might include Business
Plans, New product development plans, Process development plans and subsequent to these,
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product descriptions expressing all the features and characteristics that have to be achieved and
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process descriptions expressing all the activities to be performed, the resources needed to
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perform them and the controls required to maintain the desired standards.
At the highest level in the organization the planning undertaken to develop core
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business process might be called business system planning or business process development.
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At operational levels it might be called process mapping and at the tactical level perhaps the
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planning effort results in procedures and instructions informing staff how to perform a task.
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Quality planning might be a department or section in some organizations either within

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the quality departments or within production or operations planning. In these cases, the
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planning is nearly always focused on products and services rather than strategic issues.
Quality planning is a circular flow of activities thus makes a quality loop. The quality
loop reveals the following points.
 The majority of functions affect product quality.
 Everyone who works on any of the function included in the quality loop, has some
responsibility towards quality.
 Quality is a result of many activities within these functions.

 For the work to result in products which are sought after on the market (i.e. products
which satisfy the customers' needs and desires at a reasonable cost), co-ordination is
necessary between all activities concerned with quality.
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4.1.1 Co-ordination through Total Quality Control
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The aim of total quality control is to bring about co-ordination of all activities in the
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enterprise which affect quality. Therefore, it includes all parts of the quality loop.
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To achieve the desired results, it is important to establish coordination; otherwise there is a
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risk in the following areas:
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 Goals of individual departments replace those of the enterprise, and optimum results
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may not be achieved.
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 Co-operation becomes loose and largely influenced by chance.

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 Defects which are actually caused by lack of co-operation lead to defensive steps and
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counter-charges with a bad climate for co-operation as a consequence.

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To establish co-ordination through total quality control, the following four elements is to
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be recommended:
(i) Quality Policy - Quality policy consists of the principles, used as guidance in the work on
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product quality.
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(ii) Quality Objectives - Quality objectives are the specific and quantitative goals to be
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achieved in the work on product quality.

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(iii) Quality System - Quality system is the network of activities and procedures which should
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be followed in working on product quality.

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(iv) Quality Organization - There must be a suitable organization and a clear division of
responsibilities of a work on product quality.
Developing and producing new product demands the co-operation of all functions in
the quality loop. This will require planning and follow-up covering the whole process from
idea to final use. The planning and follow-up activity can be called quality planning.
4.1.2 Steps in Quality Planning
i Dividing the life cycle of the product into phases
ii Defining the tasks to be done in each phase

iii Determining the responsibilities for each task
iv Working out a time plan for carrying out the tasks
v Following up to ensure that the work is done in such a way that desired goals are
reached.
The phases cover the activities which are related closely. A phase is normally concluded
with a decision point. This will include decisions on whether the project will proceed as
planned, or whether changes in the plans should be made.
For an engineering industry, the phases in the life cycle of a product are as follows:
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(i)The definition phase includes the gathering and examination of ideas and suggestions for
new products. The basic conditions of the project are examined and decided. These conditions
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are the quality requirements which are for the product.

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(ii) Preliminary design phase, drawing and design work begins as prototype are made and
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tested.
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(iii) Final design phase, the design work is continued and extended. Tests of different types
are carried out, e.g. type testing and reliability testing. Drawings and other specifications are
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introduced.
(iv) Pilot production phase, manufacturing methods are selected, tools are designed and
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purchased, suppliers chosen and the inspection work is planned and prepared. It is also
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necessary to ensure that the quality requirements can be fulfilled when full scales production
begins. This is done by the manufacturing and testing of pre-pilot and pilot runs.
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(v) Production phase commences when full scale production begins. Information on quality,
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such as the form of defects, is collected and analysed. This can lead to changes in design and
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manufacture or inspection.
(vi) Use phase starts when the product reaches the customer. It is thenpossible to see all the
result of the work on quality. Information from the market in the form of reports and claims,
can lead to quality improvements.
Table below only gives an example. It is only valid in a particular case. If we take
another product and another enterprise, some of the activities would certainly have to be
omitted and others added. The allocation of responsibilities would also be different.

Table 4.1 : Quality activities and responsibility in the life cycle of a product
Functions or departments
Product development
Manufacturing
Market studies
engineering
Purchasing
Production
Marketing
Inspection
Service
Activity
1 2 3 4 5 6 7 8 9
I. Definition Phase
Identification of consumer quality needs and
xx xx
wishes
Investigating safety requirements x xx x
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Definition of new product— product
x xx x
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specification
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II. Preliminary Design Phase
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Judging and testing components xx
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Making prototypes xx
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Testing and analysis of prototypes xx

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Design review x xx x x x x x x
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III. Final Design Phase

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Testing components (continued) xx

Testing and analysis of prototypes (continued) xx
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Safety analysis xx x
Establishing tolerances; classification of
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characteristics
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Establishing visual standards for appearance x xx x x

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Preparation of component specifications xx

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Design review x xx x x x x x x
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IV. Pilot Production Phase

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Planning of manufacturing set-up x xx x x

Design, ordering and tryout of tools and other
xx x x x
equipment
Design and ordering of quality information
x x x x xx
equipment
Quality evaluation of vendors x x x xx
Selection of vendors x xx x
Planning of incoming inspection x xx

Planning of process inspection and final
x x xx
inspection
Initial sample inspection x xx
Evaluation of parts used in prepilot and pilot
x x xx
runs
Prepilot and pilot runs x xx xx
Testing and evaluation of units produced in
xx x x
prepilot and pilot runs
Prepilot and pilot run review xx x x x
Planning of maintenance and calibration of
xx
quality information equipment
Preparation of use and care manual x xx x
Preparation of service manual and spare part list x x xx
V. Production Phase
Operating process as specified x xx x
Executing inspection as specified x xx
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Disposition of parts and materials not meeting
xx x x x x x
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the specifications
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Reporting and analysis of internal failures x xx
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Quality rating of outgoing product x xx
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Life testing xx x
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VI. Use Phase

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Reporting and analysis of external failures x x x xx

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Meetings for solving quality problems x x x x xx x x

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Reporting and analysis of quality costs xx

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x- Colateral responsibility xx- Prime resonsiblity

Steps involved in planning for quality in a project work
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i List different aspects of a project those are relevant to quality.

ii The responsibilities to plan for quality in a project is that of the department
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entrusted to execute the project.

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Quality aspects of a project.

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i Conformance to statutory requirements

ii Process consideration.
iii Utilizing needs.
iv Effluent disposal.
v Make to order fabricated equipment.
vi Maintenance considerations.
vii Process control and instrument
viii Working environment
ix Erection and Commissioning

Positive Negative
4.2 SWOT Analysis
Strengths, Weaknesses, Opportunities
and Threats (SWOT) analysis is a technique Strength Weakness
Internal 1. … 1. …
suitable for early stages of the strategic 2. … 2. …
planning process. Albert Humphrey is credited 3. … 3. …
with the development of this method and has Opportunities Threats
been found to be useful for all types of External 1. … 1. …
organizations across the globe. Generally, 2. … 2. …
3. … 3. …
SWOT analysis focuses on the internal
SWOT analysis
strengths and weaknesses and the external
opportunities and threats of the organization. It helps the management to summarize and
evaluate the information gathered on the organizations’ internal and external environments as a
part of the planning process. It helps organizations to decide whether their goals and objectives
are attainable or not. In case the results of SWOT analysis, project the goals as unattainable,
managers can quickly formulate alternate goals. SWOT analysis would ensure that only
achievable goals are set for the organization. The effectiveness of goal setting depends on the
accuracy of SWOT analysis. Now, we shall discuss the various elements of SWOT analysis.
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1. Strengths – An organization's strengths may come from its resources, people, products,
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potentials, capacities, practices, programmes, etc. In this, the strength of people may
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include the unique knowledge, skills and abilities of the employees that provide
competitive advantage to an organization.
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2. Weaknesses – Internal factors that cause obstacles to the growth of an organization are its
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weaknesses. Resource constraints, uncooperative attitude of employees, high absenteeism

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and labour turnover, poor competitiveness, absence of employee training, lack of effective
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control are some of the general weaknesses of organizations.

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3. Opportunities – They may include positive situations and factors related to the business
of the organization but remain outside its control. Organizations usually seek to benefit
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from these opportunities by formulating new goals or modifying the existing goals. New
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government policies, new markets, exit of competitors, availability of new technology,

change in interest rates and change in population characteristics are some of the external
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opportunities available to organizations.

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4. Threats – Threats are the developments in the external environment that can directly and
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negatively affect the business interest of organizations. Organizations normally have little
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or no control over these developments that may pose danger to their survival or growth.
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Adoption of new business strategy by the competitors, political uncertainty, entry of

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overseas competitors, exchange rate fluctuation, economic slowdown are some of the
threats that can have an impact on the organization.
When preparing a SWOT analysis, typically a table is created, split into four cells in
order to see each impacting element side-by-side for comparison. Correct identification of
SWOT is necessary since subsequent steps in the process of planning for the attainment of the
intended objective may be derived from the SWOT analysis. The decision makers in the
organization are required to determine whether the objectives are attainable, given the results
of SWOT analysis. If they are not attainable, a different set of objectives must be identified and
the entire process should be redone.

Advantages of SWOT analysis
SWOT analysis has some important benefits for organizations. They are discussed below.
1. SWOT analysis provides a framework for formulating and reviewing the goals and
plans of an organization.
2. SWOT analysis helps an organization to conduct a self-evaluation to know exactly
what its present position is and in which direction it can go in the future.
3. SWOT analysis helps organizations to recognize the core capabilities and competencies
that can eventually be developed into a competitive advantage.
4. SWOT analysis enables managers to develop a balanced perspective of the
organizational situation by presenting both the positive and negative sides of it.
5. SWOT analysis enables managers to make rational and convincing arguments before
the top management while seeking its approval for goals and plans.
Disadvantages of SWOT analysis
1. Managers make use of SWOT analysis only at the time of goal formulation and tend to
ignore it later.
2. SWOT analysis is a time-consuming and tiring activity for the managers of large
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organizations as they have to consider too many factors and convince too many
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people.
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4.3 Strategic Planning
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Strategic Planning sets the long term direction of the organization in which it wants to
proceed in future.
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Strategic Planning can be defined as the process of deciding on objectives of the

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organisation, on changes on these objective, on the resource used to attain these objectives and
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on the policies that are to govern the acquisition, use and disposition of these resources.
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For example, planned growth rate in sales, diversification of business into new lines,
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type of products to be offered.

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4.3.1 Strategic grid

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The strategic grid model is an IT specific model that can be used to assess the nature
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of the projects that the IT organization has in its portfolio with the aim of seeing how well that
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portfolio supports the operational and strategic interests of the firm.

The CIO plots projects and systems from the IT organization’s portfolio on a two
dimensional graph. The X axis represents impact of the project on IT strategy. One way of
expressing what we mean by this is: what options does this project offer the firm by way of
affecting one of Porter’s five forces in our favor? Does it change the nature of competition in
our market, affect the bargaining power of buyers or suppliers, raise or lower the barriers to
entry into our market, or change switching costs for our products and services? Does it enable
us to offer completely new products and services, or enable us to substitute one of ours for one
of someone else’s in the eyes of their customers?

The Y axis represents the impact of the project on IT operations. One way of
expressing this is to say that projects that are high on this axis improve the efficiency or quality
of our existing systems and business processes, or lower their costs.
The graph is usually drawn as shown below
Factory Firms that have moved

Strategic
Reduce costs and improve into this quadrant have
performance of the core committed to use IT to
operations of an enable both core
organisation operations and core
strategy
Support Turn around
(low impact) local
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Exploit emerging strategic
improvements and
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opportunities from new IT
incremental cost savings
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Reduce
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McFarlan’s strategic grid
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McFarlan divides the grid made by these axes into four quadrants:
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1. Support: low operational impact, low strategic impact. This quadrant is about local
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process improvements for individual users.
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2. Factory: high operational impact, low strategic impact. This quadrant is about
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operational improvements that affect large portions of the firm, and are aimed at
improving performance or decreasing cost.
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3. Turnaround: low operational impact, high strategic impact. This quadrant is about
exploiting new technologies to provide strategic opportunities.
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4. Strategic: high operational impact, high strategic impact. IT organizations that have
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most projects in this quadrant understand that IT can both improve core operations of
the firm while simultaneously generating strategic options.
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Evaluation for use by CIO

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The CIO can use the strategic grid to assess business/IT alignment, to assign
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appropriate governance and oversight to individual projects, and to select projects and systems
for outsourcing.
After plotting all projects in the portfolio on the grid, the CIO assesses where the bulk
of them lay: that is how IT is being used in the organization. This will indicate how well
aligned IT strategy is to business strategy, and can be used as either a confirmation that the IT
org is doing what is expected of it by the business organization, or as a wake up call. If the
projects that the IT organization is working on are not where the CIO expects them to be, then
they can see what kind of changes need to be made.

Secondly, different quadrants demand different kinds of project governance: support
quadrant projects can be handled by IT specialists and individual end users; factory quadrant
projects should be handled by a business executives and IT executives working together;
turnaround quadrant projects should be handled by business executives, IT executives and
emerging technologies development groups; and strategic quadrant projects should be initiated,
defined and managed at the top levels of the firm. The failure of many projects may come
about because the quadrant they lay in was misidentified and inappropriate governance was
applied to them.
Thirdly, the CIO can use the position of a project in the grid to assess how good a
candidate it is for outsourcing. Support and factory projects are good candidates for
outsourcing largely due to economies of scale that outsourcing vendors might be able to offer,
access to skills and best practices that the IT org may not possess, and increased time to
market/implementation. Turnaround and strategic quadrant projects should be outsourced with
caution; the firm may choose to outsource such project to access rare skills, resources or
applications or to work around an out-of-control IT organization.
4.4 Organizational Culture
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Culture is the environment that surrounds you at works all of the time. Culture is a
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powerful element that shapes your work enjoyment, your work relationships, and your work
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processes. But, culture is something that you cannot actually see, except through its physical
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manifestations in your work place. In a person, the personality is made up of the values,
beliefs, underlying assumptions, interests, experiences, upbringing, and habits that create a
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person’s behavior
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Culture is made up of the values, beliefs, underlying assumptions, attitudes, and

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behaviors shared by a group of people. Culture is the behavior that results when a group
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arrives at a set of - generally unspoken and unwritten - rules for working together.
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Organizational culture is the workplace environment formulated from the interaction

of the employees in the workplace. Organizational culture is defined by all of the life
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experiences, strengths, weaknesses, education, upbringing, and so forth of the employees.

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While executive leaders play a large role in defining organizational culture by their actions and
leadership, all employees contribute to the organizational culture. Organizational culture is
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both the glue holding the system together and the motor moving it toward its goals.
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When people join an organization, they bring with them the values and beliefs that
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they have been taught. Quite often, however these values and beliefs are insufficient for
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helping the individual succeed in the organization. The person needs to learn how the
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particular enterprise does things.

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A dominant culture is a set of core values shared by a majority of the organization’s

members. A subculture is a set of values shared by a minority, usually a small minority of the
organization’s members. Subcultures typically are a result of problems or experiences that are
shared by members of a department or unit. Subcultures can weaken and undermine an
organization if they are in conflict with the dominant culture and overall objectives. Successful
firms, however find that this is not the case always. Most subcultures are formed to help the
members of a particular group deal with the specific day-to-day problems with which they are
confronted. The members may also support many, if not all. of the core values of the dominant
culture.

Basically, organizational culture is the personality of the organization. Culture is
comprised of the assumptions, values, norms and tangible signs (artifacts) of organization’s
members and their behaviors. Members of an organization soon come to sense the particular
culture of an organization. Culture is one of those terms that are difficult to express distinctly,
but everyone knows it when they sense it. A person can tell about the culture of an
organization by looking at the arrangement of furniture, what they brag about, what members
wear, etc. --similar to what any individual use to get a feeling about someone's personality.
The founders of an organization generally tend to have a large impact on establishing
the early culture. The organization’s culture results from the interaction between the founder(s)
biases and assumptions and what the original members of the organization learn from their
own experiences.
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Culture is learned. It is both a product of action and a conditioning element of future
action, an input and an output. Thus culture is the socio-technical systems. It consist of the
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decision- making, planning and control procedures of the organization, its technology, and the
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procedures for recruitment, selection and training and is influenced by the common beliefs,
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attitudes and values of the members of the organization.

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Corporate culture can be looked at as a system. Inputs include feedback from society,
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professions, laws, stories, heroes, values on competition or service, etc. The process is based
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on general assumptions, values and norms. Outputs or effects of culture arc organizational
behaviors, technologies, strategies, image, products, services, appearance, etc.
4.4.1 Objective of Organizational Culture:
1. Cooperation - By providing shared values and assumptions, culture may enhance goodwill
and mutual trust, encouraging cooperation.
2. Decision Making - Shared beliefs give members a consistent set of basic assumptions. It
may lead to a more efficient decision-making process due to fewer disagreements.
3. Control - Control is provided by three mechanisms -

a) Market control mechanism: relies on price. If results fall short of goals, prices are
adjusted to stimulate necessary change
b) Bureaucratic control mechanism: relies on formal authority. The control process
consists of adjusting rules and regulations and issuing directives
c) Clan control mechanism: relies on shared beliefs and values. Provide a map that
members can rely on to choose appropriate course of action.
4. Communication - Culture reduces communication problems in two ways:
a) No need to communicate in matters for which shared assumptions already exist (things
go without saying)
b) Shared assumptions provide guidelines and cues to help interpret messages that are
received
5. Commitment - Strong cultures foster strong identification which causes commitment
6. Perception - What an individual sees is conditioned by what others sharing the same
experience say they are seeing
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7. Justification of behavior - Culture helps organization members make sense of their
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behavior by providing justification for it
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4.4.2 Importance of Organizational Culture:
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Employees should to be engaged in their work. They yearn for work that is enjoyable,
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meaningful and engaging. When they are engaged they are safer on the job, more productive
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and more willing and able to delight customers. It is for these basic reasons that organizational
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culture matters.
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1. Talent-attractor
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2. Talent-retainer
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3. Engages people
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4. Creates energy and momentum

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5. Changes the view of “work”

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6. Creates greater synergy

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7. Makes everyone more successful

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1. Talent-attractor - The organizational culture is part of the package that prospective

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employees look at when assessing the organization. Gone are the days of selecting the
person you want from a large eager pool. The talent market is tighter and those looking for
a new organization are more selective than ever. The best people want more than a salary
and good benefits. They want an environment they can enjoy and succeed in.
2. Talent-retainer - How likely are people to stay if they have other options and don’t love
where they are? The organizational culture is a key component of a person’s desire to stay.
3. Engages people - People want to be engaged in their work. The culture can engage people.
Engagement creates greater productivity, which can impact profitability.

4. Creates energy and momentum - Build a culture that is vibrant and allows people to be
valued and express themselves and it will create a very real energy. That positive energy
will permeate the organization and create a new momentum for success. Energy is
contagious and will build on itself, reinforcing the culture and the attractiveness of the
organization.
5. Changes the view of “work” - Most people have a negative connotation of the word
‘work’. When the organization creates a culture that is attractive, people’s view of “going
to work” will change.
6. Creates greater synergy - A strong culture brings people together. When people have the
opportunity to (and are expected to) communicate and get to know each other better, they
will find new connections. These connections will lead to new ideas and greater
productivity – in other words, it will be creating synergy. Literally, 1 + 1 + right culture =
more than 10.
7. Makes everyone more successful - Any one of the other six reasons should be reason
enough to focus on organizational culture. But the bottom line is that an investment of
time, talent and focus on organizational culture will give all of the above benefits. Not
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only is creating a better culture a good thing to do for the human capital in the business, it
makes good business sense too.
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4.4.3 Components of Organizational Culture:
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a Language - the oldest human institution and the most sophisticated medium of expression.
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Arts & Sciences - the most advanced and refined forms of human expression.
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c Thought -The ways in which people perceive, interpret, and understand the world around
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them.
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d Spirituality - The value system transmitted through generations for the inner well-being of
human beings, expressed through language and actions.
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e Social activity - The shared pursuits within a cultural community, demonstrated in a

variety of festivities and life-celebrating events.
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f Interaction - The social aspects of human contact, including the give-and-takeof

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socialization, negotiation, protocol, and conventions.

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4.4.4 Factors Affecting Organizational Culture:

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There are several factors which affect the organization culture:

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i Individual working with the organization

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The first and the foremost factor affecting culture is the Individual working with the
organization. The employees in their own way contribute to the culture of the workplace. The
attitudes, mentalities, interests, perception and even the thought process of the employees
affect the organization culture. Example – Organizations which hire individuals from army or
defense background tend to follow a strict culture where all the employees abide by the set
guidelines and policies. The employees are hardly late to work. It is the mindset of the
employees which forms the culture of the place. Organizations with majority of youngsters
encourage healthy competition at the workplace and employees are always on the toes to
perform better than the fellow workers.

ii The sex of the employee

It also affects the organization culture. Organization where male employees dominate the
female counterparts follow a culture where late sitting is a normal feature. The male employees
are more aggressive than the females who instead would be caring and softhearted.
iii The nature of the business:
Stock broking industries, financial services, banking industry are all dependent on external
factors like demand and supply, market cap, earning per share and so on. When the market
crashes, these industries have no other option than to terminate the employees and eventually
affect the culture of the place. Market fluctuations lead to unrest, tensions and severely
demotivate the individuals. The management also feels helpless when circumstances can be
controlled by none. Individuals are unsure about their career as well as growth in such
organizations.
iv Organization’s goals and objectives:
The strategies and procedures designed to achieve the targets of the organization also
contribute to its culture. Individuals working with government organizations adhere to the set
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guidelines but do not follow a procedure of feedback thus forming its culture. Fast paced
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industries like advertising, event management companies expect the employees to be attentive,
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aggressive and hyper active.
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The clients and the external parties:
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These parties to some extent also affect the work culture of the place. Organizations
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catering to UK and US Clients have no other option but to work in shifts to match their
timings, thus forming the culture.
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vi The management and its style of handling the employees:

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There are certain organizations where the management allows the employees to take their
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own decisions and let them participate in strategy making. In such a culture, employees get
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attached to their management and look forward to a long term association with the
organization. The management must respect the employees to avoid a culture where the
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employees just work for money and nothing else. They treat the organization as a mere source
of earning money and look for a change in a short span of time.
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4.4.5 Learning Organizational Culture:

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Culture is transmitted to employees in a number of ways. The most significant are—

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Stories, Rituals, Symbols and Language

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i Stories - Organizational “stories” typically contain a narrative of significant events or

people including such things as the organization’s founders, rules breaking, reactions to
past mistakes, and so forth. Lavinson and Rosenthal suggest that stories and myths about
organization’s heroes are powerful tools to reinforce cultural values throughout the
organization and specially in orienting new employees. These stories provide prime
examples that people can learn from. Stories and myths are often filtered through a
“cultural network” and remind employees as to “why we do things in a certain way”. To
help employees learn the culture, organizational stories anchor the present in the past,
provide explanations and legitimacy for current practices, and exemplify what is important
to the organization.

ii Rituals and Ceremonies- Corporate rituals are repetitive sequences of activates that
express and reinforce the values of the organization, what goals are most important, and
which people are important and which ones are superfluous. Ceremonies and rituals reflect
such activities that are enacted repeatedly on important occasions. Members of the
organization who have achieved success are recognized and rewarded on such occasions.
For example, awards given to employees on “founders’ day”, Gold medals given to
students on graduation day are reflections of culture f that institution.
iii Material / Cultural Symbols - Symbols communicate organizational culture by unspoken
messages. When you walk into different businesses, do you get a “feel” for the place –
formal, casual, fun, serious, and so forth? These feelings you get demonstrate the power of
material symbols in creating an organization’s personality. Material artifacts created by an
organization also speak of its cultural orientation and make a statement about the
company. These material symbols convey to employees who is important, the degree of
equality desired by top management and the kind of behavior that are expected and
appropriate. Examples: - assigned parking space for senior executives in the company
premises, large offices given to senior managers, luxury automobiles given to senior or
successful officers of the organization.
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iv Organizational Heroes - Top Management and prominent leaders of the organization
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become the role models and a personification of an organization’s culture. Their behavior
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and example become a reflection of the organization’s philosophy and helps to mould the
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behavior of organizational members.
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Language - Many organizations and units within organizations use language as a way to
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identify members of a culture. By learning this language, members attest to their
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acceptance of the culture and their willingness to help to preserve it.

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4.4.6 Customer Responsive Organizational Culture:

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a. Key Variables Shaping Customer-Responsive Cultures :

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1. The types of employees hired by the organization.

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2. Low formalization: the freedom to meet customer service requirements.

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3. Empowering employees with decision-making discretion to please the customer.

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4. Good listening skills to understand customer messages.

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5. Role clarity that allows service employees to act as “boundary spanners.”

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6. Employees who engage in organizational citizenship behaviors.

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b. Managerial Actions :
1. Select new employees with personality and attitudes consistent with highservice
orientation.
2. Train and socialize current employees to be more customers focused.
3. Change organizational structure to give employees more control.
4. Empower employees to make decision about their jobs.

5. Lead by conveying a customer-focused vision and demonstrating commitment to
customers.
6. Conduct performance appraisals based on customer-focused employee behaviors.
7. Provide ongoing recognition for employees who make special efforts to please
customers.
4.4.7 Characteristics of Organizational Culture:
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1. Norms:
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– Relates to the standards of the behavior & guidelines on the expected quality
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&quantum.
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– Adherence is required to preserve the culture of the organization.

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2. Innovation & risk taking:

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– Degree to which employees are encouraged to take risks.

– Places where taken a calculated risk, the chances of returns are higher.
– Innovation has its share of risks, but at times it can also have a breakthroughoutcome
for the organization.
3. Attention to detail
– Extent to which employees are expected to develop precision, analysis & attentionto
detail.

– This is also a universal value to the success of any business.
– The management defines the degree of attention to be given to details.
4. Outcome orientation
– The extent to which an organization pays more attention whether the focus shouldbe
on the outcome or the processes.
– Over emphasize may encourage unethical behavior.
5. People orientation
– Degree of people participation in the organization
– Number of facilities to take care of need of employees
– Ex. Mandatory leave
6. Team orientation
– It is a well established fact today that synergistic teams help give better results as
compared to individual efforts
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– The degree to which work activities are organized around teams rather than
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individuals.
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– Level of importance laid on effective team work
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7. Aggressiveness: 78 NG ly
– E,
Level of aggressiveness with which organization’s employee’s work.
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– Ex. Microsoft is known for their aggression and market dominating strategies.
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8. Dominant values
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– Commonly accepted & adopted values expected to be followed being in

theorganization
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– Ex High productivity, low absenteeism

9. Philosophy
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– Refers to general policy & guidelines

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– Ex Wipro’s philosophy- Develop leaders within the organization

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10. Organizational Climate

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– The overall impression an employee experiences.

11. Stability:
– The degree to which organizational activities emphasize maintaining the statusquo in
contrast to growth
– Some organizations believe that constant change and innovation is the key to their
growth, others are more focused on making themselves and their operations stable.
– The managements of these organizations are looking at ensuring stability of the
company rather than looking at indiscriminate growth.

4.4.8 Functions of Organizational Culture
1. Boundary defining Role– Values, traditions and rituals
2. Sense of Identity:- Enhances employee commitment towards organizational goals.
3. Collective Commitment- Common values, assumptions & ideologies upheld by the
members.
4. Stability of social system -Acts as social bond among the members of the organization
and Brings uniformity in the behavior of the employees.
5. Shared meaning & control mechanism
– Core set of assumptions, values, & norms govern routine activities & employee
behavior at work place.
– Not obeying the norms deprives the members from rewards & promotions.
– Act as a control mechanism for the benefit of the organization.
4.4.9 Dimensions of organizational culture
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1. Vigilance - Prior to pondering whether or not to communicate an ethical, compliance,
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or legal concern, an employee must first be in a position to detect violations. "What are
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the standards in this organization?" "What is my role in upholding these standards?"
yi
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Accordingly, the first step in supporting employee communication and reporting
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behaviors is to influence a culture that promotes not only awareness of an
organization's commitment to integrity, but a shared understanding of organizational
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standards. A look out for threats to organizational integrity also must be cultivated
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among organization members.
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To support a culture of vigilance, employees must be educated on the relationship

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between organizational integrity and the organization's strategic positioning.

Employees who observe wrongdoing may not report it because they cannot fully
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estimate the resulting damage. Therefore, the organization should ensure employees
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are in a position to identify the potential consequences of ethical, compliance, and

legal breaches, including opportunity costs and harm to the organization, its reputation,
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and stakeholders.
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2. Engagement - The cultural dimension of engagement is multifaceted and complex.

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Engagement is concerned with organizational and individual factors that contribute to

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a personal state of authentic involvement in the organization. Organizational processes

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used to recruit, orient, socialize, and manage employees influence engagement.

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Employee’s sense making, psychological contracts, and perceptions of fairness in

organizational dealings influence the degree of authentic involvement by them.
Managing these organizational processes and individual perceptions to facilitate high
degrees of organizational commitment and identification encourages a culture of
engagement that supports internal whistle blowing.
3. Credibility - A culture of engagement that supports organizational commitment and
identification, however, may not be sufficient for prompting employee disclosures. An
employee will also seek to "test" the organization's commitment to integrity.
Leadership behavior is a key determinant of employee perceptions and beliefs.

4. Accountability - Accountability for communicating knowledge of wrongdoing will be
carefully judged by employees. "Is it my job to report?" "Isn't this someone else's
responsibility?" "Why should I get involved? After all, I am not the only one aware of
what is going on here." Again, values, beliefs, and norms embedded in the
organizational culture and picked up by employees will influence employee
reflections.
4.5 Quality culture
According to Viljoen and Waveren (University of Pretoria), Quality culture
encompasses an organization's practices, central values and philosophy and can be defined as
the concentration of all people and resources in a never-ending quest for greater quality and
service in every dimension of the organization. Therefore, quality culture refers to a specific
part of the organizational culture related to an organization’s quality initiatives, whereas
organizational culture refers to the entire culture of an organization.
4.5.1 Foundation of quality culture
Establishing a quality culture is like constructing a building. The process begins with
laying a solid foundation. Like a building, without a solid foundation an organization’s
u
pp
corporate culture will quickly crumble. A 10-step model is used to establish a solid foundation
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for a quality culture in any organization.
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Understand - Quality is at its heart a cultural concept. The tone for an organization's
da
1.
culture is set by the CEO and executive managers. Without the buy-in and commitment
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of executive management, there can be no quality culture. Consequently, the
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cornerstone of the cultural foundation must be an understanding on the part of
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executive managers of the concept of a quality culture and their role in establishing and
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maintaining such a culture.

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Brien Palmer (a management consultant specializing in leadership development and

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business management systems) recommends a three-pronged approach when attempting

to sell higher management on the concept of quality culture:
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a. align the concept with organizational goals, and get help to identify the
financial benefits;
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b. become the project manager of this challenge, and then measure and mitigate
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resistance, inertia, and opposition; and

c. prepare a brief but powerful presentation that can be made for executive
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managers.
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2. Assess - In this step, a comprehensive assessment of the existing corporate culture as it

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relates to quality is completed and the results are compiled. Organizational Culture
Employee Assessment Worksheet (discussed later), is a sample quality culture
assessment instrument that can be used as a guide in developing a similar assessment
instrument for any organization. The criterion suggested as examples are the kinds of
items that should be contained in a quality culture assessment instrument. However, this
example is not meant to be comprehensive. Most organizations will want to add other
criteria and, perhaps, eliminate some of those shown. All employees should be allowed
to complete the survey instrument without attribution, and the organization-wide
average for each; criterion should be compiled.

3. Plan - Based on the results of the survey in the pre-step, develop a comprehensive plan
for establishing a quality culture. For example, if the first criterion in the checklist in
Organizational Culture Employee Assessment Worksheet — All employees know the
mission of the organization — receives an organization-wide average score that is
unacceptably low (e.g., less than 3), specific actions should be planned for correcting
this problem. The same is true of all criteria that receive low average ratings.
4. Expect - An organization’s corporate culture is one of those phenomena in which you
get what you expect. Consequently, it is important for executives, managers, and
supervisors to make sure that all personnel know that quality-positive attitudes and
behavior are expected. This can be achieved by
a. including a corporate value relating to quality in the organization’s strategic plan,
b. including quality in the job descriptions of all personnel,
c. including quality in all of the organization’s team charters,
d. including quality criteria in all of the organization’s performance appraisal
instruments,
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e. talking about quality at all levels in the organization,
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f. recognizing and rewarding quality- positive attitudes and behavior,
ru
yi
g. providing quality-related training for personnel at all levels, and
da
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h. setting quality- related goals for all teams, units, departments, and divisions in the
organization.
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5. Model - Executives, managers, and supervisors must be consistently positive role
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models of the quality-related attitudes and behaviors expected of personnel. Employees

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are more likely to follow the behavior of management personnel than their words.
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Consequently, it is important to do more than talk a good game when it comes to

quality. Management personnel must walk the talk.
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6. Orient - New employee orientations should have a comprehensive quality component.

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A new employee’s first exposure to the organization occurs during his or her initial
orientation. Consequently, it is important to begin emphasizing the organization’s
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quality-related expectations from the outset as part of the orientation process.

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7. Mentor - Many organizations use mentors to help in the development of employees.

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Typically, mentors provide technically oriented assistance (e.g., helping new personnel
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learn the necessary job skills). By taking this concept one step further, organizations
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can help their new personnel develop quality-positive attitudes and behaviors.
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8. Train - Providing quality training at all levels is not a new concept to competitive
organizations. However, what might be new is the need to expand quality training
beyond the typical technical topics to include attitudinal and behavioral topics. In other
words, it is important to help personnel understand not just the “how” of quality but
also the “why.” The why can be summarized in just one word: competition. All
personnel need to understand that the organization’s survival depends on its ability to
compete successfully every day over the long term and that they play a critical role in
helping tire organization do so.

9. Monitor - Attitudes and behaviors tend to be habitual, if people are allowed to continue
inappropriate attitudes and behaviors relating to quality, those attitudes and behaviors
can become habitual. When this happens, such attitudes and behaviors can be almost
impossible to change. Consequently, it is important that supervisors monitor the
quality-related attitudes and behaviors of their direct reports continually. When the
quality-positive attitudes and behaviors are observed, they should be reinforced
immediately. Correspondingly, when quality-negative attitudes and behaviors are
observed, they should be corrected immediately.
10. Reinforce and maintain quality - In order to maintain a quality culture once it has been
established, organizations must reinforce the quality-related attitudes and behaviors
they expect of their personnel. This means that recognition and reward systems must
factor in quality as a key criterion. Quality-related attitudes and behaviors should be
factors in all decisions about raises, promotions, and recognition awards.
4.5.2 Characteristics of quality culture

To better understand these characteristics/values let’s characterize the assumptions
behind the behavior and approach of corporations with traditional approach to quality. In an
u
pp
organization with a traditional culture, the primary focus is return on investment and short-
ru
term profits.
yi

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The boss knows best Managers think and employees do.
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 Lack of team spirit. Everyone for him or herself. Creates an unnecessary strain
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between co-workers. Organization depends on few individuals "heroes" to help in
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tough time. Focus on individual work; work in silos.
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 Keep communication limited and secretive. Keep most information at the top, and
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share it only when necessary.

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 Success is everything; no tolerance for failure. Success is measured by immediate

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bottom line without much concern for long term growth and survival.
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The organization with Quality Culture is the opposite of traditional culture, as this
approach does not seem to work most of the times.
A quality culture is led by management who believes in the systems view and understands
that their company exists to create a mutually beneficial relationship between itself, its people
and its customers. Modified IS0 9000 process model (ISO 2009) can be treated a system view
of quality culture. The bidirectional input links between company and external world (mainly
customer) represent an information flow.
A company with a strong quality culture could have the following characteristics.
 Widely shared philosophy of management
 Emphasis on the importance of human resources to the organization
 Ceremonies to celebrate organizational events
 Recognition and rewards for successful employees
 Effective internal network for communicating the culture
 Informal rules of behavior
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pp
 Strong value system
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 High standards for performance
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 Definite organizational character
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4.5.3 Advocates and resistors of cultural change
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Most people understand and accept that organizational cultural change will be resisted.
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Joseph Juran describes organizational change as a “clash between cultures.” As shown in

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figure, any organization has two separate cultures relating to change: the advocates and the
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resisters.
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Advocates focus on the anticipated benefits of the change. Resisters, on the other
hand, focus on perceived threats to their status, beliefs, habits, and security. Often both
advocates and resisters are wrong in how they initially approach change. Advocates are often
guilty of focusing so intently on benefits that they fail to take into account the perceptions of
employees who may feel threatened by the change. Resisters are often guilty of focusing so
intently on threats to the status quo that they refuse to acknowledge the benefits. These
approaches typically divide an organization into warring camps that waste energy and time
instead of focusing resources on the facilitation of change.

4.5.4 Paradigm for Effective Change
Advocates should work with Resisters of change to be successful. As pro-change, this
responsibility falls to its advocates.
Step 1: Begin with a new advocacy Paradigm
The first step in facilitating change is to adopt a Begin with a new advocacy
facilitating paradigm. Juran summarizes the traditional paradigm paradigm
of change advocates as follows:
 Advocates of change tend to focus solely on expected
results and benefits. Understand the concerns of
 Advocates are often unaware of how a proposed change potential resistors
will be perceived by potential resisters.
 Advocates are often impatient with the concerns of
resisters.
If change is to happen, advocates must begin with a different Implement the change-
promoting strategies
paradigm. When a change is advocated, ask such questions as the
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following:
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Steps in Facilitating Change
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 Who will be affected by this change, and how?
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 How will the change be perceived by those it affects?
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 How can the concerns of those affected be alleviated?
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Step 2: Understand Concerns of Potential Resisters
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 Understand the concerns of resisters like
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 Fear

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Loss of control
 Uncertainty
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 More work
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Step 3: Implement Change Promoting Strategies

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 Involve Potential Resisters

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 Avoid Surprises
 Move slowly at first
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 Start Small and be flexible

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
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Create a positive environment


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Incorporate the change

 Respond Quickly and Positively
 Work with Established leaders
 Treat people with dignity & Respect
 Be Constructive
4.5.5 Resistance to Change
Change is inevitable and it does not come easy for many people. John Simone, Sr.
once said, "If you're in a bad situation, don't worry it'll change. If you're in a good situation,
don't worry it'll change."

It can be extremely difficult however; change is part of everyday living. It should be

expected and anticipated. The process of change can cause a sense of insecurity and that is
primary reason is it so difficult for people. The primary reasons why people resist change are:
1. Fear
Change brings with it the unwanted specter of the unknown, and people fear the unknown.
Worst-case scenarios are assumed and compounded by rumors. In this way, fear tends to feed
on itself, growing with time.
In other words, change is scary. Instinctively therefore we don't like the exponential rate of
change that we have to cope with. Inertia is powerful force of nature. Despite the fact that
many people profess to be happy with change (because it’s required), in reality they are not
2. More work
Change sometimes means more work, at least at first. This concern includes work in the
form of learning. To make the change, people may have to learn more information or develop
new skills. For an undefined period, they may have to work longer hours.
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In other words, changes calls for adjustments. Alterations in a well-known behavior are
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not always simple. New adaptations can be extremely uncomfortable and unwanted. When a
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happy couple has their first child this calls for major reconstruction. The couple that had each
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other’s undivided attention are now involved in sharing their time and attention with another.
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Adjustment with the birth of a child can bring contentment but that does not mean that the
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change is easy. People like having a sense of control over their lives. There is security in
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control. Change can threaten this sense of security and cause people to feel as if they are losing
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control of their lives, jobs, areas of responsibility, and so on.
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In other words, change can create a "funeral-like” environment. This is like a death. What
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once was is no more. Anytime a death takes place it calls for a time of mourning and
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readjustment This is not only true with humans; this is also true for organizations. The death of
certain patterns of behavior is just that -a death. This introduces feelings of loss and sadness
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for some. This type of behavior cannot be ignored if an organization expects to have a healthy
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future. It would be beneficial to acknowledge changes that create a sense of loss. To

completely ignore these feelings would be destructive for any organization.
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3. Uncertainty
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It is difficult to deal with uncertainty. For better or worse, people like to know where they
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stand. Will 1 be able to handle this? What will happen to me if 1 can't? These are the types of
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questions people have when confronted with change.

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In other words, change can create an environment of insecurity. Because a change

introduces a new direction or a new idea there will be those who are not comfortable with the
new direction. Change breaks an established pattern and erodes the established foundation of
an organization. This creation of insecurity is why teamwork and the establishment of working
together are essential. A strong team can help counter the feelings of insecurity due to the
changes that have taken place.

4.5.6 Strategic approach to resistance to change
"Change is the only constant" - Heraditus, Greek philosopher. What was true more
than two thousand years ago and is just as true today.
We live in a world where "business as usual" is change. New initiatives, project-based
working, technology improvements, staying ahead of the competition - these things come
together to drive ongoing changes to the way we work.
Whether you’re considering a small change to one or two processes, ora system-wide
change to an organization, it's common to feel uneasy and intimidated by the scale of the
challenge. You know that the change needs to happen, but you don't really know how to go
about doing delivering it Where do you start? Whom do you involve? How do you see it
through to the end?
The comprehensive strategic approach to overcome the resistance to change, as detailed below:
1. Involve Potential Resisters
By involving resisters from the outset in planning for the change, organizations can ensure that
potential resisters understand it and have adequate opportunities to express their views and
u
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concerns about it The primary reasoning for this is at some point in the process, those affected
by change (potential resisters) will have to take ownership of the change, or it will fail. This
ru
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type of involvement will help potential resisters develop a sense of ownership in the change
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that can, in turn, convert them to advocates.
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2. Avoid Surprises
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People do not like surprises. Predictability is important to people. Change is unpredictable it
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brings with it the specter of the unknown. For this reason, it is better to bring potential resisters
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into the process from the outset Surprising potential resisters will turn them into committed
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resisters.
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3. Start Small and Be Flexible

Change will be more readily accepted if advocates start small and are flexible enough to revise
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strategies that are not working as planned. This approach offers several benefits, including the
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following:
1. Starting with a small pilot test or experiment is less threatening than a broad-based, all
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encompassing implementation.
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2. Conducting a small pilot test can help identify unanticipated problems with the
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change.
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3. Using the results of a pilot test to revise the plans for change ensures that valuable
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resources are not wasted moving in the wrong direction.

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4. Create a Positive Environment

The environment in which change takes place is determined by reward and recognition
systems and examples set by managers. A reward and recognition system that does not reward
risk taking or that punishes employees for ideas that don’t work will undermine change.
Managers that take “Do as 1 say, not as I do" attitudes will also undermine change. Well-
thought-out, sincere attempts to make improvements should be recognized and rewarded even
when they fail. Managers should "roll up their sleeves" and do their share of the work
associated with change. This approach will create a positive environment that is conducive to
change.

5. Incorporate the Change

Change will be more readily accepted if it can be incorporated into the existing organizational
culture. Of course, this is not always possible. However, when it can be done, it should be
done. An example might be using an established equipment maintenance schedule to make
major new equipment adaptations (e.g., retrofitting manually controlled machine tools for
numerical control).
6. Provide a Quid Pro Quo
This strategy could also be called require something, give something. If, for example, change
will require intense extra effort on the part of selected employees for a given period of time,
offer these employees some paid time off either before or immediately after the change is
implemented. Using a quid pro quo can show employees that they are valued and their
concerns are addressed.
7. Respond Quickly and Positively
When potential resisters raise questions or express concerns, advocates should respond quickly
and positively. Making employees wait for answers magnifies the intensity of their concerns.
u
pp
A quick response can often eliminate the concern before it becomes a problem, and it will
show employees that their concerns are considered important
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A quick response does not mean a surface-level or inaccurate response made before
da
having all the facts. Rather, it means a response made as soon as one can be made thoroughly
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and accurately. It is also important to respond positively. Advocates should not be offended by
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or impatient with the questions of potential resisters. A negative attitude toward questions and
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concerns only magnifies them
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8. Work with Established Leaders

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In any organization, some people are regarded as leaders. In some cases, those people are in
leadership positions (supervisors, middle managers, team captains, etc). In other cases, they are
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informal leaders (highly respected employees whose status is based on their experience or
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superior knowledge and skills). The support of such leaders is critical. Other employees will
take cues from them The best way to get their support is to involve them in planning for the
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change from the outset

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4.5.7 Strategy to Establish a Quality Culture

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Establishing a quality culture involves specific planning and activities for every business
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or department Goetsch and Davis (2012) cite the strategies those foster the quality culture can
ep
be listed as:
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1. Identify the changes needed

2. Apply courtship strategies
3. Put the planned changes in writing
4. Develop a plan for making the changes
5. Understand the emotional transition process
6. Identify key people and make them advocates
7. Take a hearts*and*minds approach
8. Support

Similar theory on how to "do" change originates with leadership and change management
guru, John Kotter, a world-renowned change expert. Kotter introduced his eight- step change
process. We look at his eight steps for leading change below.
Step One: Create Urgency (Identify the changes needed)
For change to happen, it helps if the whole company really wants it. Develop a sense
of urgency around the need for change. This may help you spark the initial motivation to get
things moving.
This isn't simply a matter of showing people poor sales statistics or talking about
increased competition. Open an honest and convincing dialogue about what's happening in the
marketplace and with your competition. If many people start talking about the change you
propose, the urgency can build and feed on itself.
What you can do:
 Identify potential threats, and develop scenarios showing what could happen in the
future.
 Examine opportunities that should be, or could be, exploited.
 Start honest discussions, and give dynamic and convincing reasons to get
u
pp
 people talking and thinking.
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 Request support from customers, outside stakeholders and industry people to
yi
strengthen your argument.
da
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Kotter suggests that for change to be successful, 75% of a company's management
needs to "buy into” the change. In other words, you have to really work hard on Step One, and
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spend significant time and energy building urgency, before moving onto the next steps. Don't
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panic and jump in too fast because you don't want to risk further short-term losses - if you act
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without proper preparation, you could be in for a very bumpy ride.

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Step Two: Form a Powerful Coalition (Apply courtship strategies)

Convince people that change is necessary. This often takes strong leadership and
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visible support from key people within your organization. Managing change isn't enough - you
F
have to lead it. You can find effective change leaders throughout your organization - they don't
necessarily follow the traditional company hierarchy. To lead change, you need to bring
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together a coalition, or team, of influential people whose power comes from a variety of
by
sources, including job title, status, expertise, and political importance. Once formed, your
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"change coalition" needs to work as a team, continuing to build urgency and momentum
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around the need for change.

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What you can do:

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 Identify the true leaders in your organization.

 Ask for an emotional commitment from these key people.
 Work on team building within your change coalition.
 Check your team for weak areas, and ensure that you have a good mix of people from
different departments and different levels within your company.

Step Three: Create a Vision for Change (Develop a plan for making the changes)
When you first start thinking about change, there will probably be many great ideas
and solutions floating around. Link these concepts to an overall vision that people can grasp
easily and remember.
A clear vision can help everyone understand why you're asking them to do something.
When people see for themselves what you're trying to achieve, then the directives they're given
tend to make more sense.
What you can do:
 Determine the values that are central to the change.
 Develop a short summary (one or two sentences) that captures what you "see" as the
future of your organization.
 Create a strategy to execute that vision.
 Ensure that your change coalition can describe the vision in five minutes or less.
 Practice your "vision speech" often.
Step Four: Communicate the Vision (Put the planned changes in writing)
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What you do with your vision after you create it will determine your success. Your
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message will probably have strong competition from other day-to-day communications within
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the company, so you need to communicate it frequently and powerfully, and embed it within
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everything that you do.
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Don't just call special meetings to communicate your vision. Instead talk about it every
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chance you get Use the vision daily to make decisions and solve problems. When you keep it
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fresh on everyone's minds, they'll remember it and respond to it It's also important to "walk the
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talk." What you do is far more important - and believable - than what you say. Demonstrate the
kind of behavior that you want from others.
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What you can do:

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 Talk often about your change vision.

 Openly and honestly address peoples' concerns and anxieties.
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 Apply your vision to all aspects of operations - from training to performance reviews.
Tie everything back to the vision.
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 Lead by example.
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Step Five: Remove Obstacles (Identify key people and make them advocates)
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If you follow these steps and reach this point in the change process, you've been
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talking about your vision and building buy-in from all levels of the organization. Hopefully,
your staff wants to get busy and achieve the benefits that you've been promoting. But is anyone
resisting the change? And are there processes or structures that are getting in its way?
Put in place the structure for change, and continually check for barriers to it Removing
obstacles can empower the people you need to execute your vision, and it can help the change
move forward.
What you can do:
 Identify, or hire, change leaders whose main roles are to deliver the change.

 Look at your organizational structure, job descriptions, and performance and
compensation systems to ensure they're in line with your vision.
 Recognize and reward people for making change happen.
 Identify people who are resisting the change, and help them see what's needed.
 Take action to quickly remove barriers (human or otherwise).
Step Six: Create Short-term Wins (Understand the emotional transition process)
Nothing motivates more than success. Give your company a taste of victory early in
the change process. Within a short time frame (this could be a month or a year, depending on
the type of change); you'll want to have results that your staff can see.
Without this, critics and negative thinkers might hurt your progress. Create short-term
targets - not just one long-term goal. You want each smaller target to be achievable, with little
room for failure. Your change team may have to work very hard to come up with these targets,
but each "win" that you produce can further motivate the entire staff.
What you can do:
 Look for sure-fire projects that you can implement without help from any strongcritics
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of the change.
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 Don't choose early targets that are expensive. You want to be able to justify the
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investment in each project.
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 Thoroughly analyze the potential pros and cons of your targets. If you don't succeed
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with an early goal, it can hurt your entire change initiative.
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 Reward the people who help you meet the targets.
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Step Seven: Build on the Change (Take a Hearts-and-Minds Approach)
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Kotler argues that many change projects fail because victory is declared too early.
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Real change runs deep. Quick wins are only the beginning of what needs to be done to achieve
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long-term change.
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Launching one new product using a new system is great. But if you can launch 10
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products, that means the new system is working. To reach that 10th success, you need to keep
looking for improvements.
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Each success provides an opportunity to build on what went right and identify what
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you can improve.

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What you can do:

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 After every win, analyze what went right and what needs improving.
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 Set goals to continue building on the momentum you've achieved.

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 Resisters start to understand the Idea of continuous improvement Seek their inputs for
improvement
 Keep ideas fresh by bringing in new change agents and leaders for your change
coalition.
Step Eight : Anchor the Changes in Corporate Culture (Support)
Finally, to make any change stick, it should become part of the core of your
organization. Your corporate culture often determines what gets done, so the values behind
your vision must show in day-to-day work.

Make continuous efforts to ensure that the change is seen in every aspect of your
organization. This will help to give that change a solid place in your organization's culture.
It’s also important that your company's leaders continue to support the change. This
includes existing staff and new leaders who are brought in. If you lose the support of these
people, you might end up back where you started.
What you can do:

 Talk about progress every chance you get Tell success stories about the change
process, and repeat other stories that you hear.
 Include the change ideals and values when hiring and training new staff.
 Publicly recognize key members ofyour original change coalition, and make sure the
rest of the staff - new and old - remembers their contributions.
 Create plans to replace key leaders of change as they move on. This will help ensure
that their legacy is not lost or forgotten.
4.5.8 Maintaining a quality culture
Establishing a quality culture is a challenging undertaking for any organization. It is
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even more challenging to maintain a quality culture over time. The easiest thing in the world is
to become complacent and let the organization’s culture begin to slip back into its old mold. In
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order to maintain a quality culture, organizations must foster the following critical behaviors:
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1. Maintain an awareness of quality as a key cultural issue. This is accomplished through
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the regular dissemination of quality goals to all personnel and the corresponding
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results relating to these goals. Managers should “keep score” and let all stakeholders
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know what the score is.
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2. Make sure that there is plenty of evidence of the management’s leadership.

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Cheerleading is good, but it’s not enough. Managers should provide leadership in
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strategic planning for quality, sera on quality councils, and be actively involved in the
implementation of quality initiatives. Employees need to see managers “walking the
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walk” as well as “talking the talk.”

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3. Empower employees and encourage self-development and self-initiative among them.

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Managers should make sure that jobs are designed for as much self-control as possible,
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continually seek and use employee input, and encourage self-directed teamwork.
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4. Keep employees involved. Do not just seek their involvement through empowerment:
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structure the organization and its processes in ways that ensure it. This means making
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employees fully empowered members of the quality council; maintaining a system that
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makes it easy, convenient, and nonthreatening for them to recommend improvements;

and involving employees in areas, such as product or process design review.
5. Recognize and reward the behaviors that tend to nurture and maintain the quality
culture. Recognition involves various forms of public acknowledgment. Rewards are
tangible benefits, such as salary increases, bonuses, incentives, and promotions.

4.6 Voice of the Customer
Most businesses understand that customer feedback is
essential to helping them improve their product or service.
Voice of the Customer (VOC) can be defined as the needs,
wants and expectations of the customer, stated and unstated.
This includes both external and internal customers. In addition, VOC is often viewed as a
process or procedure for collecting, documenting and analyzing the feedback from the
customer to improve a product or process. The VOC process should be proactive and
continually refined to effectively capture constantly changing customer requirements. The
process should also include methods for effectively sharing and utilizing this valuable
information to effect meaningful change.
4.5.1 Steps in implementing Voice of the Customer (VOC)
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1. Identify
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The first step in any VOC process is to identify your customers. Many organizations
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concentrate entirely on the end user of the product and service and forget about other
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customers. Missed customers are missed opportunities. It is important to identify all your
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customers when designing and implementing a VOC system. Customers may be internal or
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external to the company. E,
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a Internal Customers - Who your internal customers are may depend on the type of
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organization and structure. Internal customers can be stakeholders or other leaders of the
organization, the next step in a process or the associates working the particular process.
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b External customers- The external customers consist of the dealers or end users of the
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product or service. The type of external customer can vary as well. External customers
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could be wholesale distributors, retail consumers or manufacturing companies.

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2. Collect
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The next step is to determine the methods used for collection and storage of the data
and the proper sample size. Gathering data from an entire population of users or customers
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would be impractical. Therefore, a sample size must be determined that will accurately reflect
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the views of the population.

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Sample Size
Larger sample sizes generally produce more accurate results, but can be very costly
and difficult to manage. To determine an appropriate sample size requires an understanding of
statistics. Some of the key factors relating sample size are:
i Demographics – Determine the number of people that fit your demographic or target
population. Demographics are the statistical characteristics of a particular group such as
income level, age, or location such as rural vs. urban populations. Target markets or
segments of the population are regularly established using demographic data.

ii Confidence Interval – Also referred to as “Margin of Error”, this is a percentage that
denotes how accurately the samples will be to the true value of the overall population.
The general rule is that the smaller the margin of error the more accurate the results. Keep
in mind that selecting smaller margins of error require larger sample sizes.
iii Confidence Level – Quantifies the degree of certainty that the sample will represent the
overall population within your selected confidence interval. For example, selecting a
confidence level of 90% indicates that you are certain that 90% of the data will fall within
the selected interval. The most common intervals used are 90%, 95% or 99%.
iv Standard Deviation – The standard of deviation (sigma) indicates the amount of variation
expected within a set of data. The exact value is difficult to define prior to collection of
the data. Therefore, most often this value is initially set at 0.5. The majority of your data
should fall between ± 3 standard deviations, or 3 sigma, from the mean.
v Z-Value – A constant value based on your confidence level. It indicates the number of
standard deviations between any selected value and the average/mean of the population.
The Z value can be manually calculated but most practitioners locate a table online. For a
confidence level of 90 percent, the z value is >1.65.
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The proper sample size can now be determined based upon this information.
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Collection Methods
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Surveys
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Some commonly used tools for collecting Dealer Meetings
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Collection
customer feedback may include, but are not limited methods Focus Groups
to, the following:
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Interviews
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i Surveys – A survey is one of the most Methods of collecting Customer Feedback
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commonly used research tools for collecting

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data. A survey may be used to gather information or to obtain the customers impression /
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opinion of a particular product or service. Surveys may be in the form of a questionnaire

that the participant fills out or a list of questions asked in an interview setting.
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Questionnaires are distributed via mailers or most often are performed online.
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ii Dealer Meetings – Some companies utilize a group of dealers to distribute their products,
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similar to the automotive industry. Dealers interact with customers on a daily basis.
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Regular dealer meetings are a prime opportunity to gather the Voice of the Customer.
Dealer feedback can be a robust addition to your customer research.
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iii Focus Groups – Focus groups are generally small groups brought together to discuss or
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review a specific product or service. The members of the group are demographically
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diverse individuals meant to represent the views of the whole customer base. Focus
groups encourage open discussion instead of individual responses to formal questions.
The moderator documents the VOC information in the form of notes, audio recordings or
video documentation. The risk involved with only using focus groups is that the data may
consist of personal preferences or beliefs that may not represent the general population.
iv Interviews – Interviews are a more direct and personal form of information gathering.
There are two primary types of interviews commonly used. In the Personal Interview, the
interviewer works directly with the respondent, and may ask follow-up questions and
document their opinion or impression of the interviewee and the results.

Another type is the Phone Interview, which allows for quicker information gathering than
the personal interview. Telephone interviews allow for some personal interaction between
the participants and may include follow-up questions. The disadvantages of interview
process are they require a large investment of time and resources. In addition, the
accuracy and skills of the interviewer introduce additional variables that may affect the
quality of the information.
Once the data has been collected, consider what information you need to store and
how often you need to back it up. In addition, assure that your system has adequate security
measures to prevent hackers from breaking in and stealing any sensitive data. Furthermore,
make sure that the archived data can be easily located. Establish clear guidelines for labeling,
classifying, storage and access to your data.
3. Analyze
Now that the customer feedback has been collected and stored, a system is required to
manage the complex data, set priorities and make accurate decisions based on the data. One
very popular tool is the Analytical Hierarchy Process (AHP). A hierarchy is a method of
arranging or classifying information or data relative to its importance or relevance. AHP is
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effective in addressing complex decisions involving the comparison of various elements that
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are difficult to quantify. Using the hierarchical approach we can structure the information by
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category and sub-categories wherein each element is compared by pairs and the criteria is
yi
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weighted. The analytical hierarchy practitioner may also utilize a matrix to perform the pair
wise comparison. The different factors are paired and weighted according to which of the two
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better meet the requirements or preference of the target market. By utilizing AHP to organize
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and prioritize the data, better decisions can be made based on the Voice of the Customer
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information.
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4. Integrate
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Upon collection and storage of the VOC data, the next step is to translate the customer
wants and needs into product features and technical design specifications. One of the most
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effective methods for accomplishing this translation is with Quality Function Deployment
F
(QFD). The House of Quality is usually the first matrix used in the QFD process, which
demonstrates the relationship between the VOC “Whats” (customer wants and needs) and the
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“Hows” (design specifications) required to meet the customer’s needs. The matrix is data
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intensive and allows the team to translate and capture a large amount of information in one
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document.
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The matrix earned the name House of Quality due to its structure resembling that of a
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house. A cross-functional team possessing thorough knowledge of the product, the voice of the
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customer, and the company’s capabilities should complete the matrix. The QFD process allows
for integration of the design specifications into the machine, system, sub-system and
component level requirements. In addition, the design specifications are used to identify the
key design and process characteristics, which are then monitored and controlled throughout the
production and assembly processes. The design features and specifications derived from the
VOC must be integrated into the entire organization to assure that the customer’s want and
needs are being satisfied.

5. Maintain
Once the VOC process is established and integrated throughout the organization, the
next step is to assure the information stays up to date and relevant to the customer’s
continuously changing wants and needs. A system must be developed to regularly review and
reassess your VOC data on an ongoing basis to ensure your service offerings continue to meet
or exceed their requirements. There are several software packages on the market to manage
VOC data or it may be done manually. It does not matter what method you choose to monitor
and maintain your VOC library of data, the important thing is to make certain that the
information is maintained properly. The fresher your information the more likely you are to
keep abreast of your customers’ needs and possibly introduce a groundbreaking new product.
4.6 Quality Function Deployment (QFD)
Quality function deployment (QFD) was originally developed by Yoji Akao in 1966.
Quality function deployment a methodology to ensure that customer needs and expectations are
attended to and fulfilled throughout the processes of design, operations and delivery of the
product or services. QFD is a system to produce with an aim to assure the customer with
ultimate satisfaction. In other words, QFD is a methodology to translate 'voice of customers'
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into actual reality of manufacturing.
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Quality must be designed into the product, not inspected into it. Quality can be defined
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as meeting customer needs and providing superior value. This focus on satisfying the
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customer’s needs places an emphasis on techniques such as Quality Function Deployment to
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help understand those needs and plan a product to provide superior value.
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Quality Function Deployment is a customer-oriented approach to product and service
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innovation. It guides managers through the conceptualisation, creation, and realisation of new
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products and services. The QFD process encourages you to gain an in-depth understanding of
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the requirements of your customers needs and wants thus enabling you to prioritise the
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features/benefits of your product/service to these requirements.

The QFD process starts by listing customer requirements, in the customer language, it
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then systematically translates these requirements into appropriate 'design' characteristics and
measures. The methodology includes the use of “a set of planning and communication routines
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that focuses and co-ordinates skills within an organisation.

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In short, QFD helps you identify objectives that reflect the needs of real customers.
Identifying objectives from a customer point of view ensures that customer value is created in
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the phases of the innovation process that follow conceptualisation. QFD embodies an
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evolutionary approach to product / service innovation: conceptualising your products by

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carefully evaluating, from market and customer perspectives, the performances of preceding
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products. QFD is in fact a method for continuous improvement, emphasising the impact of
innovation on organisational learning. QFD makes it possible to incorporate the multi-
disciplinary communication and decision-making processes into the organisation: it brings
disciplines together.

4.6.2 Objectives of Quality Function Deployment
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QFD helps you focus your development efforts in order to achieve objectives that will
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create value for your customers. So, QFD keeps you from designing products or services for
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which your customers have neither need nor use. Below, is a list of the objectives that QFD
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will help you to reach.
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1. Focus on the customer 78 NG ly
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Many new products and Services fail because of a lack of customer focus QFD helps the
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organisation to focus on the customer. It provides a careful routine to incorporate both
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customer and market (competition) perspectives into the conceptualisation phase of the
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innovation process. QFD forces you to aim your innovation efforts at real customers instead of
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an impersonal market. Furthermore, the QFD approach facilitates a shared interpretation of

customer needs (“Whats”) within the project team, and provides a process to translate these
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needs into measurable requirements (“Hows”).

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2. Reduce time-to-market
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False assessments of technical feasibility are reflected in the number and scope of design
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changes we have to make after design release. These design changes directly affect the
possibility of reaching our time-to-market targets. Often, they occur because the concept of the
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new product was not studied with enough critical sense. Due to the sequential structure of our
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product innovation process, we tend to postpone decisions on issues like manufacturability to

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later phases, when they may present us with problems that have a much greater impact. What
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we should do is take the lead in the prevention of problems. This can be achieved in two ways:
by managing the level of uncertainty and managing the scope of change. QFD supports both. It
is a multidisciplinary team approach that brings together all available knowledge and pinpoints
the unknown. QFD helps you select those and only those technical objectives that will
maximize customer benefit, given particular time and cost windows
3. Reduce cost
QFD supports the identification of the product characteristics that the customer thinks are
less important. High performances with respect to these characteristics, compared to those of
competing products, provide opportunities for cost reduction.

4. Manage information
Many product concepts suffer from an information overload. In most cases, the required
knowledge is available, but it is difficult to distinguish between relevant and irrelevant pieces
of information, data, and opinions, and to cluster these into a manageable format. Information
overload conceals the information that you do not have. QFD activates the knowledge that is
available in the organisation and helps you structure all relevant information and experiences
5. Improve marketing and development collaboration
To a large extent, product innovation productivity is determined by the way in which
marketing and development people work together in the initial phases of the product
innovation process. Often, the level of this collaboration leaves room for improvement. We
have seen too many cases in which either marketing defines the new product’s specifications
and has development try to realize them, or development creates all kinds of options from
which marketing makes a selection for the new product. Both approaches involve a significant
loss of development effort. QFD provides a format for both marketing and the development
team to contribute and share their knowledge. QFD serves as a communication aid between
these two perspectives on the new product or service
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6. Organisational learning
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Sometimes product innovation is a shot in the dark. In the event of failure, this trial-and-
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error approach is so loaded with emotions, that it cannot be used as a stepping stone for
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learning. In such cases, it is impossible to reveal the incorrect assumptions that have ruled the
design-decision-making process. Assumptions have not been formulated explicitly. Therefore,
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we should periodically check the assumptions from which we conceptualize our new products.
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In QFD, assumptions about customer preferences and design decisions are well documented.
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Subsequent QFD application provides a highly valuable set of verified assumptions about
customer requirements and how they relate to technical issues. As such, QFD lays a basis for
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organisational learning
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4.6.3 Modern Quality Systems

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QFD is quite different from traditional quality systems, which aim at minimizing negative
quality (such as poor service, inconsistency). With those systems, the best you can get is
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nothing wrong - which we see is not enough when all the players are good. In addition to
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eliminating poor service, we must also maximize positive quality (such as fun, luxury). This in
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turn creates value and competitive advantage.

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Quality Function Deployment (QFD) is a comprehensive quality system aimed specifically

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at satisfying the customer. It concentrates on maximizing customer satisfaction (positive

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quality) - measured by metrics, such as return business and compliments. QFD focuses on
delivering value by seeking out both spoken and unspoken needs, translating these into
actionable services, and communicating this throughout the organization. Further, QFD allows
customers to prioritize their requirements, tells us how we are doing compared to our
competitors, and then directs us to optimize those aspects of our service that will bring the
greatest competitive advantage.

4.6.4 Types of Requirements
To satisfy customers, we must understand how meeting their requirements effects
satisfaction. There are three types of customer requirements to consider.
Innovative Features:
Attributes of the product that
Exciting quality create delight - but cause no
dissatisfaction when not
provided.
Competitive Features:
Performance needs Attributes of the product that
cause increasing satisfaction
the more they are provided.
Basic Features:
Attributes of the product that
Expected quality do not generate positive
satisfaction but cause negative
reaction when not provided.
Types of Requirements
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4.6.5 Application area of QFD
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Faced with the increased competition and the quickening pace of technological change and
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market needs many of our companies have adopted formal management systems in order to
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plan and review the product development activities. In general, these management systems
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outline the development process step by step, including the points at which go-or-no-go
decisions are made and the requirements for intermediate results. These procedures, however,
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do not describe how to organise the conception and planning phase. Yet, this phase is very
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important because in it, by intention or default, we link new product characteristics to target
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groups and their requirements. Of all the steps in the development process, none deserves more
and receives less attention than the definition of the right product. Typically, it is in this phase
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that the QFD process starts by supporting the design team in formulating and communicating
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assumptions explicitly. Furthermore, the QFD-methodology can be applied at each

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downstream stage where you need to make a precise translation. For instance, to translate
product specifications into component characteristics, component characteristics into process
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characteristics or process characteristics into production requirements

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4.6.6 Steps involved in QFD process

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The various steps required in the QFD process are

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Phase – I – Product planning

a
summarized below.
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1. Phase I - Product planning

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Phase – II – Part development

Building the House of Quality. Led by the marketing
department, Phase 1, or product planning, is also called The
House of Quality. Many organizations only get through this
phase of a QFD process. Phase 1 documents customer Phase – III – Process planning
requirements, warranty data, competitive opportunities,
product measurements, competing product measures, and the
technical ability of the organization to meet each customer Phase – IV – Production planning
requirement. Getting good data from the customer in Phase 1
Steps in QFD
is critical to the success of the entire QFD process.

a) The first step is to identify and establish customer attributes. Care has to be taken
not to allow any distortion or misunderstanding of the attributes wanted by
customers during the processing of information. If there is more than one
customer in the chain, then all the needs should be considered.
b) The second step is working out and listing all technical features that are necessary
for meeting the customer satisfaction. These technical features should form the
basis of activities for subsequent design, manufacturing and service processes.
The technical features must be quantitative and durable in order to facilitate
control and comparison to target values.
c) The third step is to establish a relationship between the customer attributes and
technical features. Purpose of the relationship matrix is to ensure that final
technical feature adequately address all the customer attributes. Often, this
established by controlled experiments or getting feedback from customers. Lack
of strong relationship between customer attributes and any of the technical
features may lead to failure to meet customer needs.
2. Phase II - Part development - This step involves development of a design matching
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the customer requirement and trial production. This phase 2 is led by the engineering
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department. Product design requires creativity and innovative team ideas. Product
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concepts are created during this phase and part specifications are documented. Parts
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that are determined to be most important to meeting customer needs are then deployed
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into process planning, or Phase 3.
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Phase III - Process planning - This step involves development of a suitable process
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and develop control plans. Process planning is led by manufacturing engineering.
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During process planning, manufacturing processes are flowcharted and process

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parameters (or target values) are documented.

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4. Phase IV - Production planning - This step involves the development of a suitable

production, Develop prototype and do testing and launching the final product to the
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market. Also, in production planning, performance indicators are created to monitor the
production process, maintenance schedules, and skills training for operators. Here,
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decisions are made as to which process poses the most risk and controls are put in place
to prevent failures. The quality assurance department in concert with manufacturing
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leads Phase 4.
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4.6.7 House of quality

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The first phase in the implementation of the Quality Function Deployment process
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involves putting together a "House of Quality". House of quality, a primary planning tool for
QFD was developed in 1972 in the design of an oil tanker by Mitsubishi heavy industries.
House of quality is a graphic tool for defining the relationship between customer desires and
the firm/product capabilities. House of Quality is the first step in QFD process. House of
quality 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 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.

V
Interrelationships
between technical
descriptors
III
Technical
descriptors
Prioritized customer
IV
requirements
requirements
Customer
Relationships
II
I
between requirements and

descriptors
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VI
Prioritized technical
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descriptors
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House of quality
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Structure of house of quality

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1. Customer’s house - The exterior walls are the customer requirements. On the left side
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customer requirements are listed. On the right side prioritized customer requirements
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are listed. In this house, the goal is to transform the voice of the customer into simple,
clear language.
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2. Company’s house - The second floor contains the technical descriptors engaged in
product design. The goal of this house is to decide on the actions that are to be taken to
satisfy customer needs.
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3. The roof contains the inter-relation between the technical requirements.

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4. The interior walls contain the relationship between customer and technical
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requirements.
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5. Foundation of the house is the prioritized technical requirements.

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4.6.8 Steps to the House of Quality

Step 1: List the Customer Requirements
Focus on the customer
First of all, the QFD team asks itself: Who is the customer? If we do not know the
customer, we do not know his wishes and requirements. This question often gives rise to
heated discussions, due to the fact that there are various perspectives from which this question
can be answered.

It is of vital importance to the QFD process that a consensus is reached within the
QFD team about the kind of customer to focus on. If we cannot agree on the target customer,
this discussion will be repeated regularly, thus causing team member de-motivation and
reduced team productivity. We need to have a clear customer profile. A good description
includes the end-users, but could also include a profile of the persons who buy the product and
perhaps the dealer who influences the potential buyer in his/her purchase decision. Even a
Consumers’ Association could have a place in this description, because they provide potential
buyers with overviews of the results of product evaluations.
Know expressed, implicit, and attraction requirements
Suppose that we know our customer and ask him about his requirements for the product.
The wishes and requirements he will then give us, we call expressed requirements. The more
of these requirements he will find fulfilled in our new product, the more he will feel inclined to
buy it. Apart from these expressed requirements, we must also consider the customer’s implicit
requirements. These are the requirements which are not expressed by the customer, but which
he assumes to be present. Implicit requirements refer to the dissatisfiers in products (i.e. safety
and reliability). We must generate these requirements ourselves. Finally, the attraction
requirements are neither expressed nor expected by the customer, but when he notices them, he
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will be surprised and excited. Attraction requirements refer to the satisfiers in a product. These
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requirements are of the utmost importance in attracting the attention of customers and getting
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the product sold.
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Collect customer information
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If we choose to improve a current product, then we already know a lot about the
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customers. If we take a completely new product, this will be more difficult. It is quite possible
81 C
that we know the customer for a new product fairly well, but the product is too new to ask him
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about his requirements. In this case a good customer profile can help to estimate what is
important, less important or not important to him. To collect information about the
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requirements of the customers you could use current data collection methods. Here are some
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suggestions:
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i First you could ask the customer. In this case we have to know the customer, and if there
are different kinds of customers, we have to know the target groups. Problems: customers
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must be willing to answer your questions; you will only get the expressed requirements.
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ii You could also observe the behaviour of customers while they are using or buying the
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product; for instance, at exhibitions, in department stores (you could play the role of a
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part-time dealer) or in real-usage situations: how they try to use the product, which
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functions they compare, which questions they ask. Problems: it is time-consuming.

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iii Enlist the help of an internal or external customer research agency.

iv Generate the list of requirements yourself. Time does not always allow you to do extensive
customer research. In this case, we can only use information and knowledge about the
customer that is directly available. We have to exploit our empathic skills to imagine what
the customer’s needs are.
Draw up the list of customer requirements
Customer requirements are characteristics that customers explicitly or implicitly attribute
to the new product. These requirements should be expressed in “customer language”. In the

case of a consumer product, this means that we avoid using technical terms. In an industrial
customer-supplier relationship, however, customers are in fact often able to express their needs
in terms of technical product characteristics. In general, we can say that customer requirements
should be expressed in a language that is meaningful to the customer. The list of customer
requirements is called the “WHATs” list, and it reflects what is important for the customers on
whom we focus. The meaning of the customer requirements needs to be worked out in order to
gain a collective understanding. Customer requirements can be separated into two or three
levels. More detail is not necessary, because it would make the list too complex to use easily.
For this step, QFD uses a tree diagram. In this way, we describe the requirements in more
detail in order to be able to make better judgements when comparing current product
performances. To check whether the list is complete and carries enough detail you should ask
yourself:
 Do all members of the QFD team understand the meaning of each item?
 Is the list sufficient to make a competitors’ analysis?
 Is the list sufficient to make judgements about the importance of each item to the
customer?
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Easy to put on
Facilitates enjoyment
Usability
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Comfortable when hanging
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of climbing
Fits over different clothes
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Accessible gear loops
Perform
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Does not restrict movement
ance
Light weight
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Safe E,
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Attractive
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Step 2: Regulatory Requirements

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Not all product or service requirements are known to the customer, so the team must
document requirements that are dictated by management or regulatory standards that the
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product must adhere to.

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Step 3: Customer Importance Ratings

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On a scale from 1 - 5, customers then rate the importance of each requirement. This
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number will be used later in the relationship matrix.

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Easy to put on 2
Facilitates enjoyment of
a
Usability
5
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Comfortable when hanging

1
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Fits over different clothes

climbing
Accessible gear loops 3

5
Performa
Does not restrict movement

nce
Light weight 3
Safe 5
Attractive 2

Step 4: Customer Rating of the Competition
Understanding how customers rate the competition can be a tremendous competitive
advantage. In this step of the QFD process, it is also a good idea to ask customers how your
product or service rates in relation to the competition. There is remodeling that can take place
in this part of the House of Quality. Additional rooms that identify sales opportunities, goals
for continuous improvement, customer complaints, etc., can be added.
Customer rating
  Company B
 Our company
 Company A
1 2 3 4 5
Easy to put on 2   
Facilitates enjoyment of climbing
Comfortable
Usability
5  
when hanging
Fits over different 
1 
clothes
Accessible gear 
3  
loops
Does not restrict
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 
Performance
5 
movement
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Light weight 3  
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Safe 5  
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Attractive 2   
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Step 5: Technical Descriptors - "Voice of the Engineer" 88 G y
,
1 CE
77 SN onl
The technical descriptors are attributes about the product or service that can be
measured and benchmarked against the competition. Technical descriptors may exist that your
96 ha view
organization is already using to determine product specification, however new measurements

can be created to ensure that your product is meeting customer needs.
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11 n,
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Performance Size of T echnical

CUSTOMER IMPORTANCE
Customer rating
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measures range details

Fo
Meet European n
 Our company
  Company B
 Company A
Padding thickness
Webbing strength
No. of gear loops

Harness weight9
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No. of buckles
No. of colours
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Standards
No. Sizes
by
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re
1 2 3 4 5
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ep
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Comfortable whe n
5
Usability
hanging  
Fits ove r diffe rent
1
clothe s  
Accessible ge ar loops 3   
Doe s not re strict
5
Performance
movement   
Safe 5  

Step 6: Direction of Improvement
As the team defines the technical descriptors, a determination must be made as to the
direction of movement for each descriptor.
CUSTOMER IMPORTANCE
Cust omer rat ing
  Company B
 Our company
Company A
Padding thickness
Webbing strength
No. of gear loops

Harness weight
Meet European
No. of buckles
No. of colours
Standards
No. Sizes
1 2 3 4 5
Easy to pu t on 2   
C omfortabl e wh e n
5
Usability
h angi ng  
Fi ts ove r diffe re n t
1
cl oth e s  
Acce ssibl e ge ar l oops 3   
u
Doe s n ot re strict
Performance
pp
m ove me n t   
Li ght we i gh t 3  
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yi
S afe 5  
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Attracti ve 2   
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Step 7: Relationship Matrix
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The relationship matrix is where the team determines the relationship between
81 C
customer needs and the company's ability to meet those needs. The team asks the question,
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"what is the strength of the relationship between the technical descriptors and the customers
needs?" Relationships can either be weak, moderate, or strong and carry a numeric value of 1,
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3 or 9.
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CUSTOMER IMPORTANCE
Customer rating
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by
 Our company
  Company B
 Company A
Padding thickness
Webbing strength
No. of gear loops

Harness weight
Meet European
No. of buckles
No. of colours
Standards
No. Sizes
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a re
ep
1 2 3 4 5
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Comfortable when
5
Usability
hanging  
Fits ove r diffe re nt
1
clothe s  
Accessible gear loops 3   
Doe s not re strict
Performance
5
move me nt   
Safe 5  

Step 8: Organizational Difficulty
Rate the design attributes in terms of organizational difficulty. It is very possible that
some attributes are in direct conflict. Increasing the number of sizes may be in conflict with the
companies stock holding policies, for example.
CUSTOMER IMPORTANCE
Customer rating
 Our company
  Company B
 Company A
Padding thickness
Webbing strength
No. of gear loops

Harness weight
Meet European
No. of buckles
No. of colours
Standards
No. Sizes
1 2 3 4 5
Comfortable whe n
5
Usability
hanging  
1
clothe s  
u
pp
Acce ssible ge ar loops 3   
ru
Doe s not re strict
Performance
5
yi
da
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Safe 5  
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17 , S on
Organisational difficulty
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2 4 3 3 5 2 3 1
(5- Difficult, 1- easy)
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99 oh vie
HOW MUCHES
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Step 9: Technical Analysis of Competitor Products

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To better understand the competition, engineering then conducts a comparison of

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competitor technical descriptors. This process involves reverse engineering competitor

products to determine specific values for competitor technical descriptors.
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by
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a re
ep
Pr

CUSTOMER IMPORTANCE
Customer rat ing
  Company B
 Our company
 Company A
Padding thickness
Webbing strength
No. of gear loops

Harness weight
Meet European
No. of buckles
No. of colours
Standards
No. Sizes
1 2 3 4 5
C omfortable whe n 5
Usability
hanging  
Fi ts ove r di ffe rent 1
cl othes  
Acce ssible gear l oops 3   
Does not re strict 5
Performance
Safe 5  
u
pp
Organisat ional difficulty
2 4 3 3 5 2 3 1
(5- Difficult , 1- easy)
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yi
da
HOW MUCHES
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 Our company 5  
 Company A  
Engineering
4    
assessment
78 NG ly
  Company B E,     
17 , S on
3 
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2  
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
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Step 10: Target Values for Technical Descriptors

At this stage in the process, the QFD team begins to establish target values for each
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technical descriptor. Target values represent "how much" for the technical descriptors, and can
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then act as a base-line to compare against.

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by
d
a re
ep
Pr

CUSTOMER IMPORTANCE
Customer rat ing
  Company B
 Our company
 Company A
Padding thickness
Webbing strength
No. of gear loops

Harness weight
Meet European
No. of buckles
No. of colours
Standards
No. Sizes
1 2 3 4 5
C omfortable whe n
Usability 5
hanging  
Fi ts ove r di ffe rent
1
cl othes  
Acce ssible gear l oops 3   
Does not re strict
Performance
5
Safe 5  
u
pp
2 4 3 3 5 2 3 1
ru
yi
100%
80kN
4mm
150g
da
4
3
HOW MUCHES
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Engineering
4    
assessment
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E,
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  Company B 3      
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2  
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99 oh vie

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un or
ArF
by
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a re
ep
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Step 11: Correlation Matrix
This room in the matrix is where the term House of Quality comes from because it
makes the matrix look like a house with a roof. The correlation matrix is probably the least
used room in the House of Quality; however, this room is a big help to the design engineers in
the next phase of a comprehensive QFD project. Team members must examine how each of
the technical descriptors impact each other. The team should document strong negative
relationships between technical descriptors and work to eliminate physical contradictions.
CUSTOMER IMPORTANCE
Customer rating
  Company B
 Our company
 Company A
Padding thickness
Webbing strength
No. of gear loops

Harness weight
Meet European
No. of buckles
No. of colours
u
Standards
No. Sizes
pp
ru
yi
1 2 3 4 5
da
Ka
Comfortable whe n
5
Usability
hanging
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E,
1
clothe s  
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Acce ssible ge ar loops 3   
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Doe s not re strict

Performance
5
  
99 oh vie
move me nt
Light we ight 3  
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Safe 5  
un or
F
2 4 3 3 5 2 3 1
100%
80kN
4mm
150g
Ar
HOW MUCHES
by
Engineering
4    
d
assessment
re
  Company B 3      
a
2  
ep
1

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QFD Process
Quality Function Deployment begins with product planning; continues with product
design and process design; and finishes with process control, quality control, testing,
equipment maintenance, and training. As a result, this process requires multiple functional
disciplines to adequately address this range of activities. QFD is synergistic with multi-
function product development teams. It can provide a structured process for these teams to
begin communicating, making decisions and planning the product. It is a useful methodology,
along with product development teams, to support a concurrent engineering or integrated
product development approach.

Quality Function Deployment, by its very structure and planning approach, requires
that more time be spent up-front in the development process making sure that the team
determines, understands and agrees with what needs to be done before plunging into design
activities. As a result, less time will be spent downstream because of differences of opinion
over design issues or redesign because the product was not on target. It leads to consensus
decisions, greater commitment to the development effort, better coordination, and reduced
time over the course of the development effort.
QFD requires discipline. It is not necessarily easy to get started with. The following is a list of
recommendations to facilitate initially using QFD.
 Obtain management commitment to use QFD.
 Establish clear objectives and scope of QFD use. Avoid first using it on a large, complex
project if possible. Will it be used for the overall product or applied to a subsystem,
module, assembly or critical part? Will the complete QFD methodology be used or will
only the product planning matrix be completed?
 Establish multi-functional team. Get an adequate time commitment from team members.

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Obtain QFD training with practical hands-on exercises to learn the methodology and use a
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facilitator to guide the initial efforts.
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 Schedule regular meetings to maintain focus and avoid the crush of the development
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schedule overshadowing effective planning and decision-making.
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 Avoid gathering perfect data. Many times, significant customer insights and data exist
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within the organization, but they are in the form of hidden knowledge – not communicated
78 NG ly
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to people with the need for this information. On the other hand, it may be necessary to
17 , S on
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spend additional time gathering the voice of the customer before beginning QFD. Avoid
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technical arrogance and the belief that company personnel know more than the customer.
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Quality Function Deployment is an extremely useful methodology to facilitate

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communication, planning, and decision-making within a product development team. It is not a

paperwork exercise or additional documentation that must be completed in order to proceed to
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the next development milestone. It not only brings the new product closer to the intended
target, but reduces development cycle time and cost in the process.
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Benefits of QFD
by
1. Promotes better understanding of customer demands.

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2. Improves customer satisfaction.

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3. Facilitates better understanding of design interactions.

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4. Breaks down barriers between functions and departments.

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5. Minimizes the number of later engineering changes.

6. Reduces the overall costs of design and manufacture.

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Prepared by Arun Mohan, SNGCE, Kadayiruppu

Total Quality Management Module – III –61 –

TQA, in a nutshell, means that everyone within an organization is responsible for

existing processes over the long term.

Approach to quality that emphasizes continuous improvement, a philosophy of "doing

of using quality methods and techniques to strategic advantage within firms.

Prepared by Arun Mohan, SNGCE, Kadayiruppu