Deming’s Service Quality Principles


  1. Maintain a constancy of purpose
  2. Adopt the new philosophy
  3. Cease dependence on mass inspection
  4. End the practice of awarding business on the basis of price alone
  5. Improve constantly and forever the system of production and service
  6. Institute training
  7. Institute leadership
  8. Drive out fear
  9. Break down barriers among staff
  10. Eliminate slogans, exhortations, and targets
  11. Eliminate work quotas
  12. Remove barriers to pride of workmanship
  13. Institute a vigorous program of education and self-improvement
  14. Put everyone to work on the transformation.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Inspection Buying


Inspection buying means looking at every item. It’s used for products that are not standardized and require examination. Here each product is different – as in the case of livestock or used equipment. Such products are often sold in open markets – or at auction if there are several potential buyers. Buyers inspect the goods and either haggle with the seller or bid against competing buyers.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Fraud by Silence


Does a party to contract have a duty to disclose to the other party all the material fact he or she knows about the subject of the contract? The original common law position on this issue was caveat emptor (let the buyer beware). The seller could remain silent without fear of being found guilty of fraud. Only actual statements by the seller could serve as a basis for fraud. The duty therefore was placed on buyers to ask the right questions of the seller, forcing the seller to make statements about the subject of the sale.

Many courts today, however, recognize that caveat emptor often produced unfair results. Some buyers simply do not know enough to ask the right questions about the subject of the sale, so many courts are recognizing a limited duty to disclose material facts on the part of the seller. Generally this duty is limited to material facts that the buyer could not have discovered by reasonable inspection of the subject of the sale.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

ISO 9000 Certification


Organizations that achieve certain quality standards can apply for ISO 9000 certification. This is administered by independent third parties who check quality management methods. For this you must:

  • Say what you are going to do about quality—describing procedures, operations and inspections;
  • Show that you actually do work in this way;
  • Prove that work was done properly by doing audits and keeping records.

Some people think that ISO standards guarantee high product quality—if you see the label, the product must be good. But really, the standard only shows that an organization has a program of quality management, and that the product quality is consistent and reliable. The quality need not necessarily be good. A manufacturer of metal bearings, for example, will specify the tolerance on the diameter of a bearing; ISO certification means that the bearings will be within this tolerance, but it does not judge whether the tolerance is good enough for any intended use.

There are five separate parts to the ISO 9000 standards:

a)      ISO 9000 defines quality, gives a series of standards an organization might aim for and guides you through the other parts of the series.

b)      ISO 9001 is used by companies whose customers expect them to design and make special products—it deals with the whole range of TQM, from initial product design and development, through to procedures for testing final products and services.

c)      ISO 9002 is used by companies who make standard products—it concentrates on the actual process, and how to document quality.

d)     ISO 9003 deals with final product inspection and testing procedures.

e)      ISO 9004 is a guide to overall quality management and related systems, and says what you should do to develop and maintain quality.

ISO 9000 and 9004 are guides for setting up quality management programs; ISO 9001 and 9002 are the main standards; and ISO 9003 describes some aspects of quality control. These standards are flexible enough to use in almost any organization.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Deming’s 14 Obligations


Many people helped develop quality management, and some of the early ones are called the ‘quality gurus.’ Perhaps Edwards Deming was one of the best known. He did a lot to publicize TQM. But was concerned that organizations did not get the benefits they expected. To help them on the way, he compiled a list of guidelines called his ’14 obligations.’ They are:

  1. Create constancy of purpose towards product quality.
  2. Adapt the new philosophy of higher quality, refusing to accept customary levels of defects and errors.
  3. Stop depending on mass inspection, build quality into your product.
  4. Don’t award business on the basis of price only – reduce the number of of suppliers and insist on meaningful measures of quality.
  5. Develop programs for continuous improvement of your products and processes.
  6. Train all your employees.
  7. Focus supervision on helping employees to do a better job.
  8. Drive out fear by encouraging two-way communication.
  9. Break down barriers between departments and encourage problem solving through teamwork.
  10. Don’t use posters and slogans that demand improvements without saying how to achieve them.
  11. Eliminate arbitrary quotes and targets that interfere with quality.
  12. Remove barriers that stop people having pride in their work.
  13. Have programs for lifelong education, training and self-improvement.
  14. Put everyone to work on implementing these 14 points.

Deming’s 14 points are not a program that has fixed duration, but the give a new way of thinking in your organization. They are certainly not the only possible view, but they do give some useful guidelines.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, www.youtube.com/asifjmir, Line of Sight

Inspect Products at the Right Time


Inspections used to be left until the later stages of the process – often just before the finished products were delivered to customers. As there was more chance of a product being faulty by the end of the process, all defects could be found in one big, final inspection. But the longer a unit is in a process, the more time and money is spent on it – so it makes sense to find faults as early as possible before any more money is wasted by working on a defective unit. It is better for a baker to find bad eggs when they arrive at the bakery, rather than use the eggs and then scrap the finished cakes.

Your first quality control inspections should come at the beginning of the process, testing materials as they arrive from suppliers – and there is a strong case for inspections within suppliers’ own operations. Then you should have inspections all the way through the process to the completion of the final product and its delivery to customers. Some particularly important places for insperctions are:

  • On raw materials when they arrive;
  • At regular intervals during the process;
  • Before high-cost operations;
  • Before irreversible operations, like firing pottery;
  • Before operations that might hide defects, like painting;
  • When production is complete;
  • Before shipping to customers.

This may seem like a lot of inspections, but remember that most of them are done by people working on the process. Quality at source means that the products are not taken away for testing in some remote laboratory, but are checked at each step before being passed on the next step.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Good Management


Good planning and good management are probably the best protection against most of the other risks. Price fluctuations of any normal retail inventory may be upward or downward. Good management will keep itself informed of price trends. Study of population trends and business activity will warn merchants early if their location is losing its value. Good accounting records and study of operations against a budget will warn of any developing adverse trends.

 To handle the risks of dishonest employees, good management will provide devices such as internal security guards and signal systems for detecting pilferers. A reputation for prosecuting pilferers and training all employees to be alert to the problem will help to reduce pilferage. Tags in merchandise which act of alarms at the entrance unless removed by the sales person are now common. These methods are often expensive but necessary. Personnel policies will provide means of checking employees whose honesty is questioned. Inspection of employees of checkout time is being used by manufacturing firms, some airlines, and other type of firms. It is recommended for wholsalers and retailers when losses in this area are deemed a high risk. Fidelty bonds may be purchased to protect the firm from losses by dishonest employees.

 The risk of financial hardship can best be coped with by proper financial planning and financial management. This common risk has caused the downfall of many firms which otherwise had a most profitable future. Over and above good planning along the lines, watching the key financial ratios in the financial statements, the cash adequacy rule, and investment in receivables, and having a cash flow statement are devices to protect against this risk. Having a good performance record for honesty and fair dealing will help the business secure financial help when it is needed.

 My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

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