Managing for quality and performance excellence

The concept of quality. Foundations and systems of quality management. Training for improving service quality at Honda. The plant of Lexus in Cambridge. Human resource development management, tools of process management. Methods in quality assurance.

Рубрика Менеджмент и трудовые отношения
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INTERNATIONAL ATATURK ALA-TOO UNIVERSITY

FACULTY OF NEW TECHNOLOGIES

INDUSTRIAL ENGINEERING DEPARTMENT

COURSEWORK

Course name: “Quality Management”

Group: IDE-12b

Student: Zhanarbek Madaliev

Lecturer: Jyldyzbek Jakshylykov

BISHKEK

2014

TABLE OF CONTENT

List of abbreviations

Introduction

1. Introduction to quality

2. Foundations of quality management

3. Medrad

4. Quality management systems

5. Customer focus

6. Workforce focus

7. Process focus

8. Human resource development and management

9. Design for quality and product excellence

10. Tools of process management

11. Using DMAIC process

12. The criteria for performance excellence

13. Statistical methods in quality assurance

Conclusion

Bibliography

LIST OF ABBREVIATIONS

Corp. - Corporation

CS - Customer Service

DFM - Design for Manufacturability

DFE - Design for Environment

FTA - Fault Tree Analysis

GM - General Motors

HR - Human resource

IE - Industrial Engineering

IOS -The International Organization for Standardization

QC - Quality Control

TNC -Texas Nameplate Company, Inc.

TQ - Total Quality

ZQC - Zero Quality Control

INTRODUCTION

Quality is important to businesses but can be quite hard to define because people view quality subjectively and in relation to differing criteria based on their individual roles in the production-marketing value chain. Dictionary definitions are usually inadequate in helping a quality professional understand the concept. There are a variety of perspectives that can be taken in defining quality (e.g. customer's perspective, specification-based perspective). A modern definition of quality derives from Juran's "fitness for intended use." This definition basically says that quality is "meeting or exceeding customer expectations." Deming states that the customer's definition of quality is the only one that matters. One of the questions that arise is “Who is the customer?” We are going to answer to this question in Review Questions section.

The aim of the coursework is to combine the information given in the 9th edition of “Managing for Quality and Performance Excellence”. This coursework covers the following tasks:

to learn the fundamental principles, criteria, and historical foundations of total quality

to understand how to apply some basic statistical tools for performance excellence

and, finally, to study a wide variety of examples from organizations around the world in implementing quality in production and service.

1. INTRODUCTION TO QUALITY

Quality in Manufacturing

Good product design can help to prevent manufacturing defects and service errors and to reduce the need for the non-value-adding inspection practices.

The purchasing department should select quality-conscious suppliers, ensure that their purchase orders clearly define the quality requirements specified by product design, provide quality-improvement training to suppliers and establish long-term supplier relationships based on trust. The receiving department must ensure that the delivered items are of the quality specified by the purchase contract, which it does through various testing policies.

The required materials and equipment must be available at the proper time and in the proper places in order to maintain a smooth flow of production.

The manufacturing and assembly must ensure that the product is made correctly. If there are any defects in production, every effort should be made to identify their causes and eliminate them.

If there are any problems with the tools used in manufacturing and inspection, they may lead to poor quality and inefficiency. That's why the tool engineering function is responsible for designing and maintaining these tools.

Industrial engineers and process designers must select appropriate technologies, equipment, and work methods for producing quality products.

Inspection should be used as a means of gathering information that can be used to improve quality.

Packaging, shipping, and warehousing are the functions that protect quality after goods are produced.

Consumers should understand a product and have adequate instructions for proper installation and operation. After-the-sale service is also important for customer satisfaction.

Quality in Service Organizations

Service organizations include all non-manufacturing organizations.

Companies with long-time customer relationships can financially outperform competitors with higher customer turnover, because the cost of acquiring new customers is much higher than the cost associated with retaining customers.

Extensive maintenance and consulting service may be more important to the customer than the product. Wes Raynal, a columnist from Autoweek, noted: “None of this matters if a customer walks into the dealership and isn't treated like a king.” (Raynal, 2010)

2. FOUNDATIONS OF QUALITY MANAGEMENT

Texas Nameplate Company, Inc. (TNC)

It started by changing traditional, hierarchical leadership structure into a flatter, team-based structure built on mutual respect.

TNC's philosophy was: “Fear is useless; what is needed is trust”.

3. MEDRAD

The company uses systematic approaches to capture customer's expectations and preferences through various listening posts, trade associations, and other mechanisms and communicates them to the appropriate sales team for analysis.

The Customer Complaint Process focuses on timely response and successful resolution of customer issues and ensures that the organization determines causes and completes corrective actions.

Dr. W. Edwards Deming's philosophy

Deming preached the importance of top management leadership, customer/supplier partnerships, and continuous improvement. Despite numerous efforts, his attempts were ignored in the United States.

After World War 2, he was invited to Japan to help the country to take a census. He soon began to teach Japanese statistical quality control. His influence on Japanese industry was so great, that Japanese established Deming Application Prize. Deming also received Japan's highest honor from emperor.

The Deming Chain Reaction: Improve quality Costs decrease because of less rework, fewer mistakes, fewer delays and snags, and better use of time and materials Productivity improves Capture market with better quality and lower price Stay in business Provide employment Return on investment.

Deming's 14 Points

At that time (in the 1960s and 1970s), many organizations were ruled by autocratic managers who had little interest in listening to customers, engaging the workforce, or improving quality. Deming believed that companies could not prosper and grow with this type of management, and proposed the 14 Points for achieving quality excellence.

Deming's 14 Points is a list of 14 rules or advices for managers, which includes: creating a statement of aims, eliminating fear, trainings, continuous improvement etc. (Deming, 1993)

4. QUALITY MANAGEMENT SYSTEMS

The International Organization for Standardization (IOS)

The International Organization for Standardization (IOS) was founded in 1946. IOS adopted a series of written quality standards, with prefix “ISO”, which is scientific term for equal, in 1987. (About ISO, 2007)

Meeting these standards became a requirement for international business.

ISO 9000 Family of Standards

The ISO 9000:1994 series were revised in 1994 and contained the 20 fundamental elements of a basic quality system such as management responsibility, improvement, design and process control etc. These ISO certificates were just in documented form, that's why companies were more concerned with “passing a test” than focusing on improvement.

A structure of ISO 9000:2000 was approved at a conference in 1997 and was based on the eight core principles of quality management.

ISO 9000:2005 provides background information about key terms of ISO.

The ISO 9001:2008 specifies the requirements for a quality assurance and contains: Management Responsibility, Resource Management, Product Realization, and Improvement. The standard requires 20 different types of documentation to be maintained to ensure that the organization audit its quality system to verify that it is managing its processes effectively.

ISO 9004:2009 helps organizations in sustaining their quality management systems.

Implementing ISO 9000

Implementing ISO 9000 is not an easy and cheap task. It requires organizations to develop many new procedures and train many people.

ISO 9000 has three main benefits: it helps to differentiate organizations with ISO certifications from other companies in the eyes of customers, it provides discipline, and, the most important thing, it implements basics of quality system such as understanding and meeting customer needs and ensuring that any problems with customer satisfaction are identified and corrected.

Organizations have found that using these standards resulted in increased customer satisfaction, better quality products, and improved productivity.

5. CUSTOMER FOCUS

Review Questions

What factors influence customer value and satisfaction?

There are many factors that influence customer satisfaction: service experience, quality of product or service, design, atmosphere and a lot of personal preferences. Ford, for instance, identified about 90 features that customers want in sales and service.

The Executive Director of GM once noted “If the customer is satisfied with the whole experience with the product, then you have a quality product.”

What specific issues of customer focus are addressed in the ISO 9000:2000 framework?

The ISO 9000:2000 was based on the eight principles of quality management. First of them is customer focus. Customer focus might be the most important principle of quality management, that's why much attention was paid to this theme.

The requirements of ISO 9000:2000 are the following: responsibility of customer focus lies on top-management, organization should determine customer requirements, and should monitor customer perceptions as to whether the organization has met these requirements.

Summarize the key customer focused practices for performance excellence. Which of these are reflected in Park Place Lexus and K&N Management?

Customer focused practice of Park Place Lexus (PPL) are the next: it uses its process to address any problems that might occur while customer experience. PPL is focused on personal and organizational learning to motivate members of the company, which then results in exceptional understanding and meeting of external customer's needs and the ability to deliver service.

The K&N Management's philosophy is that customer is a “guest” and its vision is “to become world famous by delighting one guest at a time”. The K&N Management relies on innovation and technology for satisfying its customers. All leaders carry a personal digital assistant that alerts them of clients' comments, which guests can write via websites and social media, to maintain a list of key requirements and solve if any problems arise.

Explain the differences between customer satisfaction and loyalty. Why loyalty is more important?

Customer are satisfied when you give them what you said would - the things they expected from original promise. And who are the loyal customers? A good example that I found out on the web is that loyal customers are like your family or friends. It is bigger than having “one-time satisfied” customers. Loyal customers will stay with you through thick and thin. (Klein, 2013)

6. WORKFORCE FOCUS

Training for Improving Service Quality at Honda

American Honda which is part of Honda's North American Operations uses a blended learning approach to build confidence, get results, and capture information about how the problem-solving and decision-making tools impact American Honda's business. These blended learning approach consists of three-phase learning model:

The first phase is a combination of initial learning and preparation for applying concepts to real-life issues. Learners access a series of online modules that explain effective ways for problem solving and decision making. Besides that, learners are asked to determine the situations in which they intend to apply these techniques. It takes place online and lasts for two to three weeks.

During the second phase (2 days), learners discuss best techniques for problem solving and practice on detailed case scenarios at the workshop, receiving coaching and feedback from the instructor.

Phase three is documentation of knowledge and techniques that learners began to work on during the workshop: learners resolve the on-the-job issues. It also takes place online and lasts for three weeks.

After the session, the instructor tracks the progress, provides pointers, and answers questions, so learners get personalized support during the critical days of workshop.

One of Honda managers observed, "True online learning requires culture change, and like any change, it requires planning, communication, and persistence.”

Improving Employee Retention Through Six Sigma

Senior leaders of Hewitt Associates order the human resource (HR) department to stronger retention of its customer service (CS) representatives, because the organization was losing CS talent at annual turnover rate close to 100 percent and could save millions of dollars solving this problem.

The team focused on the separation processing costs and replacement hiring costs, but spent bulk of time on measuring lost productivity in CS environment.

Hewitt also used regression analysis to determine the most important drivers of retention for the CS representatives. Elements of the work environment in which satisfaction is low but the relationship to retention is high were identified as opportunities for growth and training rewards. The resulting analysis revealed Hewitt was able to avoid losing and additional 80 proficient CS representatives.

Hewitt conducts an annual associate engagement survey that measures no only all standards employee opinion survey components, such as satisfaction with opportunities, but also intent to behaviors known to have an impact on business result.

7. PROCESS FOCUS

The plant of Lexus in Cambridge

Cambridge, Ontario, is home to the first Lexus manufacturing plant in North America. The assistant general manager for manufacturing observed, "We understood from the beginning that to be accepted we had to be not just as good as but better than Kyushu [Lexus plant in Japan].” (Lexus Manufacturing, 2008)

The Lexus philosophy is based on the fundamental insight that quality must be built into each part of the production process, not applied as an afterthought.

The environment in Cambridge plant

Teamwork starts with implementing kaizen philosophy: explaining and showing to all workers about every stage of the production process to increase involvement of people and their motivation and understanding that every job is important.

Engineers and managers created an environment like a clean room painted in light colors with a place for everything and everything in its place. These come from "5s” stations, a key element of lean production. They create this environment in order to eliminate a typical automobile defects - bumps and scrapes from workers.

Production process in Cambridge plant

Lexus has taken quality control to a new level, with the introduction of "quality gates”: checkpoints in every step of production process. Welds are tested with hammer and chisel and if everything is okay team members certify each vehicle's weld integrity by applying their initials in bright colors. After that, the bodies receive an even closer inspection: team members sweep their hands carefully across every inch of the vehicle's exteriors.

At the paint shop every vehicle body is vacuumed to remove metal shavings. And the basecoats themselves are made of water-soluble paint, not environmentally hazardous solvents. Spraying is carried out by robotic arms grasping cartridges and then, a machine called a Perceptron, which measures the changing reflection of light on the vehicle's surface.

Each vehicle comes with sets of wooden parts that are cut from the same log, and then stained and finished together. If a wood component is damaged in assembly, all the other pieces from its set are replaced as well.

The finished RX 330s are tested in weatherproof and then run through a test track with bumps and curves.

8. HUMAN RESOURCE DEVELOPMENT AND MANAGEMENT

Overcoming Resistance to Change

Many individuals resist change to cooperative efforts. It is driven by fear as reflected in one of Deming's 14 Points.

Management holds the keys to overcoming resistance such as early involvement by all parties, open and honest dialogue, and good planning. Managers should also show commitment and support by providing the right training, rewards, and recognitions.

Compensation and Recognition

Compensation and recognition refer to all aspects of pay and reward, including bonuses and recognition, either monetary and nonmonetary or individual or group.

The objectives of a good compensation system should be to attract, retain, and not demotivate employees. Other objectives include reducing unexplainable variation in pay and encouraging internal cooperation rather than competition.

Richard E. Walton suggests that managers who are seriously concerned about moving from a traditional control approach to a TQ approach should modify the assumptions and structure of compensation systems. Pay policies must shift from an individual focus to a group focus, using gain-sharing and profit-sharing systems. Such programs reinforce the importance of group contributions instead of concentrating only on individual contributions.

Recognition and rewards provide a visible means of promoting quality efforts and telling employees that the organization values their efforts, which stimulates their motivation to improve. Most importantly rewards should lead to behaviors that increase customer satisfaction. Certain key practices lead to effective employee recognition and rewards:

Giving both individual and team awards

Involving everyone

Trying rewards to quality based on measurable objectives

Allowing peers and customers to nominate and recognize superior performance

Publicizing extensively

Making recognition fun

Health, Safety, and Employee Support Service

Health, safety and overall well-being of employees are important factors in the work environment of most companies, but working conditions now extend beyond basic issues of keeping the work area safe and clean. Employees have an even greater responsibility to incorporate health and safety factors into human resource plan.

Many companies have opportunities to contribute to the quality of working life, such as personal and career counseling, career development and employability services, special leave for non-work-related responsibilities, flexible work hours and extended healthcare for retirees. All of these opportunities contribute to creating a more productive, safer and more enjoyable in work environment.

quality management service

9. DESIGN FOR QUALITY AND PRODUCT EXCELLENCE

Fault Tree Analysis (FTA)

Fault Tree Analysis (FTA) is a way to drill down and identify causes associated with failures and is a good complement of DFMEA.

It is particularly useful for identifying failures that can occur only as a result of multiple events occurring simultaneously. These events are connected by “and” gate, which occurs only if all of the causes below it occur and “or” gate, which occurs whenever any of the causes occur.

Design for Manufacturability (DFM)

A Samsung manager noted that 70 to 80 percent of quality, cost, and delivery time is determined in the initial design stages.

Many aspects of product design can adversely affect manufacturability and, hence, quality. Sometimes a design simply has more parts than are needed to perform the desired functions, or the fragile parts that may be damaged in shipping or internal handling. Problems of poor design may show up as errors, poor yield, damage, or functional failure in fabrication, assembly, test, transport, and end use.

DFM provides a means for integrating specific manufacturing concerns into a product's design to obtain a product that is easier to manufacture with excellent overall quality. Many companies have special “think-tank” departments because of the need of highly-creative solutions, which create guidelines that can improve quality and reduce cost by simplifying the fabricating.

Design and Environmental Responsibility

Hundreds of millions of home and office appliance are disposed each year. The problem of what to do with obsolete computers is a growing design and technological waste problem today. Pressures from environmental groups and consumers who want the most for their money all cause designers and managers to look carefully at the concept of design-for-environment, or DFE.

DFE seeks to discover product innovations that will meet cost and performance objectives while reducing pollution and waste throughout the life-cycle.

For instance, General Electric's plastics division, which serves the durable goods market, uses only thermoplastics in its production. Unlike many other varieties of plastics, thermoplastics can be melted down and recast into other shapes and products, thus making them recyclable.

10. TOOLS OF PROCESS MANAGEMENT

Poka-Yoke (Fail-Safing) for Production

A good process design prevents defects from occurring at all. The Japanese call this a Zero (defect) Quality Control (ZQC) system. ZQC consist of the following processes:

Source Inspection. Checking for factors that cause errors.

100 percent inspection. Self-inspection, in which the operator inspects his or her own work or using the devices which inspect automatically.

Immediate action. Stopping operations instantly when a mistake is made and not resuming operations until error is corrected.

Poka-Yoke is an approach for fail-safing processes using automatic devices or methods to avoid simple human errors such as forgetfulness, misunderstanding, lack of skills etc. It was developed and refined by the late Shigeo Shingo, a Japanese manufacturing engineer who developed Toyota production system. Poka-Yoke is focused on two aspects: prediction and detection. Many applications of poka-yoke are deceptively simple, yet creative.

Poka-Yoke for Services

The major differences are that service fail-safing must account for the customers' activities as well as those of the producer, and fail-safe methods must be set up for interactions conducted directly or by phone, mail, or other technologies, such as ATM. Richard B. Chase and Douglas M. Stewart classify service poka-yokes by the type of error they are designed to prevent:

Server errors:

Task errors include doing work incorrectly, work not requested, work in the wrong order, or working too slowly.

Treatment errors arise in the contact between the server and the customer, such as lack of courteous behavior, and failure to acknowledge, listen, or react appropriately to the customer.

Tangible errors are those in physical elements of the service, such as unclean facilities, dirty uniforms, inappropriate temperature, and document errors.

Customer errors:

Customer errors during preparation include the failure to bring necessary materials to the encounter, to understand their role in the service transaction, and to engage the correct service.

Customer errors during an encounter can be due to inattention, misunderstanding, or simply a memory lapse, and include failure to remember steps in the process or to follow instructions.

Customer errors at the resolution stage of a service include failure to signal service inadequacies, to learn from experience, to adjust expectations, and to execute appropriate post encounter actions.

Fail-safing a service process requires identifying when and where failures generally occur. Once a failure identified, source must be found. The final step is to prevent the mistake form occurring through source inspection, self-inspection, or sequential checks.

11. USING DMAIC PROCESS

DMAIC Tools and Techniques

To use the DMAIC process, one needs the ability to think critically about the goals and objectives of Six Sigma project, ask pertinent questions, and apply various tools and techniques.

DMAIC (define measure, analyze, improve, control) is an approach to problem-solving defined by Motorola as part of the Six Sigma management philosophy. DMAIC is not exclusive to Six Sigma and can be used as the framework for other improvement applications.

It contains many tools. Seven of these tools - flowcharts, check sheets, histograms, Pareto diagrams, cause-and-effect diagrams, run charts, and control charts are known as the Seven QC (quality control) Tools. They are simple so that workers at all levels can use them easily. (Gibilisco, 2012)

Toyota A3 Report

Toyota created a unique tool, called the A3 report, to succinctly consolidate and visualize information for identifying and solving quality problems.

A3 Reports are one-page reports used for documenting the necessary information needed for progress reporting and decision-making. "A3" refers to the metric paper size that the report is produced on and contains text, diagrams, and charts, designed to enrich and clarify the problem and data. (A3 Report, 2006)

The reports are divided into seven sections, which roughly follow the flow of the DMAIC process: theme, background, current condition, cause analysis, target condition, implementation plan, and follow-up.

Six Sigma Black Belt Training

General Electric and Motorola developed certification programs as part of their Six Sigma implementation, verifying individuals' command of the Six Sigma methods at the relevant skill level (Green Belt, Black Belt etc.). Following this approach, many organizations in the 1990s started offering Six Sigma certifications to their employees. Criteria for Belt certification vary; some companies simply require participation in a course and a Six Sigma project.

A Six Sigma practitioner with the most training who acts as the project leader. Black belts work full time on projects and coach lower-level team members.

These tools are integrated into standard Six Sigma curricula, which typically involve a blend of technical topics and project management and leadership topics. The topics may be categorized into seven general groups: elementary statistical tools (correlation), advanced statistical tools (design of experiments), product design and reliability (failure mode), measurement (process capability), process control (control plans), process improvement (process mapping), implementation and teamwork (team assessment).

12. THE CRITERIA FOR PERFORMANCE EXCELLENCE

Criteria Evolution

Over the years, the criteria of the Baldrige Award have been streamlined and simplified to make them more easily understood and useful to organizations of all types and sizes. For example, in 1999, the criteria were reworded in a question format that managers can easily understand.

The criteria evolved from an initial emphasis on product and service quality assurance to a broad focus on performance excellence in a global marketplace.

The Baldrige Award Process

Organizations that apply for the Award submit a 50-page application responding to the questions in the criteria. The Baldrige Award is designed to be objective and immune to political pressures.

In the first stage, each application is thoroughly reviewed by approximately seven examiners chosen from among leading professionals in business, education, health care, and nonprofits. Examiners evaluate the applicant's response to each examination item, listing major "strength" and "opportunities to improvement" relative to the criteria. Based on these comments, a percentage score from 0 percent to 100 percent in increments of 5 percent is given to each item in the criteria.

The scoring of responses to criteria items and Award applicant feedback are based on two evaluation dimensions: process and results. Criteria users need to furnish information relating to these dimensions. The specific factors for Process:

Approach. An effective systematic approach, responsive to the overall requirements of the item, is evident.

Deployment. The approach is well deployed, although deployment may vary in some areas or work units.

Learning. A fact-based systematic evaluation and improvement process and some organizational learning, including innovation, are in place for improving the efficiency and effectiveness of key processes.

Integration. The approach is aligned with your overall organizational needs identified in response to the Organizational Profile and other process items.

Category 7 addresses Results - an organization's outputs and outcomes. Results must be valid indicators of future performance and should be harmonized across process and work units to support organization-wide goals.

The examiners team conducts a process in which they discuss variations in individual scores and comments, and arrive at a consensus for each item. After that, an examiner team visits the company for up to a week to verify information contained in the written application and resolve the issues that are unclear. All applicants receive a feedback report that critically evaluates the company's strength and areas for improvement relative to the award criteria. This feedback is one of the most valuable aspects of applying for the award.

Organizations that receive the Baldrige Award are highly-regarded role models for others. (Evans & Lindsay, 2008)

13. STATISTICAL METHODS IN QUALITY ASSURANCE

Statistics

Statistics is a science concerned with "the collection, organization, analysis, interpretation, and presentation of data." Statistics provide an efficient and effective way of obtaining meaningful information from data, allowing managers and workers to control and improve processes. Statistical thinking is useful at each of the three levels of quality:

at the organizational level, it helps executives to understand the business system and its core processes;

at the process level, it can motivate managers to set realistic goals and keep employees better informed;

at the performer level, statistical thinking can help employees to analyze work data better, and to identify important measures and improvement opportunities.

(Juran & Gryna Jr., 1980)Frank H. Squires, a well-known expert on quality, has credited W. Edwards Deming with keeping statistics in the forefront of the worldwide quality improvement movement.

Statistical Methodology

The first major component of statistical methodology is the efficient collection, organization, and description of data, commonly referred to as descriptive statistics. Frequency distributions and histograms are used to organize and present data. Measures of central tendency (means, medians, proportions) and measures of dispersion (range, standard deviation, variance) provide important quantitative information about the nature of the data.

The second component of statistical problem solving is statistical inference. Statistical inference is the process of drawing conclusions about unknown characteristics of a population from which data were taken. Techniques used in this phase include hypothesis testing and experimental design.

The third component in statistical methodology is predictive statistics, the purpose of which is to develop predictions of future values based on historical data. Correlation analysis and regression analysis are two useful techniques. Frequently, these techniques can clarify the characteristics of a process as well as predict future results.

Random Variables and Probability Distributions

Random variables are the key component used in the development of probability distributions. A random variable can be either discrete or continuous, depending on the specific numerical values it may assume.

A discrete random variable can take on only finite values. An example would be the number of defects observed in a sample.

A continuous random variable can take on any real value over a specified interval of real numbers. An example would be the diameters of bearings being manufactured in a factory. (Evans & Lindsay, 1999)

CONCLUSION

During this coursework we gave short information about what is quality, and how quality concepts were applied in different spheres of manufacturing and service. Quality has become a vital component of every modern organization and will remain an important part of a continual quest for improving performance across the globe. We studied practices of well-known companies such as Lexus, Toyota, Honda, etc., which developed an impeccable reputation for high quality through relentless attention and continuous improvement of production process. We learned about history of early total quality - the philosophy of one of the fathers of quality, the Deming philosophy. No individual has had more influence on quality management than Dr. W. Edwards Deming. Besides that, we introduced with history and standards of the International Organization for Standardization, which helps companies to implement basics of quality system such as understanding and meeting customer needs and ensuring that any problems with customer satisfaction are identified and corrected, and to implement continuous improvement and performance excellence into production process. We examined the difference between customer satisfaction and customer loyalty. And finally, we learned how to use basic techniques and tools such as DMAIC, Poka-Yoke, and Fault Tree Analysis.

BIBLIOGRAPHY

1. A3 Report. (2006, June). Retrieved March 15, 2014, from "MoreSteam": https://www.moresteam.com/lean/a3-report.cfm

2. About ISO. (2007, October 4). Retrieved April 7, 2014, from "ISO": http://www.iso.org/iso/home/about.htm

3. Lexus Manufacturing. (2008, March 19). Retrieved May 5, 2014, from "Lexus": http://www.lexus.com/about/corporate/manufacturing.html

4. Deming, W. E. (1993). The New Economics for Industry, Government, Education. Cambridge, MA: MIT Center.

5. Evans, J. R., & Lindsay, W. M. (1999). The Management and Control of Quality, 4th ed. Mason, OH: South-Western College Pub.

6. Evans, J. R., & Lindsay, W. M. (2008). Managing for Quality and Performance Excellence, 9th ed. Mason, OH: South-Western Cengage Learning.

7. Gibilisco, S. (2012, September). What is DMAIC. Retrieved March 9, 2014, from "TechTarget": http://whatis.techtarget.com/definition/DMAIC

8. Juran, J. M., & Gryna Jr., F. M. (1980). Quality Planning and Analysis, 2nd ed. New-York: McGraw-Hill.

9. Klein, M. (2013, September 27). Customer Satisfaction Is Not Customer Loyalty. Retrieved April 27, 2014, from "Direct Marketing News": http://www.dmnews.com/customer-satisfaction-is-not-customer-loyalty/article/313592/

10. Raynal, W. (2010, July 14). Quality matters, but service is tops. Retrieved February 25, 2014, from "Autoweek": http://www.autoweek.com/article/20100714/free/100719953

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