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“The gulf between satisfied customers and completely satisfied customers can swallow a business.” —Harvard Business Review, November/December 1995
As markets shrink, companies are scrambling to boost customer satisfaction and keep their current customers rather than devoting additional resources to chase potential new customers. The claim that it costs five to eight times as much to get new customers than to hold on to old ones is key to understanding the drive toward benchmarking and tracking customer satisfaction.
Measuring customer satisfaction is a relatively new concept to many companies that have been focused exclusively on income statements and balance sheets. Companies now recognize that the new global economy has changed things forever. Increased competition, crowded markets with little product differentiation and years of continual sales growth followed by two decades of flattened sales curves have indicated to today's sharp competitors that their focus must change.
“We are going to win, and the industrial West is going to lose: There’s nothing much you can do about it because the reasons for your failure are within yourselves.”
--Konosuke Matsushita
They work tirelessly to change our world irreversibly. If they succeed at what they’re doing and aren’t challenged, our way of life as we know it will end. While we whine about our bosses, our organizations, and our government; while we do the minimum that our jobs require; while we flip-flop through the mall and watch Oprah they’re planning, learning, and executing. When we’re tucked away in our beds, tossing and turning in restless sleep, they’re even busier. They don’t seem to tire; their passion is relentless. To them, weekends and holidays are inconsequential in their desire to have what we have.
We’re at war, but we seem oblivious to it. Our children’s future, our families, even our liberties are at risk, but for now, apathy is our primary defense. Secure in our ignorance of what’s happening far away, we think that we’re safe. But we’re not.
Most in the electronic manufacturing services industry are acutely aware of the growing problem of counterfeit and substandard electronic components within the supply chain, as well as the headaches that they cause.
Although industry and governments are working diligently in addressing counterfeit abatement, you may already have one of the most useful tools in combating phony parts in place right on your production floor.
By Thomas Hill, Ph.D.; Robert Eames; and Sachin Lahoti
Data mining methods have many origins, including drawing on insights into learning as it naturally occurs in humans (cognitive science), and advances in computer science and algorithm design on how to best detect patterns in unstructured data. Although traditional statistical methods for analyzing data, based on statistical theories and models, are now widely accepted throughout various industries, data mining methods have only been widely embraced in business for a decade or two. However, their effectiveness for root cause analysis, and for modeling, optimizing and improving complex processes, are making data mining increasingly popular--and even necessary--in many real-world discrete manufacturing, batch manufacturing, and continuous-process applications.
There is no single, generally agreed-upon definition of data mining. As a practical matter, whenever data describing a process are available, in manufacturing for example, then any systematic review of those data to identify useful patterns, correlations, trends, and so forth, could be called “data mining.” Put simply, data mining uncovers nuggets of information from a sometimes vast repository of data describing the process of interest.
The idea of mixing optics and measurement has its origins hundreds of years ago in the realm of pure science, i.e., astronomy (telescopy) and microscopy. Manufacturing first adopted optics for routine inspection and measurement of machined and molded parts in the 1920s with James Hartness’ development of instruments capable of projecting the magnified silhouette of a workpiece onto a ground glass screen. Hartness, as longtime chairman of the United States’ National Screw-Thread Commission, applied his pet interest in optics to the problem of screw-thread inspection. For many years, the Hartness Screw-Thread Comparator was a profitable product for the Jones and Lamson Machine Company, of which Hartness was president.
In 1988, Motorola Corp. became one of the first companies to receive the Malcolm Baldrige National Quality Award. The award strives to identify those excellent firms that are worthy role models for other businesses. One of Motorola's innovations that attracted a great deal of attention was its Six Sigma program. Six Sigma is, basically, a process quality goal. As such, it falls into the category of a process capability (Cp) technique.
The traditional quality paradigm defined a process as capable if the process's natural spread, plus and minus three sigma, was less than the engineering tolerance. Under the assumption of normality, this translates to a process yield of 99.73 percent. A later refinement considered the process location as well as its spread (Cpk) and tightened the minimum acceptable so that the process was at least four sigma from the nearest engineering requirement. Motorola's Six Sigma asks that processes operate such that the nearest engineering requirement is at least plus or minus six sigma from the process mean.
Motorola's Six Sigma program also applies to attribute data. This is accomplished by converting the Six Sigma requirement to equivalent conformance levels (see Figure 1).
The most significant change in the upcoming revision to ISO 9001 is probably not what you'd expect it to be: It's not customer satisfaction, continual improvement or even the process-model structure of the standard. The most significant change is the requirement for quality objectives. ISO 9001:2000 requires that quality objectives be established at each relevant function and level within the organization (i.e., just about everywhere). The manner in which quality objectives are established and managed will have an enormous impact on the organization's performance. The quality objectives will either drive strategic improvements throughout the organization, significantly elevating the importance of the quality management system, or they'll simply become a meaningless exercise in data collection. It all depends on how the task is carried out.
The basic requirements for quality objectives are quite simple:
What is quality? An academic definition of quality as it relates to business might be that quality is a product or service that consistently has zero defects, conforms to particular specifications, and is satisfactorily received by the customer. Another aspect of quality is that it is a thought process sought out by organizations to create an overall drive toward efficiency, the reduction of waste, and the continual creation of more streamlined management processes.
“Unlike twenty years ago, when the quality department was viewed as the creator of quality, now the whole concept is more ingrained into the culture of organizations,” says Ron Atkinson, past president of the American Society for Quality. “Quality is created by the people performing the function, whether it be assembling a Bluetooth device or filling out an intake form at a medical clinic. Therefore, a culture of quality is emerging in which the leadership of organizations is emphasizing that the functional areas are responsible for quality in the same way that they are responsible for manpower costs, etc.”
Welcome to Quality Digest’s 2008 Consultants Directory, listing companies that provide quality consulting services.
Check the abbreviation key on page 48 for a preview of the services offered by each company. If additional information was provided to us, you’ll find it online at http://www.qualitydigest.com/content/buyers-guides. As always, we encourage you to contact these companies or visit their web sites.
Quality Digest hasn’t evaluated nor do we endorse any of the following companies listed in this directory.
We wish you well in finding a consultant for your specific needs.
Manufacturers’ efforts to do more with less have resulted in purchasing departments sourcing cheaper products and parts, often from overseas. Such cost-cutting certainly makes purchasing look good to management. But the effect on quality professionals may be just the opposite: product or part defects, malfunctions or undesirable side effects, not to mention the challenge of producing high-quality end-products within narrow timelines and budgets. Many sleepless nights are a frequent outcome.
Because cost cutting and global sourcing are here to stay, how can quality professionals combat these monumental challenges? Root cause analysis (RCA), when fully utilized, can eliminate defects in your operations as well as defects that you inherit from suppliers, ultimately helping to maintain a satisfied and engaged customer base.
