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Chapter 3:
Strategic Quality Planning

1.0 Introduction
Strategic quality planning is explain about what the organization want to achieve and
how they want to achieve the goal that they have set up. According to Garvin, D.A. (1998),
quality is just a control system where the management function. It is quality strategic when
content and process are combine together. In PDCA step, in making a good quality, manager
must took place and lead subordinates to achieve goals. Strategic Planning is a process where
everyone matching the vision, mission and core values of an organization with current
situation. Below are the examples of strategic planning step for the organisation to develop.

2.0 Discussion
What is Strategic Planning?

Table 1.1 Strategic Planning

In table 1.1, any business movement the key arranging process itself should be careful
overseen. Obligations and assets should be assigned to the ideal individuals and you have to
keep over the procedure. Try to find people who show the kind of analytical skills that
successful strategic planning depends upon. Try to find a mix of creative thinkers and those
with a solid grasp of operational detail. The assessments of other staff representatives,
accountants, division heads, board individuals and those of outside partners, including clients,
customers, guides and advisors. There is no set in stone approach to design the procedure of
key arranging, however be clear ahead of time about how you expect to continue. Everybody
included should recognize what is anticipated from them and when.
There is a scope of key models that can be used to enable structure the investigation
here. These models give an improved and unique photo of the business condition. SWOT
(strengths, weakness, opportunities and threats) investigation is presumably the best-known
model and is utilized by both littler and greater organizations in the for-benefit and not-revenue
driven segments alike. SWOT examination includes distinguishing a goal of a business or task
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and after that recognizing the inner and outer variables that are great and threat to
accomplishing that objective. These components are thought about utilizing four components
1. strengths - attributes of the business that can help in achieving the objective
2. weaknesses - attributes of the business that could be obstacles to achieving the
objective
3. opportunities - external factors that could be helpful to achieving the objective
4. threats - external factors that could be obstacles to achieving the objective
Effective strategic planning involves considering options that challenge the way that
business has been done up to this point. It may be that decision-making in some areas will be
handed to others, or that processes which have worked well in the past will no longer fit with
future plans. It can be tempting for owners or managers to overlook alternatives that are
uncomfortable for them personally, but to disregard your options on these grounds can
seriously compromise your strategic plan and ultimately the growth of your business. The key
to implementation of the objectives identified in the strategic plan is to assign goals and
responsibilities with budgets and deadlines to responsible owners - key employees or
department heads. For example, monitoring the progress of the implementation plan and
reviewing the strategic plan against implementation will be an ongoing process. The fit
between implementation and strategy may not be perfect from the outset and the implications
of implementing the strategy may make it necessary to tweak the strategic plan. Monitoring
implementation is the key.

What are the leadership quality?

The manufacturer can ensure the strategic plan follow align to the business plan and go a
long way to ensuring its implementation. Remember that strategic planning can involve
making both organisational and cultural changes to the way your business operates. Leadership
of quality is a key strategic variable for quality. Leadership was a process by which leader
influences a group to move towards. For example like organizes, plans, controls,
communicates, teach, advices and delegates was the job of existences leader to follower.
Leadership powers form in five factor which is:
1. Power of expertise
2. Reward power
3. Coercive power
4. Referent power
5. Legitimate power
Power of expertise defines as utilization the power to control subordinates so that they can
refers. For example like leader set up a procedure on production process that must be follow
up by the subordinates. Reward power defines that a leader has authority to give, praise,
commission to the subordinates. For examples like if the subordinates follows the order of
leader, the chances getting a better position will be higher for the subordinates. The coercive
power is the power where leader has authority to punish subordinates if there are mistaken.
Referent power where subordinates can follow us what are the leader do. Legitimate power as
absolute power that have no doubt on certain things.
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There are also a principles of leadership for quality:

 Customer focus
The first principle just where it should be. It covers both customer needs and customer service.
It stresses that a business should understand their customers, what they need and when, whilst
trying to meet, but preferably exceed customers’ expectations.
 Leadership
Business focuses their efforts on the key processes as well as aligning complementary
processes to get better efficiency. This means that multiple processes are managed together as
a system which should lead to greater efficiency.
 People Involvement
An organisation is nothing without its staff whether part-time, full-time in house or out-
sourced. It’s their abilities that maximised to achieve business success. The process approach
is all about efficiency and effectiveness.
 Process Approach
It’s also about consistency and understanding that good processes also speeds up activities.
Great processes reduce costs, improve consistency, eliminate waste and promotes continuous
improvement.
 Systematic Approach to Management,
ISO define this principle as “Identifying, understanding and managing interrelated processes
as a system contributes to the organisation’s effectiveness and efficiency in achieving its
objectives.” A business focuses their efforts on the key processes as welled as aligning
complementary processes to get better efficiency. This means that multiple processes are
managed together as a system which should lead to greater efficiency.
 Continual Improvement
Principle is very straight forward, continual improvement should be an active business
objective. The benefits of this are clear, increased ability to embrace new opportunities,
organisational flexibility and improved performance. Especially in difficult economic times,
the businesses that thrive are those that can adapt to new market situations.
 Factual Approach
Decision making, a logical approach based on data and analysis is good business sense.
Unfortunately, in a fast paced workplace, decisions can often be made rashly, without proper
thought. The efficiency that will have been imbued in the organisation after the implementation
of prior principles will allow decisions to be made with clarity. Informed decisions lead to
improved understanding of the marketplace as data is collated and analysed, and the ability to
defend past decisions.
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 Mutually Beneficial Supplier Relations

This principle deals with supply chains. It promotes the relationship between the company and
its suppliers; recognising it is interdependent. A strong relationship enhances productivity and
encourages seamless working practices. The result is optimisation of costs and resources,
fostering long term relationships and the ‘flexibility of joint responses to changing market or
customer needs and expectations’. Employee motivation and increased innovation and the
benefits here. When people feel valued, they’ll work to their maximum potential and contribute
ideas. Principle 3 emphasises the importance of making employees responsible and
accountable for their actions. As a result, customer loyalty increases, revenue rises and waste
reduces as the businesses ability to spot new customer opportunities and satisfy them improves.
More effective processes result in improved customer satisfaction

What is quality and ethics?

 Quality appears to be good business.
 It is unethical to ship defective products knowing to a customer.
 Reliable products and low defect rates reflect an ethical approach of management’s
care for its customers.
 Organizations focusing on their customers often develop a set of ethics includes
valuing customers.
Ethics reflect the wrong and right where the good quality management are match together. If
quality are not good, we cannot say it is good. In dimensions of quality we as a manufacturer
must has no room for error of doing product and services. Quality should have integrity and
honesty. The strategies in quality has three where it is prevention, appraisal and failure.
Prevention cost is paradigm where the manufactures split out to prevent defect or imperfections
from occur. Appraisal cost is to evaluate with direct costs to measure quality. Failure cost is
role of manufacturers have to bear any defect on product.

What are the strategies that effect on quality?

There are three strategies which is cost of quality, differentiation and focus. New
definition of cost are expensive. One of generic means of competing is cost. This include
service, maintenance and operating costs of product.Three dimensions of costs of quality:
PAF diagram
Prevention costs, associated with old equipment, daily risk assessment and non-conformance
defection and waste removal. The costs will design on baseline risk assessment. Appraisal
cost is to evaluate with direct costs to measure quality. The new installation of new equipment,
cold and hot commissioning and unit light up. Failure cost which divided into two factors
Internal Failure Costs (IFCs) and External Failure Costs (EFCs). IFCs associated with on-line
failure. EFCs are associated with product failure after production process.
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Accounting for Quality-Related Costs

AQRCs are all about the calculation of incurred costs.

Lundvall-Juran Cost Model

If the manufacturers didn’t want to cost of appraisal and prevention, they need to low down the
conformance.

Deploying Quality
Quality strategic process is how we get a better quality. There are three quality strategic
process which is Kaizen, Poka-Yoke and Hoshin. Kaizen is continuously improvement where
the small step takes places but never stop till the end. Poka-Yoke is to eliminate human error
and mistakes. For example like system bank-in for withdrawal the cash. Most basically the
card will go out first and then follow the cash that we withdrawal. Hoshin is a policy
deployment where it must be long term objective where the process must be consistent.

3.0 Conclusion
We now have the basic fundamentals on strategic quality planning. You should understand that
it matching the vision, mission and core value of the organisation. You should understand the
different role of leaders necessary in performing quality. You should understand that quality
with are influences by good ethics. If the company follow the right ethics that the quality will
become better. Finally the quality strategic process help leaders to setup a better strategic
quality planning whether using Kaizen, Poka-Yoke and Hoshin.
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References
British Assessment Bureau. (2017, 5 13). Retrieved 3 24, 2018, from https://www.british-
assessment.co.uk/guides/the-8-principles-of-quality-management/#

Info Entrepreneurs. (2009). Retrieved 3 27, 2018, from

http://www.infoentrepreneurs.org/en/guides/strategic-planning/

Nel, D. H. (2014). Retrieved 3 30, 2018, from https://www.slideshare.net/HannelieNel/design-of-a-

prevention-appraisal-and-failure-cost-model-46948444

Chapter 4:
Voices of the Customer
1.0 Introduction
In terms of the manufacturers, to find a new customer is not easy in order to consistent the
profit gain. If the manufacturers have a customer loyalty, pleased to retain the trustworthy
toward the products or services. It is because customers tell twice as many people about bad
experience as good experience
2.0 Discussion
Why is customer service so important?
Anyone who is serious about making extensive progress in business needs to comprehend
why customer service is so critical. It's not only for all the undeniable financial reasons. It
goes a long ways past that.
The way we treat our customer is demonstrative of the way we look at things throughout
everyday life. Is it our vision give us a more understanding of the long term of our action.
Clearly, in the way we want to put our business ahead we have to place our customer on the
first place.
1. Customer retention is far more affordable than acquiring.
2. Existing customer will probably purchase for you than new clients.
3. Good customer service will diminish of general issues.
4. Great customer service enhances business image and fortifies our brand.
5. Will probably hold our customers for longer period of time.
6. Word-of-mouth is the best sort of promoting that cash can't purchase.
7. It enhances employee turnover in our business.
8. Excellent customer service opens entryways for new partnership and different
opportunities.
9. It passes on solid good moral values and beliefs in the organization's main goal.
10. It extends the life of any business.
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Type of Customers

Key Dimensions of Manufacturing Quality

Dimension 1: Performance
Does the product or service do what it is supposed to do, within its defined
tolerances?
Dimension 2: Features
Does the product or services possess all of the features specified, or required for its
intended purpose?
Dimension 3: Reliability
Will the product consistently perform within specifications?
Dimension 4: Conformance
Does the product or service conform to the specification?
Dimension 5: Durability
How long will the product perform or last, and under what conditions?
Dimension 6: Serviceability
Is the product relatively easy to maintain and repair?
Dimension 7: Aesthetics
How the look of product could attract more customer?

Voice of Customer (VOC)

According to the ASQ Quality Glossary, voice of the customer (VOC) is defined as,
“The expressed requirements and expectations of customers relative to products or services,
as documented and disseminated to the providing organization’s members.”
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Customer-Driven Quality
Represents a proactive approach to satisfying customer needs that is based on
gathering data about our customers to learn their needs and preferences and then providing
products and services that satisfy the customers. Customer-driven quality is one of the core
values of the Malcolm Baldrige award.
The Pitfalls of Reactive Customer-Driven Quality
Even though it is generally understood that listening to and understanding the
customer is a good thing, some companies implement customer feedback mechanisms
incorrectly. As a result, these companies are placed in a reactive rather than a proactive mode
with their customers.

Customer relationship management (CRM)

CRM – “Strategy used to learn more about customers’ needs and behaviours in order
to develop stronger relationships with them”
CRM is a term that refers to practices, strategies and technologies that companies use
to manage and analyse customer interactions and data throughout the customer lifecycle, with
the goal of improving customer service relationships and assisting in customer retention and
driving sales growth.
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Why CRM is Important?

For the business going to last, you know that you need a strategy for the future.
The company already have targets relating to sales, business objectives and
profitability. But getting up-to-date, reliable information on the progress towards your goals
can be tricky.
How well the company translate the many streams of data coming in from sales
teams, customer service staff, marketers and social media monitoring into useful business
information.
Complaint Resolution
A complaint is someone letting you knew that you haven’t satisfied customer.
Complaints should be viewed as opportunities to improve.
The transformation of a negative situation into one in which the complainant is
restored to the3 state existing prior to the occurrence of a problem.

Types of complaint resolution process

Compensate Contrition Complaint

Feedback
Customers voice (wants, perception, opinions, desires)
Sources data: Directly from customer
: Solicited or without solicitation
: Customer feedback - Feedback to customer
- Feedback to firm
Guarantees
A formal assurance (typically in writing) that certain conditions will be fulfilled,
especially that a product will be repaired or replaced if not of a specified quality.
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Corrective Action
Most important aspects of CRM.CA means that when a service of product failure
occurs, the failure is documented and the problem is resolve in a way that it never happens
again.
1. How To Do?

2. What is CRM System?

Customer-related data such as personal, internet, process, and customer-preference
information are managed, stored and retrieved through computer-aided system.
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Used to manage three phases of CRM:

i. Acquisition
ii. Retention
iii. Enhancement
Allow for providing customer contact, product configuration, campaign management,
dealer/distribution management, pipeline management, telemarketing, customer interaction
centers, customer analysis, field service management, self-service, personalization, and
supply-chain management.

3. Actively soliciting Customer Feedback Approaches:

Includes all supplier-initiated contact with customer.
The three most common arenas are:
i. Telephoning customer
ii. Conducting focus group
iii. Sending out
These types of information called Soft Data.

i. Telephone Contact
So called telephone survey.
Often used to gather information related to customers.
This is a type of convenience survey method.

ii. Focus Group

A focus group allows a supplier to gather feedback from a group of consumers at one
time.
This groups are focus in two ways:
i. Focus groups narrowly address a single topic or group of topics.
ii. Focus groups draw individuals with similar characteristics or demographics.

Focus Group steps:

i. Identify purpose
ii. Narrow scope of questions
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iii. Select target population

iv. Run multiple groups
v. Summarize and develop common themes
iii. Customer Service Surveys (CSS)
Determining customer perceptions of customer service and quality and is used by
marketers and quality professionals in defining areas of strength and areas for improvement
in quality system.
A survey (instrument) consists of a series of items (questions) designed to capture
perceptions.
The number of items is determined by the purpose of the instrument and the
willingness of respondents to spend time filing out the survey.

4. What is Passively Soliciting Customer Feedback Approaches?

Customer-initiated contact, such as filling out a restaurant complaint card, calling a
tool-free complaint line, or submitting an inquiry via web site.
This method resulted in lower ratings of quality than active method.

5. Managing Customer Retention and Loyalty:

An important indicator of CS is Customer Retention.
CS is measured as the percentage of customers who return for more service.
Customer retention will increase by application of the service tools and concept.
Service tools - Data gathering and analysis.
Customer loyalty can be instilled by offering specialized service not available from
competitors.
This can take many forms – such as high customer contact or technology
advancements

3.0 Conclusion
As a conclusion, the voices of the customer is very important because it will constant long-
term in orders the company want to regain a profit. The manufacturers must follow the
process that needed in order to increase the better quality product or services. The better
customer relationship management CRM, will help two way communication in between the
customer and manufacturers.