Quality from Customer Needs to Customer Satisfaction

Preface to the fourth edition 19

The authors 21

Overview of the book  22

Part I

Quality and quality management

1  Some basic quality concepts  26

1.1 A new business landscape 27

1.1.1 Possibilities in the new business landscape 28

1.1.2 Quality improvement ever more central 28

1.2 The quality concept  29

1.2.1 Some common definitions 30

1.2.2 Garvin’s five perspectives on quality 31

1.2.3 Our view of the quality concept  33

1.3 Customers, customer value, and customer needs 34

1.3.1 Customer value 34

1.3.2 The concept of customer 35

1.3.3 Customer needs and expectations 37

1.4 The concept of product 38

1.4.1 Goods 39

1.4.2 Services 39

1.4.3 Goods vs. services 40

1.4.4 Experiences 41

1.4.5 Blurred product boundaries 42

1.4.6 Offers 44

1.5 Products and their quality dimensions 45

1.5.1 Quality dimensions of goods 45

1.5.2 Quality dimensions of services 46

1.5.3 A note on quality dimensions 48

1.6 Quality and profitability  48

1.7 Total Quality Management  52

1.7.1 Total Quality Management – our version 53

1.7.2 Total Quality Management – the origin 55

1.8 Further reading and endnotes  55

2  Total Quality Management  58

2.1 Total Quality Management – the concept  59

2.2 Total Quality Management – the cornerstones 61

2.2.1 Focus on customers 61

2.2.2 Base decisions on facts 64

2.2.3 Focus on processes 64

2.2.4 Improve continuously 66

2.2.5 Let everyone take an active part  70

2.2.6 Develop committed leadership 72

2.2.7 Values and principles – a clarification  73

2.3 Total Quality Management – the knowledge base 73

2.4 Further reading and endnotes  75

3  The evolution of quality management 77

3.1 Prehistory 77

3.2 The Industrial Revolution 78

3.2.1 Specialization and assembling 78

3.2.2 Taylorism 79

3.2.3 Acceptance sampling 80

3.3 Walter A. Shewhart 81

3.4 W. Edwards Deming  83

3.5 Joseph M. Juran 83

3.6 The Japanese miracle 85

3.6.1 An igniting spark 85

3.6.2 JUSE and its impact 86

3.6.3 The significance of Deming and Juran for Japan’s development 88

3.6.4 Influential persons from Japan 89

3.7 The development of reliability engineering 90

3.8 Service quality 93

3.9 Quality management in the public sector 94

3.9.1 New Public Management 94

3.9.2 Developments in healthcare  95

3.9.3 Developments in the field of education 96

3.10 In recent decades 97

3.10.1 Background 97

3.10.2 The awakening in the West 98

3.10.3 Is the Japanese halo askew? 99

3.10.4 New challenges 100

3.11 Evolution of the quality movement 101

3.11.1 Four phases of the quality movement 102

3.11.2 The quality movement seen as two schools of thought  103

3.11.3 The quality movement reaches quality management 5.0 104

3.11.4 Total Quality Management today and in the future 105

3.12 Further reading and endnotes 106

Part II

Customers and employees

4  External customer satisfaction 112

4.1 Customer needs and the Kano model  112

4.1.1 Customer needs 112

4.1.2 The Kano model 114

4.2 Customer care 119

4.2.1 Customization 119

4.2.2 Nudging 120

4.2.3  Customer relations 121

4.2.4 Customer experience (CE) 122

4.2.5 Warranty and L.L. Bean 123

4.3 Satisfaction, loyalty, and repurchase 124

4.3.1 Loyalty  124

4.3.2 Customer clubs 125

4.3.3 Satisfaction and rate of repurchase 126

4.3.4 Satisfaction, repurchase rates, and revenue 129

4.4 Some explanatory models 130

4.4.1 The Grönroos model 130

4.4.2 A model for customer satisfaction 130

4.4.3 The Gap Model 131

4.5 Measuring external customer satisfaction 134

4.5.1 Dissatisfaction and complaints 134

4.5.2 Measuring satisfaction 137

4.6 Co-creation and value-creating networks 141

4.7 Closing the loop 143

4.8 Further reading and endnotes 144

5  Internal customer satisfaction 148

5.1 Opportunities for improvement 148

5.2 Work and motivation  150

5.2.1 Some early studies 150

5.3 Co-workership and motivation 156

5.3.1 Co-creation and co-workership 156

5.3.2 Drivers for motivation 159

5.3.3 Flow theory 162

5.3.4 The human view 164

5.3.5 Psychological safety 164

5.4 Motivation and presence of health  166

5.5 Measuring internal customer satisfaction 166

5.5.1 Internal measurements 167

5.5.2 Employee surveys – comments and suggestions 168

5.6 Further reading and endnotes 169

6  Customer satisfaction measurements 173

6.1 External customer satisfaction 173

6.1.1 The Swedish Quality Index 173

6.1.2 The American Customer Satisfaction Index 179

6.1.3 The European Customer Index (EPSI) 181

6.1.4  An industry index – J.D. Power 182

6.2 Relationships between internal and external customer satisfaction 184

6.3 Concluding comments 186

6.4 Further reading and endnotes  187

Part III

Improvement work

7  Continuous improvement  190

7.1 Improvement knowledge 190

7.1.1 Knowledge about variation 191

7.1.2 Psychology 192

7.1.3 Theory of knowledge 192

7.1.4 Appreciation for a system 193

7.1.5 A system of knowledge 194

7.2 Organizational improvement capability  195

7.3 Variation 196

7.3.1 Assignable and random variation 198

7.3.2 Adding variation 200

7.4 Improvement cycles 201

7.4.1 Deming’s improvement cycle 201

7.4.2 Nolan’s improvement model 203

7.4.3 The DMAIC cycle 204

7.4.4 Juran Trilogy 205

7.4.5 Quality improvement storyboard 206

7.5 The breakthrough methodology 208

7.6 Improvement groups 209

7.6.1 The beginning of quality control circles 210

7.6.2 New QC circles 211

7.7 Toyota Kata 213

7.8 Systems for suggesting improvements 214

7.8.1 Japanese suggestion systems 214

7.8.2 Comparing Japan and the US 215

7.8.3 Success factors 216

7.9 Further reading and endnotes 216

8  The Seven Improvement Tools 221

8.1 Data collection 222

8.2 Pareto charts 224

8.3 Cause-and-effect diagrams 225

8.4 Histograms 230

8.5 Stratification 232

8.6 Scatter plots 234

8.7 Control charts 235

8.8 Further reading and endnotes 237

9  The Seven Management Tools  239

9.1 Affinity diagram 240

9.2 Tree diagram 243

9.3 Matrix diagram 247

9.4 Relation diagram 248

9.5 Matrix data analysis 250

9.6 Process decision program chart 250

9.7 Arrow diagram 251

9.8 Relationships between the different tools 253

9.8.1 An improvement project – haemolysis  253

9.9 Further reading and endnotes  259

Part IV

Product development

10  Product development with a customer focus 262

10.1 Success factors 263

10.2 Models for product development 264

10.2.1 Stage-gate development 264

10.2.2 Agile product development 265

10.2.3 Scaling up 269

10.2.4 A hybrid 270

10.3 Developing product families 272

10.4 Integrated product development 275

10.5 Technology development  275

10.5.1 Technology push or market pull 276

10.5.2 The improvement perspective 276

10.6 Design thinking  277

10.6.1 Experience-Based Co-Design 278

10.7 Service development 279

10.7.1 Models for service development 280

10.8 Innovative product development  284

10.9 Further reading and endnotes 285

11  Quality Function Deployment 288

11.1 Background 288

11.2 The voice of the customer 291

11.3 The House of Quality 292

11.3.1 Design 292

11.3.2 An example of the House of Quality  293

11.3.3 QFD as a chain of activities 293

11.4 Experiences of QFD  295

11.4.1 Examples of applications 295

11.4.2 Benefits and difficulties 297

11.5 Kansei Engineering 298

11.6 Pugh Concept Selection Matrix 299

11.7 Further reading and endnotes 300

12  Reliability 302

12.1 Reliability engineering 303

12.1.1 The aim of reliability engineering 303

12.1.2 Reliability and dependability 305

12.2 Basic concepts 306

12.2.1 Reliability function 306

12.2.2 Failure rate 307

12.3 Reliability improvement 310

12.4 System reliability 311

12.4.1 Series systems 312

12.4.2 Parallel systems 312

12.4.3 Other systems 313

12.4.4 Redundancy 314

12.5 Repairable systems 316

12.6 Feedback 317

12.6.1 Probability plotting 317

12.7 Some tools for qualitative analysis 321

12.7.1 Failure mode and effect analysis (FMEA) 321

12.7.2 Variation mode and effects analysis (VMEA)  322

12.7.3 Fault tree analysis (FTA) 324

12.8 Predictability and black swans  325

12.9 Safety and security 327

12.9.1 Safety 328

12.9.2 Security 328

12.10 Further reading and endnotes 329

13  Design of Experiments 333

13.1 Experimenting one-factor-at-a-time 333

13.2 A weighing experiment 335

13.3 A factorial design 337

13.3.1 An experimental plan 338

13.3.2 Estimating effects 339

13.3.3 Analyzing the results from the experiment 343

13.4 Fractional factorial designs 347

13.5 Studied factors and disturbing factors 350

13.6 Conjoint analysis 351

13.6.1 Conjoint analysis used for course development 352

13.7 Forecasting  353

13.8 Further reading and endnotes 355

14  Robust design  357

14.1 Some illustrations 358

14.1.1 Wingquist and the spherical ball bearing 358

14.1.2 Assembling 359

14.1.3 Poka Yoke 359

14.1.4 A pendulum 360

14.1.5 A transistor 360

14.2 Variation and its consequences 361

14.2.1 Sources of variation 361

14.2.2 P-diagram 363

14.2.3 The loss function 364

14.3 Parameter design 367

14.4 Design of Experiments for robustness 369

14.4.1 An example of Design of Experiments for robust design 369

14.4.2 Taguchi’s solution 372

14.5 Tolerance setting 373

14.6 Robust design – a summary 374

14.6.1 Principles 374

14.6.2 Beyond robustness 376

14.7 Further reading and endnotes 376

Part V

Process development

15  Processes and process management 380

15.1 Processes 381

15.1.1 What is a process? 381

15.1.2 Classifying processes 382

15.1.3 Process logic  384

15.1.4 Not everything is a process  386

15.1.5 Conceptual confusion in the process area 387

15.2 Process management 388

15.2.1 The process management methodology 388

15.2.2  Different roles in process management 393

15.3 Benchmarking 397

15.4 Process innovation 400

15.5 The Capability Maturity Model 401

15.6 The customers’ processes 404

15.7 Some reflections 404

15.8 Further reading and endnotes 405

16  Control charts 408

16.1 Principles for control charts 408

16.1.1 Requirements on control charts 409

16.2 Control charts for attribute data 412

16.2.1 np-charts and p-charts 412

16.2.2  c-charts 415

16.3 Control charts for continuous data 415

16.3.1 Sample size 416

16.3.2 Rational subgroups 417

16.3.3 Choice of control limits 418

16.3.4 An x -chart when µ and σ are unknown 419

16.3.5 Control charts for dispersion 423

16.3.6 Combining x-charts and R-charts 426

16.4 Sensitivity 426

16.5 Some other control charts 427

16.5.1 The Western Electric alarm signals 427

16.5.2 EWMA charts 429

16.5.3  A note on positive lower control limits 430

16.6 Further reading and endnotes 431

17  Capability  433

17.1 Capability measures 434

17.1.1 Some capability indices 434

17.1.2 Sensitivity and robustness of capability indices 437

17.2 Short-term and long-term capability 438

17.3 Capability studies 441

17.3.1 The steps of a capability study 441

17.3.2  Data analysis and measurement precision 445

17.3.3  Repeatability and reproducibility 446

17.3.4 Performing capability studies 449

17.4 Further reading and endnotes 451

18  Production development 453

18.1 Manufacturing development 454

18.2 The possibilities of digitalization 457

18.2.1 The Internet of Things 457

18.2.2 Artificial intelligence 458

18.2.3 Big data 459

18.2.4 Digital maturity  460

18.3 Smart industry 460

18.4 Digital customer journey 462

18.5 Supplier collaboration 463

18.5.1 The purchasing process  464

18.5.2 Supplier collaboration and partnership 465

18.5.3 Concluding remarks on supplier collaboration 469

18.6 Further reading and endnotes 470

Part VI

Organizational development

19  Leadership 474

19.1 Leaders and leadership  475

19.1.1 Manager and leader – management and leadership 475

19.1.2 Leadership and communication 477

19.1.3 Examples of excellent leadership 480

19.1.4 The leadership of Ingvar Kamprad 481

19.2 Leadership of the digital revolution 484

19.3 Deming’s view on leadership 488

19.4 Learning organizations 493

19.4.1 Five disciplines 493

19.4.2 Single-loop and double-loop learning 496

19.5 Corporate culture 497

19.6 Total Quality Management as a system 500

19.7 Total Quality Management – possibilities and difficulties  503

19.8 Further reading and endnotes 509

20  Vision, goals, and strategies 514

20.1 Mission and vision 514

20.1.1 Mission 514

20.1.2  Vision 515

20.2 Goals, strategy, and policy 517

20.2.1 Goals 517

20.2.2 Activities and strategy 521

20.2.3 Policy 522

20.3 Policy deployment 523

20.3.1 Example of policy deployment at SÄS 525

20.4 Balanced scorecards and balanced control 531

20.4.1 Balanced scorecards 531

20.4.2 Balanced control 532

20.4.3 Applications of balanced control 534

20.4.4 Experiences of balanced control 536

20.5 Further reading and endnotes 537

21  Quality management systems  540

21.1 The ISO 9000 series 541

21.1.1 Background of ISO 9000 541

21.1.2 Parts of the ISO 9000 series 542

21.1.3 ISO 9000:2015 543

21.1.4 ISO 9001:2015 quality management systems – requirements 547

21.1.5 ISO/TS 9002:2016 550

21.1.6 ISO 9004:2018 550

21.1.7 ISO 19011:2018 552

21.1.8 Some reflections on the ISO 9000 series 553

21.2 Certification of quality management systems 554

21.2.1  Third-party certification 554

21.2.2 Certification of quality management systems  554

21.3 Some other standards 557

21.3.1 IATF 16949 for the automotive industry 557

21.3.2 TL 9000 for telecom 558

21.3.3 AS 9100 for the aerospace industry  559

21.4 Further reading and endnotes 560

22  Organizational assessments 562

22.1 The Deming Prize 562

22.1.1 Background  562

22.1.2  Recipients of the Deming Prize 564

22.1.3 The Rane Group 566

22.2 Malcolm Baldrige National Quality Award  567

22.2.1 Model and criteria 567

22.2.2 The award process 569

22.2.3 Award recipients 571

22.3 The EFQM Global Award 574

22.3.1 The EFQM Model 574

22.3.2 The recognition and award processes 576

22.3.3 Award recipients 579

22.4 The Swedish Quality Award 579

22.4.1 The SIQ Management Model 579

22.4.2 The Swedish Quality Award process 582

22.4.3 The Swedish Institute for Quality (SIQ)  582

22.5 Self-assessment 583

22.5.1 The Springboard 586

22.6 Further reading and endnotes 589

23  Improvement programmes  593

23.1 Six Sigma 593

23.1.1 Six Sigma as an improvement programme 594

23.1.2 Six Sigma deployment  600

23.2 Lean 603

23.2.1 Lean concepts and tools 603

23.2.2 Lean, Toyota Production System, and The Toyota Way 609

23.2.3 Lean, the Toyota Way, and TQM 613

23.2.4 Lean Six Sigma 614

23.3 The Scania Production System 614

23.4 Names are not relevant – content is 616

23.5 Further reading and endnotes  618

Part VII

Societal development

24  Sustainability 622

24.1 Environmental consciousness 622

24.1.1 Silent Spring 622

24.1.2 The Intergovernmental Panel on Climate Change 624

24.1.3 Eco-labelling 626

24.2 Sustainable development  627

24.2.1 Three dimensions of sustainability 627

24.2.2 Agenda 2030 628

24.2.3 COP 26 in Glasgow 630

24.3 Corporate social responsibility (CSR) 630

24.3.1 The concept of CSR 630

24.3.2 Global Reporting Initiative (GRI) 631

24.4 Standards for Sustainable Development 632

24.4.1 Environmental management systems – ISO 14000 and EMAS 632

24.4.2 International standard ISO 26000 633

24.5 Sustainability in practice 634

24.5.1 Sustainability and responsibility in organizations 635

24.5.2 Actions for Sustainable Development 642

24.6 Further reading and endnotes 646

25  Quality in society 648

25.1 Urban quality development 648

25.1.1 Examples of TQM initiatives 649

25.1.2 Examples of sustainability initiatives 649

25.2 Global challenges 652

25.2.1 The climate crisis 652

25.2.2 The Covid-19 pandemic 653

25.3 A total quality society 662

25.3.1 Society 5.0 – a Japanese vision of the future  662

25.3.2 An even better society 664

25.4 Further reading and endnotes 665

Part VIII

References 
 Index

References 670

Index 707