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MANUFACTURING BASICS & BEST PRACTICES BULLETIN

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HEADS UP!

We are currently working on our 2005, 1-Day Forum 
schedules and we need your feedback on geographical 
interest. If you are interested in attending one of 
the below forums, just click on the respective link, 
scroll down to the input form and let us know your 
location preference. (No obligation, of course.)

Bill Gaw’s 1-Day, Lean Manufacturing Forum: 

http://bbasicsllc.com/kblm.seminar.htm


George Zalatan’s, 1-Day, ISO 9000:2000 Forum:

http://bbasicsllc.com/iso9000.seminar.htm


George Zalatan’s, 1-Day Six Sigma Simplified Forum:

http://bbasicsllc.com/LSS.Seminar.htm


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December 13, 2004

Hi [[firstname]], 

Is your company’s quality system producing products 
and service that exceed your customers’ expectations? 

Remember, “The reality of customer satisfaction is in 
the eyes of the beholder. . . the customer.” 

The sooner we accept our customers’ perceptions of 
our products and service quality as reality, and 
accept it as our challenge, the sooner we will earn 
their confidence and become their permanent “supplier 
of choice."

To that end, today’s writing is about total quality 
management systems and self-directed IS0 9000:2000 
compliance. If your company is serious about improving 
their quality performance, don’t miss out on reading 
today’s bulletin. 

Have a nice day, keep the faith, and stay connected.

Bill Gaw
bg@bbasicsllc.com
760-945-5596
==========================================
MANUFACTURING BASICS & BEST PRACTICES BULLETIN

Now serving 6931 subscribers

Competitive Knowledge for Manufacturing People 
==========================================

TOTAL QUALITY MANAGEMENT SYSTEM 

Total Quality Management (TQM), Quality Management 
System (QMS), Customer Satisfaction System (CSS),
Customer Relations Management (CRM), and Quality 
Assurance System (QAS) are buzz words you most 
likely have heard. What are they, and what do they 
really mean? One thing we know, buzz words or not,
companies that have such systems in place are more 
successful than those that don’t.

Perhaps these companies have something your Company 
doesn't? Strictly speaking, any business or company 
operating successfully must have a quality system to 
run the business. Then, what is this so-called “Quality 
System” or “Quality Management System?” Is it something 
new that can solve all your problems? Rest assured... 
it is nothing new. It is documenting commonsense rules 
or methods for running a successful business. 

DEFINING THE QUALITY SYSTEM

Before we define the quality system, first we should 
try to define the term “quality.” We associate the term 
quality with “degree of excellence, superiority of some 
kind, a characteristic or feature.” We all know what 
quality is. We know that Rolls Royce is a quality car. 

Yet, there are more Fords on the road compared to Rolls 
Royces. How do you measure this degree of excellence or 
superiority? Does quality means luxurious? Expensive? 
Popular? The problem is in defining the term “quality” 
itself. 

Leave the term “quality” for a moment. Just think what 
is your, or for that matter the majority of the 
businesses aim or goal? Obvious, to make money! How do 
you make money (profit)? You have to supply a product 
or a service: 

• What the market wants (meets the stated or implied 
requirements of the customer)
• When it wants (delivered on time and every time)
• At a price it is prepared to pay (produce and supply 
at as low cost as possible)

For our purposes, the definition of “quality” is the 
same as the above three points. At its most basic, 
quality means producing what is wanted and when it 
is wanted. 

• Your business goal = profit = quality, so, your 
business goal must be quality. 

Once you have defined the term “quality” as above, the 
definition of a quality system becomes very simple. A 
system that achieves your business goal (quality = 
profit) is the quality system. More technically a 
Quality System can be defined as “the organizational 
structure, responsibilities, procedures, processes and 
resources required to achieve the management goals or 
objectives”. 

The layman's definition of quality system is “a 
documented system of how to run or manage a successful 
business”. As this is all about managing your business, 
it is frequently called “Management System” or “Quality 
Management System.” As any such system provides 
“assurance” both for customers and yourself, it is 
often called a “Quality Assurance System.” 

The companies possessing a Quality System have 
documented their systems in writing in the form of 
Manuals, Procedures and Instructions. You have your 
own Quality System if you document the way of running 
your business and implement it consistently. The 
establishment of rules, the documentation of those 
rules and ensuring that all employees maintain those 
rules are the nucleus of a Company's Quality System. 
The documented system should cover all aspects of 
your Company's operations. 


WILL A QUALITY SYSTEM SOLVE ALL PROBLEMS? 

Many consultants within the quality assurance field 
sell the Quality System as “a panacea of all ills 
which saves money and improves everything.” The 
reality is far from true. Many companies boast having 
certified quality systems, but you may notice that 
their quality has not improved and in some cases 
deteriorated. Are the quality systems to blame?

Many companies develop a Quality System as a new 
concept or way of operating. This is the root cause 
of the problem. Companies write new procedures and 
methods which force out existing unwritten practices 
or rules. The common quote is “the standard says we 
need that.” As a consequence two systems end up 
operating within a Company. 

The first is the “informal” system, the unwritten 
system to which the Company always worked and which 
worked well. This informal system is responsible for 
“real quality” in the product or service. 

The second, the new Quality System, is the “formal” 
system with flashy and well-presented documents such 
as quality manuals and procedures to impress the 
customers and certifying bodies. This system is 
responsible for “paper quality” that is, quality on 
paper only, and creates documentation for the sake 
of it. The same personnel responsible for “real 
quality” have to also satisfy the “paper quality” 
due to the introduction of the new system. 
Obviously, less time will be available for “real 
quality,” which leads to either no improvement or 
education in “real quality.” 

These two systems are like a railway track. Two rails 
running parallel, always close to each other but never 
meeting. To be of any use or benefit, a Quality System 
must document and reflect the rules or methods you 
are currently following. You must avoid having both 
systems, the formal and informal, running within a 
company. Not properly documenting a system to your 
individual company's needs, costs time and money both 
in the short-term and long-term. 

A well-developed system tailored to the company's needs 
will always help in achieving its goals. When a Quality 
system is implemented for the first time, the benefits 
may not be visible immediately. Not everybody likes to 
follow the rules and many enjoy individuality in the 
way they carry out their duties. Any written system or 
standard takes away the individuality and to adhere to 
uniform rules requires discipline. Discipline comes 
through culture, education and the learning process. 
As this cultural or learning process takes time, you 
may not see the benefits of the Quality System in the 
short-term. You can see the negatives immediately as 
employees resent this new discipline. 

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NEED SOME HELP?

Today, most Quality Management Systems are developed 
in accordance with ISO 9000:2000. ISO 9000:2000 is an 
International Specification that provides a blueprint 
for structuring and deploying an effective Quality 
Management System.

If your company needs help in improving their quality 
system, achieving ISO 9000 compliance(not certification) 
would be a cost-effective manufacturing/company goal.

Many manufacturers have successfully implemented ISO 
9000 with the help of Bill Gaw’s e-Tutorial, “Self-
directed ISO 9000:2000 Conformance.” You can too. 
Check it out at:

http://bbasicsllc.com/iso9000.htm

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West Coast: 760-945-5596

Manufacturing Knowledge you’ll not find at offsite 
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Lean Manufacturing - Balanced Scorecard 
ISO 9000:2000 - Strategic Planning - Supply Chain 
Management - MRP Vs Lean Exercises - Kaizen Blitz 
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Manufacturing Knowledge you’ll not find at offsite 
seminars nor in the books at Amazon.com


Lean Manufacturing - Balanced Scorecard 
ISO 9000:2000 - Strategic Planning - Supply Chain 
Management - MRP Vs Lean Exercises - Kaizen Blitz 
Lean Six Sigma - Value Stream Mapping

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