May 2003 e-Newsletter

May, 2003

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May Articles Training in Atlanta

1. Checklist for Creating Procedures
2. Writing for a Global Audience

3. Toughest ISO 9001:2000 Requirements (8.2.1)

4. Book Review: Customer Satisfaction

5. ISO 10012 for Measurement Management Systems

6. Class Schedule: May, 2003 - July, 2003

To see previous articles, go to Newsletter Archives.

ISO 9001:2000 Lead Auditor
June 9-13, 2003

ISO 9001:2000 Internal Auditor
May 28-30, 2003
July 23-25, 2003

ISO 9001:2000 Auditor Transition
May 5-6, 2003

Implementing ISO 9001:2000
July 21-22, 2003

Understanding ISO 9001:2000 Requirements
May 27, 2003

Training Classes in Other Cities

1. Checklist for Creating Procedures

Keep this checklist of questions handy when writing a procedure:

1. What is the objective of the process? Know its purpose before starting.
2. Which activities are part of the scope? Agree on the coverage of activities.
3. Who is responsible for these activities? Identify the key process players.
4. What are the inputs and who supplies them? Identify the inputs and suppliers.
5. What are the outputs and who receives them? Identify the outputs and customers.
6. What is referred to as an information source? Identify any reference documents.
7. How are the activities performed? Interview users and observe operation.
8. Which departments use the process? Know readers and users of the process.
9. What reports or records are generated? Identify records for process.
10. What forms are used? Don’t overlook forms used to collect information.
11. When and where is the work performed? Identify timing and location of work.
12. What products are covered by the process? Define its applicability.
13. What process documents already exist? See if documents can be adapted.
14. What is the logical sequence of steps? Organize the steps in a logical way.
15. What are the requirements of the process? Know user and organization needs.
16. What is the quality criteria? Identify the acceptance criteria for the process.
17. How is workmanship judged? Identify any workmanship standards.
18. What are the related procedures? Ensure compatibility with other processes.
19. Which tasks have or need instructions? Add or refer to the needed instructions.
20. How might the process be audited? Be able to demonstrate conformity.

2. Writing for a Global Audience

The English language contains thousands of idioms (phrases not meant to be taken literally). We use them in our speech so they may appear in documents. For example, “just as soon” should be “quickly” to avoid confusing readers of our documents in other countries.

The specialized or technical language of a trade or profession is called jargon. Be careful to use only commonly accepted terms. Your local jargon may be unknown to the rest of the world. For example, a “seamless” process should be called a “well-integrated” process.

Eliminate terms in global documents that are uniquely American. Use of a baseball reference, such as “touch base with”, should become “contact”.

Humor may be useful in advertising materials to gain the reader’s attention, but is seldom appropriate for other business documents. Your intended humor may not funny in other cultures.

Most of the world is metric, so provide metric equivalents for the readers in other countries. For example, express dimensions in both inches and centimeters.

We use a date format of mm/dd/yy. Other countries use formats of dd/mm/yy or yy/mm/dd. Express the full date (May 1, 2003) to avoid confusion.

3. Toughest ISO 9001:2000 Requirements (8.2.1)

In an earlier newsletter, I identified twelve ISO 9001:2000 clauses as the toughest requirements to understand and meet with conforming practices. Clauses 4.1, 5.1, 5.4.1, 6.3, 7.3.1, and 7.5.2 have been addressed in past newsletters.

This article picks up with clause 8.2.1, Customer Satisfaction:

As one of the measurements of the performance of the quality management system, the organization shall monitor information relating to customer perception as to whether the organization has met customer requirements. The methods for obtaining and using this information shall be determined.

Will tracking only customer complaints satisfy this requirement? What is meant by customer perception? Could it involve actually asking the customer how well you are meeting their requirements? Could it mean establishing customer communications on the subject?

Clause 7.2.3 requires "communicating with customers in relation to (c) customer feedback, including customer complaints." So, customer feedback is expected to be more than just complaints.

Customer satisfaction is defined by ISO 9000:2000 as the "customer's perception of the degree to which the customer's requirements have been fulfilled." Notice it doesn't refer to the organization’s own perception; instead, it focuses on the customer’s view of how well their requirements are being met.

Note 1 states "customer complaints are a common indicator of low customer satisfaction, but their absence does not necessarily imply high customer satisfaction."

Note 2 says "even when customer requirements have been agreed with the customer and fulfilled, this does not necessarily ensure high customer satisfaction."

If you agree that complaints alone may not satisfy the customer satisfaction requirement, what would? One option is to ask for feedback through surveys to gain direct information on how well customers perceive your products and services. The survey information could be gathered by an independent firm, solicited by your own sales group, or collected through forms distributed with your offering.

However, complaints are an important indicator and should not be overlooked. This information, along with other feedback, such as product returns and customer scorecards, can provide early warning signals between periods of your more direct monitoring of customer satisfaction.

Capturing the "voice of the customer" is an important business activity. Recognize that you may have different types of customers. If you sell to wholesalers, who sell to retailers, who sell to the end users, then you have three types of customers, all with different needs. You might be satisfying one group and upsetting another. To be successful, you need to satisfy each customer in the supply chain.

Organizations need to systematically collect, record, and analyze data on the quality of their products and services (as viewed by customers). The customer view of your performance as a supplier will likely change over time, so monitoring the degree of satisfaction is an ongoing activity. However, the cost of monitoring all your customers might be prohibitive. So, select the appropriate customer set based on factors like:

Impact of any individual customer on your business
Criticality of your offering on the customer business
Degree of repeat business by individual customers

Studies have shown a strong linkage between customer satisfaction and financial performance. To ensure customer feedback is properly evaluated, organizations should identify the specific attributes that customers believe are most critical, as well as, the relative importance of these attributes. We should ask the right questions to learn what customers think about our offerings.

Examples of product attributes include ease of installation, reliability, efficiency, ease of maintenance, and durability. How do we go about obtaining information on these and other customer satisfaction attributes? Sources may include market surveys, focus groups, trip reports, customer questionnaires, product survey cards, post-transaction interviews, service reports, warranty reports, competitor benchmarks, advisory groups, trade associations, consumer organizations, as well as, complaints, returns, and other forms of customer feedback.

Competition

If you are going to ask customers about your products and services, wouldn't it be nice to also know how they compare you to the competition? Your key customers may be "satisfied" with your performance, but "more satisfied" with your competitors. Without this information, your organization may fail to take the appropriate actions. Sometimes, customers help by issuing periodic supplier scorecards that compare the performance of their suppliers.

Loyalty

Customer satisfaction measures the customer's view of an organization's performance. Customer loyalty is the behavioral outcome of these customer perceptions. Acceptable levels of customer satisfaction do not guarantee loyalty and acceptable sales. In some industries, 9 of 10 customers report they are satisfied or very satisfied, but only a third of them actually buy again. To better understand the customer satisfaction data, you should investigate customer loyalty and their intention to purchase again. One study showed that reducing the defection rate to your competitors by 50% can increase profits by more than 25%.

Analysis

Clause 8.4 on Analysis of Data requires an organization to determine, collect, and analyze data to evaluate how to improve the effectiveness of the quality management system. Customer satisfaction is listed as one of the key areas needing analysis.

The results of these measurements must be used by the organization to achieve higher levels of customer satisfaction. The results should be communicated to line management so they understand the feedback and take the appropriate actions.

Research on customer satisfaction can be expensive. Start simple. Identify the basic measurements. Include gathering information from customers as part of your planning cycle.

Surveys

Surveys aren't as simple as just asking for the customer's overall satisfaction. They may be pleased with your product, yet dissatisfied with your support. Consider measuring several attributes so you understand what was behind the overall satisfaction rating.

Possible questions for a simple customer satisfaction survey are:

How satisfied are you with:
1. Customer Service: our process for easily placing orders and providing timely product information?
2. Product Delivery: the on-time delivery and received condition of our products?
3. Product Quality: the degree to which your requirements for our products are being met?
4. Sales Support: the product knowledge, support, and responsiveness of your sales representative?
5. Product Value: the value of our products considering their application, operation, and cost?
6. Competitive Comparison: our products and support compared to that of our competition?
7. Overall Performance: our overall performance considering the importance of these areas to your business?

The response scale could be on a scale of 1-10, or a) very satisfied; b) satisfied; c) neutral; d) dissatisfied; and e) very dissatisfied.

You could also ask customers about:

8. Improvement Suggestions: If you could improve one thing about our product, what would it be?
9. Customer Loyalty: Do you expect to buy from us again? Would you recommend us to others?
10. Other Comments: Do you have any comments to share with us about our products, services, or support?

Independent of ISO 9001, we should already be trying to satisfy our customers as a basic business strategy. An article in a past issue of Quality Digest (Measuring and Managing Customer Satisfaction by Kevin Cacioppo) included these interesting facts:

A 5 percent increase in loyalty can increase profits by 25% to 85%
A "very satisfied" customer is nearly six times more likely to repurchase and/or recommend your product than a customer who is just "satisfied"
Only 4 percent of dissatisfied customers will complain
The average customer with a problem eventually tells nine other people
Satisfied customers tell five other people about their good treatment

You must also define the methods for obtaining and using the customer satisfaction data. Although a documented procedure isn't required, your organization may want to document the process due to its importance. The process should include reporting customer satisfaction levels and trends at management reviews and then initiating the necessary activities to improve customer relationships. We had better do it well. Customers are the reason we are in business.

4. Book Review: Customer Satisfaction

Craig Cochran is the author of a book titled, "Customer Satisfaction: Tools, Techniques, and Formulas for Success". Craig begins by explaining how different customers can use the same product and yet have radically different views of its quality.

He presents five tools to help your organization monitor and analyze customer satisfaction:

1. Call Reports - use of existing communication systems to probe customer perceptions
2. Field Reports - visits to customer sites to gather more in-depth information
3. Comment Cards - simple tool to capture user information on products and services
4. Complaint Systems - use of customer complaints for positive organizational responses
5. Customer Surveys - quantitative customer views of your organizational performance

Craig describes the use and benefits, and provides samples, of these tools. The paperback book is only 90 pages, but filled with good information about customer satisfaction. It is light on theory, but heavy on practical tools. His writing style makes for easy and enjoyable reading.

You can order a copy at: <http://patonpress.com/Books/Customer_Satisfaction/customer_satisfaction.html>. Be sure to use the Caps where shown.

Craig told me he will send electronic copies of the tools to anyone that buys his book.

5. ISO 10012 for Measurement Management Systems

ISO 10012:2003 has been released. Its title is Measurement Management Systems - Requirements for Measurement Processes and Measuring Equipment.

It replaces ISO 10012-1:1992, Quality Assurance Requirements for Measuring Equipment - Part 1: Metrological Confirmation System for Measuring Equipment and ISO 10012-2:1997, Quality Assurance for Measuring Equipment - Part 2: Guidelines for Control of Measurement Processes.

You can order an electronic copy for $60.00 at ANSI's Electronic Standards Store: http://webstore.ansi.org/ansidocstore/product.asp?sku=ISO+10012%3A2003

6. Class Schedule for May, 2003 - July, 2003

To enroll in these public classes, go to Class Schedule at our web site, or call us at 800-404-7585. The classes taught by Larry Whittington are shown in gold.

ISO 9001:2000 Lead Auditor (ANSI/RAB-NAP Accredited) - BSI Management Systems
Course developed by Larry Whittington

May
June
July

05-09 Reston, VA 02-06 Orlando, FL 07-11 St. Louis, MO ????

19-23 Houston, TX 09-13 Atlanta, GA 14-18 San Jose, CA

- - 09-13 Woodcliff Lakes, NJ 21-25 St. Louis, MO ????

- - 09-13 Los Angeles, CA 28-01 Charlotte, NC

- - 16-20 Detroit, MI - -

- - 23-27 Reston, VA - -

ISO 9001:2000 Internal Auditor (ANSI/RAB-NAP Accredited) - BSI Management Systems

May June July

05-07 Chicago, IL 18-20 Reston, VA 09-11 San Jose, CA

28-30 Atlanta, GA - - 23-25 Atlanta, GA

ISO 9001:2000 Auditor Transition (RAB-Approved) - Course developed by Larry Whittington

May June July

01-02 Chicago, IL 12-13 Detroit, MI 14-15 San Jose, CA

05-06 Atlanta, GA 26-27 Orlando, FL 28-29 St. Louis, MO

12-13 Reston, VA - - - -

29-30 San Diego, CA - - - -

Implementing ISO 9001:2000 (for New Systems) - Course developed by Larry Whittington

May June July

- - 16-17 Reston, VA 17-18 Chicago, IL

- - - - 21-22 Atlanta, GA

- - - - - -

Understanding ISO 9001:2000

May June July

- - - - 25 Charlotte, NC

Understanding ISO 9001:2000 Requirements (Atlanta Only - $295) - Course developed by Larry Whittington

May June July

27 Atlanta, GA - - - -

- - - - - -

ISO 9001:2000 Conversion (for Existing Systems) - Course developed by Larry Whittington

May June July

14-16 Reston, VA 09-11 Detroit, MI 16-18 San Jose, CA

28-30 San Diego, CA 23-25 Orlando, FL 30-01 St. Louis, MO

Quality System Documentation (Revised for ISO 9001:2000) - Course developed by Larry Whittington

May June July

- - 30-01 Orlando, FL 24-25 Reston, VA

The above public courses can be offered on-site at your facility. In addition, we offer the following unique on-site courses:

ISO 9001:2000 Requirements (1 Day) - Course developed by Larry Whittington
Internal Quality Auditing (2 Days) - Course developed by Larry Whittington (based on new ISO 19011)

To arrange an economical on-site class, please call us at 800-404-7585.

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Whittington & Associates provides training, consulting and auditing services for quality systems based on ISO 9001, ISO/TS16949, TL9000, AS9100, ISO 13485, as well as, ISO 27001, ISO 20000, ISO 22000, and ISO 14001.