It Takes More Than Statistics

There is no doubt that the theoretical concepts behind Total Quality Management (TQM) offer significant potential for printing company development and improvement of customer satisfaction. Unfortunately, if taken out of the context of a strategic customer orientation, TQM becomes nothing more than the latest fad, offering only a deadly "reshuffling of chairs on the Titanic."

There's a story making the rounds in industry circles that offers a perspective for what can happen when a TQM program is not properly implemented.

It seems a prominent graphic arts company, new to a TQM program, made huge internal strides in terms of measuring and documenting productivity throughout the plant. Proud of his company's accomplishments, the CEO invited prominent customers to the plant for tours.

On one such visit, the CEO proudly explained — to the director of purchasing from a major client — the recent progress achieved and new technologies on the horizon. Upon reaching the shipping docks, the CEO pointed to a trailer and proclaimed, "I know everything that's in those cartons."

To which, the director of purchasing responded, "I believe you, that I don't like what's in those cartons."

In another case, a printing operation, attempting to implement a TQM program, embarked on a sales department training program to integrate with its production department's TQM program. This firm had enjoyed some success with the program, but recently begun experiencing a growing level of internal organizational frustration and, sometimes, open strife.

The printer's data processing department generated reports, by the ton, of productivity and spoilage activities. Unfortunately, few production supervisory personnel had the time to adequately study these reports and still get their work done. Instead, the director of finance and data processing made his weekly and monthly rounds to each department supervisor to "explain" what didn't occur that should have in order to "meet budget."

These department discussions, however, seldom included sales reps, estimators and customer service personnel. They were done one-on-one with department heads, and there were no group meetings.

CSRs, however, were instructed to call major customers after each job was delivered. They asked buyers to rate (on a scale of one to five) a series of issues believed useful in evaluating quality and service. After rating sheets were filled out, CSRs turned them in to the supervisor, who used the ratings to improve instructions on future job tickets.

But, the question remained: "How will the production person know what to improve for each customer? What is the target?"

If, for example, the customer scores the supplier a three-out-of-five on "quality as expected," what does a "five" look like — and whose responsibility is it to produce the five?

Each customer's definition of quality and service is specific to that customer's needs only. The company that creates a TQM training program, geared to develop internal standards only, inevitably will find and keep only those customers whose expectations match the production standards independently established.

With a tight market and fewer opportunities to become a meaningful supplier (partially due to single-sourcing buying patterns), an internally developed TQM training program can create an additional obstruction for achieving "customer performance as expected." Targets for performance and training programs to enhance performance only achieve long-term results if two objectives are clearly in place.

First, all performances should be directed to meet and exceed customers' expectations. Clients have different needs based on their business goals. No two customers are exactly alike.

TQM training programs need to truly start with individual customers' needs and expectations and focus on developing means for explicitly communicating those needs and expectations to all contributing departments.

Secondly, performance training for meeting and exceeding customers' expectations is an organizational issue — not just an individual or departmental issue. Training, to be effective, must be aimed at serving clearly defined, customer-specific objectives. Continuous performance improvement is dependent upon everyone understanding customers' expectations and executing procedures in a coordinated manner to meet those goals.

TQM performance has its place in producing a continuously improving customer-driven system of training and execution. However, don't get lost in an obsession with processes, controls and statistical measurement. Keep the final objective in mind: continuous sales and profit improvement are the results of improving perceived customer value — not the reverse.