Quality to specific standards and enable him


and Customer Relationship Management Assignment  by Jabulisa Mazibuko

number: 18 11 76
code: BBA 3 – QCRM
pages: 9 pages

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The purpose of this assignment is to provide quality and
customer relationship management solutions to Evan Segal who is the CEO of
Dormont Manufacturing Co, a company which makes hoses that hook up deep-fat fryers
and the like to gas outlets throughout Europe.


One day one of Evans top customers called to
alert him that McDonald’s could no longer use his hoses in its British
restaurants. Problems popped up elsewhere, including Euro Disney outside Paris
shortly before the theme park opened. French inspectors demanded that Evan’s
hoses be replaced with French-approved equipment.


This assignment attempts to help Dormont
Manufacturing Co face their current challenges by applying quality management
principles to the organisation defined by ISO 9000, explain how the application
of customer relationship management principles can help Dormont Manufacturing
Co. achieve its goals and explain how it can establish a process for handling
external complaints received by customers.


Evan has issues with different national standard
agencies. The British Standards Institute, one of the European agencies issued Evan
a certificate authorising him to paste a seal of approval on his products. A
few weeks later, one of Evans competitors sent a formal complaint to the
European Commission (the EU’s executive body); arguing that the British office
erred because hoses are not really part of a gas appliance and the approval was


The benefits of implementing quality management
principles and customer relationship management practices to Dormont
Manufacturing Co is that Evan Segal can prevent impending or current customer
issues from going unheard or unaddressed, increase formulate quality
control objectives and improve the quality of his gas hoses where quality needs
to be improved.


Implementing quality and customer relationship practices
will give Evan Segal the tools to manage, measure, and improve the quality of
his products according to specific standards and enable him to resolve
issues with approval of his products so that he can once again sell them
throughout the region.

Table of Contents
Introduction. 2
1. 4
2. 5
Conclusion. 7
References. 8


List of Figures


Figure 1: A process for external complaints at Dormont
Manufacturing Co. 6



List of Tables


1: Deming’s 14 principles and its implementation at Dormont Manufacturing Co. 4


2: ISO 9000 quailty managememt principles and their benefits for Dormont
Manufacturing Co. 5


3: The application of customer relationship management principles at Dormont
Manufacturing Co. 5


4:  The process for external complaints
at Dormont Manufacturing Co. 6


Question 1


1.1 Table 1: Deming’s
14 principles and its implementation at Dormont Manufacturing Co.


Deming’s fourteen

Implementation at Dormont
Manufacturing Co.

Continual improvement of
product and service

Evan should ensure that his hoses are to use on gas
appliances and are checked and maintained regularly.

Adopt the new philosophy
for economic stability

The British Standards Institute and committee,
spell out details of each country’s acceptable gas hose design. Evans hoses
should meet the requirement of these standards so that his hoses are
approved, enabling him to sell them throughout the region.

Stop dependence on
inspection to achieve quality

The gas hoses should operate safely on gas appliances and the
specifications should conform to acceptable gas hose design at the planning or designing stage of the quality
control of the processes.

End the practice of
awarding business on the basis of price alone and minimise total costs by
working with a single supplier

The business should align its goals and objectives with continuous quality improvement, customer needs and customer satisfaction.

Improve constantly

Evan should never be satisfied with
only meeting the current standards or specifications, the business team should
improve quality and productivity constantly and institute a programme of
total quality control for products, processes and services.

Institute training on
the job

Middle managers should implement steps
to certify
that employees receive the training necessary to understand their job.

Institute modern methods
of supervision and leadership

Training and teamwork are necessary to guide transformational
leadership in an organisation. Supervisors
should improving communication in the workplace, and provide coaching for
teamwork activities for employees.

Eliminate fear

Fear of management can be reduced
if managers practice effective communication and employee empowerment.

Break down barriers
between departments and individuals

A barrier-free atmosphere can be
used to reduce employee stress levels and improve communication practices.

Eliminate slogans,
exhortations and targets for the workforce

Managers should create a supportive environment
where employees overcome challenges with a supportive attitude and not in a
competitive effort to get ahead of other employees or even their own
mangers.  Practices include
brainstorming, suggestion boxes, and walking and talking.

Eliminate numerical
quotas for the workforce

Institutions should focus on
quality not quantity. A method of improving quality in an organisation is to reduce
the tasks where employees are forced to work by themselves.

Remove barriers that
prevent workmanship.

Merit systems reward results but not process
improvement. Increase co-operation by avoiding on monetary rewards.

Institute a vigorous
programme of education

should encourage employees to enhance job skills through education and training.

Put everybody in the
organisation to work to accomplish the transformation

Transformation can be achieved if there are
goals that the employees and managers work towards such as alignment, shared
leadership, trust or respect and confrontation of problems as a team.


Question 2

Table 2: ISO 9000 quailty managememt principles and their
benefits for Dormont Manufacturing Co.



Customer focus

Increased customer satisfaction.

Measuring customer satisfaction and acting
on the results to improve customer loyalty leading to repeat business.


Eliminating fear of management.

Inspiring, encouraging and recognising
people’s contributions.

Involvement of people

People will use their knowledge, skills and
creativity to find innovative ways to solve problems.

People accept ownership of problems,
therefore they are able to identify constraints to their performance and
evaluate their performance against their personal goals and objectives.

Process approach

Effective use of resources.

Evaluation of key activities.

System approach to

Understanding the interdependencies between
processes of the system.

Integration and alignment of processes that
will best achieve the organisation’s objectives in an efficient and effective

Continual improvement

Continual improvement of performance.

Continual improvement of processes and



Table 3: The application of customer relationship
management principles at Dormont Manufacturing Co.


relationship management principles

of customer relationship management

Top management must be

Top management should be involved in every
stage of CRM. Dormont Manufacturing Co’s vision and
motivation should be to make the best hoses in Europe.

Restructure employee compensation

Dormont Manufacturing Co should adjust their
compensation structure if a change in organisational priorities
occurs, such as a shift to a more customer-centric focus,

Manage cultural change and
people issues

Management should listen to employees.

Concentrate on the customer
life-cycle value

Maintain positive customer relationships.

Push the project if you are serious. And keep pushing.

Clear unpredictable obstacles and encourage
employees to focus on the solution and move forward.

Provide training and support. Prepare for continuous

All new employees will need training to
will realise the importance of CRM in the organisation and understand that
CRM is a continuing process.


Figure 1: A process for external complaints at Dormont
Manufacturing Co.













Table 4:  Steps to take when handling external
complaints at Dormont Manufacturing Co.




Listen to the

Take ownership of
the problem, apologise and thank the customer for bringing the problem to
your attention.

Record the

All verbal and written
complaints will be recorded at the time the complaint is made or as soon as
possible afterwards. The name, contact details of the person, full details,
date and any other details of all communication with the complainant and any
actions to resolve the complaint will be recorded in the same place.

Respond to

Resolve all
complaints within an appropriate timeframe and inform the person regularly about
the progress of their complaint.

Follow up

Follow up to see if
the customer is happy with how their complaint was handled and let them know
what you are doing to avoid the problem in the future.






Dr. W. Edwards Deming developed fourteen key principles for quality
management that significantly improve the effectiveness of a business or
organisation. By implementing Deming’s fourteen principles of quality
management, Evan Segal has helped his company improve its customer service, productivity,
management and product quality.


The ISO 900 refers to a group of guidelines that
help organisations improve its customer satisfaction and organisational
performance. Question 2 of this assignment discusses each of the eight quality
management principles defined by ISO 9000 and its key benefits for an
organisation like the Dormont Manufacturing Co. These benefits include
leadership in the role of management, effective use of the organisations resources
and continual improvement of the organisation’s performance.


Customer relationship management is the
practice of making customer satisfaction the primary objective for
all strategies, systems, policies and procedures of the organisation. Any firm with
organisational challenges and technical issues would benefit tremendously
from applying the six principles of customer relationship management. Dormont
Manufacturing Co. applied these six principles to restructure their
employee compensation and merit system, provide training and support for their
staff and transform their organisational culture by sustaining their products


There were many issues with the handling of external
complaints received by Dormont Manufacturing Co. Evan Segal has implemented a
complaint handling procedure to show staff and customers the steps to take when
dealing with complaints. These steps involve defining the complaint, recording
the complaint, responding to the customer and following up on the complaint
procedure to ensure the complaint has been dealt with.


In summary the key issues with
Dormont Manufacturing Co were not its products but the organisations
performance in its market and industry and its potential to exploit
opportunities and eliminate threats that hinder it from progressing and
performing efficiently with the new British laws and legislation. 



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