Wednesday, June 06, 2007

If you can't describe what you are doing as a process, you don't know what you are doing. - W. Edwards Deming .

In my college years working on my business degree I studied production and inventory control methods. A few of the courses, and some of the better professors, took the time to explain that Deming was right about quality, but quality is also about relationships and how you deal with customers, vendors and other business partners. I learned in college and it has been reinforced in my almost 20 years in business that developing a process for quality control of a product is a lot easier than developing a process that helps to reinforce our many faceted business relationships.

What we learned was that Deming understood that quality was not just statistical sampling, it was also the understanding of the how and why you build your product or deliver your service, and how you maintain that diligence over time. Creating long term customer loyalty for your company and your product or service is not going to be based on price. In business long term relationship are the key ingredient to building a strong company, and it costs time and money to develop these strong relationships. So when companies stress that they are putting on a sales promotion, or going to beat out the competition for more business I have to ask myself " is their new business going to be profitable over the long term, or just going to push up their units sold numbers?" If the sales are not profitable for the vendor, eventually business forces will force the vendor to provide less service and support per unit.

Deming taught that “Profit in business comes from repeat customers, customers that boast about your project or service, and that bring friends with them.” This model seems to be working for Zerowait.


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