Professional Documents
Culture Documents
Students Name
[QUALITY
MANAGEMENT IN
BUSINESS]
Quality has an utmost value and importance for all the businesses- be it a
industrial unit or a services concern. There have been many definitions of quality
in terms of business and services provision. It has always been a bit difficult to
define quality.
Table of Contents
Task 1......................................................................................................................... 3
a) Discuss definitions of quality in terms of business and services provision (AC
1.1)3
b) Illustrate how the concept of total quality has developed from the processes of inspection
and assurance (AC1.2)................................................................................................ 3
c) Discuss a range of quality management approaches you selected organization
can adopt (AC1.3)................................................................................................... 4
d) Explain the similarities and differences between the different methods
your selected organization can adopt, mentioned previously above (AC1.4)......6
Task 2......................................................................................................................... 9
a)
Task 1
a) Discuss definitions of quality in terms of business and
Quality has an utmost value and importance for all the businesses- be it a industrial unit
or a services concern. There have been many definitions of quality in terms of business
and services provision. It has always been a bit difficult to define quality. However, an
appropriate and very simple definition says, Quality is about meeting the needs and
expectations of customers. Below is the customers perspective of quality:
Suitable design
Proper functioning
Reliability
Resale value
Expected life
Quality in businesses is defined in terms of the relation among customer, product and
the business.
b) Illustrate how the concept of total quality has developed from the
processes of inspection and assurance (AC1.2)
The idea of total quality has developed from the methods of quality assurance in the
early decades of 20th century. Warlike environment enhanced large-scale production.
The poor quality was the result of it. In order to improve the quality, quality inspectors
were employed in the different large-scale manufacturing units. After WW-1, quality
inspectors got more importance in manufacturing units. This was the time when Dr. W
Edward Deming introduced his famous theory. This theory is called Statistical Quality
Control.
In 1950s, Dr Deming was invited in Japan by the manufacturers and in the same
decade quality control had been adopted by all the manufacturers in Japan.
From 1980s, the idea of total quality is being discussed in the world. In 1970s time total
quality was described in Japan as organization wide quality control which involved all
employees of organizations- be it higher or middle management or labour force.
In the decade of 1980s, this idea grabbed the focus of the rest of the world. Companies
began to introduce quality management procedures. This new trend was known as Total
Quality Management in the world.
Demings approach
Anderson et al (1994, p.472) explains Demings approach to QM is creation of an
organizational system that fosters cooperation and learning in order to facilitate the
implementation of process management practices, which, in turn, leads to the
continuous improvement of business processes, products, and services as well as to
employee fulfillment, both of which are critical to customer satisfaction, and ultimately, to
survival in the market.
This approach seeks to create a system for an organization which enhances learning
and collaboration to help implement practices of process management; this results in
production
Management
The means for improving quality, according to Deming, lies in the ability to control and
manage systems and processes properly, and in the role of managements
responsibility in achieving this. This including the use of specific tools and statistical
methods in the design, management, and improvement which aim to reduce the
necessary variation that occurs from ''common causes'' and ''special causes'' in
production. ''Common causes'' of variations are systematic and are shared by many
operators, machines, or products. They include poor product design, non-conforming
incoming materials, and poor working conditions. These are the responsibility of
management. ''Special causes'' relate to lack of knowledge or skill, or poor
performance. These are the responsibilities of employees.
Jurans approach
QM is the system of activities directed at achieving delighted customers, empowered
employees, higher revenues, and lower costs (Juran J. M., Gryna F. M., 1993, p 25).
Juran believed that the main quality problems are due to management rather than
workers. The attainment of quality requires taking action at all levels of an organisation.
It is very important to understand customer needs. This requirement applies to
marketing, design, manufacture, and services. In order to ensure design quality, he
proposed the use of such techniques as quality function deployment, design of
Jurans Trilogy comprises Quality Planning, Quality Control and Quality Improvement.
Quality planning
Quality control
Quality improvement
Crosbys approach
Crosby identified some important principles and practices for a successful quality
improvement program, which include: management participation, management
responsibility for quality, employee recognition, education, reduction of the cost of
quality, prevention costs, appraisal costs, and failure costs, emphasis on prevention
rather than after-the-event inspection, and zero defects (Crosby, 1979, pp. 127139) .
Crosby claimed that mistakes are caused for two reasons: lack of knowledge and lack
of attention.
According to Crosby managements participation, employee recognition, managements
responsibility for quality, quality cost reduction, appraisal cost and zero emphasis are
some important practices for quality improvement (Crosby, 1979, pp. 127139). He
used to believe that lack of knowledge and lack of attention cause mistakes.
Education and training can eliminate the first cause. Personal commitment to excellence
and attention to detail will cure the second. Crosby also stressed the importance of
management style for successful quality improvement. The key to quality improvement
is to change the thinking of top managers. Understanding, commitment, and
communication are essential. Crosby (1979, pp.23-33) presented the ''Quality
Management Maturity Grid'', which can be used by firms to evaluate their quality
management maturity. The five stages of the maturity grid are uncertainty, awakening,
enlightenment, wisdom and certainty. The quality management maturity grid and cost of
quality measures are the main tools for managers to evaluate their quality status.
d) Explain the similarities and differences between the
The mission of the organization must be clearly communicated to everyone, and all
management action must lead to fulfilling that mission.
It is essential to have continuous education and training at all levels to promote the
concept of quality and to develop employee skills and knowledge.
Training and education are very essential at every level in the organization for
quality
Almost all problems associated with quality can be attributed to management policy or
action. This means that management action is required to achieve improvements.
The customerfocused quality is a longterm process. The improvements will be
evident over time in terms of reduced costs, and organizations will be able to anticipate
and prevent problems.
to
produced something that falls within specification limits. Deming, considers that being
within specifications is just the first step to continuous process improvement. He
advocates reducing process variation on a continuing basis to improve quality. Deming
also opposes the use of numerical goals and quotas to manage work. Juran said that
the deployment of goals throughout the organization is more important. Strategic goals
need to be deployed to all divisions and sections of the organization, and more specific
goals need to be deployed to people so that they know what to do.
Crosby suggests that the final goal of an organization should be the products
without ant defect. According to Deming, a quality product comes from the
situation when a system had been producing a product which fell within limits. He
also asserted on the need of minimizing process variation. Deming opposed the
numerical goals. On the other side, more specific goals should be assigned to
workers in order to teach them as to what to do.
Supplier Relationships: Deming approves the practice of working with a single supplier,
where possible, to reduce variability of incoming materials. To maintain longterm
contracts, suppliers will be more likely to improve their own processes to provide better
products or services. Crosby and Juran recognize some of the advantages of single
suppliers, but they take a more conservative view and simply advocate reducing the
number of suppliers. Crosby and Juran consider it important to have different suppliers
for the same product when the product is a critical one.
Crosby as well as Juran was for selecting different suppliers. On the other hand,
Deming was for selecting a single supplier- whenever it was possible- for
reducing the variation of input materials.
Leadership Commitment: Crosby describes the Zero Defects Day as the time when
management confirm its commitment to quality and communicates it to all employees.
Juran presents the annual quality program used by managers to communicate to all
employees managements commitment to quality improvement. Although Deming
acknowledges that top management commitment is obligatory, he does not describe a
program for accomplishing it. To him, the leaders new job is to remove barriers and
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create a culture that value helping others to do a better job and to feel pride in
workmanship (Deming, 1986, pp 23-24).
Crosby says that the day when management commits to provide quality and
convey this commitment to all the employees, its Zero Defect Day. Juran
proposes annual quality programs for managers. According to Deming, leaders
job is to displace all the barriers and to create an environment which helps
workers in better performance and make them feel pride.
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Task 2
a) Discuss what is meant by customer satisfaction (AC2.1)
Daffy C. (1996, p.34) says satisfied customers occur when you provide them with what
you promised or they expected and Lam & Burton (2006) believe that customer
satisfaction has frequently been suggested to be the leading determinant of loyalty.
Customer satisfaction generally used to measure a customer's perception of a
company's products and services. Satisfied customers are likely to make repeat
purchases and often refer others.
The level of customer satisfaction determines the level of long-term success could be
achieved in business. There are some common solutions for improving customer
satisfaction.
Satisfied customer keep on coming back to purchase a same item. Customer
satisfaction is a measure of the perception of a customer about companys product or
services. Following are the solutions that are being used for improving the satisfaction
of customers:
First impression: The people who greet customers at the door are the customers' first
impression of any business, and will set the tone for the rest of the experience. They
need to be well-versed in customer service, even though they are not salespeople.
Sales: Sales team should be thoroughly knowledgeable about service or product line.
They should also be able to anticipate customers' needs and wants without prompting.
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Customer care: There should be a system in place for customer follow-up and a part of
staff that is dedicated to handling customer feedback or complains.
Product or Service: The business offerings should be relevant to what they are
advertised. Purchasing process must be clear and easy. Delighted customers are those
who don't have to wait. Well managed after-sales service also works towards business
benefit.
feedback.
The appropriate products and services should be advertised. Also, the process of
purchasing should be easy and simple. After-sale services should be very
responsive.
Hoyle D. (2007, p.31) says that ISO 9000:2000 defines continual improvement
as a recurring activity to increase the ability to fulfill requirements. In addition of Gaal
A. (2001, p224) continuous improvement in a process-approach quality management
system primarily takes place by implementing corrective action through process control,
hence preventing problems from flowing down, process to process. In other words is a
type of change that is focused on increasing the effectiveness and efficiency of an
organization to fulfill its policy and objectives.
According to ISO 9000:2000 continuous improvement is a recurring activity for
increasing the requirement meeting. Continuous improvement is the name of a process
for making it sure that programs are improving the services systematically.
Issues in
continuous Improvement
are
management,
communication, customer service and all the things that can make some difference in
workers efficiency.
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are
numerous
issues
involving
work
flow,
customer
service,
communication, data management, and other matters that are exclusively the
competence of team that can make a big difference in improving the efficiency of team.
One of the tools can be used to implement continuous improvement in the team
is the plan-do-check-act model, also called the Deming Cycle or the Shewhart Cycle
(http://www.mindtools.com: 1).
There are some tools available for managers to be used in order to implement
Continuous Improvement. One of them is Plan-do-Check-Act Model. It is also known as
Deming Cycle.
Plan: Identifying an opportunity and plan for change. Prior to implementing a change
there must understanding both the nature of current problem and how a process failed
to meet a customer requirement.
Do: Implementing the change on a small scale. Monitoring the change after
implementation to make sure no backsliding occurs.
Check: Using data to analyze the results of the change and determining whether it
made a difference.
Act: If the change was successful, implementing it on a wider scale and then continuous
assessment of the results. If unsuccessful- begin the cycle again.
Plan: Identify a plan for change.
Do: Implement the change at smaller level.
Check: Use data for analyzing the outcomes of change
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Act: If the change proves to be successful, implement it on larger level; and then
continuous appraisal of outcomes.
Oakland (2004, p335) and his colleagues have developed a framework for a structured
approach to problem solving in teams, the DRIVE model. It is an approach to problem
solving and analysis that can be used as part of process improvement.
Define the problem: The scope of the problem the criteria by which success will be
measured and agreeing the results and success factors.
Review the information: The current situation, understanding the background, identifying
and collecting information, including performance, identifying problem areas and
improvements.
Investigate the problem: Improvements or solutions to the problem, required changes to
enable and support the improvements.
Verify the solution: Checking that the improvements will bring about benefits that meet
the defined success criteria, prioritizing and piloting the improvements.
Execute the change: Planning the implementation of the solutions and improvements,
agreeing and implementing them, planning a review, gathering feedback and review.
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Advertising
Advertising plays an important role in successful business ventures. It entails
identifying and selecting the media that provide the greatest amount of exposure for
your business and developing effective, yet appropriate materials for each medium. It is
more than running an ad in a local newspaper, on a radio or television station or just
simply hanging a sign outside your business and waiting for the customers to purchase
your product. It requires that you know your product - that is, the selling points - and that
you develop literature that can arouse the customers' consciousness levels to the point
that they are curious enough to investigate it, and then raises their need or desire levels
to the point that they are willing to purchase it.
Advertisement
Advertisement identifies and selects the media which provides the greater
exposure for company. It is actually something beyond the running a TV ad or
publishing an ad in print media. Advertisement demands that you should know
everything about your product. For example, what are where are selling point and
developing a literature that can affect the potential customers.
More Media Formats
Newspaper, radio, or television ads (newspaper advertising is the least
expensive and television advertising is the most expensive of these formats). You
probably will need professional advice and assistance when developing ads for those
media formats. The following media formats you probably can do yourself:
More Media Formats
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Electronic and print media are ever green sources. Bill boards are also cheap
source of advertisement. Our organization also used direct marketing, affiliate
marketing, business cards, classified ads, telemarketing, and sampling.
Business cards
Classified ads in the local newspaper
Direct marketing
Telemarketing (this format can be expensive, also)
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Task 3
a) Explain how quality management can be measured by
your selected organization (AC3.1)
Quality management can be measured to have three main components: quality control,
quality assurance and quality improvement. Quality management is focused not only on
product quality, but also the means to achieve it. Quality management therefore uses
quality assurance and control of processes as well as products to achieve more
consistent quality.
Quality Management could be measure in the selected organization by 3 components.
They are Quality Control, Quality Assurance, and Quality Improvement. QM is
concerned with the quality of product and service as well as means to obtain it.
Quality control
Quality engineering is used in developing systems to ensure products or services are
designed and produced to meet or exceed customer requirements. Refer to the
definition by Merriam-Webster for further information. These systems are often
developed in conjunction with other business and engineering disciplines using a crossfunctional approach.
Quality control is the branch of engineering and manufacturing which deals with
assurance and failure testing in design and production of products or services, to meet
or exceed customer requirements
Quality assurance
18
QA for short refers to planned and systematic production processes that provide
confidence in a product's suitability for its intended purpose. Refer to the definition by
Merriam-Webster for further information. It is a set of activities intended to ensure that
products (goods and/or services) satisfy customer requirements in a systematic, reliable
fashion. QA cannot absolutely guarantee the production of quality products,
unfortunately, but makes this more likely.
Two key principles characterize QA: "fit for purpose" (the product should be suitable for
the intended purpose) and "right first time" (mistakes should be eliminated). QA includes
regulation of the quality of raw materials, assemblies, products and components;
services related to production; and management, production and inspection processes.
It is important to realize also that quality is determined by the intended users, clients or
customers, not by society in general: it is not the same as 'expensive' or 'high quality'.
Even goods with low prices can be considered quality items if they meet a market need.
Quality improvement
There are many methods for quality improvement. These cover product improvement,
process improvement and people based improvement. In the following list are methods
of quality management and techniques that incorporate and drive quality improvement
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requirements, hardware and software requirements. The User Profile survey groups
technology requirements by job function to help you plan and develop common PC
platform standards lowering TCO.
Features
The following examples provide potential uses of the data provided:
The User Profile survey is ideal for planning and developing PC computing
and locations.
Discover which applications your users deem as critical to their job.
See what your Users are experiencing in terms of system, application and
network reliability.
Determine how your Users perceive their proficiency levels on systems and
applications.
Benefits
The User Profile survey provides the following kinds of benefits:
What do I get?
1.
2.
3.
4.
20
21
have adopted the more "traditional" mode of bargaining the impact and implementation
actions affecting those in the improvement team. Each approach presents benefits and
potential risks.
Union involvement improves the continuous improvement process; however, union
leadership runs the risk of criticism from other members if it is perceived as working too
closely with management. The nature of the relationship will be determined by the
background and history or the labor-management relations in the organization and the
willingness of the union to participate. Ideally, the leadership of the organization will
seek early involvement of the union and make the nature of the involvement as specific
as possible. An example of union-management cooperation is illustrated by the
collective bargaining agreement between the United Auto Workers and Ford Motor
Company.
It provides for joint leadership in the quality improvement effort by joint committees at
the corporate, division, and facility levels. These committees have the authority of the
contract to plan, implement, evaluate, and expand quality systems as needed. Many
organizations can provide evidence that their successful quality systems can be
attributed to the unions. Unions will grow if they are seen as a superior way to support
democracy in the workplace and improve the performance of the organization.
Benefits of Employee Involvement
Involving employees, empowering them, -and bringing them into the decision-making
process provides the opportunity for continuous process improvement. The untapped
ideas, innovations, and creative thoughts of employees can make the difference
between success and failure. Competition is so fierce that it would be unwise not to use
every available tool.
Employee involvement improves quality and increases productivity, because
Employees make better decisions using their expert knowledge of the process.
Employees are more likely to implement and support decisions they had a part in
making.
22
Employees are better able to spot and pinpoint areas for improvement.
Employees are better able to take immediate corrective action.
Employee involvement reduces labor/management friction by encouraging more
organization.
Employees are better able to accept change because they control the work
environment.
Employees have an increased commitment to unit goals because they are
involved.
Importance of complaints
By complaining up when customers believe they have not received the service they
expected, consumers or service users give organizations an opportunity to fix problems
and restore goodwill. If customers dont complain, company would not know there is a
problem.
Complaints offer organizations an opportunity to correct problems immediately. They
also provide constructive ideas for improving services, practices and policies.
Recognizing the importance of responding fairly and efficiently to customer
disappointment, many organizations have established effective and customer-sensitive
systems for resolving complaints. In the private sector, those companies with a positive
philosophy and a reputation for fair complaint management have a competitive edge.
Complains procedures
23
How service user feedback will be encouraged (feedback / complaint forms / on-
what point the complaint is referred on (at each stage of the process)
How complaints and their outcomes will be recorded
Timeframes for resolution and other performance standards - including guidance
24
When it comes to quality this will help to make effective developments on the
product which increases quality. At the same time competitive advantage can be
gained.
with all the staffs there will be a need for further trainings and new rules.
Through this organization will gain customer satisfaction which is a distinct
advantage for quality.
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Task 4
a) Report on the role of self-assessment in order to
determine the current state of health for your selected
organization (AC4.1)
Board members clearly understand their roles and responsibilities for financial
health
Board receives and reviews complete financial information at every meeting. A
monitoring
Maintain cash balances or reserves appropriate for the organization (minimum 30
days)
Maintain a system for tracking restricted or designated funds
Payroll tax deposits are made when due
Organization is able to pay bills and make loan payments when due
Written financial policy in place including responsibility and authority for financial
decisions
26
board
Board and staff regularly review short-term and long-term plans and goals
following
checklists
of
suggested
vehicles
for
upward
and
downward
communication can help you gauge whether your organization is performing as well as
it might with respect to internal communication.
Upward Communications
27
pressure to produce.
Employee newsletter for home delivery: The spouse should become involved in
events and conditions to give the entire family a stake in and appreciation of the
employees job.
Newsletters for supervisors: Subscriptions to appropriate newsletters that provide
supervisors with information on how to do their jobs better and how to handling
disuse.
Employee handbook: Handbooks should be published in an attractive, easy-touse format so that they are readily usable by employees as a source of
information.
Supervisors handbook: This document can serve as a training aid as well as
communication tool.
Downward Communications
employees.)
Supervisors appraisal of individual employees: Periodic appraisal by each
supervisor on each employee under his or her supervision, including specific and
focused questions which the supervisor must answer about each employee with
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a method for passing this information up the line in order to fix a status
supervisors.
Open door policy: Encourage employees to ask questions and take their
Conclusion
All the above vehicles are effective. But more important than any specific vehicle for
upward or downward communication is the commitment by top management and the
supervisory staff to the ongoing importance of communication to the success of the
business mission. This must be implemented through regular, consistent effort by
management at all levels.
Record keeping
29
Everyone in business must keep records, especially those that will come in handy when
it's time to think about taxes on the business. Good records will help you do the
following:
Monitor the progress of your business. You need good records to monitor the progress
of your business. Records can show whether your business is improving, which items
are selling, or what changes you need to make. Good records can increase the
likelihood of business success.
Prepare your financial statements. You need good records to prepare accurate financial
statements. These include income (profit and loss) statements and balance sheets.
These statements can help you in dealing with your bank or creditors and help you
manage your business. Remember, an income statement shows the income and
expenses of the business for a given period of time. A balance sheet shows the assets,
liabilities, and your equity in the business on a given date.
Identify the source of receipts. You will receive money or property from many sources.
Your records can identify the source of your receipts. You need this information to
separate business from non-business receipts and taxable from nontaxable income.
Keep track of deductible expenses. You may forget expenses when you prepare your
tax return unless you record them when they occur.
Prepare your tax returns. You need good records to prepare your tax returns. These
records must support the income, expenses, and credits you report. Generally, these
are the same records you use to monitor your business and prepare your financial
statements.
Support items reported on tax returns. You must keep your business records available
at all times for inspection by the Internal Revenue Service (IRS). If the IRS examines
any of your tax returns, you may be asked to explain the items reported. A complete set
of records will speed up the examination.
30
This will help the employees to understand the impacts of the scheme on the work
place, organizational reputation and image.
Once the employees understand the benefits they would support highly to get it done.
Adopting the change
Staffs should be prepared to adopt the changes due to the implementation of new
quality scheme. Otherwise there may negative results due to the implementation. So the
organization needs an effective change management.
Trainings
Trainings should be arranged for the employees to support the implementation
effectively. This would help the organization to achieve high support from employees.
Main Stages of Consultation
31
1. The first, setting up, stage (now completed) has helped to scope out the main
issues and the main groups and sectors to consult. It also ended with agreement
amongst key parties on the format of the consultation.
2. In early November there will be a workshop for around 40 key stakeholders from
specific groups and organizations. The aim of that event is to work together to
generate a range of quite different options or choices for the future of The Rec.
The workshop will also produce what those stakeholders (not the consultation
manager or technical consultants) believe to be the main arguments for and
against each option.
3. Before moving on, the emerging options will be given a quick technical evaluation
on legal, financial and other aspects. This will be provided by Ernst and Young
4. The next stage is for all. The main part of this will focus on a questionnaire
asking people not just to choose an option but to say why. That way it will be
possible to evolve and refine solutions, pick and mix from options and use new
ideas.
5. There will be several formats to the questionnaire. One will be used with a
statistically selected sample group (managed by a specialist survey company)
and another will go to a wide range of groups and organisations within Bath. A
third will be available on this website and at other locations for anybody to
complete. It will be available for 6 weeks to allow as many as possible to
respond, especially groups which may wish to meet to discuss it. (Please note:
The questionnaire will not be a 'referendum' but a major guide to the outcome.
The most robust results will come from the statistically managed sample but
results from the more open formats will also be given appropriate weight.)
6. As is often the case, some key groups - for example, young people may well
not respond to the questionnaire format. Special events may be run to ensure
their voices are heard.
7. As a mix of option(s) and/or new ideas emerges they will be given a more
thorough technical check. If there are outstanding issues, on planning aspects for
example, these will be explored in small meetings or workshops.
8. As well as keeping you up to speed on progress, reports of events, etc on this
website, there will be a high profile public announcement of what emerges at the
end of the process.
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9. The final task, working with the original key consultees, will be to produce a full
Report of Consultation a complete audit trail to show how and why the result
was generated.
Service Quality
Strategies that have produced significant results in production are often harder to
implement in a service environment. Thanks to the teachings of Deming, Juran, andol
ers, significant strides have been made in manufacturing. The same results have to
slower in service organizations or service activities in manufacturing. , Customer service
is the set of activities an organization uses to win and retain of customers' satisfaction. It
can be provided before, during, or after the sale of the product exist on its own.
Elements of customer service are:
Organization
Customer Care
33
Front-line people
Leadership
Lead by example.
Listen to the front-line people.
Strive for continuous process improvement.
I have selected ISO management standards to propose new modifications. Here are the
common principles of ISO management standards.
Customer focus
Leadership
Involvement of people
Process approach
System approach to management
Continual improvement
Factual approach to decision making
Mutually beneficial supplier relationships
Proposed new principles
Evaluation of customer service skills of employees
Key benefits
34
Key benefits
35
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