Quality issue is that French inspectors demanded that Dormont’s


and Customer Relationship Management

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 was being told that it could no longer use his hoses
in its British restaurants. Similar problems popped up elsewhere, including
Euro Disney outside Paris shortly before the theme park opened. The issue is
that French inspectors demanded that Dormont’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
Dormont a certificate authorising the company to paste a seal of approval on
its products, however, a German competitor 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
Question 1. 4
Question 2. 5
Conclusion. 8
References. 9

List of Figures


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


List of Tables


Table 1: The implementation of Deming’s fourteen
principles at Dormont Manufacturing Co. 4

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

Table 3: The principles of
customer relationship management and the application of these principles at Dormont
Manufacturing Co. 6

Table 4:  The
process for external complaints at Dormont Manufacturing Co. 7


Question 1


1.1 Table 1: Table
presenting the implementation of Deming’s fourteen principles 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 – such as the
colour of plastic coating or how the pieces should be attached to the rest of
the hose. 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 and
forever every process for planning, production and service

Dormont Manufacturing Co. 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

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
so that all employees share information, rewards and power to make decisions
and initiatives.

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 and numerical goals for

Institutions should focus on
quality not quantity. A method of improving quality in an organisation is to
implement teamwork and reduce the goals/objectives where employees are forced
to work by themselves and stir completion for numbers. Teamwork can have
numerous benefits such as, sharing information, and cultivating team
unity to confront problems resourcefulness and co-cooperativeness.

Remove barriers that
prevent people from workmanship and eliminate the annual
rating and merit system

Merit systems reward results but not process
improvement. The best way to develop co-operation is by concentrating on the
nature of work environment, rather than on monetary rewards.

institute a vigorous
programme of education and self-improvement for everyone

should encourage employees to take part in teamwork activities, engage
in continual self-improvement activities and continually enhancing 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: The ISO 9000 quailty managememt principles and their
benefits for Dormont Manufacturing Co.


First key benefit

Second key benefit

Customer focus

Increased customer satisfaction through
researching and understanding customer needs and expectations.

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


Establishing trust and eliminating fear of
management by reducing miscommunication between levels of an organisation.

Inspiring, encouraging and recognising
people’s contributions so that they will be motivated towards the
organisation’s goals and objectives.

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.

Analysing and measuring of the capability
of key activities.

System approach to

Understanding the interdependencies between
processes of the system and focus efforts on key processes.

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

Continual improvement

Continual improvement of the organisation’s

Continual improvement of products,
processes and systems.










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



of these principles at Dormont Manufacturing Co.

Top management must be
involved from day one

Top management must be involved in every
stage of CRM. Dormont Manufacturing Co’s vision and
motivation should be to make the best hoses that hook up deep-fat fryers and
the like to gas outlets 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 and
take note of their comments and issues.

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 for
CRM so that they 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.


















Listen to the

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

Record the complaints

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 complaints

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.

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












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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