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TEEP: International Consulting Program in Taiwan


Client: BUFAB Taiwan

Business Communication Model

1. Berlos communication model - SMCR Model

S Sender
Sender (source) is the one from whom the thought originates with the help of
communication skills, Attitude, Knowledge, Social System and Culture.

Communication Skills: taking pause, repeating the sentences, accent, cross-checking

with recipients, listening to queries

Attitude: The sender must have the right attitude to create a long lasting impression

on the listeners
Knowledge: the clarity of the information with in-depth knowledge which the

speaker wants to convey to the second party and ready to answer any questions
Social System: the sentiments, cultural beliefs, religious feelings of the second party
Culture: the cultural background of the community or the listeners where the speaker
is communicating or delivering his speech.

M - Message
When an individual converts his thoughts into words, a message is created. Any message
further comprises of the following elements:

TEEP: International Consulting Program in Taiwan

Client: BUFAB Taiwan

Content: the matter or the script of the conversation. It is in simpler words, the
backbone of any communication which has to be sensible, accurate, crisp, related to

the thought to hit the listeners

Element: Hand movements, gestures, postures, facial expressions, body movements,

Treatment: the way one treats his message and is conveys to the listeners.
Structure: in order to convey the message in the most desired form.
Code: body movements, language, expressions, gestures which enable receivers to
decode the correct information.

C - Channel
Channel - Channel actually refers to the medium how the information flows from the
sender to the receiver.
R - Receiver
When the message reaches the receiver, he tries to understand what the listener actually
wants to convey and then responds accordingly. This is also called as decoding.
The receiver should be on the same platform as the speaker for smooth flow of
information and better understanding of the message.
2. Problems facing by Bufab Taiwan when communicating with other Bufab sisters
We addressed that the lack of comprehensive communication is the main reason making
other Bufab sisters not using Bufab Taiwan service. As such, we tackle this problem by
showing what should be improved by Bufab Taiwan when communicating with other
sister companies.
Applying the Berlos communication model, there is some chosen factors were not
applied correctly by Bufab Taiwan which are
- Senders: Being a multinational corporation located in 23 countries with more than
800 employees from different countries, Bufab Group definitely was challenged by
Culture and Social system differences; and these are two of the big problems for
Bufab Taiwan also.

TEEP: International Consulting Program in Taiwan

Client: BUFAB Taiwan

Message: Being considered performing well and contributing a great part in the
Groups cost reduction, however, Bufab Taiwan has not earned the creditability from
others sister yet due to the way they deliver the message, in other words, the Context
of message from Bufab Taiwan to sisters. With the same amount of information and
number it is crucial to choose the right context to make communication process
successfully between two parties.
Besides, one missing an essential step in the communications process of Berlo is
feedback. There is Inadequate Feedback from other sister company after being
introduced by Bufab Taiwan. Without that, Bufab Taiwan cannot know if the receiver
received or understood the message.
In the limitation of this research, we try to solve the most critical problem Context
of message sending out by Bufab Taiwan to other sisters, which, in our strong belief
would help to maximize the efficiency and effectiveness of the two parties
communication, as such increase the performance of not only Bufab Taiwan but also
the whole Bufab Group in the near future.

TEEP: International Consulting Program in Taiwan


Client: BUFAB Taiwan

1. Quality Management Q Part
1.1 Literature Review
1.1.1 Quality management and its principles
There are different assumptions defining Quality from the simple till the
complicated ones.
Quality is fitness for use (Juran, 1989).
Quality is conformance to requirements (Crosby, 1996).
Quality should be aimed at the needs of the consumer, present and future
(Deming, 1986).
Quality is the total composite product and service characteristics of marketing,
engineering and maintenance through which the product and service in use will meet
the expectations of the customer (Feigenbaum, 1991). Quality is the totality of
features and characteristics of a product or service that bear on its ability to satisfy
stated or implied needs (ISO 9000).
The American National Standards Institute (ANSI) and the American Society for
Quality Control (ASQC) 1978, define quality as the totality of features and
characteristics of a product or service that bears on its ability to satisfy given needs.
The European Foundation for Quality Management (EFQM) defines quality as to
meet the needs and expectations of the customers, personnel, financial stakeholders
and society (Geraedts, et al., 2001).
Based on the definitions above, it can be concluded that quality is focused on
customer. Customer focused quality is driven by customer satisfaction and has
become the principle definition of quality from a managerial perspective. Quality is
meeting and exceeding customer needs and expectations.
As such, Quality management ensures that an organization, product or service is
consistent. It has four main components: quality planning, quality control, quality
assurance and quality improvement. Quality management is focused not only on
product and service quality, but also on the means to achieve it. Quality management,
therefore, uses quality assurance and control of processes as well as products to
achieve more consistent quality.

TEEP: International Consulting Program in Taiwan

Client: BUFAB Taiwan

Over time, the theory of quality management was developed on the basis of
contributions from quality leaders (e.g. Deming, 1982), formal evaluation models
(e.g. EQA, MBNQA) and results of measurement studies or empirical research (e.g.
Saraph et al., 1989; Flynn et al., 1994; Conca, Llopis, & Tari, 2004; Tari, Molina, &
Castejon, 2007). On these bases a number of authors identied the key factors of
quality management. For example, Conca et al. (2004) extracted eight key factors:
leadership, quality planning, employee management, supplier management, customer
focus, process management, continuous improvement and learning. A similar
classication was proposed by other authors (e.g. Fuentes, Montes, & Fernandez,
2006; Tari et al., 2007, Zakuan, Yusof, Laosirihongth- ong, & Shaharoun, 2012).
Applying the same dimensions, in the guidlelines for Quality Management principles
of ISO there are 8 keys factors as the figure below

Customer focus: An organization incorporates customer requirements into the

quality of product and service (Conca et al., 2004), because ignoring these
requirements could unfavourably affect business (Ahire et al., 1996). Thus, an
organization should analyse customer opinions and expectations regarding

TEEP: International Consulting Program in Taiwan

Client: BUFAB Taiwan

product/service quality in order to improve processes, relations with customers and

customer satisfaction (Flynn et al., 1994; Tari et al., 2007).
Leadership: The role of managers in practising leadership is one of the keys of
quality management (Ahire et al., 1996; Tari et al., 2007; Pecujlija, Azemovic,
Azemovic,& Cosic, 2011). Management should ensure a favourable climate for the
development and implementation of quality management, involving all employees.
Involvement of people: It turned out that involving teams positively affects the
employees commitment to quality (Ahire et al., 1996). Thus, organisations should
establish a system for monitoring, measuring, evaluating and rewarding employees
for high performance (Ahire et al., 1996). Rewarding contributors is important
because it includes measuring employees performance, provides feedback from
employees and demonstrates to employees that the organization recognises and
respects their efforts (Zhang, 2001).
Process approach: A desired result is achieved more efficiently when activities
and related resources are managed as a process which would benefit the organization
in lowering costs and shortening cycle times through effective use of resources;
Improving consistent and predictable results; and focusing and prioritizing
improvement opportunities.
System approach to management including Identifying, understanding and
managing interrelated processes as a system contributes to the organizations
effectiveness and efficiency in achieving its objectives.








improvements (Tari et al., 2007). Implementing continuous improvements may

prevent the occurrence of nonconformance. Huang and Lin (2002) showed that
continuous improvements can shorten the production cycle. This positively affects
productivity and organizational performance. Management may implement
continuous improvements through the use of specic organizational structures (e.g.
quality committee) (Conca et al., 2004). In this case, an organization should identify
areas where improvements can be implemented.

TEEP: International Consulting Program in Taiwan

Client: BUFAB Taiwan

Mutual beneficial with suppliers: The quality of purchased products/services

signicantly impacts production process effectiveness (Tari et al., 2007) and the nal
product quality (Flynn et al., 1994). Therefore, organizations should have clear
specications for purchase and should evaluate the suppliers quality. Improving
relationships with suppliers positively affects organizational performance and
performance of suppliers (Tari et al., 2007). Promptness and exibility of suppliers
response to organizations requirements can be critical to an organization (Ahire et
al., 1996). Therefore, organizations should provide technical support to suppliers and,
if possible, help improve their performance.
1.1.2 Quality Standards
In term of quality standards, the ISO 9000 family addresses various aspects of
quality management and contains some of ISOs best known standards which provide
guidance and tools for companies and organizations who want to ensure that their
products and services consistently meet customers requirements, and that quality is
consistently improved. ISO 9001:2008
ISO 9001:2008 sets out the criteria for a quality management system and is the
only standard in the family that can be certified to. It can be used by any organization,
large or small, regardless of its field of activity. In fact ISO 9001:2008 is
implemented by over one million companies and organizations in over 170 countries
ensuring that customers get consistent, good quality products and services, which in
turn brings many business benefits. Requirement for certified ISO 9001:2008 organization
Checking that the system works is a vital part of ISO 9001:2008. An organization
must perform internal audits to check how its quality management system is working.
An organization may decide to invite an independent certification body to verify that
it is in conformity to the standard, but there is no requirement for this. Alternatively, it
might invite its clients to audit the quality system for themselves.

Quality improvement PDCA cycle (Deming Cycle)

TEEP: International Consulting Program in Taiwan

Client: BUFAB Taiwan

PDCA (plandocheckact or plandocheckadjust) is an iterative four-step

management method used in business for the control and continuous improvement of
processes and products.
The four phases in the Plan-Do-Check-Act Cycle involve:
Plan: Identifying and analyzing the problem.
Do: Developing and testing a potential solution.
Check: Measuring how effective the test solution was, and analyzing whether it
could be improved in any way.
Act: Implementing the improved solution fully.
The application of the PDCA cycle has been found more effective than adopting
the right first time approach. Using of the PDCA cycle means continuously looking
for better methods of improvement. The PDCA cycle is effective in both doing a job
and managing a programme (Kondo, 1995; Lesjak 2006). The PDCA cycle enables
two types of corrective action temporary and permanent. The temporary action is
aimed at results by practically tackling and fixing the problem. The permanent
corrective action, on the other hand, consists of investigation and eliminating the root
causes and thus targets the sustainability of the improved process. The aspects of the
PDCA cycle were applied to internal quality-assurance procedures: What are we
trying to accomplish? How will we know that a change is an improvement? What
changes can we make to improve?; and implementing the quality improvement
process. (Seaver, 2003; Sokovic 2005)

TEEP: International Consulting Program in Taiwan

Client: BUFAB Taiwan CAPDo Check Act Plan Do

In many situations of using PDCA approach, an assessment of the current process
is a good starting point, which often helpful to begin with the check step to identify
major issues. This approach was named CAPDo. Using check phase, followed by actplan-do can result in decisions based on current process performance.
Like PDCA, CAPDo is comprised of four stages.
Check: Identify current process problems that desired results, determine the scope
and the key players of the projects.
Act: Implement obvious changes to drive the process closer to desired results.
Determine the best improvement approach.
Plan: Determine what is desired for the future. Develop the plan.
Do: Implement the plan to drive the process to the futuristic goal, ensuring that
the new process is documented and supported by the persons who use the process.

TEEP: International Consulting Program in Taiwan


Client: BUFAB Taiwan

Inspection and product test

Inspection is a process of measuring, examining, testing or any other comparison

between unit and proper requirements (ASQC, 1983). Inspection may be conducted in
accord with the following purposes: discovering defects; reducing defects;
eliminating defects; in which judgement inspection is used to discover defects;
informative inspection is used to reduce defects; source inspection is used to
eliminate defects.
The figure of control function and inspection methods (after Shingo, 1986 and
1988) below demonstrated control function and inspection method including long and
short cycle with three steps: inspection and feedback, action and errors/defects.

According to Shingo, 1988 the importance of source inspection in the

implementation of quality managemetn is established by the following weights:

TEEP: International Consulting Program in Taiwan

Client: BUFAB Taiwan

source inspection, 60%; 100% inspection (poka-yoke), 30%; immediate action, 10%.
Figure of cost of defects (after Lynch, 1989) below indicates the importance of defect
detection at source for cost reduction. Therefore, the costs derived from producing
defective parts are eliminated.


Know-how technics and knowledge created from quality management

It is widely believed that the underlying practices in QM are essential for effective
management and help to generate a sustainable competitive advantage. While QM
can improve the performance of existing organisational processes, dynamic market
conditions also require an organisation to explore and innovate (Owlia, 2010; Yang &
Wei, 2010). Organisations need to simultaneously exploit existing resources and
explore new skills, capabilities, and resources to meet emerging challenges
Organisations use quality management (QM) to improve process performance.
However, further improvements and business excellence require acquisition and
integration of new knowledge organisation-wide. It is a challenge for managers to
design and execute QM practices so that they create new knowledge as well.
QM practices such as CI (continuous improvement), SQC (Stastical quality
control), customer satisfaction management, process management practices,

TEEP: International Consulting Program in Taiwan

Client: BUFAB Taiwan

individual learning, and product/service design methods can create heterogeneous

knowledge. Knowledge generation takes place through interactions between tacit and
explicit knowledge.

Socialization: Tacit to tacit. Knowledge is passed on through practice, guidance,

imitation, and observation.
Externalization: Tacit to explicit. This is deemed as a particularly difficult and
often particularly important conversion mechanism. Tacit knowledge is codified into
documents, manuals, etc. so that it can spread more easily through the organization.
Since tacit knowledge can be virtually impossible to codify, the extent of this
knowledge conversion mechanism is debatable. The use of metaphor is cited as an
important externalization mechanism.
Combination: Explicit to explicit. This is the simplest form. Codified knowledge
sources (e.g. documents) are combined to create new knowledge.
Internalization: Explicit to tacit. As explicit sources are used and learned, the
knowledge is internalized, modifying the user's existing tacit knowledge.
1.2 Bufab Taiwans Quality Assurance Strengths
1.2.1 Quality Standards
Bufab Taiwan (BTW) was ISO 9001: 2008 certified;
Bufab Taiwan QCM employees are certified TQE, 5 Core Tool (APQP, PPAP,
FMEA, SPC, MSA), QMS Auditor (ISO9001, TS16949, ISO17025 or AS9100), ISO
14001 / OHSAS 18001 Audit


TEEP: International Consulting Program in Taiwan

Client: BUFAB Taiwan

Bufab Taiwan lab was ISO 9001: 2008 certified and recognized one of the most
advanced lab in Taiwans market; all equipment have been inputted to the Arriving
Quality Control, Initial Sample Quality Control and Service Sister Companies all over
the world to evaluate the product according to

Customer Demand with BTW


Effectiveness of Quality Assurance

Bufab Taiwan Quality Assurance covers 5 functions which commit not only to
deliver high qualified products and professional services to customers; but also retain
good relationship with Taiwanese fastener suppliers through Product control; Supplier







Compliant/Claim (as the figure below).

Based on the job scope of BTW Quality Assurance Department, there are 4 key
points showing clearly effectiveness of the Department, which would be explain
details as below. Quality Continuous Improvement

TEEP: International Consulting Program in Taiwan

Client: BUFAB Taiwan

Acting as the HUB and Supporting Centre, Bufab Taiwan mainly deal with
Taiwanese Suppliers, which makes CAPDo approach an excellent approach to assure
Check: Assessment of the Current Process is a good starting point to identify
major issues;
Followed by Act-Plan-Do can result in decisions based on Current process
performance; (
In s
ti o
t lie
n Id

Bufab Taiwan Inspection Model


TEEP: International Consulting Program in Taiwan

Client: BUFAB Taiwan

By following a clear integrated model, the inspection process proves strong

effectiveness through 5 main steps: Sampling Plan, Inspection, Defect identified,
Action, and Communication with Customer & Supplier.
Besides, the routine inspections as per Customers demand was implemented
(including but not limited to:PPAP - Production Part Approval Process , IMDS
- International Material Data System, MSDS -Manufacturer's Safety Data Sheet , 0150 PPM - Parts Per Million, etc) Product Test
After being tested by BTW Quality Assurance, products could be transferred to
any other sisters without re-checking;
BTW laboratory comprises two rooms; well-equipped with cutting-edge
technology which is consistent to Bufab Groups development and fastener industry
Machines and Equipment being used are certified a number of International
Standards like ISO4042; DIN7985; ISO898-1, ISO898-2, etc.; and are confident to
meet customers expectation;
Capabilities of Bufab Taiwan laboratory
- Drive and torsional strength testing
- Hardness measurement
- Micro hardness
- Hydrogen Embrittlement
- Case depth Failure Cost reduction to achieve optimum quality


TEEP: International Consulting Program in Taiwan

Client: BUFAB Taiwan

Cost of Quality Model

The first priozity of Bufab Taiwan is to minimize the cost burdened on their
customers (Bufab Sister companies) but still assure the optimum quality level. Based
on the Cost of Quality model, BTW strategy is to eliminate cost of poor quality
(internal and external failure costs) and reduce cost of good quality (appraisal costs
and prevention cost)

Cost of Quality Formula


TEEP: International Consulting Program in Taiwan

Client: BUFAB Taiwan

Derived from: Feigenbaum, Armand V. (1991), Total Quality Control (3 ed.), New
York, New York: McGraw-Hill, p. 109, ISBN 978-0-07-112612-0.

Evaluation Cost
Identification; Audit
& Survey

Prevention Cost

Internal Failure
Cost Elimination
Initial Sample Control;
In-process Control;
Arriving Control

Failure Cost
Reduction &

External Failure
Cost Elimination

Figure above demonstrated successfully the role of BTW quality assurance

department in supporting Bufab sister companies to get optimum quality level at
reasonable price.


Prevention Cost is reduced with qualified personnel;

Evaluation Cost is reduced by suppliers identification, suppliers periodical

audit and survey;

Internal Failure cost is eliminated thanks to initial sample control; in-process

control and arriving control;

- External Failure cost is eliminated with Customer complaint managments.
Quality Control Expertise
Not only attracting the most talented qualified employees in the market Bufab
Taiwan continuously enriches their expertise and experience through

Socialisation: periodically internal training, hands-on experience on a daily basis

Externalisation: internal documents recorded on ERP incorporated with intranet



TEEP: International Consulting Program in Taiwan

Client: BUFAB Taiwan

Combination: sufficiently accessible accurate and reliable information and data for
future plan/decisions

Internalisation: continuous self-improvement and updates on products (meeting with

Bufab Globals Quality assurance management on a weekly basis; Bufab Groups
meeting once a year)
Adopting such strong knowledge and experience, Bufab Taiwans employees
contribute a great deal to:

Taiwanese Supplier:
Support to identify and solve technical problems;
Pool of expertise and resources with Supplier at yearly meeting to achieve
mutual improvement

With Taiwanese fastener market:

Understand the supply chain and product process
Maintain good communication/relationship with suppliers

Bufab Sister Companies & Bufab Global

Technical support for Bufab Sisters by visiting End-users
Knowledge sharing in Bufab Global meeting
With strategy Quality and Customer First!, Bufab Group future development
plan would be to upgrade to high level products so that profit and capability of
research & development can be increased which confirm the importance of Bufab
Taiwan as a HUB, especially Quality Assurance Department in technical
supporting/consulting Supplier and Customer.

Strong expertise of Quality Assurance Department would help to identify the most
efficient and highest-quality fastening solutions with both standard products or
special new parts developed together in order to optimize production and the end

Professionalism would build up customers trust, maintain accountability and enhance

Bufab Groups image as a leading company in the industry


TEEP: International Consulting Program in Taiwan

Client: BUFAB Taiwan


TEEP: International Consulting Program in Taiwan

Client: BUFAB Taiwan

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Client: BUFAB Taiwan

17. LYNCH, K. (1989) Managing the product development process: eliminating waste in

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