2. Total Quality
Management
Assignment No. 1
Presented To: Mr. Abdul Sattar
Presented By: 140327398 – Nazish Inam
140327355 – Sadia Butt
140327376 – Amna Khan
140327348 – Wajeeha Mahmood
1403273** – Afshan Amin
Submission Date: April 09, 2015
Program: MS – TQM (Evening)
Section: “B”
Subject: Total Quality Management
University Of The Punjab
Institute Of Quality & Technology Management
3. Page 1
Six Sigma
Six Sigma is a set of techniques and tools for process improvement. It was developed
by Motorola in 1986. Today, it is used in many industrial sectors.
Why Six Sigma:
Six Sigma seeks to improve the quality of process outputs by identifying and removing the
causes of defects (errors) and minimizing variability in manufacturing and business processes. It
uses a set of quality management methods, mainly empirical, statistical methods, and creates a
special infrastructure of people within the organization.
The Current business environment now demands and rewards innovation more than ever
before due to:
Customer Expectations
Technological Change
Global Competition
Market Fragmentation
Six Sigma project carried out within an organization follows a defined sequence of steps and
has quantified value targets, for example: reduce process cycle time, reduce pollution, reduce
costs, increase customer satisfaction, and increase profits.
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The term Six Sigma originated from terminology associated with manufacturing, specifically
terms associated with statistical modeling of manufacturing processes. The maturity of a
manufacturing process can be described by a sigma rating indicating its yield or the percentage
of defect-free products it creates. A six sigma process is one in which 99.99966% of all
opportunities to produce some feature of a part are statistically expected to be free of defects
(3.4 defective features / million opportunities).
Six Sigma Levels:
There are different six sigma levels with percentage and tested quantity.
Six Sigma – Expert Level or Key Role:
Six Sigma professionals exist at every level – each with a different role to play. While
implementations and roles may vary, here is a basic guide to who does what.
Master Black Belt:
Trains and coaches Black Belts and Green Belts. Functions more at the Six
Sigma program level by developing key metrics and the strategic direction. Acts as an
organization’s Six Sigma technologist and internal consultant.
Black Belt:
Leads problem-solving projects. Trains and coaches project teams.
Green Belt:
Assists with data collection and analysis for Black Belt projects. Leads Green Belt
projects or teams.
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Orange Belt:
Participates as a project team member. Reviews process improvements that support the
project.
Yellow Belt:
Can work on local problem-solving teams that support overall projects, but may not be
part of a Six Sigma project team. Understands basic Six Sigma concepts from an
awareness perspective.
Companies Using Six Sigma:
Six Sigma is in use in virtually all industries around the world. Some of companies can be listed
as:
Motorola
Ericsson
General Electric
Sony
Ford Motor Co.
CITI bank
Six Sigma – Methodologies:
Six Sigma projects follow two project methodologies inspired by Deming's Plan-Do-Check-Act
Cycle. These methodologies composed of five phases.
1. DMAIC (DMAIC is used for projects aimed at improving an existing business process.)
2. DMADV (DMADV is used for projects aimed at creating new product or process designs.)
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DMAIC:
The DMAIC project methodology has five phases:
Define the system, the voice of the customer and their requirements, and the project
goals, specifically.
Measure key aspects of the current process and collect relevant data; calculate the 'as-
is' Process Capability.
Analyze the data to investigate and verify cause-and-effect relationships. Determine
what the relationships are, and attempt to ensure that all factors have been considered.
Seek out root cause of the defect under investigation.
Improve or optimize the current process based upon data analysis using techniques
such as design of experiments, mistake proofing, and standard work to create a new,
future state process. Set up pilot runs to establish process capability.
Control the future state process to ensure that any deviations from the target are
corrected before they result in defects. Implement control systems such as statistical
process control, production boards, visual workplaces, and continuously monitor the
process.
DMADV:
The DMADV project methodology has five phases: The DMADV project methodology, known as
DFSS ("Design For Six Sigma"), features five phases:
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Define design goals that are consistent with customer demands and the enterprise
strategy.
Measure and identify CTQs (characteristics that are Critical To Quality), Measure
product capabilities, production process capability, and measure risks.
Analyze to develop and design alternatives
Design an improved alternative, best suited per analysis in the previous step.
Verify the design, set up pilot runs, implement the production process and hand it over
to the process owner(s).
Quality Management Tools & Methods:
Within the individual phases of a DMAIC or DMADV project, Six Sigma utilizes many established
quality-management tools that are also used outside Six Sigma. The following table shows an
overview of the main methods used.
Sr. No. Methods Diagrams
1. 5 Whys
2. Statistical and fitting
tools
2.1. Analysis of variance
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When Should Six Sigma Used?
“If there are processes that generate a lot of negative customer feedback, whether that
customer is internal or external, the components of Six Sigma should be considered as a means
to study and rectify the problem.”
Benefits Of Six Sigma:
Generates sustained success
Sets performance goal for everyone
Enhances value for customers
Accelerates rate of improvement
Promotes learning across boundaries
Executes strategic change
Six Sigma – Applications:
Six Sigma mostly finds application in large organizations. Six Sigma however contains a large
number of tools and techniques that work well in small to mid-size organizations. The fact that
an organization is not big enough to be able to afford Black Belts does not diminish its abilities
to make improvements using this set of tools and techniques.
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The infrastructure described as necessary to support Six Sigma is a result of the size of the
organization rather than a requirement of Six Sigma itself.
Reproach:
Lack of originality
Role of consultant
Potential negative effects
Lack of systematic documentation
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Analytical Approach & Fact Based Decision
Making
The philosophy of the ISO9001:2008 Management System Standard is based on 8 Quality
Principles of which the seventh is Factual Approach to Decision-Making.
Principle 7 - Factual Approach to Decision Making:
"Effective decisions are based on the analysis of data and information."
When it comes to decision making, the factual approach plays an important role within quality
management. The ability to make effective & appropriate decisions is essential to ensure
customer satisfaction, employee management and overall increased operations within the
organization. This ensures that effective decisions are determined by analysis of data rather
than by pure intuition. The factual approach should be applied for decisions that necessitate
corrective action after nonconformity as well as preventive actions when a potential
nonconformity may arise.
Steps in application of Factual Approach to Decision Making:
Each step of the factual approach to decision making is part of one of the most important
principles of quality management, and aid organizations to implement the best strategies for
decision making across the board. These steps include:
1.Data Collection 2.Data Accuracy &
Reliability
3.Data Analysis
4.Usining
Statistical
Techniques
5.Take Decisions
based on Logical
Analysis
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1. Data Collection: Take measurements and collect data and facts that are applicable to
the specific objective in order to begin the decision making process.
2. Data Accuracy & Reliability: Make sure that the data and facts are correct, reliable and
accessible to all parties concerned in the decision making process.
3. Data Analysis: Analyze the data and information using valid methods.
4. Using Statistical Techniques: Understand the value of appropriate statistical techniques.
5. Take Decision Based on Logical Analysis: Make decisions and take action based on the
results of logical analysis balanced with experience and intuition.
Approaches /Models of Decision Making:
Two generally applied approaches of decision making are:
a. Intuitive Approach: Image Theory: This model says we make decisions intuitively, by
going through a two-step process.
• Step 1 is the compatibility test. Does the alternative feel right?
• Step 2 is profitability tests - Which of the alternatives that feel right is best?
b. Rational-Economic Model: A model in which decision makers consider all possible
solutions before selecting the optimal one. Presumes
• We are entirely rational and logical
• We have complete and perfect information
• We can process all this information
Analytical Model of Decision Making:
Conception of decision making as a series of analytical steps. The model focuses on two
aspects:
• Identifying the problem
• Implementing the solution
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Steps in the Analytical Model:
1. Define the problem:
The first step in the decision-making process is to define the real problem. Consider critical or
limiting factors in defining the problem. These factors are, in fact, obstacles in the way of
finding proper solution.
2. Gather Facts:
After defining the problem, the next important step is a systematic analysis of the available
data. Sound decisions are based on proper collection, classification and analysis of facts and
figures.
There are three principles relating to the analysis and classification as explained below:
The futurity of the decision. This means to what length of time, the decision will be
applicable to a course of action.
The impact of decision on other functions and areas of the business.
The qualitative considerations which come into the picture.
3. Generate Alternatives:
After defining and analyzing the problem, the next step is to develop alternative solutions. The
main aim of developing alternative solutions is to have the best possible decision out of the
available alternative courses of action.
4. Selecting the best type of alternative:
After developing various alternatives, select the best alternative. It is not an easy task.
The following are the four important points to be kept in mind in selecting the best from
various alternatives:
Risk element involved in each course of action against the expected gain.
Economy of effort involved in each alternative, i.e. securing desired results with the
least efforts.
Proper timing of the decision and action.
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Final selection of decision is also affected by the limited resources available at our
disposal.
5. Implementation of the decision:
For proper and effective execution of the decision, three things are very important i.e.
Proper and effective communication of decisions to the subordinates.
Acceptance of decision by the subordinates is important.
Correct timing in the execution of decision minimizes the resistance to change.
6. Follow up:
A follow up system ensures the achievement of the objectives. It is exercised through control.
Simply stated it is concerned with the process of checking the proper implementation of
decision.
7. Monitoring/Assessment & feedback:
Feedback provides the means of determining the effectiveness of the implemented decision. If
possible, a mechanism should be built which would give periodic reports on the success of the
implementation.
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Benefits of Factual Approach to Decision Making:
• You have a very solid ground, in forms of facts, figures, data supporting your decisions
• It develops trust among the employees working at different levels.
• It gives an increased ability to review, challenge, change opinions and decisions.
• Enhanced ability to prove the efficiency of previous decisions through reference to
factual records.
Differences in Western & Japanese Approach:
Western Japanese
1. Finding the Answer. 1. Defining the Question.
2.Adhere to Group Think 2.Consensus-Encourage Dissenting Opinions
3.Struggle for the Right Answer 3.Focus on Alternatives
4.Have to Sell Decision 4.Process Delegates Authority
5.Always in a Hurry to Decide Quickly 5.Take Longer Time to Decide
6.Plans Run into Problem 6.Execute with Speed
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(SIOPC)
Supplier, Input, Process, Output, Customer
SIPOC (suppliers, inputs, process, outputs, and customers) is a visual tool for documenting
a business process from beginning to end. SIPOC (pronounced sigh-pock) diagrams are also
referred to as high level process maps because they do not contain much detail. Visually
communicates the scope of the project.
How SIPOC can be used?
A SIPOC diagram is a tool used by a team to identify all relevant elements of a process
improvement project before work begins. It helps define a complex project that may not be
well scoped, and is typically employed at the Measure phase of the Six Sigma DMAIC (Define,
Measure, Analyze, Improve, and Control) methodology. It is similar and related to process
mapping and ‘in/out of scope’ tools, but provides additional detail.
The tool name prompts the team to consider the suppliers (the ‘s’ in SIPOC) of your process, the
inputs (the ‘i’) to the process, the process (the ‘p’) your team is improving, the outputs (the ‘o’)
of the process, and the customers (the ‘c’) that receive the process outputs. In some cases,
requirements of the customers can be appended to the end of the SIPOC for further detail.
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The SIPOC tool is particularly useful when it is not clear:
Who supplies inputs to the process?
What specifications are placed on the inputs?
Who are the true customers of the process?
What are the requirements of the customers?
SIPOC diagrams are useful for focusing a discussion and helping team members agree upon a
common language and understanding of a process for continuous improvement. In Six Sigma,
SIPOC is often used during the “define” phase of the DMAIC improvement steps.
Steps to Complete the SIPOC Diagram
SIPOC diagrams are very easy to complete. Here are the steps you should follow:
1. Create an area that will allow the team to post additions to the SIPOC diagram. This
could be a transparency (to be projected by an overhead) made of the provided
template, flip charts with headings (S-I-P-O-C) written on each, or headings written on
post-it notes posted to a wall.
2. Begin with the process. Map it in four to five high level steps.
3. Identify the outputs of this process.
4. Identify the customers that will receive the outputs of this process.
5. Identify the inputs required for the process to function properly.
6. Identify the suppliers of the inputs that are required by the process.
7. Optional: Identify the preliminary requirements of the customers. This will be verified
during a later step of the Six Sigma measurement phase.
8. Discuss with project sponsor, Champion and other involved stakeholders for verification.
Diagram
Each column is labeled, from
left to right, with the letters
SIPOC or the words suppliers,
inputs, processes, outputs and
customers.
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During a brainstorming session, team members often fill in SIPOC charts by starting with the
center column, process. The process column is kept simple; ideally it lists no more than five
steps and each step consists of an action and a subject (verb/noun).
Once the team agrees upon how the process has been documented, they move on to list the
outcomes and customers of the process. Then they work backwards from the center of the
diagram to identify the input and suppliers. Because SIPOC diagrams are often completed in
this manner, they are sometimes referred to as POCIS (process, output, customers, inputs,
suppliers) diagrams.
The inputs and outputs can be tangible (raw material or finished product) or intangible
(information e.g. computerized drawing or specifications). All process has a supplier and a
customer. These suppliers and customers may be internal processes or external to your
organization.
Example:
Other examples that could be used as illustrations:
Delivering newspapers = Prepare papers for delivery -> Deliver papers -> Collect payments
Taking Wedding photos = Prepare location -> Take photographs -> Develop photographs ->
Deliver photographs
Changing motor oil & parts = Receive incoming vehicles -> Drain oil & remove old filter -> Install
new filter & refill oil -> Complete transaction & return vehicle
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Process Approach
The process approach is a management strategy. When managers use a process approach, it
means that they manage and control the processes that make up their organizations, the
interactions between these processes, and the inputs and outputs that tie these processes
together. It also means that they manage these process interactions as a system.
When this approach is applied to quality management, it means that they manage processes
and process interactions as a coherent Process Based Quality Management System.
The process approach is more than an auditing technique: It’s a philosophy. It means shifting
focus away from basic compliance to embrace an “improvement” mindset. When already-
established activities and related resources are managed as a process, there’s no need to
“invent” unnecessary paperwork just to show compliance.
Any paperwork required for an audit is documentation necessary for quality management
anyway; it’s simply documentation of processes currently employed to produce the desired
output.
Process Definition:
“A process is a set of activities that are interrelated or that interact with one another. Processes
use resources to transform inputs into outputs.”
“A process is commonly defined as a number of reproducible, interacting activities that
together convert an input into an output.”
They are interconnected because the output from one process often becomes the input
for another process. Since all of this is rather abstract, we’ll try to make it more concrete
with examples.
An input is something that drives or starts the process, such as people, resources, or
materials. Multiple inputs can, and usually do, exist.
An output is a deliverable resulting from the process, addressing the expectation of a
customer (either external or internal). Typically an output is a product, a service, or the
input into another process.
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The process approach is a review of the sequence and interaction of processes and their inputs
and outputs. It looks at the management system not just as a document, but also an active
system of processes that addresses business risk and customer requirements.
Examples:
Since the process approach is now central to ISO 9001, we've tried to identify the processes
that could make up a process-based QMS. Some of these are listed below.
Planning process
Assembly process
Evaluation process
Production & Delivery process
Leadership process
Verification & Maintenance process
Development process
Improvement process
Manufacturing process
Service delivery process
Market research process
Customer needs assessment process
Process Based Audit:
It would ask questions such as,
“Who is the process owner?”
“What are your customer requirements?”
“How do you demonstrate improvement?”
The Turtle Diagram:
A turtle diagram is just one of the auditing techniques that can be used to evaluate a process.
Asking with what, with whom, how, and how many results in evidence of effectiveness,
measurement to goal, evaluation of internal and external customers, and a focus on
deliverables.
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Explanation:
With what names the tools, equipment, and resources needed to perform an activity. This
could include software, hardware, and support from other departments.
With whom defines the human resources required for performing a task. This includes a
definition of competency requirements such as skills, education, experience, and training.
How identifies all the supporting documentation that may exist to support this process.
How many is process monitoring—i.e., identifying the measurements needed to assess the
effectiveness of the process in support of the business plan. There should be evidence of
continuous improvement and corrective action in the process.
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Process analysis with the turtle diagram can encompass many elements, including:
Activities
Resources and inks
Methods and tools
Measurements
Regulatory requirements applicable to the process
Risks associated with the process
Effectiveness and efficiency
Customer requirements, both external and internal
Result:
The results of the turtle diagram yield many benefits to the business. First and foremost, it
provides process measurements that can be linked directly to the organization’s strategic plan.
It provides a means to assess both external and internal customer expectations, as
well as any business risks associated with the process.
It allows for use of the plan, do, check, act (PDCA) cycle as it applies to the process.
And finally, it allows for an important deliverable to the management team: a
SWOT analysis.
PDCA Model:
PDCA stands for Plan-Do-Check-Act. ISO used the PDCA model to organize the new ISO 9001
standard in the following way:
Plan
Do
Check
Act
ISO 9001 also recommends that you use the PDCA model to establish your organizations. It
suggests that you:
Plan each process
Operate each process
Evaluate each process
Improve each process
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It also suggests that you use the PDCA approach to establish your organization's process-based
QMS. It suggests that you:
Plan your process-based QMS
Operate your process-based QMS
Evaluate your process-based QMS
Improve your process-based QMS
SWOT Analysis:
SWOT is a business tool that translates “ISO language” into a format that senior management
can more easily understand. A SWOT analysis provides feedback on the organization’s
strengths, weaknesses, opportunities, and threats to the organization. This approach is widely
used to assess risks, benchmark competitive differentiators, and determine new business
strategy. A SWOT analysis looks at:
Strengths, present view. Best practices and benchmarks; learn from these and apply them to
other processes.
Weaknesses, present view. Areas that comply but are not fully effective, and therefore require
correction.
Opportunities, future view. Areas of improvement to consider.
Threats, future view. Areas of high risk and noncompliance.
The results of this analysis can be summarized in a SWOT diagram, such as this one:
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Process Based QMS:
A process-based QMS is a network of interrelated and interconnected processes.
A process-based quality management system uses a process approach to manage
and control how its quality policy is implemented and how its quality objectives
are achieved.
Each process uses resources to transform inputs into outputs. Since the output of
one process becomes the input of another process, processes interact and are
interrelated by means of such input-output relationships.
These process interactions create a single integrated process-based QMS.
ISO 9001 asks you to identify the processes that your QMS needs, to identify their
sequence and interaction, to identify required inputs and expected outputs for
each process, to identify process risks and opportunities, and to assign
responsibilities and authorities for each process.
It also expects you to identify the methods needed to manage, monitor, measure,
evaluate, and control each process and to provide the resources that each process
needs. Once you've done all of this you've defined your process-based QMS.
But that's not enough. It also asks you to address the risks and opportunities that
could influence your organization's process-based QMS or disrupt its operation
and to consider how its context and its interested parties could affect the results it
intends to achieve.
Effects Of Process Approach:
Any organization seeking to certify its management system must still meet the
requirements that are presented in the appropriate standard. But the standard by
itself doesn’t necessarily add value to the organization, or bring benefit to senior
management. By assessing the effectiveness of operational processes in achieving
overall company goals and objectives, the concept of risk is now being considered.
What’s more, it results in solid feedback that’s presented in a language that the
management team can understand.
A process-based management system isn’t an administrative burden. In fact it’s a
necessity for a truly competitive business. It’s a critical tool that provides
continuity throughout operations, forming the link between policy, requirements,
performance, objectives, and targets.
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Customer Approach
Personalization and mobilization are just two of the global megatrends identified recently by
the CSIRO as impacting every organization over the next decade. These two trends will drive
fundamental changes in behavior, tipping the scales for customers to be even more discerning,
educated and demanding than they are today. We predict organizations will experience even
greater challenges in the quest to build brand loyalty and sustainable customer relationships.
In such a dynamic marketplace, customer centric businesses will thrive. While others struggle,
they will retain and grow customers by delivering on-target solutions that satisfy their
customers’ expectations every time.
It is a fact that many
businesses believe they
are delighting customers
when their culture and
systems are designed to
disappoint them. It is
necessary for small to
medium businesses to
focus on customer
experience to help close
the gap.
Checklist for a customer centric organization:
Map customer journey and lifecycle
Refine operating model to enable customer centricity
Align technologies and processes to support and drive customer engagement
Engage executives and leaders
Focus development around target areas and behavior change
Integrate disparate business unit cultures
Transform culture top to bottom
Measure change using key metrics
Incorporate customer feedback into processes and behaviors
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Supplier Approach
Supplier Relation Management:
Supplier relationship management (SRM) consists of managing and planning constructive
interactions with the third-party vendors that supply your business with goods and materials.
This is an important part of both supply chain management (SCM) and effective small business
management.
When you communicate effectively with your suppliers, the entire supply chain process,
including managing inventory and acquiring goods, will run smoother and be more efficient.
Although buying SRM software is a good place to start, there are four other steps you can take
to build relationships and partnerships with your suppliers to measure and increase
performance.
1. Invest In Supplier Relationship Management:
2. Demonstrate To Your Supplier That You Are A Good Customer
3. Considering Your Number of Vendor
4. Keep Lines of Communication Open
Supplier Selection Process:
Evaluating and selecting the right supplier today has become much more critical and complex.
Selecting the right supplier may seem like an onerous process for your supply
chain. While having a more simplistic supplier selection process may be helpful for
some smaller supply chains, a more involved process of selecting the right
suppliers can help many companies meet or exceed regulatory standards, drive
customer demand and build a strong brand reputation of quality products.
Quality and safety of our ingredients, products and packaging are paramount to
success, so choosing a good supplier is a critical business decision.
Selecting the suppliers who can meet your consumers’ demand for higher-quality
ingredients may bring some initial costs, but it will pay off over time through
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consistent, high-grade materials. However, the process to find the ideal supplier is
often not easy and requires discipline and hard work.
1. Identifying Supplier
2. Measuring Supply Performance
3. Gaining Supplier Feedback
4. Achieving Certification
5. Developing Partnerships
6. Ensuring Quality for Consumers
Conclusion:
Selecting the right supplier can help you meet the consumer demand for higher-quality
ingredients—while also meeting high regulatory standards. When selecting the right supplier,
manufacturers should remember to:
Include all key internal stakeholders in the process to agree on important criteria
that the supplier should meet.
Require strong communication between the manufacturer and the supplier. Good
communication might not necessarily confirm a successful relationship, but poor
communication can almost guarantee a failed relationship.
Perform audits for the selected supplier, and work with them to address any
deficiencies. If the deficiencies are too great, move on to another supplier.
Implement adequate monitoring to drive improvement in supplier performance.
Assess performance through useful metrics and provide the necessary feedback to
the supplier.
Establish an effective certification program and utilize it when the supplier has met
its standards.
Motivate your suppliers to develop strategic partnerships to ensure the greatest
opportunity for success for both parties.
Invest sufficient time, effort and energy early in the relationship to set up for
success.
