compettiveress of an oanition though mprovement of the quality THE TOTAL QUALITY APPROACH DEFINED Just as there are diffierent definitions of quality, there are dif- ferent definitions of total quality. The authors define total quality as follows must be improved, continually and forever. What is con- sadered excellent today may be just mediocre tomorrow cannot survive, mach les thrive, unless they outperform atime line that showes some of the major events in the evolution Consequently. "good enough" is never good enough. Another way to understand total quality as a concept is shown in Figure 1.2. Notice that the first part of the defi- nition in Figure 12 esplains the what of total quality: the second part explains the how. In the case of total quality, the how is important because it is what separates this approach to doing business from all of the others The total in total quality indicates a concern for quality in the broadest sense-what has come to be known as the "Big Q" Big Q refers to quality of products, services, people. processes, and emvironments. Correspondingly. "Litle Q refers to a narrower concern that focuses on the quality of one of these elements or individual quality criteria within an individual element. into one. Taylor's scientific management did away with this by making planning the job of management and production the job of labor. To keep quality from falling through the cracks, it was necessary to create a separate quality depart- ment. Such departments had shaky beginnings, and just who was responsible for quality became a clouded issue. As the volume and complexity of manufacturing grew, quality became an increasingly difficult issue. Volume and complexity together gave birth to quality engineering in the 1920s and reliability engineering in the 1950s. Quality engi- neering, in turn, resulted in the use of statistical methods in the control of quality, which eventually led to the concepts of control charts and statistical process control, whích are now fundamental aspects of the total quality approach. Redliability engineering emerged in the 1950s. It began a trend toward moving quality control away from the traditional after-the-fact approach and toward inserting it throughout the design and production processes. However, for the most part, quality control in the 1950s and 1960s involved inspections that resulted in nothing more than cutting out bad parts. World War II had an impact on quality that is still being felt. In general, the effect was negative for the United States and positive for Japan. Because of the urgency to meet production schedules during the war, US. companies focused more on meeting delivery dates than on quality. This approach became a habit that carried over even after the competition in proving superior value. And quality is an of the tal quality movement since the days of Taykoe. Tiylor is esential ingredient in superior value (quality, cost, service). now known a the father of scientific management The individual characteristics relating to total quality shown in Figure 12 are explained later in this chapter. Customer Focus The most fundamental aspect of scientific manage ment is the separation of planning and esecution. Although the division of labor spawned tremendous leaps forward in productivity, it virtually eliminated the old practice of one highly skilled individual performing all the tasks required The total quality movement had its roots in the time and motion to produce a quality product. In a sense, that individual was studies conducted by Frederick Taykor in the 1920. Table 11 s CEO, production worker, and quality controller all rolled The Historic Development of Total Quality TABLE 1.1 100 Years of Selected Historic Milestones in the Global Quality Movement Measures People Processes 1908 1904 Sastical proces Quity a buitin cont Continual improvement Quity s epected Good enoughra fort atains perlect pert terchange Shetat idertfes caes of process variation an common and special, and develops the statistical process cortral SPC) Prior to 1906-1908 atbity eliminating the need for skiled craftumen Time regd tor a Ford Benchmarkng 1931 Alats skilled catumen caled "Fiters Time reg'd Al embled by never good enough How Is Total Quality Different? not inspected Shehat puhes hs book Eanome Quity o • Employees are empowend What distinguishes the total quality approach from tra- ditional ways of doing business can be found in how it is achieved. The distinctive characteristic of total quality are these strategically based, customer focus (internal and ex- An easy way to grasp the concept of total quality is termal), obsession with quality, use of the scientific approach in decision making and problem solving, long-term com- mitment, teamwork, continual process improvement, bot- tom-up education and training, freedom through control, unity of purpose, and employee involvement and empow- erment, all deliberately aimed at supporting the organiza tional strategy. The underlying concept that drives the need for total quality is competitivemess. Although pride of prod- uct (or service) is a philosophical driver of the total quality concept-organizations that produce a product or provide a service should want it to represent them in a way they can be proud of-the practical driver is competitiveness. In today's "processes" leg of the stool makes the point that processes globally competitive business environment, organizations compiete a Fond Fier's Assembler to com plete h Contral of Quality of Manufactured Poducts tak wn 856 hous asigned task 23minut chart FIGURE 1.1 Three-Legged Stool of Total Quality. 1906 1913 1927 199 to consider the analogy of a three-legged stool, as shown in Figure L.1. The seat of the stool is customer focus. This means with total quality the customer is in the "driver's seat" as the primary arbiter of what is acceptable in terms of quality. Each of the three legs is a broad element of the total quality philosophy (Le, measures, people, and pro- cesses). The "measures" leg of the stool makes the point that quality can and must be measured. The "people" leg of the stool makes the point that quality cannot be inspected into a product or service. Rather, it must be built in by people who are empowered to do their jobs the right way. The Cadac achieves perfect inerchan gabty of part Dening mets Shehart and sees the evance Sat of Word W Ford ntroduces the movine aetly ine educng the Asembiers ot hs das to management. tk ime to 19mntes 1960&19 Japan caphures market share 1941 196 1950 Deming teaches SPC Ameican watme E Toyada & Taichi as pent-up demand tor Chne start devekpnent of ton Westen manuactures Toycta Production Sye (TPS. Continues to this date SPC tades in America the war. manufactured goods seem boundess US knes some market segments compitely Japanese companies, on the other hand, were forced to learn to compete with the rest of the world in the produc- tion of nonmilitary goods. At first, their attempts were un- cuccessful, and "Made in Japan" remained synoymous with poor quality, as it had been before World War IL. Around 1950, however, Japan decided to get serious about quality and establishing ways to produce quality products. Japanese manufacturers overcame a reputation for pro- ducing cheap, shabby products and developed a reputation as world leaders in the production of quality products. More than any other single factor, it was the Japanese miracle- production worken SPCwidely used 190 2964 NBC As TV documentary Japanese engireens, managen managemert couns apan Can, Why Cant we Brings ertion to Japanese ucost with quity and to Deming American industry begins to m from Japan End of World War Deming trai hundreds of Juran conducts quality ecutives and scholars in SPC and quality concepts inapan What It is Total quaity is an acorach to doing business that aempts to manie the comp 2010 an organiation through the contn improvement of the quality s products, services, people processes, and environments TOMLana Sa generaly acknowedged worldwide an the ma 198 1985 1988 How It is Achieved 1993 which was not a mirade at all but the result of a concerted Ford and GMine Demng to speak to eecutves. Ford Iistened bether than GM American organiations Begng of adton uS. Det of Detene of tutal quity management by US. Dept of Detense endores TOM casing Deb contracton to followt nagement system of the tentyfrt century, and are The ttal quality approach has the folowing characteristics • Strategicaly based Customer facus nternaland etemal Obsession h oualty • Scientfic accroach to decnion making and problem soving • Longem commment Teamwork • Continual improvement of people, processes, produch, services, and environments Eduton and training Freedom through cortrol Unity of purpose • Employee imvovement and empowerment Peak performance asatp prionity TOMsidely ught in US colegn practiced by organtions and universtes effort that took 20 years to really bear fruit-that got the rest of the world to focus on quality. When Western companies finally realized that quality was the key factor in global com- petition, they responded. Unfortunately, their first responses wee tle uppnite uf wlat was ceded. In spite of these early negative reactions, Western com- panies began to realize that the key to competing in the global marketplace was to improve quality. With this realization, the total quality movement finally began to gain momentum. across the plant 1982 1987 1990 2000 2000 Deming publhes US Congess estabishes Laan Production as s0 9000, he ietmational Gobal competteness a defintion of the Toyota Standard for Quality w maks talqualtya rentoncorpot buineon imporate in Quai Productv Campete Poston of managmert baed he Macom Baldig Poduon yom uned by the book The National Quty ard busineos mportivo in all indutraled nations of the worid philosophy Mutorola troduce Si TOM conceps on hs Toute Sa ama more powertu Machine Tut Oupe Signa rsian of TOM on his "Fourteen Poin" he Word

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Read the pages and make a summary of them with your own words, please. Mention important parts. Also, you will put your comments and ideas about the topic. 

THE TOTAL QUALITY
APPROACH DEFINED
Just as there are different definitions of quality, there are dif-
ferent definitions of total quality. The authors define total
quality as follows:
must be improved, continually and forever. What is con-
sıdered excellent today may be just mediocre tomorrow.
Consequently, "good enough" is never good enough.
Another way to understand total quality as a concept is
shown in Figure 1.2. Notice that the first part of the defi-
nition in Figure 1.2 explains the what of total quality: the
second part explains the how. In the case of total quality, the
how is important because it is what separates this approach
to doing business from all of the others.
The total in total quality indicates a concern for quality
in the broadest sense-what has come to be known as the
"Big Q" Big Q refers to quality of products, services, people,
processes, and environments. Correspondingly, "Little Q"
refers to a narrower concern that focuses on the quality of
one of these elements or individual quality criteria within
an individual element.
into one. Taylor's scientific management did away with this
by making planning the job of management and production
the job of labor. To keep quality from falling through the
cracks, it was necessary to create a
ment. Such departments had shaky beginnings, and just who
was responsible for quality became a clouded issue.
As the volume and complexity of manufacturing grew,
quality became an increasingly difficult issue. Volume and
complexity together gave birth to quality engineering in the
1920s and reliability engineering in the 1950s. Quality engi-
neering, in turn, resulted in the use of statistical methods in
the control of quality, which eventually led to the concepts
of control charts and statistical process control, which are now
fundamental aspects of the total quality approach.
Reliability engineering emerged in the 1950s. It began a
trend toward moving quality control away from the traditional
after-the-fact approach and toward inserting it throughout the
design and production processes. However, for the most part,
quality control in the 1950s and 1960s involved inspections
that resulted in nothing more than cutting out bad parts.
World War Il had an impact on quality that is still
being felt. In general, the effect was negative for the United
States and positive for Japan. Because of the urgency to
meet production schedules during the war, U.S. companies
focused more on meeting delivery dates than on quality.
This approach became a habit that carried over even after
a time line that shows some of the major events in the evolution
of the total quality movement since the days of Taylor. Taylor is
now known as "the father of scientific management."
The most fundamental aspect of scientific manage-
ment is the separation of planning and execution. Although
the division of labor spawned tremendous leaps forward in
productivity, it virtually eliminated the old practice of one
highly skilled individual performing all the tasks required
to produce a quality product. In a sense, that individual was
CEO, production worker, and quality controller all rolled
cannot survive, much less thrive, unless they outperform
the competition in proving superior value. And quality is an
essential ingredient in superior value (quality, cost, service).
The individual characteristics relating to total quality shown
in Figure 1.2 are explained later in this chapter.
Customer
Focus
separate quality depart-
The Historic Development of Total Quality
The total quality movement had its roots in the time and motion
studies conducted by Frederick Taylor in the 1920s. Table 1.1 is
TABLE 1.1 100 Years of Selected Historic Milestones in the Global Quality Movement
Measures
People
Processes
1908
1924
• Statistical process
control
• Continual
improvement
• Quality is built-in
Ford attains perfect
part interchangeability,
eliminating the need
for skilled craftsmen.
Time req'd. for a Ford
"Assembler" to complete his
assigned task 2.3 minutes.
Shewhart identifies
causes of process
variation
and special, and
develops the statistical
process control (SPC)
Prior to 1906-1908
• "Good enough" is
never good enough How Is Total Quality Different?
• Benchmarking
• Quality is expected,
not inspected
• Employees are
empowered
1931
Ali autos assembled by
skilled craftsmen called
"Fitters." Time req'd. to
complete a Ford Fitter's
task was 8.56 hours
s common
Shewhart publishes
his book Economic
Control of Quality of
Manufactured Products.
• Quality tools
What distinguishes the total quality approach from tra-
ditional ways of doing business can be found in how it is
achieved. The distinctive characteristics of total quality are
these: strategically based, customer focus (internal and ex-
ternal), obsession with quality, use of the scientific approach
in decision making and problem solving. long-term com-
mitment, teamwork, continual process improvement, bot-
tom-up education and training, freedom through control,
unity of purpose, and employee involvement and empow-
erment, all deliberately aimed at supporting the organiza-
tional strategy. The underlying concept that drives the need
for total quality is competitiveness. Although pride of prod-
uct (or service) is a philosophical driver of the total quality
concept-organizations that produce a product or provide a
service should want it to represent them in a way they can be
proud of-the practical driver is competitiveness. In today's
globally competitive business environment, organizations
chart.
FIGURE 1.1 Three-Legged Stool of Total Quality.
An easy way to grasp the concept of total quality is
to consider the analogy of a three-legged stool, as shown
in Figure 1.1. The seat of the stool is customer focus. This
means with total quality the customer is in the "driver's
seat" as the primary arbiter of what is acceptable in terms
of quality. Each of the three legs is a broad element of the
total quality philosophy (ie., measures, people, and pro-
cesses). The "measures" leg of the stool makes the point that
quality can and must be measured. The "people" leg of the
stool makes the point that quality cannot be inspected into
a product or service. Rather, it must be built in by people
who are empowered to do their jobs the right way. The
"processes" leg of the stool makes the point that processes
1906
1913
1927
1939
Deming meets Shewhart,
Cadilac achieves
perfect interchan-
geability ot parts.
Ford introduces the
Start of World War
moving assembly line,
reducing the Assemblers of his ideas to management.
task time to 1.9 minutes.
and sees the relevance
1941
1946
1950
1960s & 1970s
Deming teaches SPC
to Amenican wartime
production workers.
SPC widely used.
SPC fades in America
as pent-up demand for
manufactured goods
Eji Toyoda & Taiichi
Ohno start development of from Western manufacturers
the Toyota Production System
(TPS). Continues to this date.
Japan captures market share
the war.
U.S. loses some market
segments completely.
Japanese companies, on the other hand, were forced to
learn to compete with the rest of the world in the produc-
tion of nonmilitary goods. At first, their attempts were un-
successful, and "Made in Japan" remained synonymous with
poor quality, as it had been before World War II. Around
1950, however, Japan decided to get serious about quality
and establishing ways to produce quality products.
Japanese manufacturers overcame a reputation for pro-
ducing cheap, shabby products and developed a reputation
as world leaders in the production of quality products. More
than any other single factor, it was the Japanese miracle-
seems boundless.
1950
1954
1980
End of World War II
Deming trains hundreds of
Japanese engineers,
Juran conducts quality
NBC Airs TV documentary,
executivesnd chelen manigement courses f Japan Can, Why Can't Wa
Brings attention to Japanese
success with quality and to
Deming American industry
begins to learm from Japan.
scholars in
in Japan.
SPC and quality concepts.
What It Is
Total quality is an approach to doing business that attempts to maximize the
competitiveness of an organization through the continual improvement of the quality
of its products, services, people, processes, and environments.
2010
TOM/LearSx Sgma
generally acknowledged
worldwide as the
management system of
the twenty-first century, and are
taught in US. colleges practiced by organizations
across the planet.
1981
1985
1988
How It Is Achieved
1993
which was not a miracle at all but the result of a concerted
Ford and GM invite
Deming to speak
to executives. Ford
listened better than GM, American organizations.
Beginning of adoption
of total quality
management by
U.S. Dept. of Defense
endorses TQM, causing
DoD contractors
to follow suit.
TQM is widely
The total quality approach has the folowing characteristics
• Strategically based
• Customer focus (internal and extermal)
• Obsession with quality
• Scientfic approach to decision making and problem solving
• Long-term commitment
• Teamwork
• Continual improvement of people, processes, products, services, and environments
• Education and training
• Freedom through control
• Unity of purpose
• Employee involvement and empowerment
• Peak performance as a top pricrity
effort that took 20 years to really bear fruit-that got the rest
of the world to focus on quality. When Western companies
finally realized that quality was the key factor in global com-
petition, they responded. Unfortunately, their first responses
weie tlhe upposite uf wlat was acedeu.
In spite of these carly negative reactions, Western com-
panies began to realize that the key to competing in the global
marketplace was to improve quality. With this realization, the
total quality movement finally began to gain momentum.
and universities.
1982
1987
1990
2000
2020
Deming publishes
Quality, Productivity,
and Compotitive
Position, his philosophy Motorola introduces Six
of management based Sigma as a more powerful Machine That Changed
on his "Fourteen
U.S. Congress establishes "Lean Production" as ISO 9000, the International Global compettiveness
the Maicolm Baldrige
National Quolity Award.
a definition of the Toyota Standard
Production System io rowritten to incorporate
used by the book The
Qualty, was makes total quality a
business imporativo in
all industrialized
nations of the world.
TOM concepts
Points.
the World
version of TQM.
FIGURE 1.2 Total Quality: What It Is and How It is Achieved.
Transcribed Image Text:THE TOTAL QUALITY APPROACH DEFINED Just as there are different definitions of quality, there are dif- ferent definitions of total quality. The authors define total quality as follows: must be improved, continually and forever. What is con- sıdered excellent today may be just mediocre tomorrow. Consequently, "good enough" is never good enough. Another way to understand total quality as a concept is shown in Figure 1.2. Notice that the first part of the defi- nition in Figure 1.2 explains the what of total quality: the second part explains the how. In the case of total quality, the how is important because it is what separates this approach to doing business from all of the others. The total in total quality indicates a concern for quality in the broadest sense-what has come to be known as the "Big Q" Big Q refers to quality of products, services, people, processes, and environments. Correspondingly, "Little Q" refers to a narrower concern that focuses on the quality of one of these elements or individual quality criteria within an individual element. into one. Taylor's scientific management did away with this by making planning the job of management and production the job of labor. To keep quality from falling through the cracks, it was necessary to create a ment. Such departments had shaky beginnings, and just who was responsible for quality became a clouded issue. As the volume and complexity of manufacturing grew, quality became an increasingly difficult issue. Volume and complexity together gave birth to quality engineering in the 1920s and reliability engineering in the 1950s. Quality engi- neering, in turn, resulted in the use of statistical methods in the control of quality, which eventually led to the concepts of control charts and statistical process control, which are now fundamental aspects of the total quality approach. Reliability engineering emerged in the 1950s. It began a trend toward moving quality control away from the traditional after-the-fact approach and toward inserting it throughout the design and production processes. However, for the most part, quality control in the 1950s and 1960s involved inspections that resulted in nothing more than cutting out bad parts. World War Il had an impact on quality that is still being felt. In general, the effect was negative for the United States and positive for Japan. Because of the urgency to meet production schedules during the war, U.S. companies focused more on meeting delivery dates than on quality. This approach became a habit that carried over even after a time line that shows some of the major events in the evolution of the total quality movement since the days of Taylor. Taylor is now known as "the father of scientific management." The most fundamental aspect of scientific manage- ment is the separation of planning and execution. Although the division of labor spawned tremendous leaps forward in productivity, it virtually eliminated the old practice of one highly skilled individual performing all the tasks required to produce a quality product. In a sense, that individual was CEO, production worker, and quality controller all rolled cannot survive, much less thrive, unless they outperform the competition in proving superior value. And quality is an essential ingredient in superior value (quality, cost, service). The individual characteristics relating to total quality shown in Figure 1.2 are explained later in this chapter. Customer Focus separate quality depart- The Historic Development of Total Quality The total quality movement had its roots in the time and motion studies conducted by Frederick Taylor in the 1920s. Table 1.1 is TABLE 1.1 100 Years of Selected Historic Milestones in the Global Quality Movement Measures People Processes 1908 1924 • Statistical process control • Continual improvement • Quality is built-in Ford attains perfect part interchangeability, eliminating the need for skilled craftsmen. Time req'd. for a Ford "Assembler" to complete his assigned task 2.3 minutes. Shewhart identifies causes of process variation and special, and develops the statistical process control (SPC) Prior to 1906-1908 • "Good enough" is never good enough How Is Total Quality Different? • Benchmarking • Quality is expected, not inspected • Employees are empowered 1931 Ali autos assembled by skilled craftsmen called "Fitters." Time req'd. to complete a Ford Fitter's task was 8.56 hours s common Shewhart publishes his book Economic Control of Quality of Manufactured Products. • Quality tools What distinguishes the total quality approach from tra- ditional ways of doing business can be found in how it is achieved. The distinctive characteristics of total quality are these: strategically based, customer focus (internal and ex- ternal), obsession with quality, use of the scientific approach in decision making and problem solving. long-term com- mitment, teamwork, continual process improvement, bot- tom-up education and training, freedom through control, unity of purpose, and employee involvement and empow- erment, all deliberately aimed at supporting the organiza- tional strategy. The underlying concept that drives the need for total quality is competitiveness. Although pride of prod- uct (or service) is a philosophical driver of the total quality concept-organizations that produce a product or provide a service should want it to represent them in a way they can be proud of-the practical driver is competitiveness. In today's globally competitive business environment, organizations chart. FIGURE 1.1 Three-Legged Stool of Total Quality. An easy way to grasp the concept of total quality is to consider the analogy of a three-legged stool, as shown in Figure 1.1. The seat of the stool is customer focus. This means with total quality the customer is in the "driver's seat" as the primary arbiter of what is acceptable in terms of quality. Each of the three legs is a broad element of the total quality philosophy (ie., measures, people, and pro- cesses). The "measures" leg of the stool makes the point that quality can and must be measured. The "people" leg of the stool makes the point that quality cannot be inspected into a product or service. Rather, it must be built in by people who are empowered to do their jobs the right way. The "processes" leg of the stool makes the point that processes 1906 1913 1927 1939 Deming meets Shewhart, Cadilac achieves perfect interchan- geability ot parts. Ford introduces the Start of World War moving assembly line, reducing the Assemblers of his ideas to management. task time to 1.9 minutes. and sees the relevance 1941 1946 1950 1960s & 1970s Deming teaches SPC to Amenican wartime production workers. SPC widely used. SPC fades in America as pent-up demand for manufactured goods Eji Toyoda & Taiichi Ohno start development of from Western manufacturers the Toyota Production System (TPS). Continues to this date. Japan captures market share the war. U.S. loses some market segments completely. Japanese companies, on the other hand, were forced to learn to compete with the rest of the world in the produc- tion of nonmilitary goods. At first, their attempts were un- successful, and "Made in Japan" remained synonymous with poor quality, as it had been before World War II. Around 1950, however, Japan decided to get serious about quality and establishing ways to produce quality products. Japanese manufacturers overcame a reputation for pro- ducing cheap, shabby products and developed a reputation as world leaders in the production of quality products. More than any other single factor, it was the Japanese miracle- seems boundless. 1950 1954 1980 End of World War II Deming trains hundreds of Japanese engineers, Juran conducts quality NBC Airs TV documentary, executivesnd chelen manigement courses f Japan Can, Why Can't Wa Brings attention to Japanese success with quality and to Deming American industry begins to learm from Japan. scholars in in Japan. SPC and quality concepts. What It Is Total quality is an approach to doing business that attempts to maximize the competitiveness of an organization through the continual improvement of the quality of its products, services, people, processes, and environments. 2010 TOM/LearSx Sgma generally acknowledged worldwide as the management system of the twenty-first century, and are taught in US. colleges practiced by organizations across the planet. 1981 1985 1988 How It Is Achieved 1993 which was not a miracle at all but the result of a concerted Ford and GM invite Deming to speak to executives. Ford listened better than GM, American organizations. Beginning of adoption of total quality management by U.S. Dept. of Defense endorses TQM, causing DoD contractors to follow suit. TQM is widely The total quality approach has the folowing characteristics • Strategically based • Customer focus (internal and extermal) • Obsession with quality • Scientfic approach to decision making and problem solving • Long-term commitment • Teamwork • Continual improvement of people, processes, products, services, and environments • Education and training • Freedom through control • Unity of purpose • Employee involvement and empowerment • Peak performance as a top pricrity effort that took 20 years to really bear fruit-that got the rest of the world to focus on quality. When Western companies finally realized that quality was the key factor in global com- petition, they responded. Unfortunately, their first responses weie tlhe upposite uf wlat was acedeu. In spite of these carly negative reactions, Western com- panies began to realize that the key to competing in the global marketplace was to improve quality. With this realization, the total quality movement finally began to gain momentum. and universities. 1982 1987 1990 2000 2020 Deming publishes Quality, Productivity, and Compotitive Position, his philosophy Motorola introduces Six of management based Sigma as a more powerful Machine That Changed on his "Fourteen U.S. Congress establishes "Lean Production" as ISO 9000, the International Global compettiveness the Maicolm Baldrige National Quolity Award. a definition of the Toyota Standard Production System io rowritten to incorporate used by the book The Qualty, was makes total quality a business imporativo in all industrialized nations of the world. TOM concepts Points. the World version of TQM. FIGURE 1.2 Total Quality: What It Is and How It is Achieved.
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