Quality Management is defined as overseeing all activities and tasks that must be performed to achieve a desired level of excellence. This includes implementing quality planning, assurance, control, and improvement.
The term ‘quality’ in business focuses on the savings and the additional revenue that organizations can generate by eliminating errors throughout their operations and producing optimized products and services that satisfy customers. Errors can be of any form—for example, producing the wrong number of parts in an assembly line, sending invoices to customers who have already closed their accounts, or giving the wrong quotation of requirements to the supplier. Most of these errors are common, and the costs incurred seem minimal at an initial stage; however, over some time, when the same mistakes are repeated, the costs add up to a significant amount.
What is Quality Management System (QMS)?
A Quality Management System (QMS) is defined as a set of coordinated activities required to produce the desired quality of products. This quality should conform to specifications that meet customer requirements most effectively and efficiently.
Benefits of QMS
When an organization has fully documented QMS, it meets two important requirements:
Customer Requirement:
It gives the customer confidence in an organization's ability to deliver the desired output and provide consistent service.
Organization’s Requirement:
It gives senior management the confidence that service can be provided at an optimum cost with efficient use of available resources.Other than meeting customer and organization requirements, a good QMS will also help to:
Set goals for employees
Build motivation within the company
Establish a strong vision for the employees
Set standards for employees
Fight resistance toward change within the organization
Improve process control
Reduce wastage
Increase market share
Facilitate training
Quality Management Systems in Practice
Depending upon the organization’s needs, there are many quality management systems in practice which include:
Six Sigma
Standardized Systems (ISO)
Total Quality Management (TQM)
Six Sigma
Motorola developed Six Sigma in the early 1980s to measure and improve high-volume processes (production/assembly lines). The main objective is to measure and eliminate wastage by achieving near-perfect results. Six Sigma refers to a statistical measure with no more than 3.4 defects per million. Companies such as General Electric, DaimlerChrysler, and Ford have credited the Six Sigma quality management technique to saving them billions of dollars in revenue.
Earlier used only in manufacturing, Six Sigma has found many takers in non-manufacturing processes such as billing, marketing, finance, accounts payable, and information systems.
The lessons learned on the production lines using the Six Sigma methodology might seem too structured to be effective in analyzing processes that are not standard and repetitive as in manufacturing situations. Still, the theory of Six Sigma is flexible enough to suit any process.
Certain processes are used in Six Sigma to keep things organized. One such process is the DMAIC method, which stands for Define, Measure, Analyze, Improve, and Control.The projects using the Six Sigma methodology are carried out by professionals certified in Six Sigma certifications such as Six Sigma Yellow Belt, Six Sigma Green Belt Training, and Six Sigma Black Belt. Different colors of the belt showcase that an individual has undergone extensive training in different levels of expertise in Six Sigma methodology and has passed subsequent certification examinations.
Benefits of Six Sigma
Implementing the Six Sigma quality management system helps an organization to:
Improve bottom-line cost savings
Improve the quality of product/service to reach the desired level of excellence
Reduce process cycle times
Develop the skills of the staff
Adhere to world-class standards
Create competitive edge
Improve ROI
Standardized Systems
The International Organization for Standardization (ISO) has created a few standards concerning Quality Management Systems in the ISO 9000 series. The ISO 9000 standards for quality management are not specific to any product or service but apply to the processes that create them. These standards are generic and can be used by manufacturing and service industries worldwide.
Many organizations around the world seek ISO certifications. To get ISO certified, organizations must adhere to their prescribed standards and pass a detailed audit conducted by an ISO auditor.
Benefits of Having ISO 9000 Accreditation
Increased credibility with current and prospective clients
Better customer satisfaction
Improved customer service
Reduced operational expenses
Improved internal communication
Improved business reputation
Total Quality Management (TQM)
TQM is an approach in which quality is emphasized in every aspect of the business for an organization. It has long-term goals that are aimed at the development of quality products and services.The role of management in TQM is to develop a robust strategy that is flexible enough to be adapted to every department in the organization. Once the TQM strategy is defined, it must be communicated to be deployed effectively across the organization.
Some degree of employee empowerment is also included in the TQM strategy. It usually involves departmental and cross-functional teams to develop strategies to solve quality problems and make suggestions for improvement. Here the management and employees can become involved in continuously improving the production of goods and services at desired levels.
Benefits of Total Quality Management System
Implementing TQM helps an organization to:
Be more competitive
Establish a new culture that enables growth and longevity
Provide a work environment where everyone can succeed
Reduce stress, waste, and friction
Build teams and partnerships
An efficient quality management system in an organization will help you accurately determine the customers' expectations and needs and translate these requirements into quality products. For the successful implementation of a quality management system, it is of paramount importance that the senior management provides their support and takes the lead in the initiative to design a suitable quality policy in the organization and establish measurable goals.
