Quality management is the customer’s needs turned into the company’s requirements – if the company intends to be around for the long haul. Quality is extremely important for a company, as it is needed to retain customers and create loyalty among them. A company should aim for quality products as they can make a difference in long-term revenue and profitability. There are thousands of businesses that make do without a quality management system. But, if a company wants to reach its full potential, and wants to grow and market potential, it will need a quality management system. Most companies have bits and pieces of a quality management system, but not as a whole.
A quality management system works on eight key principles:
- Customer focus
- Process approach
- Involvement of people
- Continual improvement
- System approach to management
- Factual approach to decision making
- Mutually beneficial supplier relationships
A company is designed to add value to all its stakeholders, such as employers, staff, customers, etc. It is supposed to use a management system that determines the needs of each stakeholder, turn these into requirements, and provides the resources needed to achieve said requirements. Performances should also be reviewed using the management system. According to the ISO, a management system details the procedures an organization must follow to meet its objectives. In the same vein, quality is defined by the ISO as the “degree to which a set of inherent characteristics fulfills requirements.”
Customer focus – A company ceases to exist without clients/customers buying its products and/or services. Hence, the company must figure out its customers’ requirements and aim to surpass those requirements. However, note that a company is created by its stakeholders to make a profit, not to go into loss.
If an organization wants to deliver quality products and services, it must implement the requirements of the ISO 9001 standard. If the ISO 9000 standard is implemented, and quality management principles are adhered to, the quality management system in place will increase the competitiveness of the company, as well as improve the products and processes. It will reduce costs, as well.
Leadership – this has managers use a fundamental approach, setting an example for others, changing their environment by understanding and being flexible, and considering the needs of customers, suppliers, local communities, etc. Their main task is to clearly state the future of the organization, setting the values that everyone needs to uphold.
Process approach – ISO 9001 uses a process approach to examine more than 20 processes in its scope. One process is the Quality Management System (QMS), so the QMS can be taken as one large process to which many inputs are entered to generate many outputs.
Involvement of people – QMS recognizes the importance of people in every step of the improvement process, and as the essence of the organization.
Continual improvement – this is an attempt to improve products and/or services/processes. The improvement can take place incrementally, or all at once. It should be a permanent goal of the organization.
System approach to management – this involves identifying and managing all goals that will improve the efficiency of the company in an interrelated, systematic way. Such an approach is particularly important in a continuous improvement process. This has been explained well in the ISO 9001 family of standards.
Factual approach to decision-making – Effective decisions are based on data and information.
Mutually beneficial supplier relationships: a company and its suppliers should have a mutually beneficial relationship that increases the ability of both to bring value.
A quality management system permits a company to extend its influence and position. Such a system is customer-focused and pushes the company to constantly improve in making its products.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.