Quality Management

Definition: 

The systematic, continuous approach to the monitoring the consistency, dependability and quality of an operations output. Businesses should aim for ‘continuous improvement’ in order to reduce waste and warranty fulfilment (from defective output), lift customer satisfaction (through service and product quality), lower costs and increase profitability.

The use of targets and benchmarks (quality parameters) are essential.

• Quality Control: The process of undertaking inspections at specific points of the operational process. This is a reactive approach to quality management, but systems can be developed to automatically intervene in process (Coke factory).

• Quality Assurance: The adherence to international standards (ISO9000) through embedding quality standards into the manufacturing process. This can be materials, strength and durability, and safety standards. International standards ensure firm’s can enter and compete in global markets. 

• Total Quality Management (TQM): A whole-firm approach to quality management, requiring ongoing commitment and dedication of all staff in the delivery of quality products and services. Empowered staff and distributed responsibility are features of a TQM approach to quality management. Proactive approach.

When to apply this strategy:

• When a firm’s output has a low level of reliability, with high defect rates, high levels of waste, and high levels of customer dissatisfaction. 

• When a rival firm has lower costs due to better quality management systems. 

• When a firm wants to compete in the global market, requiring the adherence to international standards. 

• When  customer feedback on service levels are poor. 

• When a firm’s management style limits employees empowerment in quality management process (top-down).