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How quality management leads to more growth and profit

14/09/2018 | Bart Bosch | General

Every element of a company should contribute to more growth and profit and so this also applies to quality management. The quality department has to be more than just a department that, on the one hand ensures that products comply with specific requirements and, on the other hand that no complaints are being received from customers. There are several means and techniques within quality management to actually achieve this. A few examples are listed below.  

A first way is by means of internal audits. Audits often only check the established way of working; an assessment is made whether the correct procedures are being followed. This type of compliance auditing is looking for shortcomings. There are so many ways to handle internal audits differently. For example, by looking for improvements. This is the way to evaluate whether the working method really is the correct and most efficient way. The latter ensures more streamlined processes meaning less time is wasted and more time is obtained to receive additional output of the process.   

A second idea: why not use a credit note as the starting point? A credit note indicates an error somewhere in the process. As soon as the internal auditor has found the error, improvement measures can be taken to prevent similar credit notes from being sent. This way money no longer has to be refunded to customers and that ensures tighter budgetary management. This creates a double advantage. On the one hand, a more streamlined invoicing process is established. On the other hand, you lose less time on the processing of credit notes meaning you are able to invest more time in other matters.  

Finally, quality management can also create a dashboard for the management. That dashboard should actually be considered a barometer of the internal operation of the company. It bundles the operation of the different departments: Quality, Production, Marketing & Sales, HR, Finance, … The processes and efficiency are being measured for each department, for example by using KPIs. Relevant KPIs are then bundled into an umbrella KPI for the management. This generates a clear dashboard to manage the entire organisation. Does something go wrong at a certain department? That may have an impact on the overall process. The solution in that case: detect which process is not running smoothly, improve that process and follow-up on the evolution through the KPI and the dashboard. As long as all pointers are aiming in the right direction, growth can be achieved.   

The examples above are only a few of the different ways in which quality management leads to more growth and profit. The time in which quality management was considered a necessary evil and a cost item belongs to the past. Today, it is an important factor that more than contributes to the growth and financial development of a company.