13 Quality Management Tools to Drive Process Improvements

Why are the uses of these Quality Management Tools?


o
 To understand problems better.
 To make well-informed decisions based on data.
When used correctly, they can help identify issues, trends and root causes of the problem fast and
provide the hidden element of process improvement and the problem solving… that is using data and
facts to eliminate problems for good.

Remember, in problem solving, you must use inductive reasoning (relating to the process of inducing
a feeling, idea, or state) and deductive reasoning (based on logical or reasonable deduction) to really
eliminate issues.

This means that you must use findings or conclusions and theories within the data and facts.
Therefore, using quality management tools helps add the data to your argument.
Add these ingredients to a structured problem solving methodology like DMAIC, or PDCA, and that‟s
the recipe for eliminating improvements for good.

Why are they Called Quality Management Tools?

Most of the quality management tools had their inception from quality management gurus like:
Deming and Juran (Total Quality Management) and Ishikawa (Quality Circles). The tools are there to
do exactly what it says, implement effective management of quality.
Good quality of processes, people and outcomes, ensures that you have fewer problems to operate
your business. It also ensures your customers are delighted with your high-quality level of service.
The effective use of these 13 quality management tools requires the people who run their processes,
to use them.
This ensures that the culture is about observing what is going on and making improvements as
second nature.
The 13 Essential Quality Management Tools for Process Improvement (and Problem Solving)
Consider the listed 13 of the best and the most popular quality management tools that you should
use. They consist of the 7 foundational quality management tools, plus 6 more that are good to have
in the toolbox. They are:

1.
1.
1. PDCA / DMAIC (or some process improvement framework)
2. Statistical Process Control
3. Process Mapping
4. Cause and Effect Diagrams or Cause and effect with cards, often called CEDAC
 5. Brainstorming
6. Pareto Charts
7. Control Charts
8. Check Sheets
9. Bar Charts
10. Matrix Analysis
11. Scatter Diagrams
12. Dot Plot charts
13. Histograms
Before using any quality management tool, you need to have a framework to use it all within. It is like
having an operating system with your laptop. The operating system ensures that you get to use the
computer for all its capabilities and effectiveness and using them in a structured way. That is why you
should start with the use of a process improvement framework.
Process Improvement Framework
There is no point going aggressively, without understanding what to do when you find a problem.
The best way to tackle problem solving and process improvement is through a structured problem
solving process. The most popular methods are:

1.
1.
1. Plan-Do-Check-Act Framework (Links to an external site.)
2. DMAIC Methodology
Each one provides a clear roadmap of what to do to tackle problems and eliminate them for good. A
brief description of the remaining 12 quality management tools and why you should use them.

Statistical Process Control (SPC)

This is one of the 7 „foundational‟ quality management tools. It is a framework for measuring and
reducing variation in a process‟ output.
Variations in processes cause all sorts of inconsistencies from product quality, to lead time, to cost,
and even attitudes and behaviors.
Variables cause the most common quality problems in processes. Meaning that, some thing is
causing a process to be hugely inconsistent. (You get it right now and next, it is producing nothing but
poor output. Theories are used to control these variables in any process, then, you can control the
outcome. Then, more consistent and with consistent output comes stable processes.
And with stable processes, you get less time spent firefighting and handholding things through that
process.
You also get great confidence in being right every time. Thus, you can even offer services that your
competitors can not.
The automotive manufacturer, KIA has a 7-year warranty on all their vehicles.
Why? It is because they are so confident that their cars are produced to such a high and consistent
standard. They are willing to bait their reputation on it to win more customers.
SPC is a way of measuring the quality within a certain process. This data is tracked normally using a
Run Chart (or control chart). The reason for using SPC is that you get real time information to see
how stable the process is and can:

1.
1.
1. Reduce variability and defects
2. Improve productivity
3. Reduce costs and lost time through firefighting
4. Uncover hidden process trends
5. Instantly react to process changes and variation
6. Make real-time decisions in the business
Should every process be measured, using SPC?
No. It would be too much effort and cost to measure absolutely everything to the last degree.
The biggest impact would be to measure your key processes. This means that you will probably want
to understand 5-6 of your business‟ critical processes better.

Control Charts
This is the second of the 7 foundational quality management tools. Control charts are one of the main
methods of measuring SPC. It is an easy way of showing trends over time, and how a process is
performing and whether it is in control or not.
On a Control Chart, you will find upper and lower control limits. These are statistical indicators that
show whether the process is statistically in control. If it is not, it is time to get to work to stabilize the
process.
That stabilization means you need to find the root causes of that inconsistency.
Control charts use the mean and standard deviations to measure whether a process is statistically in
control or not. And if it‟s not, it‟ll show you when it‟s happening. Here is a very simple version of a
control chart (below) measuring output over time. Notice how easy it is to see if, and when it is out of
control?

Fig. 1: Control Chart

Process Mapping
One of the first steps to understand a process is to map it. By mapping, we can gain a picture as to
what actually happens.
This gives us a tremendous insight into the process and what is going on. And where the potential
issues are that may be affecting the output and inconsistencies in our process.
ICOR is a great tool to help do this. ICOR stands for:

1.
1.
1. Inputs
2. Controls
 3. Outputs
4. Resources
By looking at the inputs, controls, outputs and resources, we can see clues to help us find the
reasons for inconsistency of output.
An Example
Let us assume that we are measuring a critical process‟ output. This process is a Valve making
process. It involves some machine work, pre-assembly and assembly work as well.
The Valves must not leak in test. And as we measure, our control charts are showing that there‟s too
much inconsistency. Some pass and some don‟t.
We can stop and tackle the problem there and then.
And often one of the first things we‟d do, is to map the process, to see what is happening when we
observe it.
We want to detect any potential issues that we can bring forward to investigate further. And either
dismiss or prove that it‟s having a potential impact.
If you take this example, and using ICOR… our map would have several factors that go into the
whole process. 1 or 2 of these factors are causing this inconsistency.
And by mapping it all out and observing the process, first, you can see potential problems and factors
to investigate further.
And the beauty of this is that it gives you so much to think about… So many clues to investigate and
ask questions…
Before any assumptions or further actions are made.
Here‟s an example of a process map (This is an interpretation and not the only interpretation of a
process map):

Fig. 2: Process Map Example

The yellow boxes are simply steps in the process. Above each step is the required output for each
step (in blue). And the green section below represents all the inputs to that step. Notice that each
input is labeled either C = Controlled; or N = not controlled.
This is important. It allows us to see how well each input is controlled to prevent variation and issues
and gives us clues to see what may be impacting our process and where we need to tighten things up
a little.
Some factors worth investigating further, in our valve manufacturing example, could be:

1.
1.
1. The raw material thickness may be too inconsistent, which prevents a stable output in our
business
2. The environment. The humidity or heat may affect the CNC machine
3. The way the operator places the material in the jig (container)
 4. Is the jig stable or does it move slightly?
5. What about capability of machine? When was it serviced last and looked after?
6. What are the skill requirements of the job?
7. Is the operator skilled enough and had adequate training?
8. Are the seals being damaged during assembly?
9. Is the lapping process needed?
10. Does the lapping cause undue variation?
11. Is the tool moving?
12. Is the tool blunt?
13. Can we see when the tool is about to lose its sharpness?
And so on…
In one map, you can see the process, the inputs and the clues as to what could be causing this
variation, all on one sheet.
It allows us to break the process down into small segments, and see how they all fit into the bigger
whole or process outcome.

Cause and Effect Diagram

The Cause and Effect Diagram (Links to an external site.) is another one of the 7 foundational quality
management tools. I‟ve written an article on this before, but an adaptation on the classic Fishbone is
the CEDAC method.
This stands for Cause and Effect with Cards. This method helps you add observed data to the
fishbone diagram and then add improvement ideas to that section.
Effectively, you have two cards, one is the idea for improvement; the other is the data card.

Fig. 3: CEDAC Fishbone Diagram

With CEDAC (Cause and Effect Diagram with the Addition of Cards), the effect side of the diagram is
a quantified description of the problem at the fish head.
In The cause section (the spines of the fish) there are two different coloured cards for writing the facts
and the ideas.
The facts are gathered and written on the left of the spines, and the ideas for improvement on the
right of the cause spines.
The team then evaluate them and select, based on feasibility and impact in improving the problem.
You can use the Fishbone Diagram or CEDAC alternative to help identify root causes, using data.
In our Valve example, we may take a few subjective ideas from our map, and drill down to find
potential root causes and improvement ideas, using several CEDAC diagrams.

Brainstorming
Brainstorming is another core member of the quality management tools suite. It‟s used with a team to
generate ideas, quickly and effectively.
It can be used in conjunction with identifying root causes through 5 why sessions and using the cause
and effect diagram.
In fact, it can be used just about on any subject where you have a small team analyzing something.
And it‟s a structured way of getting input from the team. And doing it effectively.
The easiest method is to get each team member to write their ideas on post it notes.
One post it per idea and in a short space of 5 minutes, get them to write as many ideas as possible.
Add these to the chart (fishbone diagram, ideas board, etc.).
Then discuss. Group the post its that are similar.
Then ask for another round of brainstorming (if they have more ideas)
When the team run out of ideas, get them to agree their priority thoughts and actions by each scoring
their top 1-3 ideas.

Fig. 4: Brainstorming

Why use it? Each member of the group inputs their ideas of potential root causes and
improvement. Using this method, no idea is a bad idea.
The object is to get as many ideas out on paper, quickly, until the group runs out of thoughts. At
which point, it‟s then a case of assigning priorities and actions for the ideas chosen.
Pareto Analysis
Pareto analysis is based around the 80/20 rule, whereby often the vital few things cause the biggest
effect.
That‟s 80% of sales come from 20% customers…
80% of defects come from 20% root causes…
And so on.
It might not be exactly 80/20, but you‟ll find that the vital few things cause the major effect.
It‟s simple in its approach.
And it‟s depicted in the form of a bar chart, whereby frequency or impact is show in descending order,
against specific cause codes, or reasons of failure / problems.
Using this method, you can quickly, see the biggest impact from the vital few causes.
And once you have this information, you can get to work improving the vital few root causes.
Here‟s as an example of a Pareto Chart:
Fig. 5: Pareto Chart Example

Check Sheet
Check sheets are another simple but effective means within the quality management tools suite.
Check sheets are simple tally charts, typically showing the number of occurrences things happen.
Data is collected and ordered by adding tally or check marks against predetermined categories of
items or measurements.
It simplifies the task of analysis.
Once you find a problem affecting the process, tick it immediately. Employees refer to the check list to
understand whether changes incorporated in the system have brought permanent improvement or
not.
Improvement teams can use it to gather important information for further analysis, too.

Fig. 6: Check Sheet

In our Valve example, let‟s suppose that after we‟ve mapped the process, and we want to see how
many times over the next month, these variables happen. We can do it using a Pareto Chart.
First, we could create a simple check sheet that the operators tally when they spot an occurrence of
the problem, in a similar way to the above chart.
Then we can collate this information into a nice visual tool like the Pareto, which‟ll show us the
biggest offenders from the data gathered…
We‟ve now got an even better understanding of our processes.

Bar Charts
Bar charts are another of the 7 foundational quality management tools. They are a very simple way of
demonstrating data; the height of each bar shows the frequency of the result.

Fig. 7: Bar Chart

Again, in any form of communication, the less complexity the better, and Bar Charts are a very simple
way of showing results of data.
Here‟s a case in point. What‟s easier to read?
1.
1.
1. A list of data, collected from source.
2. Or a bar chart summarizing that data, visually?
Which one is easiest to read?
Which one can you use to spot trends?
It‟s a no-brainer, right?
Bar charts are a good way of measuring lots of data, quickly and easily.
Bar Charts could be used in the following examples:

1.
1.
1. Expenditure each month
2. Delivery performance each month
3. Attendance scores
4. Customer returns / complaints each week
And so on.
In our Valve example, it could be that we just want to measure number of failures each day, or
defects per shift. (So we can see if there is a variance caused between shifts).

Matrix Analysis
A matrix analysis is a simple way of showing the relationship between two data points.
Here‟s an example of a matrix to help select the right improvement project, using Ease and Impact as
the two correlations:

Fig. 8: Project Selection Matrix

Again, notice how clear it is to decipher?
If you‟re about to choose the right improvement project, you‟d choose from the top right of the matrix
(high impact and relative ease to implement).
In our Valve example, we may want to take all our identified variables from our ICOR process map
and feed them into a cause and effect matrix.
We can then score each factor based on importance to our customer.
What we can then do is filter out the high scoring factors from the low scoring ones. And then bring
these high scoring ones forward for further analysis.
Using this method, we can plough through our ideas and observations quickly and effectively. And,
highlight the biggest impact variables from the rest.
Here‟s what it could look like if we sorted all our valve production variables in a Cause and Effect
Matrix:
Fig. 9: Cause and effect matrix
Scatter Diagrams
A Scatter diagram aims to show a relationship between two variables. And how one changes in
relation to the other.
Why use a scatter diagram?
In lots of cases, we make judgments based on what we see, and often assume that because one
thing happens, and so too another at the same time, then they must be linked.
For example, two customer returns have been received in the last week. When we quickly look, we
find that both jobs were manufactured on the night shift…
It‟s very easy to say that there‟s a fundamental link between quality and the type of shift that
produced it. But there could just be other factors that we don‟t see that are causing it.
And it could also have been a coincidence that both happened on one shift.
Here‟s an example of a scatter diagram:

Fig. 10: Scatter Diagram

A scatter diagram can help by collating data over time to see if these variables are linked.
In our Valve example, we could pair factors together to see if they do indeed correlate. This
correlation could help identify the root cause and how we can go about controlling them.
In this example, we may have uncovered that the thickness of the raw material has a direct
correlation to whether the valve leaks or not… this analysis will give us greater understanding of the
process… and how to control the leaks.
We now know more and can make a more informed decision.
In statistics, there are many coincidences that happen, and using scatter diagrams helps to see how
correlated they are, before jumping to opinionated conclusions.
Dot plot Charts
Dot plots can be used to keep plotting output from a process that you‟re measuring, using a simple
dot for each occurrence.
They‟re a great way of showing the dispersion of data and how far the data spreads across values.
You can also use it to see if the process is random or whether there is special cause variation.
By random, you should be able to see a bell curve in the data (which normally signifies the process
being stable).
Here‟s an example:

Fig. 11: Dot Plot Chart in bell shape

In a lot of instances, if you get something other than a bell curve, there may be special cause
variation and additional factors that are caused big variation in the process output.
(This is a big subject, and will be touched on in other articles, so stay tunedJ)
A simple way of thinking about this tool is when using dice. You can easily set up a dot plot to count
the number of times the dice falls on each number, when rolled. Because the dice can only be either
a 1, 2, 3, 4, 5, 6, you can plot them at the bottom of a dot plot and add a dot for every occurrence the
dice falls on each number.
Histogram
Histogram (Links to an external site.) is a graphical representation showing the intensity of a problem.
They‟re classified as one of the foundational quality management tools.
Histograms are like bar charts and dot plots but they group numbers into ranges.
In a similar way to the dot plot, histograms help identify the causes of problems in a process, by both
the shape and width of the distribution.
What separates them form the dot plot is that the histogram should be used for larger data sets. This
is because the data ranges can be grouped together.
In the case of our Valve example, we may want to measure the size of every Valve being produced.
As it‟s continuous data that can have be any size measurement (and not pre-set sizes like our dice
example) the histogram could be used instead of the dot plot. Because data ranges can be grouped
at the bottom of the axis.
For example, our size ranges might go:

1.
1.
1. 20-29
2. 30-39
3. 40-49
4. 50-59
5. 60-69
6. 70-79
7. And so on…
We can now add the number of occurrences to the histogram.
By measuring this, we can add upper and lower specification limits to the graph. These specification
limits show the tolerances as to what‟s good quality and what‟s not.
Like the dot plot, you can then gauge how much of your process output falls within acceptable limits.
If the distribution is too wide, you can set about improving it.

Fig. 12: Histogram with ucl and lcl

In this example, we can see that much of the output from the process, falls outside of the upper and
lower control limits.
The distribution is too wide.
And the mean is slightly skewed to the lower end.
The result being that there‟s a high number of defects. And there‟s plenty of analysis to do to narrow
the distribution and control the process.

Use These Quality Management Tools to Suit Your

Needs
These are the 13 common quality management tools to use in analyzing your processes and
problems.
Notice how they can all work together to give you greater insight BEFORE finding the root cause(s).
Use them within a proven problem solving methodology (as in step 1 above), and you have a
powerful way of measuring and improving your business.
Do you have to use all the tools every time? No. You simply use what you need, to get to the root
cause.
Some problem-solving projects may require extensive analysis, using even more tools than these 13
quality management tools.
Others may need just 2-3 of them.
The important thing is to use data to understand processes and problems to drive problem solving.

Total Quality Management Principles to Improve

Processes
During the global recession of the late ‟70s and early ‟80s, the United States (and the rest of the
world) faced stiff competition from Japan. The Japanese had captured the world automotive and
electronics markets because they found a way to produce high-quality goods at lower prices. And as
a result, corporations in the U.S. looked more closely at the quality of Japanese goods and services,
trying to find ways to improve production and recapture market share.
Their solution was Total Quality Management.
If your organization has just decided to incorporate TQM or if you want to see whether this process
improvement methodology (Links to an external site.) can help you improve production, learn more
about Total Quality Management principles, plus TQM techniques that you start using now.

What is Total Quality Management?

According to the definitive text, Total Quality: A User’s Guide for Implementation, Total Quality
Management (TQM) is a management technique based on the idea that all “employees continuously
improve their ability to provide on-demand products and services that customers will find of particular
value.”
The concept of Total Quality Management can be found right in its name: The word “total” implies that
all employees in the organization, from development to production to fulfillment, are obligated to
improve operations. And “management” insinuates that this methodology should be a focused effort.
Leadership should provide funding, training, staffing, and clearly defined goals to actively manage
product and service quality on an ongoing basis.

8 principles of Total Quality Management

As with most management methods and techniques, implementation and success will vary from one
company to another. While there is not a single agreed-upon approach, the most common TQM
definition includes the following eight principles.

1. Customer focus
The first of the Total Quality Management principles puts the focus back on the people buying your
product or service. Your customers determine the quality of your product. If your product fulfills a
need and lasts as long or longer than expected, customers know that they have spent their money on
a quality product.
When you understand what your customer wants or needs, you have a better chance of figuring out
how to get the right materials, people, and processes in place to meet and exceed their expectations.
To implement this TQM principle:

1.
1.
1. Research and understand your customers‟ needs and expectations.
2. Align your organization‟s objectives with customer needs.
3. Communicate with customers, measure satisfaction, and use the results to find ways to improve
processes.
4. Manage customer relationships.
5. Find a balance for satisfying customers and other interested parties (such as owners, employees,
suppliers, and investors).

The benefits of being customer-focused include:

1.
1.
1. More sales, increased revenue, market share, and mindshare
2. Strong customer loyalty leading to repeat business
3. Increased possibility that satisfied customers will tell others about your products and services

Learn how to better incorporate the Voice of the

Customer into your process improvement strategy.
2. Total employee commitment
You can‟t increase productivity, processes, or sales without the total commitment of all employees.
They need to understand the vision and goals that have been communicated. They must be
sufficiently trained and given the proper resources to complete tasks in order to be committed to
reaching goals on time.
To implement this TQM principle:

1.
1.
1. Clearly communicate and acknowledge the importance of each individual contribution to the
completed product.
2. Stress that each team or individual accepts ownership and give them the responsibility and
opportunity to solve problems when they arise.
3. Encourage employees to self-evaluate performance against personal goals and objectives, and
make modifications as necessary to improve workflow.
4. Acknowledge successes and optimized performance to build confidence in your employees and
your stakeholders.
5. Make responsibilities clear, provide adequate training, and make sure your resources are used as
efficiently as possible.
6. Encourage people to continually seek opportunities to learn and move into other roles to increase
their knowledge, competence, and experience.
7. Create an environment where employees can openly discuss problems and suggest ways to solve
them.

The key benefits of total employee commitment include:

1.
1.
1. Increased employee retention because employees are motivated, committed, and actively involved
in working toward customer satisfaction
2. Individual and team innovation and creativity in problem-solving and process improvement
3. Employees who take pride and accountability for their own work
4. Enthusiasm for active participation and contribution to continual improvement

3. Process approach
Adhering to processes is critical in quality management. Processes ensure that the proper steps are
taken at the right time to ensure consistency and speed up production.
To implement this TQM principle:

1.
1.
1. Use Total Quality Management tools such as process flowcharts to define and delineate clear roles
and responsibilities so everybody knows who does what at certain times.
2. Create a visual action plan so everybody can easily see the specific activities that need to be
completed to achieve the desired result.
3. Analyze and measure current activities to see where improvements can be made or where steps in
the process are creating bottlenecks.
4. Evaluate the impact your processes and activities may have on your customers, suppliers, and all
stakeholders.

Benefits of a process approach include:

1.
1.
1. Faster development and production cycles, lower costs, and increased revenue
2. More consistency and predictable outcomes
 3. Focus on continued improvements and success

Define your current and future states with our process flowchart template.
4. Integrated system
Typically a business has many different departments, each with their own specific functions and
purposes. These departments and functions should be interconnected with horizontal processes that
should be the focus of Total Quality Management. But sometimes these departments and functions
operate in isolated silos.
In an integrated system, everybody in every department should have a thorough understanding of
policies, standards, objectives, and processes. Integrated systems help the company to look for
continual improvement in order to achieve an edge over the competition.
To implement this TQM principle:

1.
1.
1. Promote a work culture focused on quality.
2. Use flowcharts and other visual aids to help employees understand how their functions fit in with
the rest of the company.
3. Use as-is process analysis (Links to an external site.) to see where improvements can be made.
4. Make training available for employees who need to learn new processes and who want to explore
opportunities for advancement.

Benefits include:

1.
1.
1. Focus on quality that will help your business achieve excellence and meet or exceed customer
expectations

5. Strategic and systematic approach

The International Organization for Standardization (ISO) describes this principle as:
“Identifying, understanding, and managing interrelated processes as a system contributes to the
organization‟s effectiveness and efficiency in achieving its objectives.”
Multiple processes within a development or production cycle are managed as a system of processes
in an effort to increase efficiency.
To implement this TQM principle:

1.
1.
1. Provide your people with the proper training and resources that will help them complete their
individual steps in the process.
2. Continually improve processes and products, and upgrade equipment as necessary to reach goals.
3. Make continual improvement a measurable objective for all employees.
4. Recognize, acknowledge, and reward innovations and process improvements.

Benefits include:

1.
1.
 1. An ability to quickly identify, react, and fix process bottlenecks or breakdowns
2. Overall improved organizational capabilities and improved performance

6. Continual improvement
Optimal efficiency and complete customer satisfaction doesn‟t happen in a day—your business
should continually find ways to improve processes and adapt your products and services as customer
needs shift. As previously stated, the other Total Quality Management principles should help your
business keep an eye toward continual improvement.
To implement this TQM principle:

1.
1.
1. Implement policies to establish product, process, and system improvements as measurable goals
for individuals, teams, and departments.
2. Recognize, acknowledge, and encourage innovation to improve processes and development.
3. Encourage employees to participate in available training sessions to learn and take on new and
additional roles.

Benefits include:

1.
1.
1. Improved knowledge and capabilities to increase performance
2. Improvement goals strategically aligned with organizational capabilities and goals
3. Quick reaction times to recognize and fix bottlenecks and broken processes

7. Fact-based decision-making
Analysis and data gathering lead to better decisions based on the available information. Making
informed decisions leads to a better understanding of customers and your market.
To implement this TQM principle:

1.
1.
1. Analyze and check data to ensure that it is reliable and accurate.
2. Make relevant data available to stakeholders.
3. Use valid methods to gather and analyze data.
4. Make decisions based on the facts learned from the data in addition to your experience and
intuition.

Benefits include:

1.
1.
1. Ability to make informed decisions
2. Ability to analyze and defend past decisions by referencing factual records
3. Ability to change past decisions based on data review

8. Communications
Everybody in your organization needs to be aware of plans, strategies, and methods that will be used
to achieve goals. There is a greater risk of failure if you don‟t have a good communication plan.
To implement this TQM principle:

1.
1.
1. Establish an official line of communication so that all employees know about updates, policy
changes, and new processes.
2. Where possible, involve employees in decision-making.
3. Make sure everybody in every department understands their roles and how they fit in with the rest
of the company.

Benefits include:

1.
1.
1. Boost in morale and motivation when employees understand how their contributions help the
company achieve its goals
2. Interdepartmental coordination and cooperation
3. Elimination of silos
4. Ability to more accurately measure the effectiveness of current policies and procedures
5. Higher motivation from employees to achieve goals because they are part of the decision-making
process

Successful implementation of these Total Quality Management concepts will not come overnight.
Because TQM often represents a large cultural shift, you may want to implement these changes in
phases to lessen the impact.

The Benefits of Total Quality Management - TQM in Process Improvement

Table of Page content

1.
1.
1. What Are the Benefits of TQM? (Links to an external site.)
2. TQM and Customer Satisfaction (Links to an external site.)
3. TQM and Organizational Development (Links to an external site.)
4. TQM and Human Resources (Links to an external site.)
5. TQM and Competitive Advantage (Links to an external site.)

What Are the Benefits of TQM?

The application of Total Quality Management (Links to an external site.) helps in streamlining
processes, and ensures a proactive work system ready to counter deviations from the ideal state.
What are some of the major benefits of Total Quality Management? The major thrust of Total Quality
Management (TQM) is to achieve productivity and process efficiency by identifying and eliminating
problems in work processes and systems. TQM addresses key problem areas such as mistakes in
work processes, redundant processes, unnecessary tasks, and duplicate efforts. TQM interventions
also help with predicting and preempting such mistakes and unproductive activities. [caption
id="attachment_133301” align="align center” width="640”] In the long run, quality will help drive costs
lower and improve satisfaction[/caption] Improving process efficiency brings about many benefits to
the organizations in terms of costs and time. The major benefits of TQM in terms of cost savings
include:

1.
1.
1. elimination of non-confirmation and repetitive work
2. elimination of waste costs and reject products
3. elimination of repairs and reworks
4. reduced warranty and customer support costs
5. process efficiency leading to improved profit per product or service
6. fiscal discipline through elimination of unnecessary steps and wasteful expenditure

TQM frees up management time from redressing problems and directs management time and effort
to:

1.
1.
1. increase production
2. extend the range of products
3. improve existing products

TQM and Customer Satisfaction

A major long-term benefit of Total Quality Management relates to customer satisfaction. TQM aims at
improving quality, and identifies the best measure of quality as matching customer expectations in
terms of service, product, and experience. TQM interventions quantify problems and aim to achieve
the best state defined in terms of such customer expectations. Some examples of the application of
Total Quality Management to improve customer satisfaction include:

1.
1.
1. Reduction of waiting time by changing the method of appointment scheduling or client handling
2. Making changes to the delivery process so that the product reaches the customer faster
3. Better quality products requiring no repairs improving customer loyalty (Links to an external site.)

TQM and Organizational Development

Among the major benefits of Total Quality Management is improvement in Organizational
Development. TQM heralds a change in the work culture by educating all employees on quality and
making quality the concern of everybody, not just the Quality Control department. The focus on
quality leads to a proactive work culture aimed at preventing mistakes rather than correcting
mistakes. Total Quality Management‟s focus on teamwork leads to the formation of cross-
departmental teams and cross-functional knowledge sharing. Such interventions lead to many
benefits such as:

1.
1.
1. Improvement in communication skills of individual employees and overall organizational
communication
 2. Knowledge sharing, resulting in deepening and broadening of knowledge and skill-set of team
members, and the making of a Learning Organization
3. Flexibility for the organization in deploying personnel, contributing to rightsizing, and ensuring cost
competitiveness.

Another benefit of Total Quality Management is that TQM promotes the concept of internal
customer/supplier satisfaction. For instance, the HR department considers employees as internal
customers and processes their queries or requests within the specified time limit. The lab technician
in a hospital processes the clinical tests required by the doctor, an internal customer in a timely and
efficient manner, according to the laid down customer satisfaction norms.

TQM and Human Resources

A major application of benefits of Total Quality Management relate to Human Resource
Management (Links to an external site.). Application of TQM in an organization brings about the
following benefits to the Human Resources of an organization:

1.
1.
1. TQM extends the ownership of the business process to each employee involved in the process by
empowering them to rectify mistakes on the spot without supervisor review or action. This
generates intrinsic motivation and creates an atmosphere of enthusiasm and satisfaction among
the workforce.
2. TQM‟s thrust on eliminating mistakes and improving productivity contributes to accomplishment of
targets faster. The resultant free time allows employees to enhance their knowledge and apply their
creativity to improve existing products and develop new products.
3. TQM‟s thrust on quality leads to identifying skill-deficiencies in employees and providing training
and other interventions to bridge such deficiencies. Cross-functional and cross-departmental teams
allow employees to share their experience and solve issues jointly, leading to benefits such as
broadening skill-sets, and improvement of existing skills.
4. TQM‟s focus on eliminating mistakes and bringing about process efficiency heralds a direct
approach such as counseling and other remedial actions to solve issues such as
absenteeism (Links to an external site.).
5. The enhanced productivity brought about by TQM translates to better profits for the organization,
and consequently better wages.

TQM and Competitive Advantage

The application of Total Quality Management brings forth all-round benefits and makes the
organization more competitive. In the new business environment marked by demolition of barriers
and free flow of information and products, organizations retain their competitive advantage by
reducing prices, improving existing products and innovating new products. TQM is a business
strategy that allows organizations to achieve all this and much more. Total Quality Management
demolishes the myth that increased quality results in increased costs and decreased productivity.
TQM proves that quality is actually the key to decreased costs, and better productivity and positions
quality as a critical component of strategic business advantage (Links to an external site.).

References
1. Powell, Thomas, C. (Jan 1995). Total Quality Management as Competitive Advantage: A Review and
Empirical Study Strategic Management Journal (16.1)
 Following are the main communication barriers

1. Perceptual and Language Differences: Perception is generally how each individual interprets the world
around him. All generally want to receive messages which are significant to them. But any message which
is against their values is not accepted. A same event may be taken differently by different individuals. For
example: A person is on leave for a month due to personal reasons (family member being critical). The HR
Manager might be in confusion whether to retain that employee or not, the immediate manager might think
of replacement because his team‟s productivity is being hampered, the family members might take him as
an emotional support.

The linguistic differences also lead to communication breakdown. Same word may mean different to
different individuals. For example: consider a word “value”.

1. What is the value of this Laptop?

2. I value our relation?
3. “Value” means different in different sentences. Communication breakdown occurs if there is wrong
perception by the receiver.

2. Information Overload: Managers are surrounded with a pool of information. It is essential to control this
information flow else the information is likely to be misinterpreted or forgotten or overlooked. As a result
communication is less effective and jovial (in that case the message is interpreted to be good and
interesting).
3. Inattention: At times we just not listen, but only hear. For example a traveler may pay attention to one “NO
PARKING” sign, but if such sign is put all over the city, he no longer listens to it. Thus, repetitive messages
should be ignored for effective communication. Similarly if a superior is engrossed in his paper work and
his subordinate explains him his problem, the superior may not get what he is saying and it leads to
disappointment of subordinate.
4. Complexity in Organizational Structure: Greater the hierarchy in an organization (i.e. more the number
of managerial levels), more is the chances of communication getting destroyed. Only the people at the top
level can see the overall picture while the people at low level just have knowledge about their own area
and a little knowledge about other areas.
5. Poor retention: Human memory cannot function beyond a limit. One can‟t always retain what is being told
specially if he is not interested or not attentive. This leads to communication breakdown.
6. Time Pressures: Often in organization the targets have to be achieved within a specified time period, the
failure of which has adverse consequences. In a haste to meet deadlines, the formal channels of
communication are shortened, or messages are partially given, i.e., not completely transferred. Thus
sufficient time should be given for effective communication.
7. Distraction/Noise: Communication is also affected a lot by noise to distractions. Physical distractions are
also there such as, poor lightning, uncomfortable sitting, unhygienic room also affects communication in a
meeting. Similarly use of loud speakers interferes with communication.
8. Emotions: Emotional state at a particular point of time also affects communication. If the receiver feels
that communicator is angry he interprets that the information being sent is very bad. While he takes it
differently if the communicator is happy
 What is the value of learning technical skills?
Effect of Communication Barriers in Business
Communication
An organization is an individual‟s first home as one spends the maximum time here only. No
organization runs for charity, it is really important that the organization achieve its goals. How does an
organization become successful? How will an organization achieve its goals?
The employees are the assets for any organization and the profitability of any organization is directly
proportional to the labour put by its employees. Putting labour does not mean getting involved in hard
physical work or digging the gold mines, it actually refers to the smart work done by employees,
transparency between the team members, free flow of information from the superior to the
subordinates. How does free flow of information happen? How is the transparency between the team
members achieved? - Through Communication and not only through communication but effective
communication.
In organizations the barriers in communication go a long way in distortion of the message and the
information does not reach in its desired form.
Imagine a situation where you want some report from your team members which needs to be
forwarded to the managing director of the organization. What if your team misinterprets your
information, screws up the project and fails to submit it within the deadline. The managing director will
literally sit on your head and make your life miserable. The poor communication can actually cost
you your job.
Let us now understand how barriers in communication effect business communication.
Noise acts as a devil in business communication. Any information downloaded at a noisy place is
bound to get distorted and result in a complete mess.
Petty wanted to go through the complete budget of the sales, marketing and the operations team.
She passed on this information to Joe at his workstation around which lots of other employees were
shouting, the base phone was constantly ringing and the photocopier machine was making a terrible
noise. At the end of the day, Joe submitted the report but the budget for the operations team was
missing in the report. Joe actually had heard only about sales and marketing department and thus
skipped the report of the operations team. Petty fired Joe and even stopped his appraisal. Unwanted
distractions, noise, chit chats of the other employees etc played the culprit and poor Joe missed out
on his promotion. Noise reduces the chances of the correct flow of information from the sender to the
receiver. If the office is noisy, errors are bound to happen and thus increasing conflicts among the
team members and decreasing the efficiency of the employees.
Unorganized and Haphazard thoughts also lead to ineffective communication in organizations.
Business communications are bound to suffer due to ineffective communication. If any individual
wants something from his team members, he first must be himself very clear what actually he expects
from his team. The boss must clearly mention his team member‟s key responsibility areas in clear
words to avoid wastage of manpower, duplication of work, effective time management and more
output from them.
Not cross checking among themselves or with the superiors also spoils the business communication
to a large extent.
Misha was sharing her phone number with her client and she never bothered to verify with her client
whether he has noted the correct number or not. One day, the client had a major query and he had to
discuss with Misha on an urgent basis. He kept on trying the same number which Misha gave but
someone else was responding. He then had to call the front desk lady to get connected with Misha
and obviously he was furious. The client had wrongly noted Misha‟s number and thus wasted his
precious time and lost his temper. While sharing any important contact number it is the responsibility
of the speaker to cross check with the listener. Email ids must be spelled out properly to avoid wrong
spellings and unnecessary wastage of time.
During any business meeting, presentation or seminar, the speaker has to be very careful
about his pitch and tone. It has been observed that during seminars or presentations only the front
benchers are attentive, the last benchers are almost lost in their own sweet world. The person who
chairs the meeting has to speak very clearly, has to be very confident and must maintain a tone
audible to everyone, even to the individuals sitting on the last row. Information must pass to them also
to expect the best out of them and increase their efficiency. Try to make the seminar or the meeting
interactive. Don‟t just speak, also invite questions from the team. After any seminar or meeting, the
superior or the in charge must send the minutes of the meeting through e mail to all the required
recipients to avoid last minute confusions and discrepancies. The speaker must ensure whether
everyone is clear or not?
In any organization, it is mandatory to understand which employee can do a particular assignment,
and which employee is not fit for a particular role. Chelsea was not keen for a branding profile but his
boss could never understand her interest and always wondered why Chelsea was not effectively
performing? In any organization, before assigning responsibilities to the employees, it is a must to
understand the employee and his area of specialization and interest. Communication will be for sure
ineffective if a person from an accounting background is asked to deliver a presentation on sales
techniques. He is bound to get nervous and the message will fail in creating the required impact.
Don‟t just impose work on any employee, give him the work he enjoys doing the most.
Difference in thought process also results in a poor communication in business areas. A boss
and the employee can never think on the same level. Let us try to understand the situation with the
help of an example.
Jude to Harry - “Harry, I need the complete financial report by end of the day”
By financial report, Jude actually meant the complete financial analysis, which would include the
complete details of how much the company spends in advertising, promotional activities, and other
marketing activities., analyse the inflow and outflow of expenditure patterns and so on.
Harry could never understand Jude‟s thought process. He simply compiled the expenditure details
and handed over to Jude. Jude was obviously not happy. He was expecting much more from Harry.
Harry had to resubmit the project resulting in duplication of effort and wastage of time. Jude should
have made it very clear from the very beginning what all he was expecting from Harry. He kept half of
his things within himself and did not share with Harry. Poor Harry had to redo his work. Every
individual has a different mindset, different level of understanding and thus it is important to share
each and every detail with others and clarify the things from the very beginning.
One should remember that the listeners are also a part of the conversation. The listeners must give
their feedback at the end of the conversation. If you are not clear what your boss is expecting out of
you, or what you are actually supposed to do, please ASK. Don‟t hesitate, ask questions. Don‟t hide
your queries, ask and clear your doubts then and there only. Your boss will only feel happy if you
share your queries with him.
For the successful running of an organization, it is important that transparency is maintained among
the employees at all levels. Communication barriers must be overcome in organizations to ensure the
free flow of information between the sender and the recipient and for an effective communication
among the employees. Effective communication reduces the error rate, reduces conflicts and mis
understandings and in turn increases the profitability of the organization. Every employee must try
their level best to avoid the communication barriers in organizations for an effective business
communication.

Overcoming Communication Barriers

There are a lot of communication barriers faced these days by all. The message intended by the
sender is not understood by the receiver in the same terms and sense and thus communication
breakdown occurs. It is essential to deal and cope up with these communication barriers so as to
ensure smooth and effective communication.
As, in the previous section we have discussed the major barriers of communication. Let‟s talk
about how to overcome these barriers of communication.

1. Eliminating differences in perception: The organization should ensure that it is recruiting right
individuals on the job. It‟s the responsibility of the interviewer to ensure that the interviewee has command
over the written and spoken language. There should be proper Induction program so that the policies of the
company are clear to all the employees. There should be proper trainings conducted for required
employees (for eg: Voice and Accent training).
2. Use of Simple Language: Use of simple and clear words should be emphasized. Use of ambiguous
words and jargons should be avoided.
3. Reduction and elimination of noise levels: Noise is the main communication barrier which must be
overcome on priority basis. It is essential to identify the source of noise and then eliminate that source.
4. Active Listening: Listen attentively and carefully. There is a difference between “listening” and “hearing”.
Active listening means hearing with proper understanding of the message that is heard. By asking
questions the speaker can ensure whether his/her message is understood or not by the receiver in the
same terms as intended by the speaker.
5. Emotional State: During communication one should make effective use of body language. He/she should
not show their emotions while communication as the receiver might misinterpret the message being
delivered. For example, if the conveyer of the message is in a bad mood then the receiver might think that
the information being delivered is not good.
6. Simple Organizational Structure: The organizational structure should not be complex. The number of
hierarchical levels should be optimum. There should be a ideal span of control within the organization.
Simpler the organizational structure, more effective will be the communication.
7. Avoid Information Overload: The managers should know how to prioritize their work. They should not
overload themselves with the work. They should spend quality time with their subordinates and should
listen to their problems and feedbacks actively.
8. Give Constructive Feedback: Avoid giving negative feedback. The contents of the feedback might be
negative, but it should be delivered constructively. Constructive feedback will lead to effective
communication between the superior and subordinate.
9. Proper Media Selection: The managers should properly select the medium of communication. Simple
messages should be conveyed orally, like: face to face interaction or meetings. Use of written means of
communication should be encouraged for delivering complex messages. For significant messages
reminders can be given by using written means of communication such as : Memos, Notices etc.
10. Flexibility in meeting the targets: For effective communication in an organization the managers should
ensure that the individuals are meeting their targets timely without skipping the formal channels of
communication. There should not be much pressure on employees to meet their targets.
 Seven C’s of Effective Communication
There are 7 C’s of effective communication which are applicable to both written as well as oral
communication. These are as follows:

1. Completeness - The communication must be complete. It should convey all facts required by the
audience. The sender of the message must take into consideration the receiver‟s mind set and convey the
message accordingly. A complete communication has following features:
o Complete communication develops and enhances reputation of an organization.
o Moreover, they are cost saving as no crucial information is missing and no additional cost is incurred in
conveying extra message if the communication is complete.
o A complete communication always gives additional information wherever required. It leaves no
questions in the mind of receiver.
o Complete communication helps in better decision-making by the audience/readers/receivers of
message as they get all desired and crucial information.
o It persuades the audience.
2. Conciseness - Conciseness means wordiness, i.e, communicating what you want to convey in least
possible words without forgoing the other C‟s of communication. Conciseness is a necessity for effective
communication. Concise communication has following features:
o It is both time-saving as well as cost-saving.
o It underlines and highlights the main message as it avoids using excessive and needless words.
o Concise communication provides short and essential message in limited words to the audience.
o Concise message is more appealing and comprehensible to the audience.
o Concise message is non-repetitive in nature.
3. Consideration - Consideration implies “stepping into the shoes of others”. Effective communication must
take the audience into consideration, i.e, the audience‟s view points, background, mind-set, education
level, etc. Make an attempt to envisage your audience, their requirements, emotions as well as problems.
Ensure that the self-respect of the audience is maintained and their emotions are not at harm. Modify your
words in message to suit the audience‟s needs while making your message complete. Features of
considerate communication are as follows:
o Emphasize on “you” approach.
o Empathize with the audience and exhibit interest in the audience. This will stimulate a positive reaction
from the audience.
o Show optimism towards your audience. Emphasize on “what is possible” rather than “what is
impossible”. Lay stress on positive words such as jovial, committed, thanks, warm, healthy, help, etc.
4. Clarity - Clarity implies emphasizing on a specific message or goal at a time, rather than trying to achieve
too much at once. Clarity in communication has following features:
o It makes understanding easier.
o Complete clarity of thoughts and ideas enhances the meaning of message.
o Clear message makes use of exact, appropriate and concrete words.
5. Concreteness - Concrete communication implies being particular and clear rather than fuzzy and general.
Concreteness strengthens the confidence. Concrete message has following features:
o It is supported with specific facts and figures.
o It makes use of words that are clear and that build the reputation.
o Concrete messages are not misinterpreted.
6. Courtesy - Courtesy in message implies the message should show the sender‟s expression as well as
should respect the receiver. The sender of the message should be sincerely polite, judicious, reflective and
enthusiastic. Courteous message has following features:
o Courtesy implies taking into consideration both viewpoints as well as feelings of the receiver of the
message.
o Courteous message is positive and focused at the audience.
o It makes use of terms showing respect for the receiver of message.
o It is not at all biased.
7. Correctness - Correctness in communication implies that there are no grammatical errors in
communication. Correct communication has following features:
o The message is exact, correct and well-timed.
o If the communication is correct, it boosts up the confidence level.
o Correct message has greater impact on the audience/readers.
o It checks for the precision and accurateness of facts and figures used in the message.
o It makes use of appropriate and correct language in the message.
o Awareness of these 7 C‟s of communication makes you an effective communicator.

How can we establish good relationship with our supplier?

A supplier is an individual who sources or provides items at a suitable price for your business. They
supply your business with the right materials, products and/or services to be able to conduct
business. Having good relationships with supplier‟s means that you can find and receive goods and
services at the right price within the right time-frame.
Suppliers do not only supply your business with products and other physical supplies; they may also
supply a service to your business. These suppliers could include:

1. Banking and financial services

2. Utility services
3. Property suppliers
4. Internet and phone services
5. Insurance products

These are tips that can help organizations to establish good relationship with their suppliers:

1. Set up regular times to communicate with your suppliers.

2. Discuss issues or concerns in an open and honest way.
3. Actively listen to advice and feedback.
4. Provide feedback and report issues early.
5. Keep track of your supplier‟s performance.
6. Agree on a standard ordering process.

Maintain relationships with your suppliers

Your relationship with suppliers can directly influence your business. Once you‟ve found the right
supplier it‟s important to develop a productive and professional relationship with them.
The following tips can help you establish good working relationships with your suppliers:

1. Set up regular times to communicate with your suppliers.

2. Discuss issues or concerns in an open and honest way.
3. Actively listen to advice and feedback.
4. Provide feedback and report issues early.
5. Keep track of your supplier‟s performance.
6. Agree on a standard ordering process.
7. Pay your accounts on time.
8. Stay organized and try not to change or rush orders.
As your business is important to you, it is even more important to your supplier, but also remember,
that you are just one of their many customers. Give your suppliers the benefit of the doubt if your
needs are not instantly met, be a great customer to them.

What are some of the qualities of a good supplier?

There are 5 qualities of a good supplier:

You can found suppliers with these five qualities and be confident that you have found relatively good
suppliers:

1. Accountability
Admitting to a mistake can be difficult. But when your goods are on the line, it‟s essential that you‟re
working with someone that can take responsibility for their half of a deal and actively work to fix any
problems that occur during manufacturing. That‟s why accountability tops the list of qualities of a good
supplier.
A supplier with accountability will take responsibility for the quality problem and work forward to
address it quickly.

But a supplier without accountability is more likely to deflect responsibility. They might tell you the
quality of the fabric was poor and difficult to work with. If you used a third-party inspector to check the
goods, the supplier might accuse the inspection company of incompetence or of being
unprofessional.
Allegations of substandard raw materials or misconduct from a third-party should be investigated. But
a supplier that won‟t own up to their own mistakes can hinder your ability to meet deadlines and
product requirements.
Look for signs of accountability in a supplier early on in your relationship. A good supplier is an
accountable supplier.

2. Production capabilities
The ability to actually manufacture the product you want is one quality of a good supplier most
importers are especially familiar with. In fact, many importers tend to focus so much on production
capabilities of a prospective supplier that they overlook other vital considerations. But knowing with
confidence what a supplier can actually deliver is harder than simply talking to a third-party supplier
representative.
A good supplier should be able to consistently manufacture a product that meets your
requirements. Without having the necessary procedures and skilled staff at the factory, your supplier
is going to fall short of meeting your standards.
How do you know if a supplier can meet your standards?
Visiting the factory
The only way to be sure of a supplier‟s production capabilities is by going to the factory. Some
importers that aren‟t sure what to look for or prefer to avoid the cost of traveling to the factory might
rely on a third-party to audit the factory based on ISO 9001 or a similar standard. In either case, you
can learn a lot about a supplier by verifying areas such as:

1. Material and finished product inventory;

2. Incoming quality control, in-process quality control and final quality control;
3. R&D (important if you plan to develop new products);
4. Machine and equipment maintenance and calibration; and
5. Certifications or licensing (e.g. business license, export license)
Many suppliers will tell you they can supply the products you need. But a truly good supplier will allow
you to verify claims by visiting or auditing the factory.

Obtaining and approving a product sample

This second method of verifying supplier production capabilities are less reliable than an audit, but
generally easier to conduct. By requesting that a supplier send you a product sample to approve
before moving ahead with mass production, you can get an idea of whether the factory can meet your
product requirements. You can also send the sample to a lab for testing to confirm product standards.

3. Ease of communication
Language and cultural barriers can present real challenges for importers buying from suppliers
overseas. You‟ll benefit greatly from working with a good supplier that‟s easier to communicate with.
Effective communication can prevent a variety of problems ranging from delays to product non-
conformity.
What defines “effective communication”?
English-speaking staff
This first mark of effective communication is obvious. If you don‟t speak the supplier‟s local language,
you‟ll probably want your main point of contact to be English-speaking. More and more factories are
hiring sales staff with at least a basic understanding of English. While it‟s rare to find a supplier with
contacts that speak perfect English, more often than not, there‟s someone capable enough to handle
requests from customers in English. Still, despite English abilities, misunderstandings can be very
common, depending on where you‟re manufacturing.
Open and direct communication
Open and direct communication is one aspect of a good supplier that few importers really appreciate.
It may be reassuring to know that your supplier employs English-speaking staff. But communication
problems often arise from the way a supplier communicates, rather than language difficulties.
Have you ever worked with a supplier that withheld information from you because it wasn‟t what they
thought you wanted to hear? This is very common when production delays occur. You may have
agreed to a particular shipping date the supplier later discovers they can‟t meet. But instead of being
direct and telling you right away, your contact may underestimate the delay or wait for you to ask
about it yourself.
A good supplier is open and direct. They know that you may have made promises to your own
customers, and it doesn‟t help to keep you in the dark about a bad situation. If there‟s a change to the
status quo, they tell you upfront. If they need clarification about requirements, they ask for it. Pay
attention to how your next supplier communicates with you.

4. Cooperation with third-party QC

Most people don‟t like to have someone looking over their shoulder and meticulously checking their
work. But third-party inspection has become a fairly standard requirement for most importers good
supplier manufacturing in Asia. And a good supplier will comply with an importer‟s request to have an
outside inspector verify the product before it ships.
Outside oversight can actually help the factory by:

1. Pointing out defects the factory‟s own QC staff might have missed;
2. Suggesting possible causes for any production problems;
3. Recommending preventative or corrective action to solve problems; and
4. Giving the customer peace of mind
A supplier‟s resistance to a third-party quality control usually calls for concern. Such a supplier may
be trying to hide an issue from the importer. Some suppliers will try to ship the goods quickly before
you have a chance to raise concerns.
Better suppliers typically book inspections on time and provide assistance for inspectors on-site. If
problems are found during inspection, they provide objective feedback about the results and advise
what can be done to resolve issues. The same suppliers are also open with their internal
documentation and processes when being audited.

5. Ethics
Ethical sourcing has made its way into the spotlight. As larger brands make headlines in recent years
for social compliance violations in their supply chain, countries have taken steps to outlaw goods
made with forced labor.
Many importers don‟t want to be associated with a product made by workers that are treated unfairly
or working in unsafe conditions. By choosing to work only with good suppliers that meet popular
social compliance standards you can be sure that:

1. Your products are not made with slave or child labor;

2. Your products are made in safe working conditions;
3. Retailers you supply do not refuse to distribute your product; and
4. The reputation of your brand is protected from negative press surrounding unethical sourcing
Ethics may not be the first thing that comes to mind when you‟re looking for a good supplier. But it‟s
not difficult to audit a supplier or prospective factory for social compliance. And disregarding ethics
entirely could lead to problems down the road.
Finally, it is not always easy to identify a good supplier immediately. But after some early
communication, you should be able to qualify one by looking for these five traits.
Just because a supplier is convincing and shows you a few amazing product samples does not mean
you should overlook how they actually function. These traits will help you sort the good from the bad
and help you determine if using a particular supplier is best for your supply chain, your customers and
your business.