Professional Documents
Culture Documents
(NAIROBI CAMPUS)
REG NO:BBM/2085/18
Q1. Quality management systems (QMS) is usually envisaged as a wedge that holds the
gains
achieved along the quality journey and prevents good practices from slipping. Briefly
explain the benefits of having a QMS in small scale business (6 marks).
5. Increased Profits.
Research has established that many organizations achieve a direct financial return on Quality
Management System implementation. An ISO literature review of 42 studies identified several
reasons QMS support profitability. Internal, external, and signaling benefits all collectively
contribute to stronger financial performance:
-Internal benefits such as increased efficiency and productivity lower costs
-External benefits such as increased sales or new market access impact income
-Signaling benefits include new market access or increased market share.
6. A quality management system helps you understand why things aren't going well.
-If your business experiences symptoms of decline, such as falling profitability, eroding market
share and deteriorating liquidity, the quality management system can help treat the cause.
Q2.Examine the various types of benchmarking that today’s organization should undertake
so as to remain competitive. ( 6 marks)
-Benchmarking is a way to measure business and team success by comparing a process or the
organization as a whole to other internal processes or to competitors. Benchmarking helps you
understand industry norms and analyze how your company stacks up. You can also compare a
process within one department to that of another to evaluate productivity or efficiency.
TYPES OF BENCHMARKING
1. Internal benchmarking.
-Internal benchmarking is pretty straightforward. You compare a process or task to a similar
process or task within the company.
This type of benchmarking is effective because it helps set and meet standards across the board,
establishing consistency and ensuring that each department is as efficient as possible.
2. External benchmarking.
-External benchmarking is comparing an internal process to that of a competitor or even several
other organizations. This approach can be a little trickier because it requires access to industry
data or specific company data, which may not be available unless the other organization has
agreed to share it with you.
External benchmarking is extremely valuable. You can better understand where your business
fits into the wider market and identify areas of weakness that you should be focusing on.
3. Competitive benchmarking.
Competitive benchmarking is a type of external benchmarking that solely focuses on comparing
your own processes and metrics to those of direct competitors. This form of benchmarking is
significant because you can identify exactly why a competitor is succeeding or what drives
customer satisfaction in your industry.
4. Performance benchmarking.
-Another important form of benchmarking is related to business performance. By tracking
metrics and KPIs within the business, teams can continue to compare past outcomes to current
standards, continuously updating the standard for improved performance.
This type of benchmarking is focused on improving key business functions over time, since the
idea is that benchmarks will continue to be raised and strengthened.
5. Strategic benchmarking.
Strategic benchmarking is typically external and specifically analyzes how other companies got
to be successful. What kind of business strategies do they employ? For example, what is
successful about their marketing campaigns?
Benchmarking the way you strategize can help you learn from what has worked for winning
businesses in and out of your industry. This is especially helpful for new businesses or startups.
6. Practice benchmarking.
This form of internal benchmarking relates to the practices and processes of your business. This
requires you to have procedures in place to gather and analyze business data, like how employees
and teams are completing their tasks or using certain technologies.
Process mapping is one way to start practice benchmarking, and you can quickly identify and
address any performance gaps in the company.
-Total quality management (TQM) is the continual process of detecting and reducing or
eliminating errors in manufacturing, streamlining supply chain management, improving the
customer experience, and ensuring that employees are up to speed with training. Total quality
management aims to hold all parties involved in the production process accountable for the
overall quality of the final product or service.