THE ROLE OF QUALITY IN BUSINESS

DEFINITION OF QUALITY
Quality refers to the systematic policies, methods and procedures used to ensure that goods and services are produced with levels that satisfy customer needs. The meaning of quality differs depending upon circumstances and perceptions. For example, quality is a different concept when focusing on tangible products versus the perception of a quality service. The meaning of quality is also time-based or situational. Quality is essentially about learning what you are doing well and doing it better. It also means finding out what you may need to change to make sure you meet the needs of your service users.

THE ROLE OF QUALITY IN BUSINESS
The current Quality drive has brought many areas of expertise together. We see, for example, operations research, project management, economics, statistics,

s y s t e m s a n a l ys i s , v a r i o u s b r a n c h e s o f e n g i n e e r i n g , m a r k e t i n g , g e n e r a l a n d strategic management, financial management, and many others coming together to achieve the best output for the organization. The aim of the drive to improve a n d sustain Quality is primarily to improve business performance (through reducing poor quality and related costs) and to develop a conductive corporate culture top performance

MEASURING QUALITY AND PERFORMANCE
To be able to have a tangible effect on improving business performance, Quality strategy must determine what is being done and then suggest ways of bettering it. This involves different methods of measuring performance. Some of these methods are:  measurement against internal standards  measurement against customer needs  business performance measurements in financial terms  benchmarking internally and externally to set best standards

measured both in financial and market share. including cost of not having suitable personnel  Inventory levels and turnover  Profit from performance. as well as financial and non-financial returns. CUSTOMER NEEDS Knowing and understanding customer needs is at the centre of every business. it is important to take into account factors like changes in the market. the business p e r f o r m i n g i t s f u n c t i o n s a s d e s i g n e d . you can use it to persuade potential and existing customers that buying from you is in their best interests. t h e response to changing market needs. Identification and study of any failures to improve future performance. BUSINESS PERFORMANCE The basics of measuring business performance are to determine corporate against set goals. whether it sells directly to individuals or other businesses. the time taken to respond to such changes. and the outcomes. employees. The measuring function should include input from the customers. In measuring performance against goals.INTERNAL STANDARDS T h e e l e m e n t s t h a t t h e s e w o u l d t yp i c a l l y l o o k a t include the direct cost of maintaining quality  Warranty  Cost of failure to perform to specifications  Costs of setting up and maintaining measures to prevent failure  Inspection costs  On time delivery  Success of first performance  Value added  Manpower costs. sub-contractors). Once you have this knowledge. business partners (suppliers. .

. In other words. TQM capitalizes on the involvement of management. The first step in the TQM process. and even customers. Good c o m m u n i c a t i o n o f t h e i n t e n t i o n s . then. is to realize there is a problem and that it can be controlled. the right organizations/areas. define the q u e s t i o n s t o w h i c h a n s w e r s a r e sought. analyzing and implementing the information obtained. TQM functions on the premise that the quality of products and processes is the responsibility of everyone who is involved with the creation or consumption of the products or services offered by an organization. the c o m m i t m e n t of everyone from senior m a n a g e m e n t t o t h e f r o n t l i n e workers to implement the lessons learnt and improve the processes is critical. workforce. They believe that their operations are simply too large to effectively manage the level of quality. TOTAL QUALITY MANAGEMENT Total quality management or TQM is an integrative philosophy of management for continuously improving the quality of products and processes. The principles of TQM are as follows: QUALITY CAN AND MUST BE MANAGED Many companies have wallowed in a repetitive cycle of chaos and customer complaints. technology or management techniques. The essential outcome f r o m b e n c h m a r k i n g w i l l o f t e n b e s o m e desired change to the existing situation. processes and benefits will help in adoption of the change. and define ways of recording. in order to meet or exceed customer expectations. The most important areas of benchmarking are to identify the right areas to benchmark. suppliers. This change can attract resistance f r o m within the organization. For any benchmarking effort to be successful.BENCHMARKING The aim of benchmarking should be to improve performance and enhance competitive advantage through a process of identifying ways to improve processes. This can lead to identifying new or better use of.

Real improvements must occur frequently and continually in order to increase customer satisfaction and loyalty. for example. must realize that they have an important part to play in ensuring high levels of quality in their products and services. DON’T TREAT SYMPTOMS. and they must all step up and take responsibility for them. Go for the source to correct the problem. It’s not a management “phase” that will end after a problem has been corrected. from the workers on the line to the upper management. EVERY EMPLOYEE IS RESPONSIBLE FOR QUALITY Everyone in the company. your shipping department is falling behind. If. LOOK FOR CURE If you just patch over the underlying problems in the process. NOT PEOPLE.PROCESSES. QUALITY IMPROVEMENT MUST BE CONTINOUS Total Quality Management is not something that can be done once and then forgotten. you may find that it is because of holdups in manufacturing. This will help you set your goals for the future and ensure that every department is working toward the same result. you will never be able to fully reach your potential. Correct the process and then train your people on these new procedures. Everyone has a customer to delight. . QUALITY MUST BE MEASURABLE A quality management system is only effective when you can quantify the results. ARE THE PROBLEM If your process is causing problems. it won’t matter how many times you hire new employees or how many training sessions you put them through. You need to see how the process is implemented and if it is having the desired effect.

you will be equipped to make this change and start working toward real long-term success.QUALITY IS A LONG-TERM INVESTMENT Quality management is not a quick fix. You can purchase QMS software that will help you get things started. it is important to make sure you are capable of implementing these fundamental principles throughout the company. Locate the root cause of the problem and recommend improvement. QUALITY MANAGEMENT TECHNIQUES The quality management techniques are commonly referred as TQM (Total quality management). . This kind of management style can be a huge culture change in some companies. and it is designed to help you find long-term success. and sometimes the shift can come with some growing pains. TQM is a long-term investment. Before you start looking for any kind of quality management software. but you should understand that real results won’t occur immediately. Define the project steps using a flowchart and define variability and problems in the project. I should not stop in any case. but if you build on a foundation of quality principles. Selecting project with specific plan helps in improving TQM. The core concept of quality management are:  Continuous process improvement  Customer focus  Defect prevention  Universal responsibility CONTINUOUS PROCESS IMPROVEMENT Continuous process improvement takes place in incremental steps. It is a persistent effort. To enhance the quality improvement process select an improvement project with a specific target.

And then start the new project. The external customer is someone who purchases the product. SIX SIGMA TECHNIQUES Six sigma techniques is a TQM process. Process for manufacturing a product begins with a specification. it is widely used in many sectors of industry. Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes .and implement. but implemented from the core team members and other staff CUSTOMER FOCUS Customers are of two type’s internal and external customer. Drawings are created. Defect prevention is concerned within catching the errors as early in the game as possible UNIVERSAL RESPONSIBILITY Universal responsibility deals with the fact the total quality is not only the responsibility of the inspection department but is everyone’s responsibility in the organization. Every work group in the business should be concerned with seeking wayside to improve the quality process. Internal customer is those who make use of what another group providers. Quality improvement should be totally pervasive. Determining customers requirements accurately is an important aspect of quality control. DEFECT PREVENTION Defect prevention saves money. Six Sigma is a business management strategy originally developed by Motorola. USA in 1986 as of 2010. parts are made and assembled and the product is assembled to the customer. The continuous quality improvement should be driven from top management.

Some small businesses may find it helpful to establish a steering committee to . Check. usually under the leadership of their supervisor (but they can elect a team leader). cooperative labormanagement relations. It aims towards the best quality as far as product and services are concerned. Here is an important things comes that is not every process in a company is measurable. Edwards Deming. and motivate and enrich the work of employees. REQUIREMENTS FOR SUCCESSFUL QUALITY CIRCLES The small business owner should be comfortable with a participative management approach. Act) circles developed by Dr. who are trained to identify. It is also important that the small business have good. The concept lies on the customer satisfaction. Do. W. analyze and solve work-related problems and present their solutions to management in order to improve the performance of the organization. The term quality circles derive from the concept of PDCA (Plan. For example how can you measure customer satisfaction and customer’s loyalty towards the product? LIST OF SIX SIGMA COMPANIES  LG  VODAFONE  WHIRLPOOL  MOTOROLA QUALITY CIRCLE A quality circle is a volunteer group composed of workers (or even students).AIM OF SIX SIGMA CONCEPT Six sigma’s prime motive is to make the company excel in product and services. as well as the support of middle managers for the quality circle program.

the small business will only benefit from quality circles if employee participation is voluntary. Even if all these requirements are met. improving quality. many companies find that quality circles further teamwork and reduce employee resistance to change. In addition. such initiatives may also improve a small business's ability to recruit and retain qualified employees. For example. But successful quality circles offer a wide variety of benefits for small businesses. Quality circles also serve to facilitate communication and increase commitment among both labor and management. and if employees are allowed some input into the selection of problems to be addressed. quality circles can improve a small business's overall competitiveness by reducing costs. and promoting innovation. Finally. it can take more than a year for expectations to be met.provide direction and guidance for quality circle activities. in some cases. as well as employee awareness of the need for innovation within the company. Finally. the small business owner must allow time for the quality circles to begin achieving desired results. TOP FIRMS WHICH EMPHASIZE ON QUALITY  NOKIA  WALLMART  ADIDAS  FORD  SATHYAM CINEMAS . they serve to increase management's awareness of employee ideas. In enhancing employee satisfaction through participation in decision-making.

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