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How a good Quality Management System helps the company.

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Everybody in Quality knows that having a functioning Quality Management System will reduce costs. Maybe not the next day, but in the long haul it will make the company money if it is functioning properly—and this is where the real problems lie. A significant number of Quality Management Systems don’t function correctly, either due to a lack of resources or due to a lack of involvement by management. However, when it does function properly, the company can really streamline operations and get a better position in the market.

Lack of Importance

This is probably one of the biggest struggles for Quality Managers. Top Managers may understand the importance of having Quality Standards, but they don’t really understand Quality Assurance and how it can help the bottom line.

Top management isn’t always willing to invest in proper platforms and tools to manage all the data and allow for detailed analysis. They don’t see why the company needs such a platform. They will come up with things like, “we have already an ERP system”. This really shows they need to be educated because an ERP system is not going to help with structuring the QMS and improving the processes.

The Impact

Top management looks at the production rate and how much has been produced over the last month. They look for possibilities to increase the output with the same number of people. Yes, it might be possible to increase the output but it will have an effect on the quality. The issue is that these implications aren’t always instantly clear. Problems might start to occur weeks or months after the products have been delivered to the customer. So for a period of time, it looks like the production increase had a positive impact on the number. However, when the warranty claims start to come in, increasing production might not have been such a great plan.

The point is that a significant number of companies cannot even track these basic numbers, because their QMS isn’t working properly. Warranty claims aren’t properly logged in the QMS which makes it very hard to find this correlation. This is just a simple example but there can be a range of different correlations within your company. The company cannot see the implication of their choices because the QMS is simply ineffective here.

The Importance

Having a functioning Quality Management System in place is important to keep the Quality of products high. In order to really reduce the production costs, some parts are critical in a QMS.

Structured Way of Working

Documenting the ways a company operates is a good technique to get a feeling of what the company actually does and what comes to building the products or providing the services. This can be a process, procedure, work instruction, SOP, etc. It doesn’t really matter how it is called, as long something is documented and easily transferable to a new employee. The documented way of working is crucial in maintaining a certain level of quality within the company. It would be very weird if every employee can decide for themselves on how to assemble a piece of machinery. Make sure these documents are easily accessible and transferable.

Improvement Plans

A proper Quality Management System will harvest data on everything that goes wrong within the company. This data can be leveraged by the Quality Department to come up with improvement plans that are based on facts. This will directly lead to better products, shorter production time, less rework, etc. Having the actual data at the fingertips and being able to track it over time allows the Quality department to measure if the improvement plans actually work or if they need changing. Data-driven improvement plans enable companies to reduce a lot of costs.

Historical Data

Data is, like in most parts of business, key for Quality Management. As touched upon before, having data to correlate issues to change in the production flows allows for finding the root cause for the problems. It also allows for finding correlations during certain seasons. The data is golden for starting off the right improvement plans.

When combining the Quality data with data from other platforms, the company can really start to streamline the organization. Connecting planning data to the Quality data allows for finding correlations between shifts and issues. These things can only be realized when the data is within the company.

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