Quality Management

When considering all the tools and techniques available for Quality Management…

Let’s name a few to get the thought process going….Design of Experiments, 8D, Quality Costs, TQC, TQM, ISO 9000, Six Sigma, Kaizen, Shainin, Measurement System Analysis, Advanced Product Planning, Failure Mode and Effects Analysis, etc.,

Do we see techniques that are going to enable us to achieve our goals or do we see tools that are going to help us reduce or avoid failures? The first part of that question would be tools related to goal management and the second part would be tools related to risk management. As we think about quality management, should we see both and if so, do we?

If quality management was about goal management, the tools that we would see would be about strategic planning, finance, human resource management, engineering, training, and leadership.  If it were about risk management, we would expect to see tools covering risk assessments, problem solving techniques, and process control methodologies. Again, thinking through the various quality tools, we do in fact see both but there are certainly more that are focused on risk reduction than on goal achievement. Why is that? What this shows is that quality management is continuing to develop. The thought process concerning quality in many organizations still centers on product quality rather than the business system as a whole so many of the management tools that are available today are not characterized as ‘quality’ tools.  ‘Quality’ is thought of in one dimension only….eliminate production of defective product or make sure it doesn’t get out to the customer through inspection.  That’s ok but an organization that is truly focused on quality management and understands the true definition of quality will have a more three pronged thought process to their business.  Not only is it the product quality but it’s the view of the company from an inward as well as an outward perspective.  What do I mean by this?  Inward view is looking at how the organization maximizes its efficiencies and effectiveness.  Efficiency is linked to productivity which is also linked to motivation of workers, capability of processes and utilization of all resources.  Effectiveness is linked to focusing on the right things to do by seeking and utilizing best practices.  Improvements in these directly impacts ‘quality’.  So what is outward view?  This gets more into the financial part of the organization by making sure organizations maintain ability to create wealth, to care for the environment and to adhere to safety, health and legal regulations. Any change in business policies or procedures could show an improvement in business ‘quality’. 

Needless to say there are many definitions of quality.  As I mentioned above, many organizations still focus only on their product quality whenever quality is mentioned.  These organizations are not very far along in their quality development cycle.   A more mature organization would have a definition similar to what is defined in ISO/TC 176:  “a comprehensive and fundamental rule or belief, for leading and operating an organization, aimed at continually improving performance over the long term by focusing on customers while addressing the needs of all other interested parties.”

Does it strike you as funny that the definition given for quality management principle above does not contain the word QUALITY.

If you want to do a little research before my next blog, the eight principles that have emerged as fundamental to the management of quality also do not contain the word QUALITY!

Hm…interesting.

I believe that for companies to succeed now and in the future, organizations need to focus on quality management principles.   So what are characteristics of a company focused on quality? A good question and I’m glad you asked.

These companies will have the following:

1) A total commitment to continually increasing their value to customers, investor and even their employees.

2) An understanding that market driven is quality defined by the customer not the company

3) Commitment to continuous improvement and communication

4) Understanding that sustained growth requires success of four key factors: a) customer satisfaction, b) cost leadership, c) effective human resources, d) competent supply base

5) Commitment to improvement through knowledge, skills, problem solving and teamwork!

Typically, if the above is part of a company’s culture, the accounting metrics will fall into place. One thing that you notice is the mention of “customer” in several of these. Unfortunately and not always accurately, the assumption is that the customer also has these same principles and acts accordingly. As we all know from experience, this is not always the case, so we have to also take this into account when trying to determine and define what customers value. The second thing that you might notice is the mention of the need for improving.  Every move toward a global marketplace (from local to regional to national and ultimately to world markets) increases the level of competitiveness between organizations. As we continue to compete globally and the players in the global market increases, there will always be a need to improve because there will always be another organization out there trying to outdo or outmaneuver us.   We should never get caught thinking that being close to perfect is good enough.