Importance of Quality Management, Factors affecting Quality

“Quality management” ensures superior quality products and services. Quality of a product can be measured in terms of performance, reliability and durability. Quality is a crucial parameter which differentiates an organization from its competitors. Quality management tools ensure changes in the systems and processes which eventually result in superior quality products and services. Quality management methods such as Total Quality management or Six Sigma have a common goal to deliver a high-quality product. Quality management is essential to create superior quality products which not only meet but also exceed customer satisfaction. Customers need to be satisfied with your brand. Business marketers are successful only when they emphasize on quality rather than quantity. Quality products ensure that you survive the cut throat competition with a smile.

Quality management is essential for customer satisfaction which eventually leads to customer loyalty. How do you think businesses run? Do businesses thrive only on new customers? It is important for every business to have some loyal customers. You need to have some customers who would come back to your organization no matter what.

Quality is one of the topmost principles of management. Maintaining the spheres of quality in each and every facet of the business helps the firm to attract loyal customers, keep the cash flows regular, and beat the competition in the market.

Quality Management ensures increased revenues and higher productivity for the organization. Remember, if an organization is earning, employees are also earning. Employees are frustrated only when their salaries or other payments are not released on time. Yes, money is a strong motivating factor. Would you feel like working if your organization does not give you salary on time? Ask yourself. Salaries are released on time only when there is free cash flow. Implementing Quality management tools ensure high customer loyalty, thus better business, increased cash flow, satisfied employees, healthy workplace and so on. Quality management processes make the organization a better place to work.

Remove unnecessary processes which merely waste employee’s time and do not contribute much to the organization’s productivity. Quality management enables employees to deliver more work in less time.

Quality management helps organizations to reduce waste and inventory. It enables employees to work closely with suppliers and incorporate “Just in Time” Philosophy.

Quality management ensures close coordination between employees of an organization. It inculcates a strong feeling of team work in the employees.

Importance of Quality Management:

1) Increased revenues and profits

In today’s dynamic market that is ever high on competition, it is very difficult for the firm to generate the desired revenues and profits meeting their long term and short-term objectives. And following the Importance of Quality Management is one of the assured ways to accomplish all the business aims and objectives.

It ensures a high level of customer satisfaction, high brand value, higher market share, loyal customers, and a competitive edge. But many a time, firm fail to understand this simple and one of the most crucial fundamentals making them incur losses.

2) Less human errors

When the firm follows the Importance of Quality Management, it also follows a set of guidelines and principles that have been framed for each of the business operations. And right from the top management to the management trainees of the firm, all of them have to follow the same.

This result in the less amount of human errors enhancing the productivity and work efficiency levels. Plus with less human errors there is a very low chance of risks.

3) Reduced risks

Yet another aspect that helps the firm to enhance and maintain its brand value in the market is the reduced amount of risks. And risks only occur in the business operations when the firm does not adhere to the parameters of quality.

Risk mainly occur during the manufacturing process of the products and whilst dealing with the customers during the before and after sales procedures. Hence, it is of the vital significance for the firms to understand the Importance of Quality Management especially in these two aspects of the business.

4) Customer Satisfaction:

Customer Satisfaction and following the Importance of Quality Management go hand in hand. Realizing its importance at each and every level of your business operation ensures the higher level of customer satisfaction and happiness.

Majority of customers today wish to go for the products that are high on quality and they don’t mind paying an extra amount of money for the same. And if there is any sort of glitch in the quality of the products, the customer realizes the same at the very same moment and perceives the brand in a negative light.

With the power of social media and various industry-specific forums on the digital space, it takes no time for any customer to spread it and make it viral that deteriorates the brand value of the firm.

5) Enhanced brand value

In continuation of the above-mentioned point, every brand needs a higher market share and an enhanced brand value. And it is the aspect of following and astutely understanding the Importance of Quality Management that helps the firm make its brand value and equity soar amongst other prominent players of the market.

6) Beat the competition in the market

For successfully survive and thrive in the market that is all-time high on the competition for the new as well existing brands, it is vital for the firms to understand the Importance of Quality Management and make it as an integral part of its objectives and work culture.

There are many brands in the market that have to shut their stores and business operations in a short period of time as they are unable to adhere to the standards of quality. As mentioned above, the customer nowadays is much more aware and agile plus there are lot many other brands in the market waiting for you to leave the market.

Hence, TQM is one of the sure shot ways and means to beat the competition and carve a distinctive identity for your brand in the market.

7) Attracts a loyal set of customers

It is the thumb rule of every business and industry domain that the business can successfully survive and thrive in the ever-competitive market only if it is able to retain the long list of loyal customers.

Customer nowadays is presented with lot many options and alternatives on a silver platter and is much more aware of the quality standards with the help of social media and digital marketing. Hence, it is very crucial for the firms to follow the Importance of Quality Management in order to attract and retain the loyal set of customers and set their cash registers ringing.

8) Higher productivity levels

When the firm realizes and follows the Importance of Quality Management in each of its business operations, there is a rise in the productivity of the employees

They know and understand that they working on something that is unique and high on quality plus due to the high parameters of quality, obstacles and bottlenecks are ironed out automatically, thus, increasing their productivity levels.

9) Ensures long lasting efficiency

When we come to talk about the factor of efficiency whilst discussing the Importance of Quality Management, it is not only confined to the working efficiency of the staff that is into the manufacturing of the products but also to the each and every employee of the firm and even the types of machinery.

When all the employees of the firm right from the engineers to the sales managers understand and follow the Importance of Quality Management, it improves their efficiency as they know that the product that they are manufacturing and selling is best in class.

The confidence and agility that is gained understanding the overall process, elevate their efficiency in manifolds. And all of it has a cascading effect on the overall sales and profits of the firm.

10) Consistent quality and make of the products

It is highly imperative for the firms to plan, design, execute, and manufacture the product offerings for the target market realizing the Importance of Quality Management and maintaining the parameters of total quality management at every facet.

It helps to maintain the realms of quality on a consistent and continuous basis. Plus the firm is able to conduct market research and study on a regular basis having a drive to offering the products that stand as a testimony to the quality and its principles.

Factors affecting Quality

Suppliers

Suppliers can have a huge influence on inventory control. Successful businesses require reliable suppliers in order to plan spending and arrange production. An unreliable or unpredictable supplier can have huge knock-on effects for inventory control. It can be a good idea to ensure you have a reliable back up supplier to prevent product shortages or delays in the manufacturing process.

Financial Factors

Factors such as the cost of borrowing money to stock enough inventory can greatly influence inventory management. In this case, your finances may fluctuate according to the economy, and it is wise to keep an eye on changing interest rates to help plan your spending.

The tax costs associated with stocking inventory is another factor that can influence inventory management. This is especially salient when preparing for the end of year tax returns.

Product Type

Inventory management must take into consideration the different types of products in stock. For example, some products may be perishable and therefore have a shorter shelf life than others. In this case inventory must be managed to ensure that these items are rotated in line with expiration dates.

Lead Time

Lead time is the time it takes from the moment an item is ordered to the moment it arrives. Lead time will vary widely depending on the product type and the various manufacturing processes involved, and therefore changes in these factors can require changes to inventory management.

Outsourcing manufacturing processes to other countries due to lower production costs may result in longer waiting times. Producing the same goods locally may cost more but take less time, and therefore you may need to adjust your stock levels accordingly.

External Factors

There are multiple external factors that may affect inventory control. For example, economic downturns may occur and this is something that you will generally have very little control over. Assessing the economy is a must in order to guard against stock outs or a buildup of excess inventory.

Management

Ultimately, responsibility for managing your business’ inventory sits with you and any co-owners. While you may have multiple employees acting as managers to oversee inventory processes, they typically will not have the same stake in the business as you do.