Role of Cost, Customer and Measurement in Quality Management

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Important factors in quality management are investment cost, customer and measurement of quality. By adopting total quality management (TQM) technique and tools, as well as other similar quality concepts, you can decrease your wasted material, effort, and time in manufacturing, selling, and delivering product. You can get a good result by this practice, but to adopt this techniques organization has to invest some money and time.

The result of TQM is an improvement in the organization’s base line and increased competitive advantage. Since TQM practice became popular in the early 1990s, there have been a number of similar initiatives such as business process re-engineering (BPR), six sigma techniques, just in time (JIT), etc. Some have been accepted by organizations and some disastrous. Simple logic and high-quality business practice is the most significant thing in applying these quality concepts.

By fulfilling your customer’s needs and wants with high quality products and superior services, you will get repeat business and referrals. Better quality products and services and low cost will help you capture niche market segment. Marketing and advertising are also important to get more new customers. Better quality, service and customer satisfaction keeps you in the business for the long run. Measurement is very important to verify your quality improvement. Quality improvement can be done in all processes of business.

A computer consultant needs to improve his business to get more clients. He can decide how much he is making per hour of work, how effective his marketing is, and some other measurements of where his business has been. By organizing his business and how he provides service to customer, he can be more competent. This will allow him more time to spend on marketing his business and services. He can adjust his business processes to reduce wasted time and mistakes made. By concentrating on quality improvement, he can improve customer satisfaction and get more business and referrals. Finally, after sometime, he can re-evaluate his criteria to observe if his business has improved.

A manager of a branch in a large bank wants to improve the cash inflow, and customer base. He measures the productivity, turnover and how it affects the profits for his branch. The bank is ISO 9000 certified, so he uses the quality manual to help solidify his bank. He works on improving work processes and addressing employee’s issues to reduce process costs and losses from employees leaving or making careless mistakes.

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