To achieve high growth rates and customer satisfaction, organizations must anticipate and tackle challenges in the quality of their products or services. This entails adopting a holistic perspective on cost, quality, and outcomes. Rather than considering these factors in isolation as most companies do, organizations should recognize the interconnected nature of cost (encompassing all expenses related to product delivery), quality (striving for optimal results), and outcomes (financial reimbursement influenced by exceptional quality at reasonable costs). This perspective, rather than the traditional cost-centric approach, is a more comprehensive framework that incorporates both quality and outcomes, allowing organizations to position themselves strategically in the business landscape. It also drives cost management, product quality, and overall business success.1
Harmonizing quality goals with business strategies
Implementing robust quality management practices is a challenge that requires investment, dedication, and buy-in from leadership. The effect of a single defective product or poor service on a business is significant. A business will feel the loss in a number of ways: shared negative experiences, unfavorable reviews, returned items or refund requests, and customers pulling out of a project. Business owners shoulder the costs of product recalls and potential lawsuits.
Often in smaller companies where there isn’t a QMS, executives and leaders are overly burdened with tasks and activities that can be easily delegated and managed by a basic QMS. Instead of disorganized processes and bottlenecks, many activities can be shared and delegated throughout an organization using a QMS platform.
The cost of poor quality leads to quality not being invested in, or a divestment of resource and time. Reducing investment in the quality department should be approached with caution. Quality is often a critical factor in maintaining customer satisfaction and business success. Always weigh the potential benefits against the risks before making significant changes.
With today’s saturated market and endless options, customers have more nuanced needs and seek partnership vs. outdated transactional relations. Quality is no longer an option for client satisfaction and retention—it’s imperative.
An intelligent supply chain leverages technology, predictive analytics, and AI to enhance efficiency, real-time visibility, and data-driven decision-making.4,5,6 It empowers organizations to make data-driven decisions, enhance operational efficiency, manage risks effectively, and ultimately deliver a superior customer experience—all of which are critical factors in the rapidly evolving landscape of logistics and supply chain management. Innovating around the value chain has become a must in this industry.
Companies can’t afford to underestimate the importance of a QMS. Investment in quality management upfront helps businesses avoid risks. This approach safeguards a brand’s reputation by identifying risk early and addressing potential issues before products or services are delivered.2,3,4
Elevating excellence
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Organizations that prioritize quality are likely to be more sustainable in the long term than companies that treat quality as a secondary goal. The pursuit of quality isn’t an isolated endeavor but integral to achieving a wide range of business goals. A focus on quality must permeate an organization, influencing various aspects of operations, customer relations, employee engagement, and overall business success.
Quality management systems such as ISO 9001 establish clear communication structures that delineate responsibilities and assign quality tasks across all departments. Building this quality foundation in a company fosters higher employee morale, improved performance, and increased operational efficiency.
Quality consistently ranks among organizations’ foremost competitive priorities; it’s a prerequisite for success in the global marketplace. Firms that want a competitive edge do it by delivering products that meet customer needs and function as intended.
However, whether it’s a pause from focusing on quality or just being unaware, always consider consulting with quality management professionals or experts who can provide guidance on how to make changes without compromising overall quality. Transparent communication is crucial. Clearly communicate the changes to the quality department and the reasons behind them. Address concerns and ensure that employees understand their roles in maintaining or improving quality.2
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منبع: https://www.qualitydigest.com/inside/customer-care-article/price-excellence-012424.htmlProactively prioritizing and investing in quality reduces the likelihood of waste, product defects, customer complaints, and overall error. Committing to a quality framework fosters a culture of continuous improvement within the business; drives innovation in the workforce; and improves overall operational efficiency, which generates value for the company. As customer expectations grow and advance, businesses that invest in a quality framework vs. businesses that focus merely on outdoing their competitors are in a better position to achieve higher growth rates, gain a competitive edge, and establish a premium brand. In fact, companies that strive for quality are likely to achieve both quality and their business goals. However, companies that have business goals positioned first, with quality as secondary or optional, are unlikely to achieve their business or quality goals.2
Companies that invest in automation, artificial intelligence (AI), and machine learning to enhance quality and reduce waste are ahead of the game. Using AI, predictive analytics, and real-time monitoring improves accuracy and efficiency in processes. Leveraging these tools saves companies money in the long run and creates a competitive market advantage. Advanced technologies automate repetitive and time-consuming manual tasks, an efficiency that can lead to increased productivity and cost savings.
Customer Care
The Price of Excellence
Understanding the value of quality
Cultivating a learning culture to position the business for success in a competitive market is crucial. Investing in employee training and development can have a positive effect on overall quality within an organization, encouraging employees to seek ongoing improvement. A learning culture fosters innovation and a commitment to quality. Increased skills lead to higher-quality work and improved performance in job roles. With investments in training, employees learn to use tools and new technologies, reducing errors and ultimately contributing to higher-quality outcomes.
Published: Wednesday, January 24, 2024 – 12:01
The interconnectedness of quality and other business goals is a fundamental concept in quality management and organizational excellence. Quality is an investment that is expected to produce benefits later, not an expense for an organization. Companies that invest in and focus on quality will not only recover expenditures but will enjoy great benefits within the organization.
‘Quality is the result of a carefully constructed cultural environment. It has to be the fabric of the organization, not part of the fabric.’ —Philip Crosby
Addressing the need for quality resources within appraisal costs is a strategic move. When a company makes quality a primary goal, the benefits outweigh the risks. When quality takes a secondary role, the company often faces internal and external failures that affect costs. When contemplating quality investments, two key investment expenditures usually emerge: the cost of good quality that’s taking a proactive approach, and the cost of poor quality, which is usually a reactive approach.2
The supply chain of the future will connect decisions to automated execution across the value chain. Supply chain resiliency is built on strong business-to-business relationships.
In fact, quality is the foundation for a competitive advantage, even when a firm’s immediate focus may shift toward concerns like speed to market, cost reduction, and other operational considerations.
‘Quality in a product or service isn’t what the supplier puts in; it’s what the customer gets out and is willing to pay for. What makes a quality product isn’t based on how hard it is to make or whether it costs a lot of money, as manufacturers typically believe—this is incompetence. Customers pay only for what is of use to them and gives them value. Nothing else constitutes quality.’ —Peter F. Drucker
Collaboration is key to building a successful quality framework. Synergistic teams drive the creating and operational capabilities of an integrated QMS. Without collaboration, quality activities get siloed to a quality department, which is not ideal for a business that wants to achieve ultimate customer satisfaction and growth. With persistent collaboration between business units, quality tasks and activities are dispersed throughout the organization, and teams begin building with the same blocks. This collaborative environment promotes operational efficiency and keeps the business moving forward. Essentially, quality should drive the business; it’s not just a department but a mindset the entire organization must adopt.5,6
Innovating across the value chain
In the past three years there have been many disruptions related to supply chains. Geopolitical conflicts, cybersecurity risks, inflation, and economic conditions are a few examples of disruptions that have affected the flow of goods and price surges. Some overarching weaknesses that have led to supply chain disruption can be attributed to lack of planning, which has led to poor risk mitigation, missed opportunities, ineffective responses to the unexpected, and lack of end-to-end visibility.
External failure costs are expenses incurred after the product or service has been delivered to the customer; these costs are associated with addressing issues that occur outside the organization. As a business owner, you bear the costs of product recalls. In a worst-case scenario, you might have to deal with lawsuits. For this reason, companies can’t ignore or overlook the importance of quality management.
The benefits of quality investment
The cost of good quality usually leads to understanding the role of quality and how it’s a preventive measure in an organization vs. a reactive activity. Integrating quality into the appraisal cost of a project contributes to project success, cost efficiency, and overall organizational effectiveness. It allows quality to be at the fore of a project vs. at the tail end. Investing in quality early in the project life cycle yields substantial benefits in terms of cost savings, customer satisfaction, and long-term success.
A strong commitment to quality, supported by the establishing a QMS, can be a powerful marketing tool. Businesses that prioritize quality attract new and repeat customers. As a company grows in size and clientele, customer audits, feedback, customer complaints, security concerns, and certification needs increase. Suddenly, these concerns become an organization’s priority. Without a QMS driving the business process, the voice of the customer, measuring risk, and standardized operations aren’t tracked to facilitate continuous improvement.
Responding effectively to customer feedback is a business necessity. A business is affected by how quickly it can assess and respond to customer feedback. Successful companies invest in appropriate systems that reduce average investigation and closure cycle times, improving their ability to predict and address negative trends in product/service performance.
The quality function’s mission can’t be developed in isolation from the organization’s mission. It is closely aligned and inseparable from both it and the company’s business strategy.
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ISO 9001, an international standard, outlines the basic requirements of a QMS centered around customer satisfaction and risk management. Implementing this framework removes bottlenecks and streamlines process and activities. As a company grows, creating a scalable and flexible QMS will enable success. Operations will become efficient and the business will discover where it needs to improve, based on the voice of the customer. Establishing a QMS is no longer a question of if, but a matter of when.2,4,5
Insight to impact
Poor quality results in internal failure costs, which are expenses incurred to address defects, errors, or quality issues before a product or service is delivered to the customer.2 Assess the potential risks associated with divesting in the quality department. Develop a risk management plan to mitigate any negative consequences. Assess the current state of the quality department. Identify strengths, weaknesses, opportunities, and threats. Understand the effect of potential changes on product and service quality as well as customer satisfaction.
The customer feedback loop is a company’s defense against systematic issues and potential complaints. Therefore, it should be recognized as a core business process that drives continuous improvement and increases the bottom line. Investing in a robust issue-management database will ensure that an organization can properly intake, manage, and resolve internal and external issues.2,4
Embrace tools, elevate results
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Framework for success
Employee skill certification is another way a business can ensure a standardized and recognized level of expertise, promoting consistency and reliability in the workforce. Promoting employee certifications publicly can enhance a company’s market position, building credibility, attracting top talent, fostering client trust, and creating valuable marketing and partnership opportunities.2,5
Ignite synergistic teams
Investing in prevention costs is a strategic decision that aligns with the principle of avoiding problems before they occur. While prevention costs involve upfront investments, they result in long-term benefits by reducing overall project costs, improving quality, and increasing the likelihood of project success.2
Unlike manual processes, these tools and technology are less prone to errors. This can save money by preventing costly mistakes, rework, and the associated expenses. Advanced technologies are scalable, meaning they can handle larger volumes of work without a proportional increase in costs, while manual processes may require additional labor and resources as the workload increases. Most important, adopting advanced tools can provide valuable insights through data analytics, helping organizations make data-driven decisions. Manual processes can be time-consuming and may lead to missed opportunities or inefficiencies.5
Learning culture
Investing resources in quality as a primary focus rather than as a secondary expenditure is crucial for an organization’s long-term success and sustainability. Quality should be viewed as a strategic investment that yields high growth rates, rather than a departmental cost that’s burdensome to the business. Prioritizing quality builds a strong framework and foundation for customer satisfaction, consistency, trust, and customer loyalty.
Brand reputation must evolve with customer sentiment and the customer’s power of choice. Therefore, companies must develop quality systems that help them tune into unique user preferences and experiences. Businesses that invest in a QMS are wise in doing so and understand that prioritizing quality in their products ensures customer satisfaction and repeat business.
Despite the long-standing emphasis on the importance of quality in business, its actual contribution to business performance has been relatively unrealized. Quality is often the first department that gets deprioritized in the midst of company financial stress. Often, it’s viewed as an overhead expense that can be decentralized into other departments in an attempt to save money. Poor short-term decisions around quality lead to big financial, customer relationship, and workforce morale issues down the road, leaving companies and their customer base in a state of risk.
As we head into the future, adopting these technologies and enhancing supply chain practices are the only ways around these disruptors to ensure resiliency and sustainability.7
Customer feedback should be handled through a closed-loop process that provides meaningful data to support continuous improvements for all business units. The feedback data should always be meaningful and useful to management and other investigative teams to make sound business decisions. Collecting feedback data without using it to fuel continuous improvement initiatives is wasteful and short-sighted.
