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MBA In A Day Chapter 14

Chapter 14. Quality Management Systems. For more than two decades “quality” and “quality management systems” have been leading buzzwords in the business world. Numerous consultants have built their careers around these topics, and quality issues in business have been responsible for the development of new organizations and even industries | Quality Management Systems For more than two decades quality and quality management systems have been leading buzzwords in the business world. Numerous consultants have built their careers around these topics and quality issues in business have been responsible for the development of new organizations and even industries for instance the American Society for Quality and Six Sigma consulting. The notion of quality in business focuses on the savings and additional revenue that organizations can realize if they eliminate errors throughout their operations and produce products and services at the optimal level of quality desired by their customers. Errors can take almost any form for example producing the wrong number of parts sending bank statements to customers who have already closed their accounts or sending an incorrect bill to a client. All of these errors are very common and the costs incurred seem minimal. But over time when mistakes are repeated the costs add up to a significant amount so eliminating errors can result in significant increases to the bottom line of a business. 264 TLFeBOOK Quality Management Systems 265 WHAT IS QUALITY According to the American Society for Quality quality can be defined in the following ways Based on customer s perceptions of a product service s design and how well the design matches the original specifications. The ability of a product service to satisfy stated or implied needs. Achieved by conforming to established requirements within an organization. What Is a Quality Management System A quality management system is a management technique used to communicate to employees what is required to produce the desired quality of products and services and to influence employee actions to complete tasks according to the quality specifications. What Purpose Does a Quality Management System Serve Establishes a vision for the employees. Sets standards for employees. Builds motivation within the company. Sets goals for employees. Helps .