A business is known for its products and services amongst other things. While there are many measures of determining success in terms of business but one of them is customer satisfaction, it is a major component in determining whether a business will be successful or not. Customer satisfaction and product/service quality are interlinked. Quality is of prime importance for business and while some companies degrade their quality, some companies thrive to improve their quality and ensure customer satisfaction. In this report, we seek to ascertain the role of quality management in a company and its importance in the matters of a company along with some real-life examples of companies who profited with the use of quality management. We also seek to discuss the various advantages and disadvantages of following quality management in a company. Some of the most recent examples are the change in packaging on many e-commerce platforms to reduce waste and to make more environmentally friendly choices. This report seeks to answer the following:
- What does the success of an organisation depend upon?
- What role does quality management play in the functions of an organisation?
- How can it benefit an organisation?
- What limitations could it pose for an organisation?
2.1 In this report, from the assessment of all the data it can be concluded that:
- Quality has a huge impact on a company’s business. Quality determines how the customers behave towards the company. If the quality isn’t improved/maintained, a company can lose customer trust and eventually customers.
- Quality management can help a company succeed in various ways by improving its efficiency and product quality. Various instances have shown that several companies who were losing business have revived themselves with quality management techniques.
- If companies do not focus on quality management, they can lose customers and can create a bad reputation for themselves. They often also follow unethical practices.
- Quality management ensures high product quality because of various quality checks.
- Quality management improves teamwork while at the same time could create fear in the minds of the employees if they are not well informed which can reduce work efficiency.
- Working according to the customer/market needs yields favourable outcomes.
2.2 Certain recommendations on the basis of the above-mentioned conclusions are:
- Quality should always be the topmost priority in a business to ensure customer satisfaction.
- Adopting a Quality management system will profit business so they should research into the various models and pick one suitable for them and work towards their goal.
- Usage of unethical practices should be stopped. They should stop focusing quantity over quality.
- Quality checks should be incorporated into the company to ensure that the products/services of top quality.
- Which implementing quality management, employees should be properly instructed and trained, to ensure valuable output. Teamwork should be given priority.
- Customer should be the source of quality management. Work should customer-driven.
A company with proper quality management aims to satisfy its customer needs which in return ensures customer satisfaction. Quality is one of the most important spheres in principles of management. The maintenance in all the spheres of a business is it the products, services, internal management or the employee efficiency. The success of any company largely depends on the quality of its work. When the products are of good quality and value for money, the customers are satisfied and that ensures customer loyalty and a steady stream of cash. (Bhasin, 2020) The key to attain and uphold a preferred level of quality is consistency. There are various models of Quality Management like six sigma, TQM, ISO, among others. (Quality Management – Understanding How Quality Management Works, 2020)
The Toyota Corporation is one such case, which implemented the Kanban system for its quality management. It is used to implement its JIT (just-in-time) principle, which helps to align the orders for raw materials from the suppliers within the production schedule. This benefited them to meet customer orders as they generated. (Quality Management – Understanding How Quality Management Works, 2020) Many companies, for instance, Ford motors (after observing how TQM profited Toyota) and Xerox, started using the TQM method to mend its quality and share value. (What Are Some of the Companies That Benefited From TQM? 2020)
Quality can be assessed on various grounds like the extent of its productivity, its sturdiness and its dependability. (Importance of Quality Management, 2020) Many organisations emphasise on quantity over quality and on just making money, but this just end in customer dissatisfaction as a majority of customers want quality products for the price that they are paying. Such companies are also just production focused and are ready to do anything to ensure that the products are produced in bulks id est, they can go to any extent. One such case is of this is Shein, a fast-fashion online platform. Not only does it use cheap fabrics and other suspicious ingredients, but it also exploits its employees who produce these clothes. It is the ugly and dark side of the fashion industry. (Why Shein might be the biggest rip-off since fast fashion was born | Living, 2020) Not only is it compromising quality, but it is also unsustainable.
Some of the reasons why quality management is important for businesses/organisations are stated hereinafter:
- It ensures that the product/service is of high quality and meets customer needs. This is possible because they go through quality checks.
- When the product/service meets/exceeds the customer expectancy, customer satisfaction is attained which sequentially provides customer loyalty.
- There is an affirmative impact on the company’s revenue for the reason that there is an increase in output and competence.
- Teamwork is integrated into the company as the efforts of all the members of the organisation is vital. (Total Quality Management – 7 Principles with Examples & QM Tools, 2020)
- The need for the market is identified. This is applicable in every geographical location as every market has needs even if they vary from place to place.
- It assures mutual partaking from every employee. Their outlook changes towards their work which consecutively improves their work output. Every sphere of the organisation witnesses improvement.
- Waste and destructive activities are kept in check and significantly reduced. This also cuts costs because the money which was previously wasted on these things is saved. This subsequently increases the profit margin.
- Quality sets apart the company from its competitors in the market. The better the quality the better the chances that the company will have fewer competitors.
- When communication improves, productivity advances. Customer complaints, feedback, employee communication, etc., help in cultivating the business. (Sauce, 2020)
Although Quality Management is beneficial for the company, in the long run, it poses some difficulties:
- It requires all-encompassing training of the employees which takes some time out of their employment hours which reduces their work output. So, despite the fact that it is beneficial in the long run, it decreases work yield in the preliminary phase.
- Change is never easy. If employees are not well informed, fear is generated towards the change which reduces efficiency. Change takes proper information, good leadership and time to implement properly.
- It is heavy on the pocket. Initial and subsequent training, workshops and other things done to train the employees can cost a lot. Doing things in a way which guarantees uppermost quality isn’t low-cost.
- It occasionally hinders the room for creativeness. (Sauce, 2020)
In the before mentioned case of Toyota, the company was facing price resistance and wastage because of high-cost margin and overproducing respectively (in Japan). To overcome this TQM was implemented because of which overproduction was stopped, product quality was improved and customer contentment was increased. They started producing according to the needs of the Japanese market. They conducted several workshops and events for the implementation of this. They also received several awards and their success inspired many other companies to adopt these methods. (Toyota and JIT Manufacturing: The Origins of JIT, 2020)
A great example of quality is displayed by ‘the Ordinary’ a brand from ‘DECIEM’ an umbrella brand for several skincare products. It has changed the skincare market forever because of its remarkable approach and affordable prices. While a lot of skincare brands advertise that their products contain amazing ingredients when in fact those ingredients are actually very far down on the ingredient list, meaning that they contain minimal amounts of those products, and pricing these products at high prices, The Ordinary openly specifies the ingredients and their percentage in its products along with cheap pricing. With other brands the customer pays for packaging and marketing, when it comes to The Ordinary, its quality is enough, it does not waste money on marketing. Even without marketing, its products quickly go out of stock. The brand is also cruelty-free and environmentally friendly. (The Ordinary | Clinical Formulations with Integrity | A DECIEM Brand, 2020) This is a perfect example of how quality management has led to the success of the company. Its customers are satisfied, so they are repeated buyers. It has customer loyalty. It saves money on marketing and still manages to make sales.
management leading towards sustainability can sometimes be economically
depreciating because of employee training and new methods like in the case of
various e-commerce websites which have recently reduced the waste they produced
for packaging purposes but these improve the reputation of these companies. (Duran, Bikfalvi and Llach, 2020)
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What Are Some of the Companies That Benefited From TQM? (2020) Available at: https://www.brighthubpm.com/methods-strategies/99895-companies-that-benefited-from-tqm/ (Accessed: 26 May 2020).
Why Shein might be the biggest rip-off since fast fashion was born | Living (2020). Available at: https://www.euronews.com/living/2019/10/18/welcome-to-the-dark-side-shein-is-the-biggest-rip-off-since-fast-fashion-was-born (Accessed: 26 May 2020).