Feature Article : Key Findings in the Link Between Corporate Performance and Quality Efforts
“Thriving in this challenging era of constant change requires infusing quality thinking into every process across every part of the enterprise. Organizations succeeding in their markets have learned to deliver world-class quality through products, process and people—even when products and services need to be delivered almost immediately. They harness the enormous economic potential of quality management to attain leadership within their industries.”
Forbes Insights, in association with ASQ, a global community of quality professionals, recently explored the results of a survey of 1,869 senior executives and quality professionals, focusing on the links between quality efforts and corporate performance, as well as the evolving business value of quality.
Approximately a quarter of those surveyed were from the manufacturing industry. And, 50% were from the United States, with the remaining from China, Canada, Singapore, Brazil, etc.
The Key Findings are not surprising, but notable nonetheless:
1) Workforce preparedness and outdated processes are the greatest quality issues faced by organizations.
Pro QC assists organizations by working with suppliers on-site, which includes an evaluation of existing processes associated with the quality management system and corrective actions that effectively address non-conformances. Training and development are a key component to success in this regard.
2) Quality has a direct impact on profit growth.
Pro QC works with organizations to implement an effective QMS for each of their suppliers. In each example, both the clients and the suppliers see the added benefits that include reduced cost. Investing in supplier development reduces the costs associated with poor product quality and often reduces expensive shipment delays.
3) A spirit of collaboration and open communication is more essential to quality success than other initiatives.
Pro QC’s strategy in working with clients and their suppliers is to support a partnership and facilitate communications that focus on the benefits of recommended quality solutions.
4) Quality measurement is widespread, but more data is needed.
Pro QC captures defect data from inspection reports and provides analysis regarding the performance of suppliers. Inspection strategy is adjusted accordingly to focus on those suppliers requiring more attention. In addition, supplier development activities report data associated with performance and general compliance.
5) Digital transformation means new ways to approach quality.
Pro QC uploads service details to an online database. In addition, inspectors are using internal sampling apps for on-site activities and tablets have replaced written reports for many on-site solutions that provides for less errors and quicker transmission of information. In some cases, video is provided and allows for a more accurate assessment of issues and more timely decision-making and execution of corrective actions.
Additional results that support supplier development and related quality initiatives include:
* When evaluating the “Top 10 Business Areas Touched by Quality Initiatives,” established and developing organizations indicated ~40% within supplier management. In contrast, those organizations categorized as struggling only represented 28%. When it comes to production, percents are closer to 60% for established and development companies, compared to 39% of those identified as struggling.
* Where “Top 10 Most Vexing Yet-to-Be Resolved or Ongoing Quality Issues” are concerned, those surveyed indicated ~51% as involving quality issues with suppliers. Delays from suppliers reached ~42%.
* 46% of those surveyed "Believe Yet-to-Be Resolved or Ongoing Quality Issues Affect Overall Competitiveness.”
Per the Forbes report, “research reveals that top-level executives and quality professionals see a direct connection between the success of their continuous improvement or performance excellence initiatives and the success of their organizations as a whole. Close to half of all survey respondents say their quality efforts have resulted in increased profitability and have enhanced important key functions across their organizations.”
Pro QC provides quality solutions in over 38 countries and offers over three decades of experience reducing costs and assisting as an on-site resource for supplier development. Contact us for additional information: email@example.com.