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What are Quality Mangement System?

A high caliber Investment Professional with an experience amounting over 30 years, majorly across various facets of Investment.


Quality is Satisfaction

Quality is Satisfaction

What is Quality Management

Quality Management System

It is important to understand Quality Management System and Quality for services and products.

I always say, "Quality is Satisfaction of Customer for the value he paid". Nothing else is important. The compliance with the stated goals and value for Product and Service is called Quality.

Companies use different methods and process to achieve the desired satisfaction of customers which is called Quality.

There are two different things,

  • Quality Management System
  • Quality Standards

Quality Management System are the process predefined and standardized to achieve final objective of Quality. It is supposed, if the Quality Process is used, it should deliver Quality and Customer Satisfaction. Even though Process should deliver Quality Products and Services, but necessarily.

Different Types of Quality Process Certifications

  • ISO Certification
  • Others

ISO - is most recognized Global Quality Certification. It is issued by Certified People and after rigorous inspections. ISO certification is independent not for Profit Organization who defines Quality Process and Issues Certificates through Accredited Agencies and by Accredited Auditors.

HACCP - Hazard Analysis and Critical Control Points. Is Quality process for the food products. The process is defined for the points where Contamination can happen, These points needs to be always monitored, and controlled so that final Product can confirm to the defined Quality.

Others :- There are other Quality Certification Process, like Organic Certification, or product specific, industry specific. Ultimate goal of every Quality Process Certification is to defined the process which can deliver Quality Products and Services.


Third Party Quality Audits are equally important. There are different Audits, Accredited Third Party independent Auditors Perform the Audits. They are suppose to verify agreed Terms and Standards.

Third Party Audits are always for Exports and also for local markets.

Quality Audits are also perform by companies through third parties so that their Products and Services can get Recognition and well accepted.


Quality Standards are defined as the Standards the final Products Must Comply with. Every Product must comply to the standards defined by the authorities.

Standards are defined by Governments. Without these compliance of Standards companies can not sell their products in that jurisdiction.

Every country has their own standards or they comply with Global Standards, or standards defined by major Countries like

US Standards

EU Standards

UK Standards

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Depending upon your ultimate customer, companies follow the standards. These compliance Labels must be written on Product Packaging.

Every Country and has their Compliance System and all those Labels must be Written on packaging, if not written as per required System or Standards, it is Punishable by Law.

Quality Standard





Quality Management System

The System

Identifying all internal customers and suppliers who know us how many processes are involved in selling goods and services to external customers. It also shows us how important each process is in the smooth running of the business and industry. It is useful to go through the list of internal customers and suppliers, and identify what happens when there is a breakdown at any of the points of interaction. In most cases, the system cannot effectively function if there is a breakdown in any section of it.


Assessing your strengths, weaknesses, opportunities and threats is a method commonly used to clarify where we are and where we want to be. Your industry must be good at some things, and weak at others.

SWOT Analysis

S = Strengths

W = Weaknesses

O = Opportunities

T = Threats

The following are some of the areas we can consider with respect to strengths and weaknesses, opportunities and threats.

· Management style – is it a barrier or a driver, does it help or hinder change?

· Technology and methods – is – it old and inappropriate are does the industry, on the whole, use the best technology and methods for the desired results?

· Relationships – does the industry value is customers, suppliers, and employees ?

· Communication – are stakeholders kept in the picture or in the dark?

· Markets – do we seek our new markets and customers and determine their wants and needs?

· Competitors – do we understand who our competitors are and do we measure the quality of the products and services they offer?

· Direction – does everyone know where the industry is heading or are parts of the industry heading in different directions?

· Quality – is there a uniform understanding of the term quality or is it fragmented and misunderstood?

· Quality assurance – there a uniform understanding of the term quality or is it fragmented and misunderstood?


· End of line testing and inspection.

· No formal investigation to find our why things went wrong and to stop it happening again.

· Detection of our-of-specification product at end of processing.

· Investigate reason for defect to assign blame.

· The continualpyob(Protect Your Own Body) cycle.

· Management’s role – to solve day to day problems.

· A happy Quality Control Manager is one who finds many rejects – it’s ho he justifies his position.

· Concentrated Inspection :

1. Expensive (Wages and Rejects)

2. Unreliable

3. Boring

4. after the Event

5. Demoralizing, as the same defects recur.

Quality Assurance based quality system

Operators Inspect and Report on Quality

Prevention (do it right the first time).

Investigate reasons for problems so that corrective and preventive action can be implemented.

Management’s role – planning and coaching

The worker inspects & tests his own work (Quality Control).

The worker monitors and controls his own process (Process Control).

This promotes:

· Responsibility

· Understanding

· Provide in Work

Emphasis on:

· Planning to prevent defects

· Detecting and preventing problems at source


Quality Assurance System Requirements

· Commitment from management

· Clearly defined objectives

· Controls and procedures

· Documented systems

· Effective reviews

· Staff Attitude, training, resources

The Need for formal Quality Management Systems

The major losses due to lack of quality are incurred by clients. This is why Quality standards are client oriented.

Client dissatisfaction with suppliers is universal and ongoing.

Quality problems Includes:

· Failure to meet expectations;

· Failure to achieve delivery dates ;

· Failure while in use.

Traditionally suppliers have failed to give satisfaction because :

· What was needed to be done was not communicated to the worker doing the job ;

· The operative knew what was needed but didn’t do it;

· Doing it correctly created problems of expense and inconvenience;

· Nobody had overall responsibility for seeing things were done properly.

Quality problems are most often a consequence of failure to do things right the first time.

The people with greatest responsibility are the MANAGERS.


Quality problems are by and large the result of failure of management to exercise control over activities. To cure quality problems organizations need to create a means of

Quality Management

Is the means by which control is exercised over all activities; which affect the achievement of Quality and thus customer satisfaction?

A quality management system is based upon the philosophy of


To achieve quality the supplier must put in place a system of Prevention as opposed to detection and see that things are done correctly. The responsibility for this is everyone’s, but some have more responsibility than others.

Why implement an Independently Certified System

Because Your:

· Customers demand it

· Competition forces it

Why implement an independently Certified System

Because you want to:

· Survival

· Profits

· Customer satisfaction

· Job satisfaction

· To systemize what you do – take focus from individuals to systems

· Quality systems for internal use

· A marketing too – maintain a competitive position

· A training tool – change in organizational focus

· To meet overseas requirements

Benefits from an Independently Certified System

Ensure quality control in the production of goods and services.

· Do it right the first time.

· Detect problems; identify causes, remedial and corrective action to prevent recurrence.

· Improve image.

· Customer Satisfaction – more repeat business retains customers.

· Efficient utilization of resources and personnel.

· Reduce costs – less wastage, rework and rejections.

· Staff involvement in improvements – improve staff morale.

Sanford University Client Survey January- December 1990

(3000 clients seeking consultancy)

Has the introduction of a quality management system been beneficial to your company in terms of;

Organization Efficiency Yes 86 %

Profitability Yes 54%

Improved Marketing Yes 73 %

Improved Export Sales Yes 24 %

Continuous Quality Improvement

Six Sigma

Six Sigma

TQM - Total Quality Management

TQM - Total Quality Management

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