GeneralQuality Concepts and Theories in Business
GeneralQuality Concepts and Theories in Business
Generalquality concepts and theories in business are principles that areapplied to enhance organizational efficiency and service superiority.These theories help management to ensure the quality of products andvalue for services offered. These concepts are implemented bymanagement as policies that must be adhered to by all employees. Thegeneral quality concepts applied in supply chain management includeurgency, communication, budget, feedback, detail, complete projectand revision instructions.
Urgencyis applied in supply chain management to ensure that input materialsarrive in time before current stocks run out. If the materials do notarrive in time, there will be a breakdown in the production processessince the materials are the input for the processes. This can causethe company operations to come to a standstill. This will createcompany inefficiencies, and it is, therefore, vital for the supplychain manager to ensure that there are enough stocks to avoid delaysin the production of products or services. The manager should,therefore, follow up to ensure suppliers are aware of the urgency ofmaterials that have been ordered and that they arrive in the companyon time. Urgency should also be implemented when delivering the finalproducts of the company to the final consumer. When a customer placesan order, the supply chain manager should ensure that the productordered is delivered in the shortest time possible to avoidinconveniencing the customer. Satisfaction of the customer is whatkeeps the company in business, and the manager should understand thecustomer is king.
Communicationis another vital concept in supply chain management. Communicationinvolves contacting the suppliers to place orders for materials. Thesupply chain manager should order for materials before the currentstocks run out to avoid a shortage of materials. Therefore themanager should contact suppliers in advance when stocks are at theminimum reorder level. Communication between the manager andsuppliers should be maintained to ensure that the materials aredelivered on time. The supply chain manager should also be incommunication with the customers of the organization. The managershould conduct research on what the customer needs and how thecustomer wants it delivered to them. This can enhance the overallperformance of the organization.
Thebudget concept is also important in supply chain management. Thefinance department of any organization comes up with differentbudgets for the different activities of the company. The supply chainmanager must ensure the organization purchases materials according tothe budget. The manager should bargain with suppliers for betterprices to ensure that he or she buys the materials in the rightquantity and within the constraints of the budget. The manager alsoshould consider what amount is budgeted for transporting the finalproducts to consumers. The manager should evaluate the most costeffective mode of transport to the customer but still ensure theproduct arrives to the customer on time.
Supplychain management should also pay attention to detail. The materialsdelivered to the organization should be inspected by the manager forany defects and ensure that quality materials are delivered. Thiswill make sure that the final products are of high quality which willsatisfy the customers. Also when delivering products to customers,the products should be inspected that there are no defects and onlyquality products are transported to the customer.
Feedbackis also an important concept of supply chain management. The managershould ensure he or she gets feedback from suppliers to maintain goodrelations between the organization and the suppliers. Also, feedbackfrom customers is important as it will help the organization to servethe customer in a better way. Complaints from both suppliers andcustomers should be investigated to ensure there is continuedbusiness with the suppliers and that customers are satisfied with theservices of the organization so that the customers will be loyal tothe organization.
Tosum it all up, all these concepts and theories lead to the overallbetter performance of the organization. If well implemented in supplychain management, costs such as carriage inwards and outwards can bereduced which in turn increases the profitability of theorganization. These concepts should be communicated to employeesthrough organizational policies. These concepts will improve thequality of products as well as ensure customer satisfaction whichcould also enable the organization increases its market share whilecutting costs.
Processdriven quality is whereby the organization quality is in the systemand not dependent on any one particular person. Process drivenquality has a company that has perpetual existence, and it’s notbound by factors such as time, morality and skills. Mostorganizations that apply this concept are mostly multinationals.Since human beings do not define them, they can expand and operate indifferent continents. Even though such organizations do not rely onpeople, they require some level of input by people. The bestpractices laid out by management must be implemented by employees.These practices are simple and can be done by anyone, therefore, thedecline of reliance on particular people (Stadtler, 2015).
Customerdriven quality is whereby an organization focuses on the customer toensure customer expectations are met or exceeded. Customer drivenorganizations focus on the needs and want of a customer then findsways to meet those needs and want in the best way possible at thelowest cost. The organization conducts research on the market andwhat prices the customers are willing to pay for a product or servicethat is not being provided in the market. The organization then triesto account and provide the product or service to the customers. Theorganization reduces the expected price with the profit margin itexpects from the product or service. The remainder is considered thecost of providing the product or service. With this cost constraint,the organization manufactures the product or service which it thensells to the customers. The organization strives to ensure thatcustomers are satisfied with the product or service and that theproduct or service serves its purpose.
Differentquality theories impact organizations differently. Manufacturingindustries usually advocate for the process driven quality whileservice industries advocate for customer driven quality.Manufacturing of products requires the use of complex processes toproduce the product. It also requires the use of latest technology toreduce the time for producing one product. Therefore mostmanufacturing companies will have the emphasis on the quality ofprocesses rather than customer driven. On the other hand, in serviceindustries, value for services offered is enjoyed by customersdirectly from the employees of the company. It is, therefore,important for such companies to ensure that the customer is satisfiedby the service before they leave the company. Therefore most servicecompanies will be customer focused rather than focusing on processes.
Stadtler,H. (2015). Supply chain management: An overview. In Supplychain management and advanced planning (pp.3-28). Springer Berlin Heidelberg.