Why Quality matters in ensuring business continuity
ISO 9001 in clause 4.4.1 requires the organization to use a process-based quality management system for continual improvement. This continual improvement (CI) keeps the organization current and innovative. In today’s globally connected economy with fast developments, an organization which just maintains the status quo is doomed to failure and bankruptcy. Given this, one would assume that quality be a leadership priority. An integrated management system based on ISO 9001 and or other industry specific standard would be a management priority. Yet what is often seen is that there is pressure to cut costs and the first victim is quality!
Quality management systems should not be sacrificed in trying to increase margins. In fact, quality processes enable better productivity and efficinecy. If it does not do this the quality management system based on ISO 9001 or the relevant standard is not correctly implemented. Clause 4.4.1b of ISO 9001 requires the determination of the sequence and interaction of processes. One should interpret this to design a core process clearly indicating how the leadership policy is implemented by the use of the key and support processes. The sequence in which they interact to deliver the conforming outputs. The division of processes into key and support is not necessary but at QMII (www.qmii.com) over the 30 plus years’ experience in numerous industries has shown that an over arching measurable objective can be the relationship between what is spent on Key and Support processes. The Napoleonic teeth to tail ratio between those processes meeting the primary purposes of the organization (Key processes) and those required to support the key processes (the Support processes) is an indicator (KPI- key performance Indicator) worth considering. ISO 9001 in Clause 4.4.1 c brings this out well for application in quality management systems.
A well implemented ISO 9001 based quality management system should then not just be effective but show results. Cutting the quality program costs under pressure can lead to an organization just about maintaining status quo instead of ensuring CI. Without CI the system can have numerous issues, e.g. rejections at inspection tend to increase, NCs (Non-Conformities) are not systematized and do not lead to Correction and CA (corrective action), a fundamental tenet of ISO 9001. This can lead to compliance issues and eventually effect the bottom line. Revenue losses occur, "cash in the bank"® reduces and may lead to loss of reputation. An organization should strive to ensure quality standards are met at every stage of the process to ensure CI. Motivation to ensure ISO 9001 clause 7.1.4 is implemented by providing and creating the environment for quality. A non-quality environment demotivates the workforce (ISO 9001 clause 7.1.2). The result again could be non-conforming products and services. Once customer focus (ISO 9001 clause 5.1.2) is lost it leads to mistrust in the brand.
Therefore, it is important to remember it is paramount for an organization to be risk appreciating, looking for OFIs (opportunities for improvement) so they are proactive and not just responding to issues. The organizations ability to meet challenges needs a systematic approach. The quality management system must enable this approach for personnel. It enables the organization to address risks and stakeholder needs timely to ensure business continuity over the years.