Do you know that your Quality Management System or QMS can boost the profitability of your business? Go through this article to learn in details.
It is true that the focus of a Quality Management System or QMS is not on the profits, if you can properly implement the QMS, you can increase the bottom line of your company remarkably. In fact, many companies are using QMS to skyrocketing their profit scale. You might be thinking how a QMS can escalate the scale of profitability of your business. Well, it has a number of benefits that contribute to the increase in profitability, such as-
• Increasing productivity
• Enhanced efficiency in the use of company resources
• Better customer loyalty that brings the customer back
• Reduced turnover rates due to heightened employee stats and high level of company morale
• Meeting challenging business targets that encourage company growth and expansion
• Open communication and participation from employees on all levels
• Quick responses to the identified opportunities and possible risks
Together these benefits of an efficacious quality business management system can increase the profitability of a company significantly.
How should a Business Increase the profitability with a QMS?
In the present business environment, every firm is experiencing extreme pressure from the customers and the competitors. The increasing demand of the customers and the pressure of the competitors are compelling the companies to come up with unique and new products. They also need to upgrade the “quality” of their existing goods and services. These days, organizations are insisting on a quality setback and endeavor issues so that they can survive in this aggressively competitive industry. The main concern of most of the modern small and medium enterprises or SMEs is to meet the world-class excellence by offering the best quality products or services, customer satisfaction, and cost reduction strategy with profit optimization. It is important for businesses to integrate fundamental management techniques, human resources, risk management strategies. An organization should also make a plan for addressing the possible opportunities. Many studies have revealed that successful implementation of a quality management system can effectively enhance the product quality and services.
We all know about the International Organization for Standardization or ISO that has produced a number of internationally acclaimed certifications, such as ISO 9001 certification, ISO 17025 certification, ISO 13485 certification and many more. Among this standard, the most popular one is ISO 9001. This management standard is centered on a set of requirements, which align the business objectives with customer satisfaction, stakeholders’ satisfaction, process efficiency, and the wellbeing of the employees. This ISO standard covers all the organizational practices across the sectors along with its applications. It has made this certification popular among various organizations.
• How to Develop Quality in an Organization?
If you want to maintain a high-level quality management system, you need to implement a QMS strategically. While implementing the QMS, you need to consider a few things-
• Management Participation and Involvement
All aspects of an organization depend on the quality standards and the top management should ensure that every department is compliant with the relevant laws. The top management must be involved in every activity of development and maintenance.
• Clear Vision and Values
Before developing the quality business management, it is imperative for an organization to develop a clear understanding of the business objectives and values. This understanding will help you channelize the existing business processes and implement the new ones as per the requirements of the business.
• Reward and Acknowledgement
All the companies should produce an acknowledgment and reward system to encourage the employees. There is no particular rule on how this system should be, but it should be applied only to the individuals.
QMS can be the best tool for enhancing a business’s profit if it is used correctly. Managers need to adopt policies that let the employees discuss the concerns about the work environment, compliance, and obstacles that may prevent non-conformities.
• Continual Improvement
Continual improvement is another major element that an organization should consider. ISO 9001 is always looking for continuous effort to improve and enhance the quality of the system.
This way you can ensure a high scale of profitability with the help of an enhanced Quality Management System. If you think that you cannot deal with all of these elements and processes, the best thing you can do is to hire ISO experts. They can help you build a profitable business management system.
Damon Anderson is an ISO consultant who has been working in the ISO industry for more than 15 years. He has penned down a number of blogs on quality business management, ISO 13485 standard, ISO 17025 certification, ISO 31000 standard etc.