Quality Management System Quality Management system, purpose ,significance ,procedures and practice in Pakistan.

Submitted to: Qanita Imtiaz Submitted by: M. Assad Fahim Khan (313001) (MBA-II)

OM

Hamdard University

PREFACE

Primarily, this report has been written to incorporate syllabus requirement of the subject

“Operational Management”. Besides that, I wanted the content of this report to be

selected and prepared to achieve two objectives: to provide with the useful and relevant

information on Quality management practices in Pakistan and to give the reader an

understanding about the Quality management practices in relation with Operation

management.

Initially, I spent most of our time in gathering data and useful information about the

Quality Management practices.

When I started the project, I was very motivated & determined. Though I have put in

every effort not to leave out anything important, but at the same time, I have tried my

level best to compile this report.

ACKNOWLEDGEMENTS

Firstly I would thank Allah for giving us the opportunity and the

resources to be able to do something productive with our lives.

Without His blessings I would not have been able to come as far

as we have.

Then our sincere thanks to Miss, Qanita Imtiaz for helping us

throughout this report. Her guidelines have been very useful for

me in preparing this report. She helped us find new ways of

being innovative and creative.

This report would not have been possible without her

cooperation and continuous direction.

Last but not the least I would like to thank our families for their

incessant support and approval.

Quality Management System

Quality management is the single most important process in any organization, whether for profit,

nonprofit or an organization such as a health-care maintenance organization. It defines the purpose of quality for the organization it represents. Quality management is often forgotten, but

it guarantees the quality in output from any organization and exists as an asset that always adds value to it.

History

Quality management started to be introduced in the late 1800s with pioneers like Henry Ford and

Frederick Winslow Taylor, who realized what limitations existed in mass production. Quality management started with the spot-checking of products as they rolled off the finish line. Fairly

soon, however, it was realized that this was not enough to guarantee quality with every single item. As a profession, quality has grown considerably, and today it ranks as a recognized profession among the other well-defined professions such as engineering, accounting and

medicine.

Pioneers of Quality Management

FREDERICK TAYLOR.

Probably the most famous management pioneer of all is Frederick W. Taylor (1856–1915), the father of scientific management. Taylor rose from common laborer to chief engineer in six years,

and completed a home study course to earn a degree in mechanical engineering in 1883.

In trying to overcome soldiering by the workers, Taylor began a scientific study of what workers ought to be able to produce. This study led to the beginnings of scientific management. Taylor

used time studies to break tasks down into elementary movements, and designed complementary piece-rate incentive systems.

Taylor believed management's responsibility was in knowing what you want workers to do and

then seeing that they do it in the best and cheapest way. He developed many new concepts such as functional authority. In other words, Taylor proposed that all authority was based on knowledge, not position. He wrote Shop Management in 1903, became the president of the

American Society of Mechanical Engineers in 1906, and was a widely traveled lecturer, lecturing at Harvard from 1909 to 1914.

Philip B. Crosby

Philip B. Crosby was responsible for noting that it makes sense to get things right the first time.

He calls this the zero defects principle. What Crosby was saying is that costs will increase when quality planning isn’t performed up front. I’m sure we’ve all seen this in our own work where late changes cause rework and may have knock on affects to other areas, causing more rework in

those areas. And all of this costs money!

Prevention of this rework was the key to Crosby’s zero defects principle. If the defect never happened, then costs are lower and requirements are more easily met. In Crosby’s work the

measurement for quality was thus the cost of non-conformance rather than the cost of rework.

Joseph M. Juran

Joseph M. Juran is notable for his fitness for use work. This fitness for use principle goes beyond just thinking of quality in terms of defect levels, instead, it asks, was the output of the project

what we set out to produce at the outset? Fitness for use is very customer focused, reflecting the customer’s and stakeholder’s view of quality.

Given Juran’s broad view of quality under fitness for use, it’s not difficult to see why he

introduced two terms, grade and quality.

Grade: compares your product or service with those of a similar type but with different technical characteristics

Quality: describes how well the product meets its requirements (number of know

defects)

W. Edwards Deming

W. Edwards Deming was all about process, not people. Deming suggested at up to 85% of the total cost of quality was a management problem. By this he meant that once quality issues get to

the worker level, the workers have little control. As an example, let’s say you’re building a TV as a worker and the sourcing team has supplied you with inferior grade plastic, then of course

you’ll have little control over quality. In addition to this, Deming also believed that for workers to perform their best, they need to be shown what acceptable quality is. They also need to understand that quality and continuous improvement are essential in any organisation.

Purpose of QMS

A QMS is implemented to promote quality and efficiency within a company. QMSs rely on creating procedures for the processes used in producing a product or service. The motivation behind QMS is customer satisfaction.

Significance

Quality has become much more significant since the world's demand for products has grown exponentially. Along with more demand, the demand for specialist products and quality in production have grown together. Competition has been a strong factor in this and so has

something known as "the global village" (where companies are competing on a global level). Probably the most significant change has been the change in society, which has driven a demand

that never existed before. And this global sea-change has made a significant difference to any quality considerations.

ISO Quality Management System

What is ISO?

Understand the International Organization for Standardization (ISO) guidelines is where the TQM process can become a bit overwhelming. These standards are guidelines on how to document the processes in specific industries. The goal is consistency and a set of complete, easy

to follow instructions. While TQM is focused on employee involvement and product improvement, achieving a particular ISO certification shows that an organization is following

well-established industry standards.

What is ISO 9000-and 9001?

Times they are a-changing, and with the world becoming so much smaller and businesses “doing their business” globally, it is important that there are some sort of regulatory standards so that the

consumer knows just what to expect about the quality of goods they are receiving.

ISO 9000 is designed to do just that. It is a family of standards regarding quality management systems. Maintained by the ISO (International Organization for Standardization) they regularly update their rules to keep up with the times, and go about advocating these basic standard

requirements for trade. As an example, some of the ISO 9001/2008 (one of the standards within the ISO family) including the following:

a set of procedures which aim to cover and include all key processes of the business

making sure that these processes are effective by constant monitoring keeping adequate and up to date records at all times

quality control on output for possible defects, with appropriate corrective actions where needed

regular reviews of the effectiveness of the processes and quality systems in place

continual improvement

What is ISO 14000?

The ISO 14000 environmental management standards exist to help organizations ensure that their operations do not have a negative impact on the environment, that they comply with

applicable laws, regulations, and other environmental requirements, and that they continually improve on these. ISO 14000 is similar to the ISO 9000 quality management in that it also concerns itself with how the product is produced, in other words the process, rather than the

product itself. It was revised in May 2004 with the updated standard called ISO 14000:2004.

ISO 14001:2004 is the requirement standard of the ISO 14000 series. It specifies a framework for an Environmental Management System against which an organization can be

certified by a third party.

The standard applies to all types and sizes of organizations and while it does not establish absolute requirements for environmental performance, it does require a commitment to continual

improvement and compliance with applicable legislation and regulations.

A Simple Guide to Understanding ISO Standards

ISO standards are really a Quality Management System with very specific rules on

documentation and record-keeping. ISO is not a replacement for Total Quality Management. In fact, they can co-exist quite peacefully, since ISO is focused on consistency and record-keeping,

while TQM is focused on employee involvement and product improvement. Both claim to be customer satisfaction and continuous-improvement oriented, but Total Quality Management is really the better forum for this. In fact, it is the goal of the TQM process.

ISO requires that the same things be done the same way all the time, and it is hard to squeeze

customer satisfaction out of that process.

ISO Requirements

ISO is methodical and rigorous. It requires a company to take its production process and break it down into key steps. Each process is then analyzed to determine what the quality standards

should be. Next, the company decides how it will measure each process to determine if it meets the quality standard they defined. Then, the approach to achieving that quality is documented (in

the form of a Standard Operating Procedure), and finally, the company performs audits, internal and external, to ensure that the procedures are being followed. For each key process, you must look at 21 elements and decide which ones apply to that step, and then come up with a detailed

plan to carry out and enforce the elements that do apply. Some of these elements include: Employee training, documentation, written standard operating procedures, training, management

buy-in, tool calibrations and records, internal auditing, external auditing, document control, input material quality verification, and plans for handling non-conforming product.

The process sounds complicated, and it can be, depending on the level of quality control at a

facility. The unusual thing is, ISO doesn’t care if your process is complicated or even whether it produces a quality product. All it cares about is that the company making the product follows the procedures they established, and that the end product is consistently like the last one and the

next one. They “assume” that your product is already acceptable to the public, and that their mission is to ensure that product is consistent. The company makes it own rules, decides what to

measure, how to track it, how to record it, and how to manage the records to be in ISO compliance.

ISO Standards Example

To try and make sense of all of this, let’s make a cake following (within reason) the standards

that ISO requires: The Overall Process is: Making a Cake.

It has three sub-processes: Mixing, Baking, and Frosting.

Process One: Mixing.

The inputs are: Precisely measured quantities of milk, flour, eggs, vanilla, baking powder, baking soda, and sugar. The

output is batter. The process is: Mix for 0:45 seconds or until there are no lumps larger than 1/16” in diameter.

Process Two: Baking.

The inputs are: Batter (poured to the proper height in the pan so it doesn’t overflow), and heat (an oven), pre-set to the correct

temperature for baking. The process is: Bake for 40.0 minutes, or until a knife inserted in the center of the cake can be removed without any visual particles sticking to it. The output

is a completed cake.

Process Three: Frosting.

The inputs are: Cake and icing, and the output is a finished cake. The process is: Frosting, using a 2” wide stainless steel spatula and distributing evenly until the entire visible portion of the cake

has been covered.

That was the ISO process. Now, here are the ISO compliance steps:

You have followed a written recipe for making the cake that has been documented, and kept in a controlled location (perhaps a locked recipe box) so that no one can change the

recipe. In Process One, the ingredients would have been measured using a specific measuring

device (Pyrex cup) that was calibrated annually.

The device would have a sticker on it showing the last time it was checked for accuracy (calibrated to a known standard).

The dimensions of the eggs would have to fall within a certain range, and the milk would have to be at a precise temperature before measuring (you might also state in your procedure – recipe – whether the milk is 2% or whole).

The individual ingredients would be verified to be fresh (by comparing and documenting their expiration dates).

The date used and the expiration date would be documented on the “assembly” sheet.

The mixer’s beater speed would have to be checked on some frequency to ensure the mixing speed was the same every time, and the setting on the mixer would have to be

documented (and another calibration sticker on the mixer). The baker would have had documented training in reading a recipe, proper measurement

techniques, and mixer operator training. All of this information would be stored in a binder in a particular location for easy

access.

Plus, every so often, a certified baker would have to come to your house to inspect your calibration records, your process procedures, and your training credentials to ensure you

were complaint with the rules you set up.

And that’s just to make the batter!

Keep in mind that, once the cake is done, it must taste and look like every other cake that was made before using that same recipe. ISO doesn’t assure quality, it assures consistency. If your

recipe called for McCormick vanilla, and you used Kroger-brand, you would have just produced a non-compliant cake, which would have to put into an isolation area until a determination could be made as to what to do with it (rework, scrap, release with exceptions noted).

Note also that in the ISO process, the cake doesn’t have to taste good. This is where a

complementary Total Quality Management system would work well. If the family thought your cake was lousy (negative customer feedback), you would have to modify the recipe

(documenting each change for the ISO records), until your family liked it (customer satisfaction).

ISO is a rigorous method of ensuring a business has a Quality Management System. ISO certification tells other businesses and customers that they take great care to control the quality of their product, and can prove it. This can be of particular importance, especially to other

businesses, who want to use this product as an input to their process, and need it to be exactly the same every time to ensure consistency.

Eight Principles of ISO Quality Management

System

The International Organization for Standardization (ISO) outlines eight quality management principles called the ISO 9000 series of standards. These principles are guidelines used by many companies for quality discipline purposes. They aid companies in achieving long-term quality

performance.

1. Customer Focus

Organizations should understand their customer's current and future needs. The customer focus principle states that organizations should strive to surpass the expectations of customers. This

principle involves understanding the customer's needs and expectations, communicating the needs throughout the organization and managing customer relationships.

2. Leadership

This quality principle describes the responsibility of leaders within an organization. Leaders should lead by example, understand and respond to changes and consider all stakeholders' needs.

Leadership also includes establishing a clear vision for the company's future and encouraging and inspiring people to reach goals.

3. Involvement of People

This principle holds that all people within the organization are beneficial for the company.

"People at all levels are the essence of an organization and their full involvement enables their abilities to be used for the organization's benefit," the ISO states.

4. Process Approach

This principle states that a company runs more efficiently when all activities are viewed as a

process. Desired results are defined as well as risk evaluations. The managing process is established clearly, and a business process flow is created and maintained.

5. System Approach to Management

Efficiency and effectiveness come from identifying, understanding and managing a process system. The system is defined and continuously improved through measurements and

evaluations.

6. Continual Improvement

Continual improvement to systems, products and processes is a vital part of every quality system. It should be a permanent objective within the company. It includes making periodic assessments

for improvements and improving the efficiency in every aspect of the business process.

7. Factual Approach to Decision Making

The analysis of information leads to effective decisions. This principle involves collecting data and information and ensuring that it is accurate and reliable. It also includes evaluating the information with an effective method and making decisions based on the evaluations.

8. Mutually Beneficial Supplier Relationships

This principle involves identifying and selecting key suppliers. Companies should build long-term relationships with suppliers, sharing a joint understanding of customer needs and sharing future plans with each other.

ISO Quality Management System Document

Types

A quality management system (QMS) requires documentation which provides the company a

plan for constant improvements in the future. A QMS is designed as a way of increasing customer loyalty and understanding that all aspects of a business contribute to the quality of the company's products and services. The document types in a QMS manual vary, but they typically

include authority, quality policies, audits and design control.

Authority

An important document within a QMS is the detail of authority within an organization. This document lists all job titles and describes each title's responsibilities within the company. It

provides a summary of the job description and what is expected of each employee. Some of the job descriptions include design control, training, management duties and purchasing responsibilities.

Audits

The audit document in a QMS manual states audit procedures within the organization, including internal and external procedures. It describes the frequency of audits, the staff responsible for conducting or assisting with the audits and the objectives of the audits. Audits are designed to

assist in the quality control of a company and to give insight to problems of efficiency and customer expectations. They are also designed to expose defects in the system and identify changes that need to be made. Another aspect of an internal audit is dealing with customer

complaints, establishing new policies and developing audit reports.

Quality Policies

Another important document in a QMS is a statement of the policies regarding quality, along with the policy objectives. This document lists important procedures employees must follow to

adhere to quality standards designed by the organization. It lists what is expected and the requirements for meeting these goals. It also describes all objectives within the QMS. It often

includes process flow charts, organization charts, product specifications and inspection plans.

Design Control

Design control begins with customer demand. All activities within design control are strictly investigated and worked on. This document describes how products must meet the design input

and ensures all components are safe and effective. It describes the procedures for the development of new designs and policies as to how the new designs are developed. New designs must be tested and are subject to inspections as described in the QMS manual.

ISO Corrective and Preventive Actions

Corrective and Preventive Actions are key elements to a Quality Management System (QMS)

that is focused on Continual Improvement and Customer Satisfaction. Indeed, any ISO 9000 type QMS should have this type of focus, unfortunately many do not.

It is important to properly use these two sub-systems when building a new QMS based on any

quality standard, or revising an existing QMS. In order to do this, one must understand the difference between Corrective and Preventive Action.

Past Vs. Future

Simply put, Corrective Action is based on a nonconformance event that has happened in the past.

Preventive Action is based on preventing a nonconformance event in the future. Both are similar procedurally, but with the focus as described. Together, Corrective and Preventive Actions—typically referred to as CAPA (pronounced cap-uh)—are integral parts of a continuous

improvement program.

Both sub-systems should use some type of a log to record each event; a Corrective Action Log and a Preventive Action Log. These logs are useful for performing trend analysis and to

determine if your actions are having the desired response.

Each Corrective and Preventive Action will typically have a form that is used to record the details of the activity performed to satisfy the event; A Corrective Action Request (CAR,

pronounced car, as in an automobile) and a Preventive Action Request (PAR, pronounced like the golf term, par).

Sometimes the situation is only a problem because it is looked at in a certain way. Looked at in another way, the right course of action may be so obvious that the problem no longer exists.

Corrective Actions

Too often a company will fix a problem in their business process, say a customer complaint or product return, after the problem has occurred. This is typically product or event focused. Then the company will look at what they’ve done and say, “Well if we revise our shop router or

procedure, this will not happen again.” They will label this second phase as Preventive Action.

While it is a future thinking type of activity, it is still Corrective Action because it is based on solving a problem that has already happened. A Corrective Action needs to focus on the Quality

System, so in this example the systemic action taken is the revision of the shop router or procedure. This is Corrective Action.

Preventive Actions

Preventive Action activities should stand alone and not focus on past events. For example: Company XYZ has a Preventive Maintenance management program that requires manual data

entry. It is working fine and there have not been any problems. However, it takes a lot of time to manage and does have a high potential for error or lost records. XYZ decides to purchase

Preventive Maintenance software to manage this activity. Since the purchase is not based on problems that have happened and is focused on process control or making an improvement to the QMS, it is a Preventive Action.

A young functional Quality Management System should record and complete many more CAR’s than PAR’s. On an annual basis, a company may record only a few Preventive Action activities, while in the Corrective Action log many dozens of events are listed. Later has the quality system

matures, you should see more preventive actions than corrective actions.

For audit purposes, a handful of Preventive Action events will demonstrate that this important part of the QMS is functional. A primary source of Preventive Action activities is the

Management Review process where discussions about quality strategy, quality budget requests, and quality . Although the Management Representative, or Manager responsible for the CAPA system, can also initiate and record Preventive Action activities.

OHSAS 18001Quality Management System

OHSAS 18001, developed in 1999 and revised in 2007, is a comprehensive Occupational Health and Safety (OH&S) management system specification, deigned to enable an organization to

control OH&S risks and improve its performance. OHSAS 18001 Certification demonstrates that a safety oriented approach has been integrated into the company's processes, a company's

commitment to a safe working environment and to protecting employees against injury at work.

OHSAS 18001 has been developed to be compatible with ISO 9001 and ISO 14001 management systems standards, in order to facilitate the integration of quality, environmental and OH&S management systems by organizations. Legislative & regulatory commitment and continual

improvement are two important aspects of OHSAS 18001.

The standard is in two sections; OHSAS 18001 is the specification against which certification is awarded. OHSAS 18002 provides guidance on implementing an occupational health and safety

management system and corresponds directly to the specification.

The elements of OHSAS 18001 include:

Policy and commitment

Hazard identification, risk assessment & risk controls

Legal requirements

Objectives & Programs

Organization & personnel

Training, Communication & Consultation

Documentation & records Operational Controls

Emergency Readiness

Measurement & monitoring

Accident & incident investigation, corrective & preventive action

Audit & Review

Quality Management System in Textile

Industry of Pakistan

The textile industry in Pakistan is mainly owned by number of big groups. Statistics shows that

about 75 percent of the textile plants in Pakistan are owned by 25 percent of the big group like Sapphire group, Kohinoor Maple Leaf Group; Gulistan Group, Crescent Group, Ibrahim Group, Master Group, Ilahi Group, Ayesha Group, Chakwal Textile etc.

Being export oriented Textile country, textiles organizations believe that Quality Management system is critical parameter.

ISO 9000 Quality Management System (QMS) is a good starting point towards Total Quality Management for the organization in less developed countries. It is also an advance management

tool for managing businesses effectively for 20th century and ensuring customers to deliver consistent product & service quality particularly in global markets. Other management tools like

ISO 14000 Environment Management System (EMS), Occupational Health & Safety Standards, Product Certification Standards, CE Marking have also joined the race of Quality Management.

It is of utmost important for the organization to adapt the best possible approach to meet the future requirements in the field of Quality Management. Different approaches have been adopted

by the Pakistani organizations in textile segment for the quality management system development in compliance with ISO 9001/2. It is very important for the Executive Management

to select the best possible approach for their organization. The poor judgement in this era may lead the organization to develop an inefficient system and add cost to their product. Merits and demerits of some of the approaches adopted by Pakistani textile organizations are highlighted

below:

APPROACH 1: SYSTEM DEVELOPMENT BY A SELECTED EMPLOYEE Initially textile groups adopted this approach. They selected one person from the organization and start sending him on external training courses. The expectations from this person were not

only to develop Quality Management System himself but also to bring some sort of cultural changes in the organization. In some cases the responsibility of this person was extended to deal with number of plants at a time. Most of the textile groups later on changed their approach and

start running behind the consultants. The reason behind this change was poor judgement with the intensity of issue and the textile culture.

APPROACH 2: SYSTEM DEVELOPMENT THROUGH CONSULTANTS

Many textile groups have taken this approach as a quick fit for quality management system

development. The most difficult part of this approach is the availability of industry specialized consultants with strong technical knowledge and professional background. Very few consultancy firms maintain this level. Therefore, selection of consultant organization is very important. Here,

not only the credibility and previous experience of consultant organization but also the credibility and experience of system developer (junior consultant) deputed to your organization

is important (All that glitters is not gold). Otherwise you may get ISO 9000 certificate quickly but may not bring any improvement in the organization. To bring improvements is also heavily dependent on company’s perception towards quality

management system development. If the organization is only focusing on certification aspect then how improvement can be achieved?

APPROACH 3: SYSTEM DEVELOPMENT THROUGH HUMAN RESOURCE DEVELOPMENT

This is one of the best approaches particularly for textile industry of Pakistan.

In order to be cost effect and develop quality management system compatible with the organizational goals & objectives it is highly beneficial to deal quality management era at group level. It will enable the organization to:

Harmonize the horizontal communication with in the group

Highlight the operational strengths and weaknesses at different plants

Establish a consistent system at all plants

Be cost effective in the area of certification

Reduce the systems development cost

Make employees more comfortable to bring improvements

Both types of textile manufacturing set-ups (Composite units and individual units) have its own advantages and disadvantages. It is easier for a composite unit to establish an independent department headed by the selected person supported by a team. Who will guide and train the

technical team through formal or informal training sessions. The task will be harder but not difficult.

On the other hand, it not feasible to set-up an independent department for each individual plant to develop Quality Management System at individual spinning, weaving, knitting, dyeing plant. Therefore, to deal the Quality Management era at group level, it is highly recommended to

establish Human Resource Development activity as a permanent part of the organization. It might be very hard in the prevailing conditions of textile industry in Pakistan to delegate all the

responsibilities & authorities required to Human Resource Development Department. Therefore, establishment of a Quality Systems and H.R. Development department at group level and backed up with necessary resources can bring major cultural changes in the organization

through systems development and training. This department can be made responsible Human Resource Development activities later on.

REASONS FOR ADOPTING ISO 9000

Most of the textile industry in Pakistan is in export business like Sapphire and covers all major ports round the world. It is a matter of concern that very few textile companies are adopting ISO

9000 as a formal Quality Management System for improving their existing systems. Most of the companies are taking ISO 9000 certification as to ad new equipment to their facilities not as a quality management tool. Very few have realized that the certification alone can not attract the

customers if it is not supported by internal improvements. What it might do is to add cost to their product and service in the form of certification and consultancy cost.

There may be different reasons for different companies to develop Quality Management System in line with ISO 9000. However, at Sapphire reasons, for adopting ISO 9000 in order of importance were as follows:

1. Improvement in existing Quality Management System

2. Improvement in production & servicing operations 3. Harmonizing Horizontal Communication at all levels in the group 4. Enhance competitive edge in global Market

5. Meeting customer’s implied needs in Quality Management era

CONCLUSIONS

Establish missing infrastructure in your group i.e. Quality Assurance & H.R development

Install monitoring system to see results

Compare all the costs with recognition & improvements, it might be a negligible

amount

Build strong foundation to meet quality management requirements for 21th century.

Conclusion & Findings of the Report

The concept to described Quality management system gives good information on design, development and delivery of a service, which complies with QMS. Quality management system

describe all activities in organization (way of working) including “Operations, Supply chain marketing and Finance”.

In Pakistan 722 organizations adopt Quality management System.

In simply Quality management describe “All activity which are perform in organizatio n are in

written form and should be implemented as it is as you write”.

Quality management system ensures product quality, the use of a quality management program, the company can produce a product that performs according to its stated promises.

Quality management ensures customer satisfaction. Conduct customer satisfaction surveys to

understand the qualities of the product important to the customer.

Quality products and services give the company a spotless reputation in the industry. This

reputation allows the company to gain new customers and sell additional products and services to existing customers. A quality management program also removes inefficient processes within the

system. By removing unnecessary processes, employee productivity increases. The employee is spending less time on activities that do not contribute to the product's quality. As a result, the employee is producing more work in less time.

A quality management program helps companies reduce waste. Companies that house inventory

are paying for the storage, management and tracking of the inventory. The costs of having the inventory are built into the price of the product. Implementing a quality management program

reduces the amount of inventory that costs the company money and occupies valuable space. Quality management means that there is a systematic approach to keeping inventories at acceptable levels without incurring waste.

Quality management systems force company departments to work as a team. Different areas of

the company become reliant upon one another to produce a quality product that meets and exceeds the customers' expectations. A quality system incorporates measures that affect sales,

finance, operations, customer service and marketing. The balanced scorecard is a one-stop-shop for evaluating how various departments are operating against their performance expectations. Use the balanced scorecard to show how close the company is to the financial, operational,

customer service and learning/growth targets.