All posts in Quality Control

Business Risk: The 3 Main Threats to Your Business and How You Can Manage Them

Business Risk - The 3 Main Threats to Business and How You Can Manage Them

Global stock markets post biggest falls since the 2008 financial crisis.”The Guardian, 9th of March 2020

Business risk can come out of no where at any time.

It was a Tuesday morning and my phone buzzed me out of my groggy, lethargic state, flashing open the above notification. The Coronavirus had hit businesses and our economy hard, potentially costing 2.7 trillion globally.

A viral risk, that went viral. Was something like this not foreseeable?

In this Process Street article, we turn our attention to the concept of business risk. As we write this article, the corona crisis is unfolding. We were warned about the risk of a virus outbreak but it appears we weren’t as prepared for it as we could have been.

But viruses are not the only risk we face. The 2020 Global Risk Report from the World Economic Forum (WEF) highlights a host of other risks, which we’ll turn our attention to in this article.

To get started, click on the relevant subheaders below to spring to that section. Alternatively, scroll down to read all we have to say regarding the concept of business risk.

Belts and braces on, let’s jump to it!
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7 Steps To Procurement Management To Optimize Processes Responsible for ~70% of Revenue

procurement management

Procurement management directly impacts an organization’s bottom-line and can be responsible for 70% of revenue. With this in mind, it’s important to get procurement right.

The world of procurement has undergone tremendous changes in the past couple of years. Changes of particular importance when thinking about procurement management include:

  • Digital transformation: With 85% of organizations believing that this digital transformation will change the way they deliver services over the next 3-5 years.
  • Thinking about suppliers beyond price: With a greater focus on supplier synergies. The importance of supplier visibility regarding the procurement steps is realized.
  • Moving to effective change management: Organizations focus on a smooth change management plan, with procurement leaders agreeing change management is the biggest roadblock to achieving procurement goals.
  • Risk management and preparing the unexpected: With transparent procurement systems reducing risk exposure. Only 65% of procurement leaders have little or no visibility in their supply chain.

With this in mind, in this Process Street article, we explain how you can create a procurement management solution that leverages a digital transformation (using Process Street as your procurement management software), thinks about suppliers beyond price, and incorporates effective risk and change management.

Click on the relevant subheader below to jump to your section of choice. Alternatively, scroll down to read all we have to say on procurement management.

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Genchi Genbutsu: The Problem Solving Concept That Drives Toyota Forward

genchi genbutsu

What is Genchi Genbutsu? It’s part of the Toyota Production System conceptual toolkit. And it works.

It’s one thing to identify errors or weaknesses in your business, but it’s another to actually fix and improve them.

The crucial step in fixing an error is deciding the right solution to implement. Pick the wrong one and you create a different problem.

When you’re in a massive company, you want to make sure you’re picking the right solution before you start implementing across a whole corporate structure.

Because of this, investigating the problem as thoroughly as possible should be paramount. And this leads us to Genchi Genbutsu.

In this Process Street article, we’re going to look at:

  • What is Genchi Genbutsu?
  • How Toyota revitalized their minivan thanks to a road trip
  • 3 academic approaches to guide your investigation

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FMEA: How to Prevent the £100m British Airways Catastrophe

FMEA

British Airways chief executive described the incident as “catastrophic” as 800 flights were canceled and 75,000 travelers were affected.

Flight compensation website flightright.com estimated that British Airways would have to pay around €61m to passengers for refunds alone under EU legislation. Add to this the cost of reimbursing angry passengers for unexpected hotel stays and other inconveniences, and the total financial damage to British Airways has been estimated at £100m.

Why? Someone turned their data center off and on again.

The entire airline was down for almost 2 days. This wasn’t a natural disaster, it was a process failure.

In this article, we’ll explore how to spot process failures before they occur using a system called Failure Mode and Effects Analysis (FMEA). We’ll assess an overview and then delve in deeper to ground our understanding and include a premade Process Street FMEA template to help you run your own assessments in future.

In this article we’ll cover:

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HACCP Plan: What It Is, Why It’s Important, & How to Do It (Free Templates)

HACCP plan

Growing up on an island, my favorite food was in abundance: Fish.

However, whenever I ate at a restaurant there was always a voice in the back of my head wondering if the fish had been mismanaged and, due to that mismanagement, I’d get sick.

My anxiety around food safety wasn’t exactly unfounded. Fish is the most commonly impacted food group when it comes to disease outbreaks, and a quarter of a million people in the U.S. get sick each year from contaminated fish. And when it comes to all food groups, the CDC estimates that a whopping 1 in 6 Americans (which equates to 48 million people) become ill each year due to foodborne illness.

However, by not coming at food safety with a HACCP approach – and by creating and following a solid HACCP plan – these figures could be far, far higher.

Ergo: HACCP is important and, as a business in the food industry, you can even be required by law to go about HACCP properly.

To help you out, in this post I’ll discuss what HACCP and a HACCP plan are in detail, HACCP’s history, the benefits, and how Process Street can help you with all-things HACCP and food safety.

Just read through the following sections:

Let’s swim through the rest of the post! 🐟

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EQMS: The Best Way to Crush Competition, Push Productivity & Reduce Recall

EQMS

Would you eat a McDonalds Big Mac that was out-of-date, had been dropped on the floor, and made with a stranger’s bare hands?

No! Me neither.

Unfortunately, that’s what thousands of people in China, unknowingly, did.

Back in 2015, the Chinese meat suppliers for McDonald’s were secretly filmed and caught:

Handling meat and chicken with their bare hands, taking meat that had fallen on the floor and adding it back on to the production line…and forging production dates on beef patties.” – ET2C, Lessons on the Importance of Quality Control Checks

Around 4,300 McDonalds beef patties were tested and found to be out-of-date and contaminated with bacteria.

As a result, over 2,000 McDonald’s outlets across Asia were dramatically affected. The reputation of McDonald’s and their meat supplier was irreversibly damaged, and McDonald’s saw a 7.3% drop in sales.

McDonald’s was definitely not ‘lovin it’.

If only they’d used Enterprise Quality Management Software (EQMS) to regulate their supplier’s meat handling processes and control the quality of the produce they were delivering.

Companies who use EQMS to manage quality, experience fewer product quality issues (less than 1%), and improve their productivity by 20%.

Keen to find out more? Join me in this Process Street post as we run through the following:

Let’s make our way through the golden arches and get started! 🍟🍟🍟🍟
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How to Reduce Defects in Business by 20% Using the Juran Trilogy

juran trilogy

Joseph Juran, the Architect of Quality, paved the way for the active pursuit of quality in Business with the Juran Trilogy.

The Juran Trilogy redefined quality management; reducing chronic defects and the costs associated below a 20% industry expectation.

The Juran Trilogy has been shown to give benefits across multiple parameters, increasing productivity, reducing cycle-times, improving human safety, and reducing product failure rates – with a 80% reduction in some cases.

For us as Process Street, the Juran Trilogy is one of our favorite tools for improving business operations. It’s a straightforward methodology that brings results.

Learn how to apply the Juran Trilogy for your business, and improve the quality of operations. Click on the relevant subheader below to jump to your section of choice, alternatively scroll down to read all we have to say:

Let’s get started!

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5 Essential Tools for a Successful QA Process in Your Startup

5 Essential Tools for a Successful QA Process in Your Startup

Alex Zubkov is a technical writer at LITSLINK from Dnipro. Alex has 15 years experience in sales, marketing, and product promotion for both local and international markets. He’s also a techno geek and amateur photographer with a love of gadgets and the Arsenal FC.

Quality assurance (QA) is an essential stage of any software development cycle. It helps developers catch the lingering bugs and inconsistencies in the product’s functionality before you deliver it to your customers.

According to Statista, companies spent 35% of their financial resources on software testing in 2015. In 2019, this figure went down to just below a quarter of the company’s budget, but it is still taxing in 2020 to balance financial expenditure and product performance.

A sophisticated QA process can cut costs by reducing the number of errors that need fixing and, subsequently, the amount of iterative testing required. It can also improve the reliability of the testing process, further reducing expenses, which is crucial for startups and low-budget, middle-size enterprises.

In this article, we’ll briefly run through the key stages of the QA process:

Let’s get started!
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Stop Profits Plummeting with a Quality Management Plan

quality management plan

Quality management. Oh, how I love thee.

You’ve given us rubber flavored cookies, phones that go up in smoke, and exploding car airbags (we’ll get to all of that later).

Last year, 337 food products passed through stringent quality management procedures and went to market with major issues. So major, in fact, that each and every one of those products had to be recalled. This cost the US economy over $7 million.

But, the cost of poor quality management surrounding the production of food is only a tiny part of the picture:

Defective product incidents have caused in excess of $2 billion of losses over five years” – Allianz, Product Recall, Managing the Impact of the New Risk Landscape

When you consider that the global quality management software market is valued at $7.96 billion, why are we, as consumers, still being exposed to low quality, defective products?

Because, contrary to what most organizations think, there is more to quality management than simply making a good product. You need to know how you’re going to make it good and how you’re going to make sure it remains good.

In other words, you need a plan. A quality management plan to be exact.

The reasons for this will become even clearer as we make our way through this Process Street post and discuss:

Let’s get planning.
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How to Make Your Call Center 5 Star: Quality Assurance 101

How To Make Your Call Center 5 Star: Quality Assurance 101
Call center quality assurance is like going to the dentist: everyone agrees it should be done regularly, no one likes doing it, and it’s probably been put off much longer than it should.

No one’s blaming you – agents hate it, supervisors hate it, even quality assurance auditors hate it. It’s tedious, time-consuming, and repetitive. Add to that the high call center attrition rate and low job satisfaction, and you may be wondering: why even bother?

Well, I’ll tell you. In this post, I’ll cover:

Plus I’ll provide you with 11 free checklists to take the drudgery out of QA audits!

If you came for the templates, grab them here:

If you want to use these checklists, just sign in with your Process Street account and start customizing your templates. If you don’t have an account yet, sign-up here to get started with your free trial!

Otherwise, let’s get to it.
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