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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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Would you eat a McDonalds Big Mac that was out-of-date, had been dropped on the floor, and made with a stranger’s bare hands?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Around 4,300 McDonalds beef patties were tested and found to be out-of-date and contaminated with bacteria.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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AS9100: The Quality Management System that Changed Aerospace

AS9100

Ladies and gentlemen, this is your captain speaking. We have a small problem. All four engines have stopped.” – Eric Moody, British Airways Captain, Business Insider

The words no one wants to hear when they’re tightly strapped into an aluminum tube, flying at 900kph, 35,000 feet up in the air.

One in three Americans either feels anxious or scared to fly and 73% are fearful of mechanical problems during flight.

On a flight from Kiev to Toronto, several screws fell out of the ceiling onto my lap…When air started sucking out of a loose seam around my window, I really started to panic.” – Nate Drescher, The Travel

But air travel in the United States is the safest in the world. The odds of dying in a car accident are about one in 5,000. The odds of dying in a plane crash are about one in 11,000,000.

So, putting our fears aside for a second, why is flying the safest way to travel?

Well, partly because of the advances in aircraft design, technology, and engineering, but mostly because of Aerospace Standard (AS) 9100. The International Quality Management System standard for the Aviation, Space, and Defense industry.

A person would have to fly on average once a day every day for 22,000 years before they would die in a U.S. commercial airplane accident” – Dr. Arnold Barnett, FlyFright

Whether you’re an avid flyer, an aviation expert, or an aerospace supplier, join me as we fly through the following AS9100 topics:

Fix your seat in an upright position, fasten your seatbelt, and prepare for take-off…

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What is Quality Management? The Definitive QMS Guide (Free ISO 9001 Template)

QUALITY MANAGEMENT

Deepwater Horizon – arguably one of the most catastrophic industrial disasters of human history, and the estimated largest marine oil spill in the history of the petroleum industry.

It also happens to be one of the most abysmal failures of quality management by any company, period.

On an otherwise unsuspecting evening of April, 2010, approximately 50 miles off the coast of Louisiana in the Gulf of Mexico, the first in a chain of quality management related failures became glaringly apparent as the emergency response protocols were enforced after an oil leak in the drilling well was discovered.

The oversights were as follows:

  • Lack of proper quality assessment resulted in weak, potentially contaminated cement or “drilling mud” used in the initial failsafe failing to properly block the leak.
  • Fluid pressure tests were not properly carried out and clear warnings were ignored.
  • Rising oil and gas levels were not properly monitored.
  • The final failsafe on the ocean floor, designed to close the leaking pipe shut, failed to close due to the conditions of the drill pipe.

The aftermath of this chain of negligence left 11 people dead, caused over 130 million gallons of oil to leak into the Atlantic Ocean, and cost over $62 billion in damages.

Not one point of failure, but four. Clearly not an anomaly, this disaster was the result of a series of systematic failures that uncover a dark truth about the reality of cost-cutting and disregard for quality control.

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What is a Quality Management System? The Key to ISO 9000

Quality Management System

What do Three Mile Island, the Hubble Telescope, and the Ford Pinto have in common?

They all had fatal flaws caused by their substandard quality management systems.

While most failures that could be solved with a thorough QMS don’t result in a combined $3.9 billion in damages and 180 deaths, it’s impossible to argue that such a system couldn’t also bring massive benefits to your own business.

To name but a few, these effects include:

  • ISO compliant
  • Being more productive
  • Becoming more efficient
  • Reducing employee turnover
  • Systems for measuring and tracking successes and failures
  • Better customer loyalty
  • Not causing a nuclear meltdown

Sadly, quality management system explanations tend to come with a lot of jargon and dry text. That’s why we here at Process Street bring you this guide on how to create and implement one.

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