Why You Should Integrate Quality and Risk Management in 2020
Many companies think that quality management and risk management are the same. The two are often discussed hand-in-hand, as quality management cannot be talked about without including the effects of risk. However, these two are distinct ideas that need meaningful collaboration to work adequately. They’re necessary for improving processes and product quality while prioritizing the business’s health.
Here’s what you need to know about quality and risk management and why it’s good for your business:
The Definition of Risk Management and Quality Management
Risk management concentrates on the possibilities of a threat to a company and its performance. It deals mostly with uncertainty, weights probability, and discusses the consequences of different threats to a company’s operation. Comprehensive risk management allows companies to prepare for unpredictable events before they happen.
Meanwhile, quality management focuses on adherence to different standards, government rules and regulations, and manufacturing requirements. This compliance applies to both domestic and international markets. Adhering to high-quality standards creates a fundamental framework that serves as the foundation for a quality management system that always strives to meet the company’s goals.
The Advantages of Integrating The Two
These two processes are different enough to assign their own teams, but they also complement each other’s functions. They utilize the same analysis techniques that identify the preventative and corrective actions that encourage more robust business practices. For example, risk management identifies potential threats during the early phases of quality management, which helps your company mitigate risks and produce a high-quality product.
As industries grow more competitive every day, so do quality standards. Harmonizing risk management with quality management helps your company protect its brand and assets while providing it with a competitive advantage. Addressing risks, especially when developing or enhancing a product, will help your company save time and money while reducing re-work and waste. It also improves customer satisfaction since risks were thoroughly assessed in each stage of the product development process.
Integrating both quality management and risk management allows your company to be more comprehensive and strategic about your processes. You can thoroughly vet vendors and suppliers, which improves the quality of an international network of suppliers. This process ensures excellent quality in all your suppliers’ products, which will take you one step closer to achieving the outcome you envisioned.
When They Work Well Together
Applying risk management strategies to quality management produces several advantageous effects for a company, especially when you have reliable and well-designed plans that address and control risks. Collaborating these two strategies have created techniques and protocols that have changed industry processes.
One of the common examples of this collaboration is the automotive manufacturing industry’s use of failure modes. Another example of this that was used to reduce product defects is the Six Sigma techniques, which are famous for reducing risk to produce near-perfect goods.
Given the rapid advancements in technology today, today’s industries have become more competitive in producing top-tier products. Excellent quality is essential to staying profitable and competitive, which can be strengthened by integrating these two types of management.
Although quality management, by itself, is essential, it cannot be effective without using risk management data. Taking a comprehensive approach to quality and risk by combining the two will help you stay on top of the competition. It will help you improve quality in your products as early as the development stage, which will enhance customer satisfaction and confidence while boosting sales.
Need help in formulating effective quality and risk management strategies? Let us know at SS Consultants. We help clients with total transformation—enabling organizations to grow, building competitive advantage, and driving bottom-line impact. Our teams bring deep industry and functional expertise to spark change. Get in touch with us today to see how we can help your business grow!