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Quality works
Recently I read about a very successful company. It was interesting to note that one of the company's main beliefs was that quality costs less. If this company created a quality product, they would have not just satisfied customers, but loyal customers. In the days of increasing pressures to cut costs and increase revenues, many companies are forgetting this basic principle. It costs much less to do something right once then to do it wrong and fix it. Many small businesses could profit to not just look at driving down their costs and chasing more revenue, but looking at the basic processes that every operation has and finding out how this process can be improved - even by a small incremental amount.
One of the founders of the concept of ever improving quality was Dr. W. Edwards Deming. General MacArther brought Deming to Japan in 1950 to improve the war-ravaged economy of the Japanese industrial base. Deming trained the Japanese in his total quality-control principles. His core belief was that a constant, never-ending commitment to consistently increase the quality of business every single day would allow businesses to dominate their field. It became a matter of asking the right questions. Instead of asking, "How can we increase our volume and cut costs," the Japanese began asking, "How can we increase the quality of what we are doing and reduce the cost in the long term?" The success of the Japanese rise to power is history, but the principle remains valid and well worth remembering - especially under our present economic pressures.
Examples in abound in small businesses, as well as in multi-national businesses. For example, accountants have estimated that it costs $100 to issue one credit memo. This money could have been saved, if the customer and the company came to an agreement prior to rendering the bill. But what about the process of manufacturing widgets? How much does it cost a company to remake a product that has been built incorrectly or to the wrong size specifications? Usually it's considerably more than the cost of the original build. Manufacturing companies have come to understand this principle for many years, which is why International Quality Standards such as ISO (a quality standard started in Europe) have gained wide acceptance in the manufacturing industries. But the principles of these standards can be adopted and used by any business to achieve the desired continuously improving quality, long-term reduced costs and loyal, satisfied customers.
Improved quality comes from a total commitment by the whole organization. Their commitment is to:
- Continuously improve their product and services in a systemized and organized manner;
- Document the primary operating steps performed in a company so that the employees have a consistent policy to follow; and
- Implement training policies so employees can supply consistent product or service.
- Successful franchises, such as McDonald's, have all been built on this basis. An employee knows exactly how many French fries and precisely how much sauce is applied to each hamburger, regardless if the McDonald's is in Nanaimo or in Moscow.
Consistent, carefully thought-out processes that are continuously improved by feedback of the users of the system - that is, employees and customers - allows a company to move with the times and improve their company as the markets demands shift.
Even if you are the company, you can apply this process to improve your company. The next time you answer a phone, process an order or build a widget, don't just do the process. Watch how and what you are doing. Observe the steps you have taken. You may want to jot them down in point form or simply make a mental note. Then ask yourself - could I have improved or streamlined this process in any manner? Could I have improved the delivery of my product to my customer? Could I have added more value to my service? Could I have streamlined my paperwork? Remember: improved quality does not have to cost you more. It can cost less and make your work much more fulfilling.
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