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Last Updated on January 20, 2024 by Work In My Pajamas
The Consumer Product Safety Commission announced 365 product recalls during 2010, a number in keeping with the average total for US recalls in a year. It may not sound like much, but that represents a recall every day. The distribution of defective products is one consequence of a poor process and ineffective quality control that can lead to enormous costs and even bankrupt a company. Other consequences of poor quality include:
• Dangers to employees and increased accidents,
• Labor costs associated with rework,
• Poor customer satisfaction,
• Poor brand image, and
• Fines or sanctions due to regulatory or compliance failures.
Businesses need solid quality assurance and qualified management to oversee reviews, audits and process controls. Because every business is different, quality control will look different for each organization. Here are three of the most common types of quality assurance methods, along with some benefits and disadvantages for each.
100 Percent Product Check
Some companies check every single product before it is shipped to the customer. As this can be time consuming and quite expensive, it is only a lucrative process for companies that produce higher-priced items in smaller amounts. One business that uses this model is British car company, Noble. They manufacture approximately 200 cars each year, allowing them the luxury of a 100 percent product check.
Random Product Check
In large-scale manufacturing facilities a manual review of every item would cause production costs to skyrocket. No one wants to pay $100 or more for a pack of gum, for example, so the market will not allow this type of quality assurance with every item. Instead, most factories employ a random review in which quality control employees test or review a few items from the line. They might check one in every 100, check a certain number from each batch or a certain number each day. Although this reduces costs, it does increase the chance that a mistake will make it through. If there is one bad apple in a batch of 1,000 and you review one apple in 50, then there is only a 2 percent chance you will review the bad item.
Statistical Analysis and Process Improvement
To solve the problems associated with random product checks, Toyota implemented Six Sigma and Lean practices in the 1980s. The purpose of these practices was to use data and a project management mentality in order to drive constant process improvements. Instead of working on the quality of a single product, companies worked to improve the quality of the process in order to reduce defects. They also created measurements and metrics for process production and quality, helping to manage quality control without a person standing at the end of the line. During the past forty years, continuous process improvement has become a key word in health, financial, manufacturing and other organizations. Benefits include substantial cost savings and a reduction in quality issues. However, companies do need experienced and trained staff in order to implement project management processes.
No matter what type of business you are in, quality control is important. Even if you do not manufacture products, you still need to ensure the service you provide your customers is top notch. Good quality keeps people coming back and encourages positive word of mouth advertising.
Monica Salas is a full-time writer for higher ed blogs and journals nationwide with a focus on online education opportunities. Several schools offer online degrees in business, including mba.norwich.edu and newhaven.edu.