Why is quality so important to an organization also give an

Why is quality so important to an organization, also give an example of a company that has experienced a quality problem and describtion the situation and its ramifications? Was the problem ever fixed? Please cite the information.

Solution

I can define the term “quality” in many ways, but the ISO family of standards gives a very concise definition: “quality - the degree to which a set of inherent characteristics fulfils requirements.” (ISO 9000:2005 – 3.1.1).

This definition gives a general sense of \"quality\".or we can say that, an outcome – a characteristic of a product or service provided to a customer, and the hallmark of an organization which has satisfied all of its stakeholders.”

So, we must consider the customer and the degree to which the product or service meets the needs of all stakeholders. We can say about the quality of a product or service that this is “poor”, or “good” or “excellent”, but this must be in accordance with something, we must have a reference to give such a description.

Nowadays, all organizations have to face some challenges in their business environment: the economic crisis, globalization, as well as the competition in its market. Moreover, the increase in technology and especially in IT, requires new actions. For example, it is well known that the e-commerce has opened new doors in business, which means an increased competitive environment. And if we consider the area of social media, we realize that organizations that do not meet the \"quality\" of products or services have no chance to stay on the market. The conclusion is that “Quality” is very important for every business!

A company is founded by its shareholders to be profitable, not to bring about loss.
Here\'s how a simple example can show that in fact a quality management system can be seen as a business management system. And, this is the trend. Because the new revision of the Quality Management System will bring a new emphasis placed on risk and opportunity. This is called \"risk-based thinking\" and it is an approach which the organization is required to employ in many areas of its Quality Management System. There are included clauses related to the design of processes, product and service, the design of the entire system. The risks and opportunities must be understood and appropriate actions must be taken to mitigate those risks or realize these opportunities.

Returning to our example above, that shirt company (and I think any company) will have its own analysis, for the effectiveness and efficiency of moving into production of dresses. What is this?

Efficiency means doing the things right. The definition is “Allows organizations to do the same amount of work with fewer resources”, so we could say this is about “productivity”. It is an important term in management, and all the executives must take it into account.

Effectiveness is about doing the right things. The definition is “Allows organizations to generate higher revenues, independent of resources required”, and this is commonly known as “the established goals of a company”.

These two important terms are also tools in management, if they are correctly measured and monitor. The ISO standard requires establishing methods to measure the effectiveness and efficiency of each process and to apply these measures to determine the effectiveness and efficiency of each process.