Definition: What is quality management?

Quality management means systematically aligning products, services and processes in such a way that they achieve the desired quality. This is not only checked at the end of the production process. Quality management begins in the planning phase and accompanies every step: from design and implementation to regular review and optimization.

Quality is therefore actively shaped and is a strategic principle that affects every department and every process. Quality management ensures that high standards are not only maintained, but also continuously improved.

The origins of quality management

Die Wurzeln des Qualitätsmanagements liegen in der industriellen Produktion, wo zunächst die Kontrolle von Endprodukten im Mittelpunkt stand. Das Ziel? Fehlerhafte Waren identifizieren und sicherstellen, dass nur einheitlich hochwertige Produkte die Produktion verlassen. Doch dieser Ansatz entwickelte sich weiter: Heute geht es längst nicht mehr nur darum, Qualität im Nachhinein zu prüfen.

Modern quality management systems (QMS) start at the planning stage – workflows and processes are designed in such a way that the desired results are guaranteed from the outset (quality assurance). Attention is now focused not only on the end product, but also on the entire processes that lead to it.

Quality management is now taking on an even more active role. Companies use the findings from quality control to specifically analyze weak points. The goal: continuous improvement of processes and products.

Also interesting: 5 reasons why an ERP system improves your process reliability

The tasks of quality management

The tasks in quality management are varied and include everything from defining quality standards and monitoring processes to targeted employee training. In larger companies, a separate department is often responsible for this. In the individual specialist departments, additionally appointed quality officers then ensure that specific requirements are implemented precisely.

In smaller companies, however, a separate department is rarely necessary. Here, a central contact person often takes over the coordination and ensures that all processes comply with the defined standards. Ultimately, however, all employees bear responsibility: quality management only becomes effective when everyone in the company plays their part.

Quality planning

Quality management establishes standards for the quality of products and processes and introduces a quality management system into the organization. The standards are usually based on international specifications – however, they are adapted to the specific company situation if necessary.

Quality management and control

As soon as quality assurance processes have been defined, they must be implemented consistently. Roles and processes exist for this purpose, which are regularly checked for their effectiveness and optimized if necessary.

Continuous improvement

Quality management uses control results and analyses to optimize processes and results in a targeted manner. Managers review progress and continuously develop new approaches to increase efficiency and effectiveness.

Quality audits

It is not only the internal quality managers who monitor the measures introduced. Quality management also includes engaging external auditors to identify blind spots in processes and help to eliminate weaknesses.

Training courses

A QMS only works if it is actively practiced by employees. It is therefore important that quality officers regularly provide information about new standards and raise awareness of the importance of quality management.

Advantages of quality management for companies

The introduction of a quality management system brings companies clear economic benefits. Above a certain size, it is practically standard – in some sectors, such as healthcare, it is even required by law.

Competitive strength: Continuous improvement is an important part of quality management. The result: companies keep pace with market changes and are not surprised by changing customer needs. Communicating quality standards can also serve as a seal of quality that sets companies apart from the competition.

Higher customer satisfaction: A QMS ensures that products and services reliably meet customer expectations. This strengthens their trust, promotes their loyalty to the brand and increases customer lifecycle value.

Cost reduction: If sources of error in processes are identified and workflows optimized, quality increases. At the same time, the effort required to rectify errors is reduced and fewer resources are used – which increases cost efficiency.

Compliance: Quality management creates transparency. Processes and standards are clearly documented and companies can prove that they comply with legal and regulatory requirements. This reduces risks and prevents legal problems.

Employee satisfaction and motivation: Defined processes give employees orientation and security. When quality targets are achieved, this sense of achievement increases employee motivation. Because they see: Their work has an effect.

Important frameworks and standards in quality management

The most commonly used quality management standard worldwide is ISO 9001, while the European Foundation for Quality Management (EFQM) model also plays an important role in Europe.

ISO 9001

More than one million organizations worldwide are certified to ISO 9001. This standard is applicable across all industries and describes how companies set up a system that ensures the quality of their processes and products.

According to the standard, quality is based on seven pillars:

  • Customer orientation: The focus is on customer satisfaction.
  • Leadership: Managers exemplify the understanding of quality and provide resources.
  • Commitment: All employees are involved in quality assurance.
  • Process orientation: Not only the end result counts, but also all upstream processes are considered.
  • Fact-based decisions: Decisions are based on objective data.
  • Relationship management: Stakeholders and their interests are included in measures.
  • Continuous improvement: Quality is constantly being optimized.

Companies can have external and independent auditors confirm that their QMS meets the high requirements of ISO 9001.

EFQM

The European framework for quality management focuses on the self-responsibility of companies. It is not so much designed to fulfill requirements that are then checked by external auditors. Instead, it is about promoting the excellence of organizations and supporting them in managing change.

The model aims to enable companies to recognize and leverage their strengths. To this end, it focuses on three key questions:

  • Why: Why does the company exist and what are its long-term goals? How can all activities be aligned with this?
  • How: How can strategies be effectively implemented and processes, resources and measures optimally coordinated?
  • What: What has been achieved so far? What would the company like to achieve in the future?

According to EFQM, when companies find answers to these questions and implement appropriate measures, a culture of continuous improvement and innovation is created.

Further standards and methods

There are numerous other regulations that set their own priorities. Here are just three examples:

ISO 14001: This standard defines requirements for environmental management systems and helps companies to achieve their sustainability goals and demonstrate the results. It is used worldwide and is often combined with ISO 9001.

Six Sigma: This approach aims to minimize process errors through statistical analysis. Developed in the 1980s, it is still widely used today – particularly in large companies.

Kaizen: The quality assurance methodology developed in Japan focuses on small, incremental improvements to processes. It emphasizes the importance of employee engagement for effective optimization.

Quality management software

In order for quality managers to maintain an overview of all areas of responsibility, it makes sense to use appropriate software. This helps to technically integrate the selected QMS into the organization. Those responsible can use it to plan, control, monitor and fully document their measures in one central location.

There is a wide range of quality management software on offer: when choosing, companies should make sure that the solution can implement the requirements of their preferred quality management system. Many products are specially developed for ISO 9001, for example.

Ein weiterer wichtiger Faktor bei der Auswahl ist die Integrationsfähigkeit mit anderen Geschäftsanwendungen wie ERP-, CRM-, HR- und SCM-Systemen. Ein Blick ins Kleingedruckte und eine fundierte Beratung lohnen sich hier auf jeden Fall.

Future trends in quality management

Warehouse management: The costs of procurement and warehousing have a significant impact on the return on investment of a product. With the help of AI algorithms that are integrated into the ERP system, companies can calculate optimal stock levels and have orders managed by the AI in such a way that storage costs are reduced.

Produktion: KI kann die Leistung von Maschinen überwachen und präventive Wartungen so terminieren, dass die Produktion nicht beeinträchtigt wird. Damit erhöht sich die Produktivität und die Lebensdauer von Maschinen kann verlängert werden – beides verbessert den ROI der Produktionsanlagen.

Personalplanung: Die Kosten für Überstunden und die Effizienz der Mitarbeitenden  wirken sich direkt auf den ROI eines Unternehmens aus. KI-gestützte Personalplanung optimiert Arbeitszeiten und Einsatzpläne, indem sie auf historische Daten zurückgreift und Nachfrageprognosen berücksichtigt. Dadurch lassen sich Fachkräfte optimal einsetzen, was den ROI der Personalwirtschaft erhöht.

The performance of artificial intelligence will increase in the coming years. Forecasts will become even more accurate and it will be possible to increasingly automate the management of influencing factors. It can also be assumed that in future, AI will not only take quantitative factors into account when calculating ROI, but also qualitative factors such as customer satisfaction and brand image – which previously involved a great deal of manual effort.

Digitalization remains the central trend that will fundamentally change quality management in the coming years.

Artificial intelligence (AI)

Schon heute werden Analysen von Big Data genutzt, um Prozesse in Echtzeit zu überwachen, Abweichungen frühzeitig zu erkennen und einheitliche Bearbeitungsstandards sicherzustellen. Mithilfe von künstlicher Intelligenz steigt die Leistungsfähigkeit der Analysen, vor allem in der präventiven Qualitätssicherung. Drei Beispiele:

  • Customer service: AI can record digital data on customer communication and recognize recurring complaints before they even come to the attention of customer advisors. Companies can take countermeasures at an early stage and avert major damage to their image.
  • Insurance companies: AI can compare incoming damage reports with huge databases of truthful and fraudulent damage reports and provide an initial assessment of whether the reports are legitimate. Insurance companies can potentially save millions in costs that they would otherwise have paid in the event of successful insurance fraud.
  • Logistics: AI enables companies to monitor their stock levels. In the event of disruptions in the supply chain, the smart application is able to automatically adapt processes to minimize delays in delivery.

Find out more: AI in warehouse optimization

Remote audits

Auditors used to come to the company to check processes and standards on site. Today, there is a clear trend towards remote audits. Since many important company processes are already digitalized and more and more organizations are working remotely, remote access is usually easy. If employees log into company systems from different locations, auditors can also use this infrastructure to carry out audits more quickly and cost-effectively.

IoT (Internet of Things)

IoT sensors enable manufacturers to monitor the condition and performance of machines and products with digital components in real time. IoT systems are widely used – from production to building management and logistics. If performance data deviates from the target, the company is notified immediately and can react at an early stage – ideally before major problems such as machine failures occur. The efficiency of this preventative quality assurance on cyber-physical devices will increase even further in the coming years thanks to the use of AI.

Sustainability

New legal requirements and changing personal demands are making sustainability a key issue for companies. Climate neutrality is now seen as an aspect of quality. Targets are formulated in the departments and progress is documented. However, sustainability issues are increasingly an area that is also controlled by quality management.

FAQ on quality management

What is quality management?

Quality management refers to all of a company’s organizational measures and processes aimed at ensuring that products or services meet defined requirements and that processes are continuously improved.

What tasks are typically part of quality management?

The tasks include quality planning, which is used to define requirements and quality targets, quality assurance and control to monitor and manage processes, and quality improvement, which is used to systematically optimize processes.

Why is quality management important for companies?

Because effective quality management increases customer satisfaction, better fulfills standard and legal requirements, reduces costs due to errors and rework and strengthens competitiveness.

How is quality management related to an ERP system?

An ERP system provides central data such as orders, production and process data, which gives quality management transparency over processes. This allows quality indicators to be evaluated in real time, deviations to be quickly identified and control measures to be derived – making quality management more efficient and integrated within the company.

Which norms or standards play a role in quality management?

Globally recognized standards include the ISO 9001 series, which sets requirements for a quality management system, as well as model frameworks such as the EFQM model. These standards create a basis for systematic quality control and evaluation.

What are the challenges in implementing quality management?

Challenges include ensuring high-quality data and documentation, integrating and motivating employees, harmonizing processes across departmental or site boundaries and scaling the system with increasing complexity or internationalization.