Quality improvement projects are a great way to improve the quality of an organization’s products and services. Quality management during the period from 1980s to 1990s shows that the involvement of the upper management in quality projects plays a vital role in the quality improvement. To gain top management approval for quality improvement projects, it is important to present a clear and compelling case. This blog explains some key points in getting the approval for these types of initiatives from the top management.
Losing the market share
If your company is losing market share (of all products or any particular products) to competitors, this can be a strong argument for implementing quality improvement projects. By improving the quality of your products or services, you can differentiate yourself from the competition and potentially win back customers. The quality improvement projects should clearly state as how the products are losing their market share their competitors over time due their poor quality. It can be supported with required proofs.
Size of chronic waste
High levels of waste can significantly impact your bottom line. By identifying and addressing the root causes of waste, you can improve efficiency and reduce costs. Quantifying the cost of poor quality can provide the way for quality improvement projects. It should discuss as how an investment in quality improvement projects in a focused area will improve the quality and reduces the chronic waste.
Cost implication
It is important to clearly outline the potential cost savings or cost avoidance that can be achieved through quality improvement projects. This may include reduced rework, scrap, and waste, as well as improved productivity and efficiency. A simple estimate of the cost associated with poor quality and the cost required to the rectify the quality issues to be presented succinctly. Having the cost figures vetted with the finance department would be helpful as the Upper management might consult their finance department before the approval of the quality improvement projects.
Bellwether projects
A small quality improvement project carried out successfully in the company can be used as a demonstrator to the top management. These projects can demonstrate the benefits of quality improvement like chronic waste reduction, cost efficiency, and improved customer satisfaction.
Potential return on investment
Lower management speaks the language of things (e.g. we need this..) and the Upper management speaks the language of money. The middle management need to be bilingual to have an open door communication between the lower and upper management.
The upper management mostly focuses in terms of money as their main purpose is to allocate the resources among the competing proposals. Any quality improvement proposals presented by the middle and lower management to the Upper management should mention the cost of quality in monetary terms e.g. Return on Investment (ROI). Clearly outlining the potential return on investment for quality improvement projects can be a strong argument for top management approval. This may include increased revenue, reduced costs, and improved customer satisfaction. Tax implication of expenses should be taken into consideration while calculating the return on investment. Capital expenses are made with after tax money and the operating expenses are made with pre tax money. Quality improvement projects are rarely capital intensive and it is an added advantage.
Quality improvement projects are necessary to achieve the paragon of excellence in manufacturing and services, as the cost of poor quality are increasing in our current times e.g. legislation, competition, foreign direct investment etc.