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The Supply Chain Management Blog covers the latest in SCM strategy, technology, and innovation.

Who Needs Quality Management?

Ulf Koester
Solution Director Oracle Digital Transformation Solutions

Everyone knows that quality is an important topic. Accordingly, in many companies Quality Management has been addressed already - but with an approach that does not lead to success: It’s typical for a large organization to have implemented multiple quality management processes, data models, and applications over time. With such an approach, companies are working in a sub-optimal manner, and then start to face these types of challenges:

- Quality metrics are either not available or are incomplete
- The number of systems make getting the answers too complex
- Limited cross functional interactions
- Avoid defining or working around global standards
- Using people to fill the gaps left by broken and disconnected IT architectures
- Limited cross-functional interaction
- No Globally standardized processes
- Disconnected IT architecture
- Inability to view real-time metrics

How companies often react: The typical response or result is departmental quality silos, with either manual or periodic interaction between the silos: The Q&A Department creates their own system that addresses inspections, audits, and corrective actions, together with document controls. In Manufacturing, the focus is on preventive actions, non-conformance reports, part inspections and as well documents control. In Supplier Relationship Management, it is all about supplier corrective actions as well as document control and supplier parts. The Field reports incidents, related to parts, and manages document control. The Design department is focusing on design defects, failure analysis, and manages documents and parts in their own view. Regarding customers and customer relations, it is all about customer complaints as well as parts and products and the related documents.

With Quality Management related data distributed in silos, it is really difficult to implement closed-loop, enterprise wide quality management across the organization. Most quality management software applications require high-cost integrations or you risk further detaching quality-related information and processes from core enterprise systems and the supply chain.

How Oracle Enterprise Quality Management Cloud is addressing the problem better: Managing quality related data across these silos is a prerequisite for successful enterprise-wide Quality Management with the capability to aggregate, analyze and act upon quality in a holistic way, so that quality related information is captured from all sources (such as ERP, SCM, CRM, MES, PLM, IoT, Social, Call Center, or Mobile Apps). This is how a modern, closed-loop quality management process can be put in place, and quality issues can be preventd or be resolved better and quicker. The best approach is to manage all quality related data and processes in one “single source of truth”, with integrated Quality Analytics and Dashboards to provide insight, with a closed-loop process control from “insight to action”, and real-time cross-functional/cross-organizational collaboration and visibility that enables all stakeholders to participate in the quality management process.

The specific benefits of implementing Closed-Loop Enterprise Quality Management varies by department:

  • Enterprise Quality (Quality Assurance and Control) will enjoy reduced revenue loss due to poor quality / customer satisfaction issues, reduced warranty and service costs as well as scrap and rework costs, but improved issue collection and analysis, and an improved corrective action processes.
  • R&D and Design will benefit from improved Change Order/Release/Product Transfer, reduced potential loss due to non-compliance event, improved synchronization of product and quality data with supply chain, improved access to product record & change history, and an improved product obsolescence process.
  • Manufacturing and the CMO will enjoy improved productivity of in process inspections, where-used analysis due to Lot and serial genealogy tracking, productivity of equipment monitoring, communication of quality test and acceptance requirements, and regarding inventory, improved productivity of incoming and final inspections as well as improved communication of quality test and acceptance requirements.
  • As far as ISO and AS9100 are concerned, companies will benefit from reduced quality appraisal cost and more effective knowledge transfer of quality process and requirements.
  • Customer and Field Service are enabled to provide improved customer satisfaction and improved handling of customer complaints
  • Regulatory and Labeling will benefit from reduced quality appraisal cost and a more effective knowledge transfer of quality process and requirements.
  • Supplier Management will benefit from improved supplier and purchased item quality, improved productivity for supplier quality reporting and management, improved supplier audit capability, and improved cycle time for supply corrective actions.

To learn more about Oracle Quality Management Cloud, check out the Oracle Supply Chain Management Cloud Website and the Quality Management Quicktour.

 

 

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Comments ( 2 )
  • Mihail Sadeanu Wednesday, May 23, 2018
    As a former director for quality management over three companies I see a wonderful integrated Oracle SW system capable to support the modern processes of an enterprise wide quality management system, but this post does not reveal if the SW system components processes are compliant also to the ISO 9001:2015 standard's seven quality management principles.
  • Ulf Köster Thursday, May 24, 2018
    Short answer: Yes. The seven quality management principles are Customer focus, Leadership, Engagement of people, Process approach, Improvement, Evidence-based decision making, and Relationship management. You might want to check the datasheet: https://cloud.oracle.com/opc/saas/plm/datasheets/oracle-quality-management-cloud-ds.pdf
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