Quality Management

Written by:
Image
Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades.

Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers. While there, Paul authored and edited thousands of financial research briefs, was published on Nasdaq. com, Yahoo Finance, and dozens of other prominent media outlets, and appeared as a guest expert at prominent radio shows and i...

View all posts
Updated August 5, 2020

What is Quality Management?

Quality management is the act of ensuring that a company's goods and services are built and delivered to spec, on time and at the appropriate cost.

How does Quality Management work?

For example, let's assume that Company XYZ makes widgets. The widgets come in blue and pink. To ensure that all the widgets are the same color pink and that the dye department is making the color consistently, it might create a quality control team that takes random samples of widgets and compares them for color consistency. If the team finds any variance, it has the authority to stop the production line until the process is corrected. The company might also incorporate a just-in-time inventory method to ensure that it has only the newest, most up-to-date widget parts on hand when it fills customer orders. Quality control usually monitors the finished product; quality assurance monitors the integrity of the production process.

Why does Quality Management matter?

Quality management is a crucial part of running a successful company. If customers receive or perceive inconsistent products and services, they will stop coming or become less loyal. For this reason, a variety of management strategies, including just-in-time manufacturing, total quality management (TQM) and six sigma have been developed to help companies produce higher-quality products.

Ask an Expert about Quality Management
At InvestingAnswers, all of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Quality Management.
Be the first to ask a question

If you have a question about Quality Management, then please ask Paul.

Ask a question

Read this next

Don't Know a Financial Term?
Search our library of 4,000+ terms
 - profile
Ask an Expert about Quality Management

By submitting this form you agree with our Privacy Policy

Share
close