INFOGRAPHIC: Closed-Loop Quality Management and the Cost of Inaction

Analysis by LNS Research, with support from MasterControl, provides a snapshot of closed-loop quality management.
In today’s global manufacturing environment, continuing to rely on outdated, siloed quality management technology comes at a cost that many regulated companies simply cannot afford, new research indicates. That is why leading manufacturers are taking quality management further, leveraging EQMS to develop closed-loop quality processes that track quality throughout the value chain.

Manufacturers have long invested in quality management improvements to ensure quality, mitigate risks and reduce costs.  In the face of an increasingly competitive business environment, however, many manufacturers are discovering that their traditional approaches to quality management are falling short according to new findings from LNS Research, a leading provider of advisory and benchmarking services, with support from MasterControl.

In a recent survey of quality management executives and senior leaders, LNS Research respondents cited challenges having to do with too many disparate systems and data sources for managing quality. LNS Research’s findings reveal that 78 percent of companies exist in a state of quality management disconnect, meaning that most manufacturers are relying on fragmented data sources and systems to manage quality.

This article is a summary from the Infographic:
Closed-Loop Quality Management and the Cost of Inaction
To get the full details, please download your free copy
“Quality management in 2014 must extend far beyond the manufacturing environment,” LNS Research states in a new ebook, titled Closed-Loop Quality Management: Connecting the Value Chain. “And today’s prevalence of disparate solutions and strategies is not providing the visibility or level of interaction across the value chain required to maintain competitiveness in the global market.”

To transform their ability to manage quality, market-leading manufacturers are now moving beyond traditional quality management that relies on outdated or disconnected solutions. Instead, market leaders are leveraging enterprise quality management software (EQMS) to establish closed-loop quality processes across business functions throughout the value chain – from product design and supplier networks to operations and services – as a means of streamlining quality data and content between these functional units.

Benefits of Developing Closed-Loop Quality Processes

Closed-loop quality management essentially refers to the bi-directional connection of people, processes and data across the value chain. A closed-loop approach can provide a considerably more holistic view of product and process quality throughout the value chain.

Today, EQMS-supported closed-loop quality processes are having a sizable impact on quality performance.

LNS Research cross-analyzed survey respondents and found that, across three key performance indicators – overall equipment effectiveness (OEE); on-time and complete shipments; and successful new product introductions – companies with established closed-loop quality processes achieved performance improvements over those without closed-loop quality processes established:

  • 10 percent higher median OEE than those without closed-loop processes
  • 4 percent higher median product compliance than those without
  • 2 percent higher performance in on-time deliveries than those without

Because each metric encompasses multiple different variables related to quality and operations, a percentage point difference at a large organization could translate to being first to market with a new product, avoiding a major product recall, passing an audit or effectively meeting customer demands – operational benefits all highly dependent on seamless and strategic quality management across the value chain. 

Below, an infographic based on LNS Research’s new findings provides an informative overview of closed-loop quality management, including why and how companies are leveraging it to facilitate quality processes:

Credit: LNS Research, shared with permission

David Butcher has been writing about business and technology trends in the industrial B2B space for nearly a decade. Currently a marketing communications specialist at MasterControl, he previously served as editor of ThomasNet News’ Industry Market Trends newsletter and blog and as assistant editor for Technology Marketing Corp.’s Customer Interaction Solutions magazine. He holds a bachelor’s degree in journalism from the State University of New York, Purchase.