Not just for big companies: 10 reasons why quality management is essential for SMEs

Quality management - many decision-makers in small and medium-sized enterprises have reservations about this topic. But there are many good reasons for SMEs to establish quality management.

A too complex procedure that requires high financial and personnel investments, for example, is a widespread opinion among SME managers. A luxury feature that large corporations can afford and may make sense there. These prejudices do not stand up to practical scrutiny.

Increase customer loyalty

A quality management system (QMS) has feedback mechanisms in which clients provide feedback on how satisfied they are with the company's performance. Through this, a company can be warned early on that it is not adequately meeting clients' expectations. This warning signal enables the company to improve its performance in time to satisfy critical clients after all. Otherwise, the buyers could leave.

Compliance with laws and regulations

Already during the establishment of a QMS, all relevant laws and guidelines of the industry are incorporated into the company's processes. Technical standards or regulations of authorities are thereby observed and violations against them are avoided. Especially in small and medium-sized companies, there otherwise is a danger that those responsible will overlook a legal regulation in the abundance.

Motivate employees

By using a QMS, even in small and medium-sized enterprises, it is clearly defined which employee has which tasks. Unclear responsibilities and inefficient processes are thus a thing of the past. The cooperation of employees becomes more pleasant due to the clear distribution of tasks. The atmosphere in the company improves as a result, which in turn has a positive effect on the motivation of the employees.

Win orders

For many government agencies and companies, companies must have a QMS in order to even be considered as suppliers or partners. Small and medium-sized enterprises that do not have one do not even make it into the selection of potential suppliers. For this reason alone, a QMS is indispensable for SMEs bidding for contracts with public and private clients.

Avoid financial problems

Implementing and operating a QMS requires that a company obtains a resilient overview of the available resources. This duty must be fulfilled conscientiously on a permanent basis if the QMS is to fulfil its task. Through these activities, the company's finances are also always closely monitored. This minimises the risk of the company running into financial problems unexpectedly and unnoticed.

Reduce costs through early warning effect

The earlier in the manufacturing process it is ensured that products are of high quality, the lower the overall production costs. A QMS is designed to rule out defects at an early stage in the creation of a product. The approach is to avoid that possible defects are only identified during product inspection after completion. This early warning effect through the QMS significantly reduces the costs for defects. This applies to both tangible products and intangible products in the service sector.

Building trust through QMS as a quality indicator

A certified QMS documents emphatically that a company attaches great importance to process and quality safety. The company therefore undergoes regular evaluation covering all project steps and process phases as well as the quality of the manufactured products. The QMS thus sends a strong signal of trustworthiness to potential business partners. This can facilitate entry into new markets.

Provide transparency about processes

Quality management documents the operational processes in a comprehensible and transparent manner. This list describes the processes in the company in detail and comprehensively. It is the basis for identifying errors, problems and optimisation needs at an early stage.

Newly introduced standards guarantee

As a rule, companies permanently strive to improve products and processes. A QMS is an effective means of ensuring that higher standards are also achieved on a permanent basis. Quality management tools can effectively support the sustainable implementation of improvements.

Establishing quality responsibility on a broader basis

When a company uses a QMS, the responsibility for high quality is also pooled at the same time. Not only one quality assurance officer has to take responsibility for high product and process standards, but all those involved in a process.