Answer to Question #125719 in Management for Muhammad Hafizam

Question

2. Continuous Quality Improvement (CQI) or also known as process improvement is a business management system that companies of all sizes can employ. CQI focuses on identifying sub-optimal processes in a business and changing them to reduce errors and improve quality. Explain how CQI activities can benefits the company business performance.

Answer 1

There are various ways in which an organization can benefit from Continuous Quality Improvement (CQI). First, error reduction, CQI can be used by an organization to reduce the number of errors in taking business process. Errors made by a business could be expensive for an organization and therefore, through error reduction CQI will significantly reduce the organization's costs. Second, increase adaptability, through the use of CQI, an organization is more adaptable to changes which will enhance it's efficiency as well as enhance customer experience. Also, an organization will be better placed to take advantage of the available opportunities while minimizing possible risks. Third, increased productivity, though it is likely that CQI could result in hiccups in the short run as an organization tries to improve its processes, CQI will result in increased productivity in the long run. Lastly, increased morale, according to various studies CQI has the capability to increase the morale of employees in an organization. Increased employees morale has various advantages to the organization because employees are more motivated to work. For example, it will positively impact on the quality of service offered thereby having a positive impact on customer experience. Also, it will result in increased profitability as well as reduce wastage which could increase production costs.