Closing the Loop: Quality Management System That Works

In today's competitive marketplace, it is more important than ever to implement a close-looped quality management system. Customers demand high-quality products and services, and businesses that fail to deliver risk losing market share to competitors who do.

Closely looped quality processes are a critical component of any successful business operation, ensuring that products and services meet or exceed customer expectations. By constantly monitoring and improving processes, companies can reduce waste, increase efficiency, and improve profitability.

What is a Close Looping Quality Management System?

A close-looping quality management system is a process of continuous improvement that involves monitoring and analyzing data to identify areas for improvement. This can include everything from Quality control and Quality assurance.

To bring things in perspective, let’s take the RCM business as an example.

Does the quality score the real indicator of the performance and process outcomes? The answer is ‘NO’ if we look at the QC scores alone.

In my experience, 95% of process breakdowns or escalations may fall within the below categories,?

1.????High denial%

2.????High aging and AR collectibles

3.????Under payments and over payments

4.????Incorrect billing

5.????Voice of the customer

6.????Turnaround time challenges

7.????Inadequate SOPs

8.????Incorrect adjustments

9.????Untimely follow-ups

10.?Challenges in inter-departmental handshakes

11.?Inadequate or unwarranted client assistance

12.?Issues with the reconciliation

Unfortunately, Quality control audit parameters do not have an opportunity to monitor many of the above parameters.

Holistic Quality Management process: Integrating and close looping the Quality control and quality assurance initiatives

The reason why quality control scores and quality assurance may not always match is that they address different aspects of quality management. While QC examines individuals or transactions to identify defects, QA looks at the broader system and processes in place.

People audit and Process audits:

Scope: QC typically focuses on inspecting a sample of transactions or Individuals (Controller), whereas QA looks at the overall system. If the sample tested by QC is not representative of the entire production or service process, it may lead to a mismatch between QC scores and QA evaluations.

Timing: QC is conducted at specific checkpoints during production or service delivery, while QA is an ongoing process. If QC identifies and rectifies issues before they reach customers, the final QA evaluation may not reflect those earlier defects.

Different Metrics: QC may use specific metrics and criteria to evaluate individuals or transactions, whereas QA evaluates the overall adherence to quality standards and processes. This difference in metrics can contribute to variations between QC scores and QA evaluations.

Integrating quality control and quality assurance findings is an essential step in maintaining and improving product or service quality. Here are some steps you can follow to integrate these findings effectively:

Understand the difference: Quality control (QC) and quality assurance (QA) are distinct but complementary processes. QC focuses on identifying defects or issues in transactions or individuals, while QA focuses on preventing those defects from occurring in the first place. It's essential to grasp these distinctions to effectively integrate their findings.

?

Review QC findings: Start by reviewing the findings from quality control activities, such as inspections, or data analysis. Identify the specific defects, issues, or patterns that have been discovered. Categorize the findings based on the type of problem, severity, or impact on the product or service.

?

Analyze root causes: Investigate the root causes behind the identified defects or issues. Use techniques like root cause analysis, fishbone diagrams, or 5 Whys to dig deeper and understand why the problems occurred. This analysis will help determine if there are systemic issues that need to be addressed.

?

Document findings and recommendations: Document the QC findings, root causes, and recommended corrective actions. Ensure that this information is well-documented, including relevant data, observations, and any supporting evidence. Clear documentation will help in communicating the findings to the relevant stakeholders.

?

Align with QA processes: Quality assurance processes should be designed to prevent defects and improve overall quality. Review existing QA processes, including quality standards, procedures, and protocols. Identify areas where QA processes can be strengthened or modified based on the QC findings. Ensure that QA activities address the root causes of the identified defects.

?

Update quality control measures: Incorporate the lessons learned from QC findings into quality control measures. Revise inspection checklists, audit protocols, or data analysis techniques to specifically address the identified defects or issues. This will help us detect and address similar problems in the future.

?

Communicate and collaborate: Share the QC findings, root causes, and recommended actions with relevant stakeholders, including production teams, quality assurance auditors, management, and the Executive team if necessary. Encourage open communication and collaboration to address the identified issues collectively.

?

Implement corrective actions: Take action to address the identified defects or issues based on the recommended corrective actions. Assign responsibilities, set deadlines, and monitor the progress of implementing these actions. This may involve process improvements, training, or calibration sessions.

?

Monitor and measure progress: Establish key performance indicators (KPIs) to track the progress of our quality improvement efforts. Monitor the effectiveness of the implemented corrective actions and track any changes in defect rates or quality metrics. Regularly review the KPIs to assess the impact of integrating QC and QA findings.

?

Continuously improve: Quality integration is an ongoing process. Encourage continuous improvement by regularly reviewing and refining our QC and QA processes. Analyze new data, conduct periodic audits, and solicit feedback from stakeholders to identify areas for further improvement.

By following these steps, we can effectively integrate quality control and quality assurance findings, leading to enhanced product or service quality and improved customer satisfaction.

Best wishes to your 360-degree quality management process.

Please reach out to me @[email protected] if you have any questions.?