Quality Control vs Risk Management – Callum Makkai
This thesis investigated the inherent relationship quality assurance has with risk management processes, specifically focused on the construction industry. Risk management is applied to control the risks and enhance the Let's look further at the link between quality management and risk. A holistic approach to quality management and risk management can lead to lower cost of quality, risk reduction and overall quality improvement.
Define frameworks to guide and support risk decision process 4.
Provide common vocabulary to discuss and compare risk processes Some risk-based standards include: The critical elements of risk management identified in ISO are: Risk assessment is proactive in that a formal analysis is undertaken to identify, rate, and address risk.
This involves risk identification predicting and listing possible risks then risk analysis rating them as to seriousness.
Seriousness is determined by looking at the likelihood of occurrence and the resulting consequences. There are several risk analysis techniques available, but they fall into two camps: Qualitative analysis relies on subject-matter experts who rate both likelihood and consequence of potential risks using a gradated scale, e.
Quality Assurance in Risk Management
Quantitative analysis relies on using numerical values or scores because this is felt to be a more objective method. Historical or scientific data on the process or activity is used to determine values. This method requires an understanding of probability; for cases where data are available, removes some uncertainty. Using either approach, highly likely risks with high consequences obviously must be taken seriously.
Once the serious risks are determined, they can be consciously dealt with. A good point of reference for understanding the difference is the ISO family of standards.
These standards relate to quality management systems and are designed to help organisations meet the needs of customers and other stakeholders.
In terms of this standard, a quality management system is comprised of quality planning and quality improvement activities, the establishment of a set of quality policies and objectives that will act as guidelines within an organisation, and QA and QC. In the ISO standard, clause 3.
NASA, one of the most rigorous software engineering firms in the world, provides the following definitions www. QA planning is undertaken at the beginning of a project, and draws on both software specifications and industry or company standards. The typical outcomes of the QA planning activities are quality plans, inspection and test plans, the selection of defect tracking tools and the training of people in the selected methods and processes.
The purpose of QA is to prevent defects from entering into the solution in the first place.
In other words, QA is a pro-active management practice that is used to assure a stated level of quality for an IT initiative. Undertaking QA at the beginning of a project is a key tool to mitigate the risks that have been identified during the specification phases. Meeting compliance mandates domestically and abroad poses a never-ending series of challenges for your organization, which is why having a sound quality management system is so critical today.
Finding Common Ground between Quality Management and Risk Management
Including risk management in a modern quality management system gives you a means to further vet suppliers in a systematic way. Generally speaking from a high level, risk management encompasses: Managing the quality of a globally disperse network of suppliers would not be possible without company-wide risk management strategies included in a quality management system. Consider the trend of increasing the role of suppliers in daily quality management processes.
When Risk and Quality Management Work Well Together In several ways, risk management and quality management already integrate to a certain extent.
As one example, consider the use of failure modes and effects analysis used by automotive manufacturers today. Also, Six Sigma techniques for reducing quality defects imply the lowering of risk by reducing deviations.
- Quality Control vs Risk Management
- The quality assurance-risk management interface.
- Open dialog
Unfortunately, risk management and quality management do not speak the same language on a day-to-day basis despite having so much in common from a company-wide point of view. To bring risk management into the quality management fold, your task is to challenge the culture within your company to find creative ways to infuse risk management into quality management processes — and vice versa.