In this blog we’re going to look back on the year 2022 and explore what happens when Quality Management Systems (QMS) aren’t simple, clear & directive, 

Simplicity does not equal a lack of functionality.

This is an important distinction, as exemplified in the case of Westpac’s $400M loan fraud incident. While Westpac does have layers of governance and oversight policies (here), this event clearly highlighted the functional liabilities their operation systems possessed. Rather, their quality processes should be simple, clear & directive, focused on achieving effective QA.

Risk: Losing money to fraud and other unauthorised transactions.
SolutionImplementing a functional QMS with buy-in from all stakeholders.

It is important to also recognise that a QMS is only as good as it is current. 

Even the most functional QMS will under-perform if they aren’t kept current. While full details of the hacks are yet to be disclosed, the Optus and Medibank data leaks could be largely attributed to out-of-date system processes. Going down as some of Australia’s largest data leaks, the aftermath of these events is yet to be fully understood. A QMS is to ensure that the entire organisational system is optimised, compliant and should be continuously improved and updated.

RiskDamaged reputation, poor customer experience, financial loss and punitive measures.
SolutionEnsure your QMS is comprehensive,current,and continuously being improved upon.

2022 has demonstrated the importance of keeping your QMS comprehensive, clear & directive.

Globally, 2022 has shown the fragility of global supply chains (if we hadn’t already learnt this from a recent pandemic). Political instability in eastern Europe brought about the invasion of Ukraine by Russia and sent global supply chains into meltdown. Still recovering from the pandemic, these supply chain issues highlighted just how necessary it is for businesses to plan for potential disruptions. Developing a QMS involves strategic risk mitigation, leading to an understanding of where your business operations are most exposed. While a QMS isn’t a crystal ball, it should account for the worst-case scenarios.

RiskLost revenue, unable to fulfil contracts, extended timeframes & costs.
SolutionDevelop comprehensive QMS that mitigates and accounts for 3rd party disruptions

As 2022 has highlighted, even the biggest companies are not immune to system breakdowns and as such demonstrate the importance of developing simple, clear, functional & directive QMS. Developing QMS is about understanding where liabilities exist, how they could be exploited or exposed, and designing systems to patch or mitigate the potential issues. Ultimately a QMS should work to optimise an organisations operations and processes

Here at eQA we pride ourselves on delivering a QMS that is simple, clear, functional & directive QMS, communicated so that every stakeholder can understand what has to happen & why it is happening that way.

If you would like to learn more about the QMS process or getting ISO certified, please reach out to the eQA team on 07 3715 6066 or murray@eqa.com.au. We would love to explore how QMS can help your business save time and money.