Quality of Conformance

Updated on January 3, 2024
Article byPranjal Jain
Edited byAshish Kumar Srivastav
Reviewed byDheeraj Vaidya, CFA, FRM

Quality of Conformance Definition

Quality of Conformance can be defined as a quality management terminology that measures the value/ amount or any other measuring factor by which the developed product, service provided, or even the manufacturing/ service providing system achieves quality targets or deviates from the set standards, benchmarks or any other guidelines of operation which can be classified into four major criteria like minor, major, critical, serious or any other such similar classification.

Explanation

Manufacturers of the products and services set and develop certain evaluation points and benchmarks for their goods manufactured based on factors like experience, customer requirements, etc. These setpoints and benchmarks work as the level of expectation for which the products and services against which finished products will be compared for identifying deviations. If the targets are achieved, i.e., they meet the specified requirements, then the product has excellent conformance quality. And suppose the product does not meet the required points and deviates highly from the proposed benchmarks and designs. In that case, the product has a poor conformance quality as it is impossible to meet the level of expectation exactly, so the manufacturers follow a tolerance policy. This tolerance policy clarifies how much deviation is allowed for the product from the expected standards and to be accepted.

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Example

Justin is the proprietor of cab services in Miami. His business requires picking up guests from the airport and leaving them at their desired locations. In the hurdle of business becoming the top cab service provider in Miami, he wants to increase the number of pickups and wants his cabs to be available at the airport during peak hours. Drivers are provided with their daily schedule, which clearly states each driver’s duty timing schedule and their respective car. Since no one knows the traffic and future, delays on roads are expected. So Justin allows leverage of + or – 15 minutes.

Yesterday there was a pickup time of 2:05 PM. However, due to road traffic, drivers couldn’t arrive at the airport until 2:16 PM. Since the driver couldn’t make up with the expected time and missed his arrival time, it is acceptable as he was there in the leverage time. So his quality of conformance is not shattered and is acceptable. However, if he had reached the airport after 14:20, this would have called attention to determining the reason for deviation as it crossed leverage time of + 15 minutes.

Factors Affecting Quality of Conformance

Quality of Conformance

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  • Market  – A market is a place where goods and services are exchanged based on the supplier’s requirements, customers, etc. A customer asks for his requirements with his buying capacity that determines conformance quality.
  • Materials –  To manufacture a product and fulfill market needs, one needs raw materialsRaw MaterialsRaw materials inventory is the cost of products in the inventory of the company which has not been used for finished products and work in progress inventory. Raw material inventory is part of inventory cost which is reported under current assets on the balance sheet.read more. The availability of adequate material is crucial for sustaining the quality of conformance of final goods. The market is full of available materials with different specifications, but what is important is to choose the perfect material which completes the needs of the product at the optimum level of satisfaction with all specifications.
  • Technology – It is essential to choose advanced technology and machinery as it directly impacts the quality of conformance. Today’s technology plays a vital role in saving costs and providing the best results with minimum or no wastage.
  • Labor – Choosing efficient and skilled labor is vital as their experience and knowledge will greatly impact goods produced or services rendered to maintain the quality of conformance. Trained and capable labor will help in better designing and manufacturing new products.
  • Cost – With the growing competition in the global market, it is necessary to manufacture products and provide services at the lowest possible cost. Money is the deciding factor in the quality of conformance. The cost of maintenance and improvement has increased in today’s world.
  • Management – The management decides the quality of conformance to be maintained. Some managers give more importance to it while some may not. Quality conformance programs should be organized and supported by top management authorities.

On broader levels, it is factored from following –

  • Raw Material
  • Appropriate machines and tools
  • Process selection
  • Skilled labor and workforce
  • Transit and handling of materials
  • Feedback from customers.

Benefits

  • Ensuring Quality of Performance – As this is a checking and corrective strategy, comparing finished products with set standards and identifying deviations helps ensure better quality products reach the market. Mistakes, once identified, will be rectified to rectify deviations which in turn increases the quality of performance in the long run.
  • Increased Customer Satisfaction – Measuring products manufactured/ services provided with set standards to identify deviations helps increase customer satisfaction as only refined products will be made available to the customer. In case of deviations, products will undergo a re-engineering phase to better ensure the quality of conformance.
  • Brand Value Development – Organizations following quality of conformance will have a brand value and reputation in the market.
  • Cost Efficiency – As it ensures the quality of products delivered in the market, it helps to ensure cost savings as only refined products are allowed to enter the market, thereby reducing the chances of customer dissatisfaction, warranty claims, and lawsuits.
  • Increased Marketability – Organization products or services enjoy better marketability as customers develop trust in the quality of product supplied by the entity.

Conclusion

Quality of conformance can be described as a plan, monitor, check and act strategy in quality management theory. It specifies the level of non-conformance of a particular product manufactured or services provided. Management cannot always target to ensure zero non-conformance all time, and therefore a certain level of deviations are allowed and ignored. Overall, this concept helps ensure better quality products and service delivery.

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