In: Accounting
Give specific example of the Quality Management Principle:
• Principle 7: Factual approach to decision making
Solution:-
Principle 7: Factual approach to decision making:-
Effective decisions are based on the analysis of data and information.
Fact (data) based decision making is the key to ensure customer (internal & external) satisfaction and overall improvement in the organizational performance.
According to Craig Mundie (Head of Research and Strategy, Microsof), “Data is becoming the new raw material of business”.
Information which is in the form of quantitative data if used as a raw material or as an input of decision making process will surely have higher probability to success than the decision that is being made based on intuitions or gut feeling. To make fact decision based, it is very important for an organization to generate right quality and quantity of data at right place (i.e. measurement system should be implemented).
This principal encourages an origination to do quantitative or statistical analysis based on data before making any conclusion or decision at any level within the organization.
Key Benefits (include but not limited to):
Quality Management Tools (include but not limited to):