Manufacturing companies must organise to maximise productivity, quality and shareholders' value. Because of the importance of quality, the organizational structure gives quality assurance special consideration.
The basic organizational structure of a manufacturing company follows the traditional hierarchical organizational structure, consisting of a Board of Directors, Chief Executive Officer (CEO), Chief Operations Officer (COO), department heads and then employees. However, because of the importance of quality in manufacturing, the head of quality or quality assurance ranks up there with the CEO, says Brek Maunfacturing.
In the manufacturing industry, quality is everything. Just consider the automobile industry and how quality or the perception of quality can affect sales. In addition to internal quality specifications and assurances, companies have to meet international quality management standards such as ISO 9000, according to Praxiom.com.
To improve quality, some manufacturing organisations use a matrix organizational structure close to the production line. This is where a production team, led by a production manager, can work together and make decisions and address production and quality issues without having to coordinate with department heads, according to FlatWorldKnowledge.com. Department heads focus on general operating policy in this scenario.