Quality control: Why it’s non-negotiable for Australia’s manufacturers

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Failures of quality management and resulting problems, such as expensive food recalls, generally draw more attention than businesses running smoothly, which tend to go unnoticed.

Food Standards Australia New Zealand (FSANZ) counted 836 food recalls for the decade to 2024, with undeclared allergens the leading reason.

Even the unspectacular recalls, unlike the more memorable berry saga from a decade ago, can mean significant cost penalties. For example a yoghurt maker that recalled 2,000 tubs of product, posing no risk to consumers’ health was charged $141,000 alone in withdrawal costs by the retailer.

Whether or not a manufacturer is part of the food and beverage sector, robust quality management systems are vital for protecting their viability.

“What’s important here is that these standards aren’t just regulatory obligations: They’re increasingly customer expectations,” explains Bruce Minty, Senior Product Marketing Manager at MYOB.

“So large retailers and major suppliers and international clients often require evidence of compliance as a condition of doing business. Companies could be missing out on lucrative contracts by not adhering to… emerging standards as well.”

Larger companies may not require certification, but will often favour certified suppliers over uncertified ones, particularly when quality and reliability matter, adds Minty, and for growing businesses, accreditation can tip the scales in winning contracts.

For serving certain highly-regulated industries, such as aerospace or medical, meeting rigorous certification standards can be mandatory.

Quality certification can also be advantageous for companies that want to scale sustainably and build customer confidence

The certification process itself acts as a structured improvement initiative, Minty points out.

It helps companies map out their standardised workflows and responsibilities, and gives them the opportunity to reduce duplication and resolve inconsistencies, to manage bottlenecks and implement targeted improvements as part of meeting compliance requirements.

Enterprise Resource Planning (ERP) digitisation, such as through MYOB's Acumatica platform, can also play a role in smarter operations and supply chains: a particular benefit if there is ever a problem such as a recall.

“They enable that early detection, that rapid response that companies need. So realtime tracking provides that instant visibility across operations. And then that allows businesses to identify defects early and of course reduce the financial and reputational impact of recalls or penalties,” explains Minty.

“Automation, when deployed correctly, not only cuts down on human error, but also accelerates corrective actions and generates the data to drive continuous improvement..

“These systems show exactly where affected products or batches were sent to which customers received them, and that allows you to take targeted action, potentially saving thousands in recall and warranty costs. You can also quickly determine whether the issue originated inhouse or with a supplier as well. That really helps shape both your operational response and external communications.”

In this episode of @AuManufacturing Conversations, published in partnership with MYOB, Minty discusses some quality standards for various kinds of manufacturing businesses, emerging standards that are worth paying attention to, tips on making proactive improvements at your business, and more.

Episode guide

1:06 – An introduction to Minty.

2:10 – The impact of the end of passenger automotive assembly in Australia.

3:10 – “…It more or less marked a transition period where the industry gradually shifted to advanced manufacturing, and the growing need for more stringent quality control processes.”

3:47 – Why quality matters

5:20 – Why you should be building quality in from day one.

6:23 – Seemingly small mistakes can escalate as you scale and become more costly to fix.

8:10 – Some of the better-known standards that are out there and where they apply.

9:50 – Emerging standards.

10:58 –Where standards intersect with ERP.

12:40 – Some ways in which meeting strict quality management standards can be a driver of growth.

14:10 – Preparing for an accreditation forces organisations to tighten operations.

15:10 – Dealing effectively with the nightmare of a product recall.

16:02 – Prevention, transparency and rapid response are vital.

18:02 – Emerging themes in compliance and why Australian manufacturers must pay attention.

18:58 – The example of premium fish and traceability to meet consumer demands.

19:52 – Strong cyber practices have become essential.

21:31 – Some tips on proactive improvements that listeners can consider.