Quality for Profit
QUALITY IS FOR PROFIT - BELIEVE IT!
A properly implemented and maintained Quality Management System will show positive results on the bottom line. If the QMS costs the company or adversely affects the bottom line, the QMS was improperly implemented or not properly maintained. Don't let this happen to your organization.
How does the ISO 9001 QMS help an organization become more profitable?
The QMS brings all operational elements of the company together under a single management system accessible to all individuals that have an impact on quality. The QMS requires all operational functions / areas of the organization to work together due to the unique structure of the system as all elements are linked and interdependent. The implementation of an ISO QMS is a team effort. If the system is not implemented as an organizational wide effort with the full support of the executive management, the system will fail and become a costly burden to maintain.
What will my investment return?
As with everything else in business – that depends. Sound familiar? It is almost impossible to predict what each individual organization will realize as gains, against the cost of implementation, so let us review some case histories as reported shortly after the project closings:
- This company is a medical device manufacturer attempting to enter the global marketplace. The total investment to implement the ISO 9001 QMS was @ $63,000. The total gains reported were in excess of $5,000,000. This is an extreme example of a positive ROI.
- A large machine shop underwent the rigors of implementing the ISO 9001 QMS with total expenditures of @ $41,000. This company reported gains of $1,250,000.
- A hardware / fastener company decided to implement the ISO 9001 QMS in order to build a better company. This company expended @ $58,000. This company reported gains of $350,000.
As you can see, the ROI varies significantly. However, in all cases, those companies that stayed the course and became certified reported positive results. Those results translate to a healthier bottom line on the P & L.
Aggregate annual financial gains reported through 8 client project closing surveys totaled $15,705,000.