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. It 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.