Looking For Higher ROI on a QMS?
Firstly, how much does your company really know about Quality Management Systems?
In simple terms, a Quality Management System (QMS) is a software system that is used to monitor and manage procedures, responsibilities, information, and processes in an attempt to help organizations achieve their objectives through quality procedures and increase the efficiency of the company.
The efficient implementation of a QMS within an organization could benefit a company in multiple different ways such as:
- Improvement in processes.
- A vast reduction of company waste.
- Company spending amounts could be reduced significantly.
- The opportunity to document and improve training procedures.
- Employee standing can be identified.
- Larger business objectives can be focused on.
It would be a rather unconscious decision to start thinking about Return On Investment after purchasing a specific Quality Management System. The decision has already been made to invest the relevant funds, which means, the business case becomes a closed deal.
However, certain criteria can be looked into before promoting the business case for prior delivery of ensuring higher ROI. If a decision hasn’t been made yet for the idea of investing into a QMS, there are certain areas that would require focus to ensure that the company arrives at higher ROI through the investment on a QMS.
The areas of focus could differ from company to company, however one of the key areas that require attention include:
- Calculation of the cost of quality.
Where all resources have been focused on for prevention of failure and improvement in production, the cost of good quality is the primary factor in ensuring that their Quality Management System is performing at its optimal level. The cost of poor quality includes all the resources that are used to handle any defects or failures. Poor quality would encompass all kinds of scrap, and reworking would be required for the manufacturing process, and all costs associated with the delivery of failed products including complaints, recalls, warranties, and returns.
Fully comprehending the history of all the costs of each vital operation within the company should be a beginning factor. The harder it becomes to determine operational costs, the harder it becomes for assessing potential future products and defects contributing to failures.
If the utilization of a QMS is in the company’s best interest, companies should make it a point to define what kind of metrics and strategies are being used as a baseline for improvement.
Accelerating ROI using QMS:
- The initial strategy should be to identify the right QMS for the company. Identify the processes that need to be streamlined for the processes.
- Secondly, the implementation speed in which initiatives are executed should be considered. The faster the processes are implemented, the quicker the ROI can be identified.
- Thirdly, the system to be chosen should be identified by the company to be able to satisfy the customers’ requirements. This is especially critical for manufacturing companies.
- And finally, the initiatives of the system should be able to meet current and future initiatives. The process of quality management would be developed, and the chosen system should be able to keep up.
Harrington Group International is an organization that develops and offers special business process management software for companies, globally.
HGI targets companies that require improvements within the firm along with the ability to increase organizational efficiency.
We bring knowledge, deep functional expertise, and a practical approach to build capabilities and deliver real impact, on-time and within budget.