What is the Return On Investment of a Quality Management System?

3D illustration of a magnifying glass over a golden positive chart symbol. Concept of investing opportunities and excellent investment.

Your company could have many motivations behind implementing a quality management system (QMS) such as ISO 9001. But in the end, making the decision to invest in a QMS always comes down to potential for profit, and an organization’s quality performance absolutely affects the bottom line. That’s why it’s essential to understand the return on investment for a quality management system.

First, the term “quality” extends far beyond an organization’s products or services. Every process and system in an organization, whether a manufacturing, distribution or service industry, can meet quality objectives and expectations. And once an organization applies the quality concept to its entire management system and all of its processes, then the effect on bottom line will really be noticeable.

Here are a few benefits of a certified quality management system that make a financial impact.

  1. Quality management systems can help reduce manual processes, which means there’s less of an opportunity for human error. In the end, this translates to greater employee productivity.
  2. Your leadership team will have access to real-time reporting, which means they can make better, more informed decisions. Getting that real-time data means less downtime overall.
  3. Improving the processes and increasing efficiency means production can go more effectively. The end result is higher production yield.
  4. A QMS provides consistent quality control, leading to fewer product defects and/or service complaints. And ultimately, this means you’ll see fewer complaints, returns, reworks and escapes.
  5. Being more compliant with ISO 9001 (or any of the other QMS standards) means more satisfied customers, and you’ll see more sales, new sales and referral sales.

Quality does have a cause-and-effect relationship with finance – consider the simple economic equation of income minus expense equals profit. Therefore, either increasing income and/or decreasing expense increases your profit.

Investing in “good” quality systems can increase income in many different ways, including attracting more customers, encouraging repeat business and giving your organization a competitive advantage. Meanwhile, it can also lower your expenses by lowering production costs by streamlining processes, lowering inspection cost, and lowering working capital through reduced inventory. So even when factoring in the cost of implementing and maintaining a QMS, the numbers show that you’ll come out ahead by investing in quality.

Sign Up For Our Newsletter

Congratulations!

These ISO 9001:2015 certified companies recognize the value of implementing and maintaining a Quality Management System. Congratulations from our team at simpleQuE to your team, we’re pleased with your success and to have provided consulting services along the way!

Batesville Products, Inc. – ISO 9001:2015

From Left:  Trevor Bovard, Plant Manager and Matt Scholl, Purchasing Agent

BHC (Brulin Holding Company) – ISO 9001:2015

BHC Office Staff

BHC (Brulin Holding Company) – ISO 9001:2015

BHC Plant Staff

Silfex – ISO 9001:2015

Quality Team

The Advantages of Outsourcing Internal Audits

Business concept. Business people discussing the charts and graphs showing the results of their successful teamwork.

If your organization is certified to ISO 9001 or a standard that is aligned with it, like AS9100 or IATF 16949, and you perform audits internally, then you should know this:

This means that Certification Bodies are scrutinizing internal auditors and their competency, especially when it involves IATF.  That’s why many companies are choosing to outsource their internal audits to a 2nd party like simpleQuE whose auditors are qualified, certified, competent and are experts on the standards and customer specific requirements. In addition, many are current or former 3rd party auditors and bring valuable insight because of that knowledge gained from auditing for certification bodies.

Here are more reasons to outsource internal audits from our very own team of auditors (who have seen it all):

Why audits should not be done internally:

  • Without proper training and experience, internal auditors don’t fulfil the competency requirements
  • Lack of time to perform the audits and write reports
  • Reports with limited or no findings or objective evidence
  • No demonstration of the process approach or risk based thinking
  • Timeliness of management in responding to findings/report
  • Internal turnover resulting in too much variation in reporting/focus and overall quality of audits

Advantages to outsourcing internal audits

  • Fresh set of eyes from outside the organization that are objective and unbiased
  • Reduces company’s investment in continual training on changing requirements
  • Professional and timely reports
  • More cost and time effective, freeing up internal resources
  • Management gives greater attention to an outside expert, especially when there are sensitive issues that an inside auditor may be hesitant to address
  • Better internal response and acceptance of findings and opportunities for improvement
  • More content, findings, comments, opportunities for improvement and observations for added value
  • Our auditors have:
    • In depth knowledge of the standard’s requirements,
    • Experience in the field and can share best practices,
    • An understanding of the process approach and risk based thinking
    • The ability to provide consulting while auditing
    • Compliance to ISO 19011 on auditing management systems

All solid reasons for turning your audits over to the experts.  Contact us at 740-305-0868 or [email protected] for more information.

Lauren Manufacturing Achieves Quality and Environmental Management System Certifications

Congratulations!  Lauren Manufacturing (New Philadelphia, Ohio), a Lauren International company, received ISO 9001:2015 and ISO 14001:2015 (environmental) certifications from Eagle Certification Group.  Since 1965 the company has grown from a seal and gasket manufacturer to a sophisticated business supply partner for leading OEMs, engineers and builders and to industries around the globe including automotive, agriculture, window and door, HVAC, renewable energy, lighting and more.  With facilities in Ohio and Michigan, total quality management is the foundation of their entire organization. To ensure quality materials are used for every customer application, they mix and test their own materials on site. They also design and build process equipment in-house to ensure products are manufactured to exact specifications.  Lauren’s adherence to lean manufacturing principles prevents defects and maximizes value for their customers from product design to delivery.

In addition, the company is committed to environmental management requirements and complies with regulations by local, state and federal agencies.  With EMS risks and opportunities identified, Lauren’s leadership planned objectives to address them. Each objective has a responsible person or team assigned with action item plans for achieving the EMS intended results.  These objectives and targets were communicated across the organization and are monitored and evaluated for status/progress updates to ensure continual improvement of the EMS and enhance environmental performance.

To assist with the transition to the new ISO 14001 and ISO 9001 standards, simpleQuE consultants began working with Lauren in early 2017, providing a gap analysis and support in preparation for their external audit in November 2017.  Originally, the company which is currently ISO/TS 16949 (automotive) certified, had thought they would also transition to the new IATF 16949 standard.  However, due to the complexities and numerous requirements of the new standard, it was determined that Lauren Manufacturing could meet their automotive customer’s requirements with MAQMSR and CQI-19 audits and compliance.  SimpleQuE consultants continue to work with Lauren to meet those objectives and to ensure that their reputation is built upon trust, service, innovation and quality.

Impact Label – Making a Lasting Impact

Image of Impact Label Corp

Congratulations to Impact Label Corporation for achieving ISO 9001:2015 certification! Impact Label leaves a lasting impact with their custom labels, panels, overlays and tags for industrial and consumer applications. The company has been a West Michigan product identification provider since 1964. Customer driven and quality focused, Impact Label is continually striving for zero defects by encouraging team members to use scientific problem solving methods and empowering them to stop the production process when necessary in order to build quality the first time, ensuring consistent results.

ISO certification was a way to further ensure their quality objectives were met.  Working with simpleQuE consultant, Karen Spencer, who performed a gap analysis of the quality management system, the Impact Label team worked their way through the action plan to be sure they were ready for their certification audit with DQS, Inc.  Good work and congratulations!

Congratulations to the entire Die Craft Team!

Founded in 1970, Die Craft Machining and Engineering is a certified ISO 9001:2015 and ITAR Compliant corporation offering precision CNC machining fabrication, assembly and industrial repair services to support general industry in the greater Cincinnati area.  A broad range of machinery, combined with their talented workforce, allows them to service a variety of clients in Aerospace, Chemical, Defense, General Contracting, Food Processing, Paper, Rail Transportation, Steel and Utilities Industries steel, paper and pulp, chemical and construction.

Die Craft’s partnership with simpleQuE began in 2013 with a gap analysis to determine the actions necessary to implement ISO 9001. It was followed with consulting, training and guidance to support their efforts for successful ISO 9001:2008 certification.  SimpleQuE continued in the following years performing their internal audits.  In 2016 Die Craft began the transition to ISO 9001:2015 with a gap assessment by simpleQuE consultant, Don Milinkovich.  The quality team at Die Craft worked on the action plan and in October 2017 Don performed a validation audit to evaluate the quality management system against requirements for the new standard.  Success!  Die Craft passed their audit with Eagle Certifications Group to and transitioned to ISO 9001:2015.

What makes Die Craft stand out from the rest?  A philosophy that is centered on a partnering culture, delivering the complete approach for an unparalleled commitment to their customers’ success.  Die Craft can reverse engineer old parts as well as develop new solutions.  Analyzing every part that comes in the door for improvements is a regular part of the service they provide. Whether it’s customized services/products or engineering support, Die Craft’s long-term focus, through industry and knowledge-based planning, allows them to deliver cost effective solutions, reduce manufacturing lead times and improve quality.

VEGA Americas – Where Quality and Measurement go Hand in Hand

From left:  Ron Foltz, Manufacturing Manager; Bob Herbst, QC Technician; John Kronenberger, COO; Gretchen Lisi, Quality Manager; and Nickie White, RIG Champion.

VEGA Grieshaber KG is a global manufacturer of process instrumentation. Its product portfolio includes sensors for measurement of level, point level, pressure as well as equipment and software for integration into process control systems.  Its subsidiary, VEGA Americas, focuses on the design, manufacturing and servicing (including Radiation Safety Training) of Nuclear Measurement Systems.  The facility also manufactures, tests and services the full range of VEGA Measurement Systems.

Because quality and measurement go hand in hand, VEGA has been ISO 9001 certified since 1997. When the company needed to transition to the new standard, they utilized the expertise of simpleQuE quality consultant, Don Milinkovich, to conduct a gap analysis.  Following an action plan to close any gaps, VEGA Americas achieved ISO 9001:2015 recertification through Eagle Certification Group.   Congratulations to the VEGA team where they know how to Run, Improve and Grow (and even have a designated champion just for that purpose)!

WRWP Makes the Calculated Jump to ISO 9001:2015

WRWP, LLC (Western Reserve Wire Products) has been designing, building and distributing wire harnesses since 1987.  Through the years they have evaluated and implemented more efficient means of production with state of the art equipment and manufacturing plants in China to reduce time and costs for their customers, while maintaining a high standard of quality.

The engineers at WRWP often work with their customers’ engineers in the design phase of new products to produce the best possible fit and function for the wire harness that will be needed, thus reducing unnecessary changes down the road.  And with that approach, in 2015 WRWP searched for a consulting firm that was the best fit and function to review their quality management system and develop a customized implementation plan to achieve ISO 9001:2008.  They selected simpleQuE, and with consulting and training support, achieved their certification.

Due to that success, when it was time to transition to ISO 9001:2015, they again turned to the experts at simpleQuE who utilized a Fast Track approach and developed an action plan while utilizing a detailed gap checklist to identify where WRWP was already compliant and where gaps existed.  Over the next several months with the guidance of simpleQuE consultants, their quality team worked hard to close the gaps while maintaining their quality system and improving internal processes. That preparation resulted in zero findings and certification to the new standard by Smithers Quality Assessments.  Congratulations to the team at WRWP!