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.
- 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.
- 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.
- Improving the processes and increasing efficiency means production can go more effectively. The end result is higher production yield.
- 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.
- 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.
We are just a few days away from the 2018 Aviation Suppliers Assn. (ASA)/Aircraft Fleet Recycling Assn. (AFRA) Conference which begins Sunday, June 24th and ends Tuesday, June 26th. This conference is one of the largest for the aviation distributor industry and draws aviation professionals worldwide with a range of business development and management, quality assurance, legal/regulatory and general industry topics. We always look forward to attending this conference where we have the opportunity to interact with aviation professionals from around the world.
This year’s conference will be held at OMNI Scottsdale Resort & Spa at Montelucia and feature keynote speakers Robert Taylor, SVP Technical – Apollo Aviation, Jim Lundeen, Head of Supplier Support – Airbus Americas, and Adam Pilarski Ph.D., SVP – AVITAS. In addition to these keynote speakers, SimpleQuE President, Jim Lee, will be presenting three workshops, two for third party auditors (on Saturday prior to the conference). Topics include:
- June 23 – Auditor Training:
Third party aerospace and ISO auditors will learn how to understand and audit operational risks (clause 8.1.1) in the aerospace standards (AS9100D and AS9110C) versus risk management (clause 6.1) in the ISO 9001 and AS9120B standards.
- June 23 – Auditor Training:
This training teaches third party aerospace and ISO auditors how to audit quality objectives, which pulls in context, policy and strategic direction.
- June 25 – Strategic Direction, Quality Policy and Quality Objectives: A Three-Course Meal of Quality Planning:
This workshop covers the interrelationship between a company’s context, strategic direction, quality policy and quality objectives. It applies to companies trying to get certified to ISO or AS, or are trying to make their quality systems more practical.
Look for highlights from the conference next week on our social media platforms and in the coming weeks we’ll have our conference recap here on the blog where we will be sharing Jim Lee’s workshop presentations which will be available for download. Stay tuned!
For more information on the simpleQuE Quality Connection, check out this blog post!
This week, while Vice President, Deanne Sparr, is attending AIAG’s 2018 Southern Automotive Quality Summit in Birmingham, AL, President, Jim Lee, has immersed himself in everything space and defense at ASQ’s Collaboration on Quality in the Space and Defense Industries conference and NASA’s Quality Leadership Forum.
These types of industry conferences and training keeps us at the forefront of the latest rules, regulations, trends and best practices to share with our consultants and clients across the aerospace, defense and automotive industries.
For example: At the NQA Global session, it was reported that as of mid-February only 29 percent of aerospace businesses had transitioned to the AS9100:2016 standard, however, as of last week it was up to 41% with a target of 50% by the end of March. Deadline for all to transition is September 14, 2018.
From Exploring Space – Is It Safe? presented by Astronaut Bill McArthur, to NASA conducted Counterfeit Parts Awareness and Inspection Training, quality is the topic interwoven throughout the conference and the critical piece that all in the industry rely on to launch us into space. Check back for more news as we process all of the great information we’ve gathered from the sessions.
Sustaining a Quality Foundation in Challenging Times
SimpleQuE president, Jim Lee, eagerly anticipates attending the Collaboration on Quality in the Space and Defense Industries conference then taking part in the informational NASA Quality Leadership Forum that follows. He’s set to join others in the industry who are focused on sustaining a quality foundation at the conference and forum, running March 12-15 in Cape Canaveral, Florida, not far from simpleQuE’s Space Coast office.
The American Society for Quality has designed the conference specifically for those working with organizations in the space and defense industries. Government and industry leaders representing NASA, Lockheed Martin, Boeing, Raytheon, and Northrop Grumman will discuss the latest policies and practices.
For SimpleQuE, the conference will provide invaluable information, trends and best practices to share with our clients, allowing us to become even more effective when consulting with manufacturers and suppliers in the aerospace industry.
In the days following the conference, the NASA Quality Leadership Forum will offer a great mix of speakers who will provide the NASA assurance context, delve deeply into specific quality management issues, find issue resonance across agency lines, and a refreshed understanding of quality sub-discipline areas.
Forum topics will include lessons learned, emerging trends, quality threats and risk mitigation techniques of particular relevance in today’s rapidly evolving and cost-constrained environment. Of particular interest is the Counterfeit Parts Awareness and Inspection Training that Jim and simpleQuE aerospace consultant, Doreen Everett will be attending.
Attendees can look forward to hearing about the work of industry leaders and strengthening their network. More importantly, the forum offers a chance to meet colleagues face to face, with the potential to build and strengthen relationships. It’s an excellent opportunity to keep the quality management community vibrant and looking toward the future.
SimpleQuE is an ISO 9001:2015 certified company that provides consulting, training and auditing services for the AS9100 series of standards to assist organizations in successfully meeting transition and implementation targets.
We did it! SimpleQuE has been recertified to ISO 9001:2015 by Eagle Certification Group through December 2020. Our initial ISO 9001:2015 certification was in November 2015 right after the standard was released and we were one of the first to be certified.
“The majority of companies have waited until the last possible year to upgrade to the new standards. This is consistent with the past, when changes to the standards occurred. The problem now is that all the key standards (ISO, automotive, aerospace, environmental) have the same expiration date of 9/15/18 and everyone is rushing to get it done at the last minute. The capacity constraints on registrars, consultants, and auditors is evident and organizations that have not begun the transition process are in serious jeopardy of losing their certification, especially if attempting to wing it with the registrar and not doing anything new to comply with the new standards.”
-Jim Lee, simpleQuE President.
The ISO 9001:2015 certification provides us many benefits and is a big differentiator over our competitors. This is especially critical since this standard and common structure are integrated into other management system standards like environmental, aerospace and automotive. It also provides simpleQuE with cost savings, an innovative service offering, market access, and a high level of customer confidence and satisfaction.
As an organization that is ISO certified, it proves to our clients that Quality Excellence can be made Simple. It’s what our company name means. For over 10 years, our simple approach has allowed us to have a quality manual that is only a few pages as we put our simple best practices to work in our own company. At simpleQuE, we don’t take a cookie cutter approach, therefore, we don’t implement our processes at our client sites. We look at what works for them and leave that alone, only focusing on those areas that don’t comply. Considering each company’s culture and unique situation results in different solutions for each client.
As the transition deadline of September 14th approaches, we encourage organizations that are still working on their implementation or transition certification to keep at it, ask questions, and ask for assistance. Demonstrating a commitment to maintaining the effectiveness of your system, continual improvement and customer satisfaction will put you in the lead. ISO 9001:2015 certification is an internationally recognized distinction that will benefit your organization for years to come.
November 9th is World Quality Day, and today’s theme is “Celebrating Everyday Leadership”. So to celebrate leaders of all kinds, our infographic below features five qualities that all effective leaders should possess.
VEGA Americas‘ management takes a creative and fun approach to preparing for an ISO audit of their Quality Management System. They are a global manufacturer of level and pressure instrumentation for the process industry. VEGA’s COO John Kronenberger plays the character ISONO, who isn’t sure what to do in some audit situations like this one where simpleQuE Consultant, Don Milinkovich plays the role of auditor while Quality Manager, Gretchen Lisi, looks on. They give suggestions on their intranet on how to be an ISOPRO – a great way to communicate internally and create awareness* among their employees. Way to go team VEGA!
*ISO9001:2015 Clause 7.3 Awareness
The organization shall ensure that persons doing work under the organization’s control are aware of: a) the quality policy; b) relevant quality objectives; c) their contribution to the effectiveness of the QMS, including the benefits of improved performance; d) the implications of not conforming with the QMS requirements.