What’s the ROI of Quality?
What is the Return on Investment (ROI) of quality and how much of a difference does quality really make within an organization? The answer is: a lot! In fact, for every $1 spent on a quality management program, businesses have seen an average of $6 in revenue. Take a look at other interesting stats on simpleQuE’s infographic and below. All good reasons for implementing and maintaining a robust Quality Management System (QMS).
- Businesses have seen an average of $16 in cost reduction for every $1 invested in a QMS.
- 93% of organizations agree that quality management systems have been a significant driver of their success.
- Quality management systems have typically generated $3 in profit for every $1 spent.
In 2015 the Center for Economic and Business Research (CEBR) and BSI, completed a comprehensive study on the economic benefits of standards, looking at data for the period of 1921-2013.
Of the companies surveyed for the research:
- 84% said that using standards enhances their reputation
- 73% said that standards allow greater control of environmental problems
- 89% said that standards contribute to the optimization of compliance with regulations, such as health and safety legislation
- 50% said that standards encourage innovation through the diffusion of knowledge
- 70% said that standards contribute to improving their supply chain by improving the quality of supplier products and services
The research also finds that investing in standards pays off for organizations, and that standards generate more benefits for companies that use them relative to the cost to implement.
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