It isn’t an unreasonable question for anyone to ask, especially if you are going to ask them to spend money on quality. If you want your business to invest in a quality management platform, you should have some idea of what the costs currently are and how long it takes before you earn back your investment.
‘’60 percent of organizations don’t know or don’t measure their financial impact of quality’’
Measuring ROI on QMS
There are countless benefits of implementing a quality management platform. Some can easily be measured, while others are more intangible and take place over time. However, the most important fact is that quality management platform can significantly improve the efficiency and consistency within your organization, resulting in improved overall quality.
To help you understand the ROI on quality management platform, I’ll give you some key success metrics that you can use to track your improvement.
Manual or cumbersome processes take up resources and slow down productivity. No matter if this is in man-hours or administrative work, this is time spent on the system, rather than the business. A lot of time can be saved in the preparation of paper forms and documents. This could be incidents, work orders, work instructions, toolbox meetings, and so on.
Greater Client Satisfaction
Quality management platform improves response and customer satisfaction while ensuring that customer reported quality issues are always properly documented and effectively resolve. The possibility of losing a customer based on the problems is very hard to measure but we all know when we screw up too often we will get burned. Having a clear overview of these issues, big or small, will help you get a better feeling of the likelihood of this happening.
Keeping employees up-to-date with the latest processes, procedures, and other documents is not only very labor intensive; it is also prone to mistakes. Forgetting to train somebody can lead to serious costs when old formats are used or processes followed. This could lead to missing out on a deal or even losing a customer.
The real hard ROI can be measured on time saved. Here also lies quite a number of challenges. Most companies have no idea how many hours are lost with an unstructured management system. Companies don’t track the hours people spend on searching for documents to use or training on new procedures. These are seen as the normal costs of running a business. However, saving on these activities directly impacts the bottom line of the company and therefore can have a significant impact. Try to find a reasonable amount of hours people spend searching for documents within your organization in order to benchmark.
Real Time Insight
A manual or Microsoft Office based management system lacks the real time insight. Data needs to be structured from a Word document to an Excel sheet in order to do some kind of analysis. Besides the time it takes, mistakes are also made. When the data is used and input for business decisions, this means that they are made on the wrong data. Every time data needs to be keyed over to other documents, mistakes are introduced. Make sure you have a single source of truth that can be analyzed in real time.
If you’re at the point where you are ready to find the right quality management system for your business, we can help you. Through a short phone call, our product specialist will look at the problems you are currently experiencing, and will advise you with choosing the right solution that fits your needs. Get started today!