Many companies know qualityis important, but they don’tknow how to tie it to thebottom line.
Once you understand how to measure theimpact quality has on your bottom line… … the easier it is to get your company headed in the right direction.
For example, atJohnsonControls, theyrealized that a one-point increase incustomer satisfactionequaled $13 millionin additional revenuefor the company.Source: Making the Economic Case for Quality, by John Ryan
Extensive research conducted by the Baldrige National Quality Award found that when a company focuses on quality, they have: • Better employee relations • Higher productivity • Greater customer satisfaction • Increased market share • Improved profitabilitySource: Baldrige National Quality Award
Additional research found that companies that win quality awardshave better operating income, sales and total assets.
Better quality leads to better customerservice.Boeing Aerospace Support focused onquality and, as a result, now deliversproducts and services to clients within 3days (vs. 40 days for their competitors).All that happened because of theirrelentless focus on quality. Source: American Society for Quality; www.asq.org
Samsung launched a qualityinitiative that resulted in$1.5 billion in financialbenefits in just two years. Source: Making the Economic Case for Quality by John Ryan
Ford Motor Company saved $1 billion in just three years by incorporating its “Consumer Driven Six Sigma” quality program.Source: Making the Economic Case for Quality, by John Ryan
SSM Health Care increased its market share18% when they implemented a quality improvement program. How’s that for a healthy increase in business?Source: Making the Economic Case for Quality by John Ryan
The Baldrige Index shows that, in some cases, companies focusing on quality outperform the S&P 500 by as much as six to one.Cumulative Results Baldrige Index S&P 500 Through Year 1 92.00 33.00 2 248.70 58.50 3 324.90 111.80 4 362.30 148.30 5 425.63 173.27 6 841.29 221.55 7 685.26 163.11 Source: The Baldrige Award
“Total quality management has been called a fad by many.However, if TQM is a fad, it is one of the longest and mostsignificant fads ever.” -- George Easton and Sherry Jarrell, Emory University
Employees of Clark American Checks generated more than20,000 ideas on how to improve quality at their company. After implementing several of theideas, marketing share increase 50% over the next five years.Source: Making the Economic Case for Quality by John Ryan
Texas Instruments saw on-time delivery increase to more than 95% as a result of its efforts on quality improvement program.Source: Making the Economic Case for Quality by John Ryan
Research into 288 companies in Europe found that 65% of the companies analyzed saw significant benefits once they focused on quality. QualitySource: Making the Economic BenefitsCase for Quality by John Ryan
Are you ready to take the first step toward improving the quality of your products?
Download a free trial of QAComplete andtake control of your test management andquality assurance!