ROI, or Return on Investment, helps businesses make smart choices. When purchasing a quality management system (QMS), a clear ROI figure is more than needed. It’s necessary to validate the impact of this quality-related investment, outlining the role of the QMS throughout the organization, and helping you get management commitment.
In this article, we're going to explore the ROI of quality management software. By the end, you'll understand how to build your business case, get buy-in from stakeholders and how a QMS has the potential to positively affect your bottom line.
Assessing quality – a challenge that can be overcome
The main goal of a QMS is to make sure your business is always delivering top-quality products or services. If you don't have a strong QMS, your product quality might start to slide. This can lead to a domino effect of problems, such as unhappy customers and issues with regulatory compliance.
On the other hand, a good QMS keeps your business on the right track. It helps you spot potential quality issues before they blow up into bigger problems. But how do these benefits compare to the initial investment costs?
Assessing quality-related investments can be a challenge. Why? Because the quality management function has become intertwined with most processes. Therefore, more often than not, quality leaders find it difficult to quantify their efforts and calculate where their spending on quality goes. That’s where building a compelling business case for QMS will make all the difference.
QMS: is it worth the investment?
A smart QMS generates a culture of continuous improvement in a business, driving efficiency and effectiveness across all processes. But it's also important to remember that the benefits of a good QMS go beyond just saving money in the short-term. It's about building a strong business that delivers quality every time. It's about keeping customers happy, building up your brand, and being profitable over the long-term.
Improving processes and efficiency
Quality Management Software changes business operations in a number of ways. One of the key areas is your processes. QMS helps to examine and improve processes, cutting out needless steps, streamlining work, and increasing efficiency. This saves time and helps make the best use of resources, boosting your overall productivity.
Cutting down costs with fewer mistakes
QMS aims to cut down errors. It encourages ongoing improvement and helps to put in place steps that stop mistakes before they happen. The result? Less money wasted on fixing problems, less waste, and fewer returns from customers.
Happy customers
Quality equals happy customers. If you consistently meet and even exceed customer expectations, your business reputation gets a boost. You'll encourage customer loyalty and stand out in the marketplace. QMS helps you to deliver quality products and services every time.
Calculating the ROI for QMS
The main steps that you can use to calculate or estimate the overall ROI for QMS are listed below.
- Benchmark performance
- Estimate potential savings
- Estimate implementation and maintenance costs
- Calculating the ROI
- Evaluating the results and making a decision
Armed with the ROI figure, you now have a clearer idea of the potential benefits and costs of implementing QMS. You can compare this with other investment options, taking into account both financial and non-financial factors. This allows you to make a more informed decision about the best course of action for your business.
Nothing beats a clear ROI figure
Whether or not you already tried the steps mentioned above, need help, or simply would like to have more confirmation that you are on the right track, consider joining our ‘Nothing beats a clear ROI figure’ webinar.
During this free, 1-hour webinar you’ll learn:
• Exactly how much a QMS can save you
• How to assess the impact of any quality-related investment
• See how you can use software to reduce waste.
After the useful, hands-on demonstration, you’ll get to ask your questions and know whether QMS is the next smart business move. Click on the banner below and register in less than a minute.
