Quality Management delivers £90bn to UK economy

Posted: July 20, 2012 in Business, ISO 9001, Manufacturing, Non-Conforming Product, Quality, Quality Management, Quality System, ROI
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It’s good to see this quantified in a recent piece of research instigated by the CWI (Charted Quality Institute) and CMI (Charted Management Institute) that states the impact on GDP which equates to 6%.

Who comes out on top?

It actually offers a UK Quality Comparison Table that shows Manufacturing at the top but makes the case that the Public sector could do better if it adopted the quality approach.  Some of us have been saying that for some time and I refer you to an earlier blog here.

However I digress.  As Simon Feary, CQI CEO, says:

“This research quantifies the contribution of quality management to the UK economy for the first time and in doing so shows that we cannot afford to forgo the huge economic, business and employment potential that it provides.”

“These findings should send a powerful message to organisational leaders that quality management needs to be fully implemented in all organisations and to policy makers that they need to create an environment in which quality management is encouraged and can thrive.”

The way to get the most from your QMS

One of the key areas where a good, well maintained QMS should assist is in the removal of waste and variation both of which can be costed to help get the message across to senior management.  In addition the non-conformance system can have all its elements assigned a cost whether it is the obvious cost of scrap components, rework or simply the time taken to process each record.

In addition, you may also be familiar with the concept of Quality Costs whereby the cost of Preparation, Inspection and Failure again drives awareness as to how the cost of lax controls and processes can harm a business.  At least, armed with this information, you can then move on to reverse the trends.

How to get the full picture

This is the link to the CQI press release and from the site you can get the full report.  However, for those with less time here is the article on this piece of CQI QMS Research from my CQI magazine that also contains three case studies.  If you want any help in putting some costs to your business operations through your QMS then I am more than willing to help.  Contact details are on my web site so just get in touch.

There should now be no doubt that a good QMS really can put pound notes on the bottom zone.  Spread the word people.

Comments
  1. PMG India says:

    I just know that quality cost area described as cost of control and cost of failure of control. That one is different and good information about how to get most from quality management system.

    Like

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