Archive for the ‘ROI’ Category

One aspect of getting certified that sites need to manage is who they select to do the certification audit.  In my opinion, the first thing to make sure of is that it is a UKAS ( or equivalent ) body so that you know you are getting a qualified service.  However, there are still organisations out there that operate outside those limits and it can be tempting to go with them if money is tight.  Having said that, the old adage that you only get what you pay for happens to apply whoever you select.

You might be forgiven for thinking that of all the business assessments that you have to pay for then surely the quality system will be one where everyone delivers from a level playing field Рnot so.  In fact on several discussions I have initiated on LinkedIn the concept of high cost Рlow cost auditors seems to be accepted as part and parcel of this process.

Can it make that much difference?

Well yes it can actually.  There are clearly the market leaders who, not surprisingly, charge a premium price.  However, even looking beyond them the differences can be significant.

Putting them all into the mix,  I had a single site with less than 10 staff and I did my usual of getting three quotes so the client could get a feel of the overall costs.  This was both for the Stage 1 and 2 certification audits then the annual maintenance and surveillance audits for the three year approval period.  Now, the costs ranged from £2750 to £3681, a difference of £931 or near as makes no difference a third.

So, don’t follow the crowd and go with what the rest have got.¬† Get several quotes¬†when the time is right¬†as you would for other business¬†services you purchase and make sure you are on the right side of the line.¬† If you need any more help on this then I’m more than happy to help. Visit the web site on www.thebpasgroup.co.uk.

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:

‚ÄúThis 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.‚ÄĚ

‚ÄúThese 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.‚ÄĚ

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.