Choosing new quality management software can be a big decision. Given a need for quality improvements, it is imperative that the solution delivers a return on investment as soon as possible. Effective quality management software can make a big difference in a company’s manufacturing operations and can help create a culture of continuous improvement. The benefits quality management software presents are numerous. Some can be quantified, while some are more intangible that take place over time. However, the most important is the fact that quality management software can put manufacturers on the path to be more proactive versus reactive, resulting in improved overall quality.
To help you understand your return on investment, we have provided some indicators that you can use to track your progress.
Directly Measurable ROI
The following are quantifiable improvements that contribute to your company’s bottom line.
Reduced defect management costs
Opportunities are missed if components do not meet or exceed design specifications. Effective quality management software can reduce the rate of failure, representing a significant savings. Scrap, rework, sorting and processing costs can be avoided with access to quality data. Quality management software streamlines and modernizes complex, often error-prone maintenance, repair and overhaul (MRO) processes, lowering your maintenance expenditures and the overall compliance risk to your organization.
Reduced supplier management costs
Quality management software can be used to reduce the cost of poor supplier quality. Real-time supplier data tracks performance, trends, and on-time delivery. Supplier ratings allow managers to identify which suppliers are most valuable to the organization. This data is then used to avoid risk and reduce costs by accurately assessing the risk of working with suppliers and sub-tier suppliers.
Increased supplier recovery success
Supplier recovery introduces accountability into the supply chain reducing overall risk. Timely and accurate nonconformance supplier data is available within the quality management system that results in proactive repayment or product replacement. Supplier Recovery can also reclaim warranty return expenses due to poor quality of supplier material.
Reduced IT support & costs
Quality management software displaces redundant applications to reduce IT costs and improve data consistency. A best-in-class solution is easily configurable to meet requirements without the need for additional programming. A central repository for critical data eliminates manual data entry, improves data integrity, and provides considerable savings on labor.
Paperless shop floor
A paperless shop floor allows companies to enjoy increased productivity due to hours saved on preparation of paper documents and forms. The time saved in the preparation, distribution and collection of work instructions, work orders, travelers, and quality data forms is significant with quality management software. Real-time reporting allows supervisors to make more informed decisions. In addition to time saved on paperless processes, electronic document management allows managers to control user access to sensitive data and electronically manage the document approval process.
Soft ROI
The following are improvements that are not necessarily tied to a quantifiable number, but may be attributable to a long-term financial return or organizational well-being.
Ensured compliance & reduced risk throughout the product lifecycle
Complex manufacturers are faced with continually changing standards and regulations. Quality management software has the capability to manage quality and compliance issues across departments, process areas, and locations as needed. Best practices in audit management are enabled using the solution that simplify the process, and produce better results.
Visibility into overall operational performance for better decision making
Real-time historical information increases accuracy, efficiency and overall quality. Quality management software can help managers identify trends, repetitiveness, and relative cost to implement continuous improvement. Actionable information makes it easier to react to evolving markets and customer demands.
Complete traceability, track-ability, and genealogy of every part, subassembly, and final assembly
Comprehensive quality management software provides the power and flexibility to create, record, query and manage traceability requirements driven by compliance and quality. The system enables you to manage quality throughout the life of each part, assembly and finished product to meet regulatory, quality, and customer demands.
Improved confidence and quality of products shipped
The quality of a company’s products is a true differentiator. Quality management software can ensure the quality of the products shipped is high and will go a long way in protecting and enhancing the overall reputation of your brand. In the end, customer satisfaction and retention rely on the consistent delivery of a quality product.
When evaluating quality management software, it is important to consider both hard and soft ROI factors to get an accurate reflection of a system’s potential performance. With an effective system in place, employees can focus on high-value activities versus spending time on managing documents or processes. Quality management software can help companies create a competitive advantage through continual improvements. Best-in-class quality management software should pay for itself.
If you are considering a change to your quality operations, TIP Technologies can help. Our TIPQA™ quality management software stands out from the competition because it gives customers the ability to track quality through the entire product lifecycle, and allows for seamless ERP integration. TIPQA enables companies to achieve continuous and measurable quality management improvements while advancing customer service, productivity and profitability.
Learn how TIP Technologies can help you make valuable business improvements. Contact us to schedule a demo of the TIPQA™ solution and begin your journey to better quality today.