Learn How Process Intel Uses QMS to Reduce Quality Costs!

According to the American Society for Quality (ASQ), a company might lose as much as 15% of its revenue due to poor quality. Productivity and profitability are impacted by several factors. Can you name a few of them? Well, allow us to help you out. A couple of influencing factors are scrapping defects, handling product recalls and changing product designs.

Along similar lines, this article defines the “cost of quality.” It also discusses how a quality management system or software (QMS) may help your company reduce this cost.

How to Determine an Appropriate Cost of Quality (CoQ)?

What exactly do we mean when we talk about the cost of quality (CoQ)? Companies may use CoQ to assess how much of their assets are spent on preventing quality issues and maintaining high standards of quality. Also, it helps them know how much money the firm loses due to quality concerns inside and outside the organization. So, we can describe the cost of quality (CoQ) by adding together the cost of good quality (CoGQ) and the cost of poor quality (CoPQ).

The cost of good quality may be broken down into preventative fees and appraisal costs.

Establishing product requirements, product development, personnel training, and using QMS are examples of expenditures that fall under the category of “prevention costs.”
Appraisal costs are spent while maintaining acceptable quality standards. They include expenses of quality audits, supplier evaluations, and inspections of materials.

On the other hand, internal and external failures contribute to the cost of poor quality.

Internal failures involve difficulties before delivering products to a client. A few examples are excessive scrap, machine malfunction, and waste due to inefficient operations.
External failures to the product after it has been given to the client include warranty claims, transportation damage, and order fulfillment.

How a QMS Brings Down the Cost of Quality!

The end goal of determining the cost of quality is to discover methods to lower the prices of both excellent and poor quality. But note that you should not compromise the quality of the product itself.

A Quality Management System (QMS) is excellent for decreasing both types of expenses since it dramatically boosts the efficiency of the workflow. Not only that, but it also enables you to quickly keep track of any possible risk or waste that may occur throughout the manufacturing process.

We will demonstrate to you precisely how a QMS may assist you in reducing the cost of quality:

1. Reduce Time Spent Problem-Solving

The first step in lowering costs is identifying and resolving complex problems before they may spread across the system. Suppose you consider the most high-profile recall instances of the last several years. It’ll be clear that the most expensive issues did not have appropriate management from the beginning. How can a quality management system fix problems more quickly?

Automating CAPA (Corrective and Preventive Action): A QMS maintains Corrective Actions going from review to root cause to remedies and follow-up to discover issues.
Highlighting the problems that need your attention first: When working with a long list of CAPAs, risk-based filtration enables you to prioritize work and avoids expensive delays.
Total visibility to pinpoint issue sources: From your production planning system to your supplier management information, a quality management system can bring it all together for you. Raising awareness helps get to the bottom of things quicker.

It is not necessary to put out flames continuously. Rather than that, adopting the advantages of a quality management system offers a more logical approach to the problem-solving process. When this is done, quality costs are reduced since reoccurrence is prevented.

2. Cut Down on Operational Errors

When trying to solve quality issues, you shouldn’t discount the impact of the human factor. For instance, suppose you devise the most cutting-edge manufacturing system conceivable. You can still struggle with quality issues if the employees in your company do not get sufficient training. An integrated quality management system reduces the likelihood and potential for human error.

A quality management system (QMS) helps to standardize your procedure while ensuring that critical inquiries and objectives are met. Your integrated QMS will provide you with real-time data and automatic alerts. This will assist you in preventing issues before they arise. Apart from that, it automates workflows, which allows you to modify processes.

3. Lighten Up on the Inspections

The vast majority of businesses nowadays choose to lessen the strain placed on inspection by delegating inspection tasks to production workers. As a result, far less reliance is placed on the inspection process to ensure quality. Utilizing a quality management system gives you the flexibility to try various approaches to maximize the likelihood of a successful shift.

A quality management system may frequently be of assistance when streamlining inspection procedures based on the many facets. For instance, suppose the product’s design or manufacturing sources are modified. The inspection process may be simplified with production process validation, mitigating any potential influence on the product’s form, fit, or function.

QMS not only lessens the amount of work that must be done and the amount of time that a process cycle takes to manage change. But it also reduces the amount of money that must be spent on extra resources to drive change and inspection procedures conventionally.

4. Reduce Your Spending on Documentation

The typical document management system will cost a fortune. It doesn’t matter whether you need to submit a nonconformance report or update fresh versions of the document. Additionally, problems with visibility and traceability will arise because of data being spread out.

Integration between the high-end quality management software and the cloud-based document management software streamlines the process of handling all paperwork. The method may range from inception to its eventual retirement. Plus, eSignature validation increases the transparency and traceability of quality data. This helps businesses achieve regulatory compliance.

Going paperless may help you save time and money when handling documents.

5. Employ Advanced Reporting/Analysis Tools

Data reporting and analysis are often overlooked despite their importance in unlocking insights from the acquired information. It’s important to analyze trends to see what’s working and what isn’t to make the best business decisions. Reporting is a straightforward way to disseminate findings, trend behaviors, and action plans to stakeholders.

The next-generation quality management system includes advanced reporting and analytical capabilities. This allows for more informed decision-making and less wasteful spending.

How Process Intel Can Be of Service!

In a nutshell, the conventional approaches to lowering quality cost no longer get the desired results. Try out the one offered by Process Intel that cuts quality-related costs effectively! It is time for businesses to start using next-generation corporate quality management software.

With the help of our QMS software, businesses can cultivate a culture of quality and compliance. Every employee will be accountable for maintaining quality at their respective ends. The production will focus more on fun and put less pressure on all participants.

Your workers will gain greater self-assurance. Also, they will remain involved in the things most important to the company if you allow them to take ownership of those activities.

The quality management software that we provide is an investment that will pay off in the long run. You may contact us if you have any questions concerning the part that our QMS plays in lowering the cost of quality. We will respond to your inquiry as soon as possible.