Many companies know quality is important, but they don’t know how to tie it to the bottom line.

Once you understand how to measure the impact quality has on your bottom line…

… the easier it is to get your company headed in the right direction.

For example, at Johnson Controls, they realized that a one-point increase in customer satisfaction equaled $13 million in additional revenue for the company.

Source: Making the Economic Case for Quality, by John Ryan

Extensive research conducted by the Baldrige National Quality Award found that when a company focuses on quality, they have:

• Better employee relations• Higher productivity• Greater customer satisfaction• Increased market share• Improved profitability

Source: Baldrige National Quality Award

Additional research found that companies that win quality awards have better operating income, sales and total assets.

Better quality leads to better customer service.

Boeing Aerospace Support focused on quality and, as a result, now delivers products and services to clients within 3 days (vs. 40 days for their competitors).

All that happened because of their relentless focus on quality.

Source: American Society for Quality; www.asq.org

Samsung launched a quality initiative that resulted in $1.5 billion in financial benefits in just two years.

Source: Making the Economic Case for Quality by John Ryan

Ford Motor Company saved $1 billion in just three years by incorporating its “Consumer Driven Six Sigma” quality program.

Source: Making the Economic Case for Quality, by John Ryan

SSM Health Care increased its market share18% when they implemented a quality improvement program.

How’s that for a healthy increase in

business?

Source: Making the Economic Case for Quality by John Ryan

The Baldrige Index shows that, in some cases, companies focusing on quality outperform the S&P 500 by as much as six to one.

Cumulative Results Through Year

Baldrige Index S&P 500

1 92.00 33.00

2 248.70 58.50

3 324.90 111.80

4 362.30 148.30

5 425.63 173.27

6 841.29 221.55

7 685.26 163.11

Source: The Baldrige Award

“Total quality management has been called a fad by many. However, if TQM is a fad, it is one of the longest and most significant fads ever.”

-- George Easton and Sherry Jarrell, Emory University

Employees of Clark American Checks generated more than

20,000 ideas on how to improve quality at their company. After implementing several of the

ideas, marketing share increase 50% over the next five years.

Source: Making the Economic Case for Quality by John Ryan

Texas Instruments saw on-time delivery increase to more than 95% as a result of its efforts on quality improvement program.

Source: Making the Economic Case for Quality by John Ryan

Research into 288 companies in Europe found that 65% of the companies analyzed saw significant benefits once they focused on quality.

Benefits

Qua

lity

Source: Making the Economic Case for Quality by John Ryan

Are you ready to take the first step toward

improving the quality of your

products?

Download a free trial of QAComplete and take control of your test management and quality assurance!