How to Realize Financial Benefits of ISO 9001
ISO publishes a guide to help your organization increase the ROI of its QMS.
ISO 10014:2006 Quality Management Guidelines for realizing
financial and economic benefits
It provides guidelines for achieving financial and economic benefits from the application of the Eight ISO 9000 Quality Management Principles:
- Customer focus
- Leadership
- Involvement of people
- Process approach
- System approach to management
- Continual improvement
- Factual approach to decision making
- Mutually beneficial supplier relationships
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Like ISO 9001, ISO 10014:2006 requires the involvement of top management and works in conjunction with ISO 9004 for performance improvements. It provides examples of achievable benefits and outlines tools to realize them.
A PDCA based improvement cycle is displayed for each quality management principle that lists activities for each Plan-Do-Check-Act stage. The eight examples provide outputs for each QM principle which provide benefits to the organization.
Economic benefit - Improved processes usually result in better resource management, improved customer relationships, and the overall worth of an organization.
Financial benefit - A direct result of organizational improvement expressed in financial terms and realized by cost-effective management practices.
...and it includes a Gap Checklist and Evaluation Tool!
Annex A includes a self-assessment as a gap analysis and prioritization tool. The questionnaire describes five maturity levels for assessing your current management system and determining which principle should be selected for improvement.
Like ISO 9004, ISO 10014 is a guideline with recommendations, not a set of requirements for which you would seek certification.
Reducing costs
Organizations are recognizing that an effective Quality Management System leads to reduced costs and greater operating margins through:
- Improved product reliability
- Better process control and flow
- Better documentation of processes,
- Greater employee quality awareness
- Reductions in product scrap, rewords and rejections
Here are some additional points:
- Article: What can you expect in return for your investment...
- Summary: How will ISO reduce costs in my organization?
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