How does qms help companies reduce costs by optimizing profit paths?
Release time:
2024-02-19
There is a huge difference between the cost of manufacturing good quality products and the cost of handling and repairing inferior products. For businesses that want to reduce costs, actively avoiding poor quality costs is a key consideration.
There is a huge difference between the cost of manufacturing good quality products and the cost of handling and repairing inferior products. For businesses that want to reduce costs, actively avoiding poor quality costs is a key consideration.
QMS is an indispensable tool in the pursuit of cost-effectiveness and quality balance. This article will discuss how to reduce the cost of poor quality through qms system from five aspects.
Uncover the truth about the cost of quality
The cost of quality (coq) is calculated by a simple formula: coq = cost of good quality (cogq) cost of poor quality (copq).
Quality Quality Cost
• Prevention costs: costs of all activities that minimize failures, such as establishing product specifications, development, staff training and the use of quality management systems.
-Inspection costs: costs incurred to ensure that the quality level is at an acceptable level, including incoming inspection, supplier evaluation and quality audit.
cost of inferior quality
• Internal failures: Problems that occur before the product leaves the factory, including waste caused by inefficient processes.
• External failures: Problems that occur after the product is delivered to the customer, such as warranty claims, shipping damage, and product returns.
Automated QMS Reduces Costs
A key factor in reducing costs is to solve small problems before they develop into big problems. Qms can reduce the overall coq of the enterprise from multiple dimensions, provide the ability to solve problems, seamless change management, minimize operational errors, enable enterprises to better understand the operation situation and solve problems, and reduce the overall quality cost.
Resolve problems quickly
Corrective and preventive action (capa) automation: automates the process of reviewing problems, determining root causes, taking action, and following up. Not only is the process faster, ensuring that the problem is quickly discovered, but it will not snowball into a major problem.
Risk Intelligence Prioritization: Allows businesses to prioritize the most important issues with far fewer errors.
• Complete operational visibility: With a high level of visibility into the business, it's easy to identify the source of the problem and fix it.
Seamless change management
-Cost and risk analysis: qms calculates potential costs and risk levels so that companies can make the best decisions, make change transitions smoother, and avoid sudden problems.
• Simplify change management with integrated tools: Create tools for visibility and collaboration to make change more immediate.
Process interconnection: automatically connect multiple processes through qms, such as connecting change management with employee training, document control and other processes to ensure the authenticity of data sources and the automation of process operation.
The intangible costs of preventing human error
Manual errors are also a factor that increases the cost of quality, and qms can reduce the possibility of human error:
• strengthen employee training and effect tracing: qms enables employees to quickly obtain training related to their departments and roles, and enterprises can easily trace the training effect.
• Provides real-time data and automatic alerts to prevent errors: QMS automatically updates relevant data to ensure that it is always accurate, preventing problems from arising.
• Simplify and standardize workflows: use qms to standardize and align enterprise workflows.
Proactive Risk Management
Reducing the cost of inferior quality requires effective risk management, and qms helps to eliminate problems in advance and reduce quality costs.
• Risk management is integrated into processes: Tools to monitor risks help eliminate problems before they occur. Audits generate a large amount of data and may generate a large number of action items. It is easy to see high-risk locations through qms, so you can quickly determine priorities and take follow-up actions.
• Quickly identify high risk to prioritize follow-up: qms can help quality managers identify high risk gaps that need to be filled first. Significantly reduce potential problems.
Centralized risk reporting aids decision making: at-a-glance risk reporting helps companies make more informed strategic decisions, thereby reducing coq quality costs.
Strengthen supplier quality management
Through qms's supplier rating, supplier portal and reporting tools, enterprises can more accurately manage and evaluate suppliers, solve problems in a timely manner, and provide support for negotiations.
Supplier rating: multi-dimensional information to help evaluate suppliers, help enterprises more accurate management, evaluation and selection of suppliers.
• Supplier Portal: Users with permissions can view corrective actions anytime, anywhere to ensure faster resolution of issues.
• Reporting tools: Reporting tools provide quick access to data. Provide evidence to the enterprise in a timely manner during supplier negotiations.
In a word, enterprises can improve the efficiency of workflow, realize rapid change management, and ensure the correct information to support decision-making through qms system, so as to achieve the goal of reducing the cost of inferior quality and improving the overall quality of products. Provide fast and efficient tools to achieve both quality and cost improvement. Help companies identify areas for improvement and improve high-quality products while reducing the cost of poor quality.
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