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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    Baldrige Index          S&P 500
  Through Year
        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.
           Quality




Source: Making the Economic     Benefits
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!

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How Quality Impacts Bottom Line

  • 1.
  • 2. Many companies know quality is important, but they don’t know how to tie it to the bottom line.
  • 3. 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.
  • 4. 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
  • 5. 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
  • 6. Additional research found that companies that win quality awards have better operating income, sales and total assets.
  • 7. 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
  • 8. 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
  • 9. 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
  • 10. 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
  • 11. 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 Baldrige Index S&P 500 Through Year 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
  • 12. “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
  • 13. 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
  • 14. 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
  • 15. Research into 288 companies in Europe found that 65% of the companies analyzed saw significant benefits once they focused on quality. Quality Source: Making the Economic Benefits Case for Quality by John Ryan
  • 16. Are you ready to take the first step toward improving the quality of your products?
  • 17. Download a free trial of QAComplete and take control of your test management and quality assurance!