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!