Every $1 spent on a quality management program returned:
$6 ■■ in revenue
$16 ■■ in cost reduction
ISO 9001 ROI
■■ $3 in profit ■■ 2010 Harvard Business School study of business ■■ Quality management reduces costs an average benefits for 916 adopters vs. 17,849 nonadopters: of 4.8 percent −− Higher rates of survival, sales, ■■ 93 percent of organizations agree quality and employment growth management was significant driver of success −− Increased wages ■■ 83 percent of organizations agree that without −− Reduction in waste generation quality management they could not justify their pricing to customers 1 −− Enhanced worker productivity and ability to pay closer attention to detail 4
Six Sigma ROI
$2 in direct ■■ Average return of more than . June 2012 study by the 1 Center for Economic and 3. “The Impact of Baldrige on Organizational Performance,” savings for every $1 invested Business Research. From The Journal for Quality and “Lasting Impression,” QP, Participation, April 2012, ■■ Average savings of 1.7 percent of revenues over November 2012, asq.org/ http://rube.asq.org/quality- implementation period 2 quality-progress/2012/11/ participation/2012/04/baldrige- quality-management/lasting- national-quality-program/the- impression.html impact-of-baldrige.pdf (survey covered all applicants from 2. “Costs and Savings of Six 2006-2011) Sigma Programs,” Quality Management Journal, October . 2010 Harvard Business 4 2012, http://rube.asq.org/quality- School study comparing management/2012/10/six-sigma/ 916 organizations that have costs-and-savings.pdf adopted ISO 9001 and 17,849 nonadopters comes Snee, R. D., and R. W. Hoerl, from “Standard Wise,” QP, 2004, Six Sigma Beyond the September 2013, asq.org/ ROI of Baldrige Performance Factory Floor: Deployment quality-progress/2013/09/ Excellence Program Strategies for Financial Services, standards/standard-wise.html Health Care, and the Rest of the ■■ Data for three measures of program value showed Real Economy, Upper Saddle benefits/cost ratio combined River, NJ: FT Press of 820:1 3