Before committing to an enterprise quality management software (EQMS) solution, it’s important to build a solid business case to justify your investment. In order to give the green light, business decision-makers will need a clear understanding of the benefits of investing in EQMS, including how the investment will save your company time and money to produce a positive return.
A single EQMS solution can have a direct impact on a manufacturer’s bottom line. With the right features and proper implementation, companies can avoid amendments, nonconformances, and failed certifications, while improving efficiency, speed, consistency, and cost savings. Below, we’ve conducted a cost-benefit analysis to determine the financial benefits of implementing an EQMS.
Implementing an EQMS is an investment that can produce a positive ROI. Too often, though, manufacturers rush through the implementation process, which inevitably leads to a poorly implemented software that’s crippled by inefficiencies, resulting in a lower-than-desired ROI.
While implementing an EQMS can result in long-term dividends, it’s crucial to understand that the implementation itself will be a significant investment to make upfront. In order to yield optimal results during this process, you’ll need to dedicate time and resources to:
- Identify quality management needs
- Document user requirements
- Research, identify, and interview potential vendors
- Participate in software demonstrations
- Negotiate fees for software licenses, installation, training, and annual maintenance
As a result of taking these steps, a well-configured EQMS will allow you to balance the cost vs. quality equation much more effectively. It will afford your company all of the benefits an EQMS solution has to offer, including consistency, reliability, efficient resource usage, and continuous improvement.
IT is an integral part of every company, which can make IT management burdensome when ensuring software and applications are up-to-date across disparate manufacturing sites. However, with a hosted EQMS, the software provider takes on the burden of IT management for a fraction of the cost of maintaining it in-house.
Of course, the benefits of a hosted software doesn’t replace an IT department wholly, but it can free up IT staff to focus on improving their own products and services. This boost in productivity can ultimately even pay back some of the cost of the EQMS itself. Additionally, because the hosted software cost is fixed, your company will benefit from greater insight into what your IT budget is accomplishing.
Internal audits are critical when customer, industry, and government quality standards compliance are at stake. Conducting internal audits provides a means to evaluate quality management processes, pinpoint potential areas of improvement, and yield cost-effective solutions.
Integrating audit management into your EQMS solution gives manufacturers the tools needed to prove they are in compliance with every standard variation. By conducting internal audits, you’ll be able to flag potential issues that can lead to nonconformance penalties, identify opportunities to eliminate waste, and be well-positioned to recommend ways to lower the cost of quality within your business.
Every step of the production line carries a level of risk, such as failure, nonconformance, excess waste, employee safety. Relying on manual processes for quality management presents an increased risk of manufacturing and distributing defective products that need to be recalled and reworked at the manufacturer’s expense.
An EQMS that integrates risk management will allow your business to take a proactive, rather than a reactive approach to quality management. You’ll benefit from early detection and mitigation of errors and create a culture of continuous improvement. As a result, you’ll experience cost-savings from reduced material and production labor, as well as significant decreases in warranty claims, recalls, and sales returns.
In the end, holistic EQMS solutions like IQS provide a cost-effective solution to increase production, maintain compliance, and improve customer satisfaction. Contact IQS today to learn more or to request a demo of our enterprise quality management software solution.