Most manufacturers have a quality management system (QMS) in place. The QMS is made up of the people, tools, and processes that promote operational excellence. However, many companies in the manufacturing industry have not yet adopted enterprise quality management software (EQMS), and they’re feeling the effects through loss of money, decreased productivity, and reputation damage.
Implementing EQMS is a big commitment, but it is worth the investment of time and money. Not having an EQMS creates risk by forcing your company to rely on manual processes. Ultimately, not implementing EQMS costs manufacturers money by encouraging a reactive approach to quality.
Quality at a Snail’s Pace
Without an EQMS, quality processes need to be carried out manually using spreadsheets. Manual processes are error prone and take a long time. Your company could spend 6 weeks just preparing for an audit. Records and data need to be gathered from across the organization. Key documents may be missing.
Instead of going through continuous improvement, a manufacturer that lacks EQMS is continually closing out old records and trying to keep track of corrective actions. Corrective actions could take an entire year to close out.
With manual quality management, faulty processes that create nonconforming products stay in place for long periods of time, creating the risk of more defective products reaching the consumer. Continuous improvement saves manufacturing costs by lowering error rates and increasing production.
The Cost of Being Reactive
When manufacturers rely on manual processes for quality management, they take a reactive approach to quality. Instead of preventing problems before they develop, manufacturers react to an emerging problem and try to contain its effects.
This reactive approach increases the chance of manufacturing and distributing a defective product. These defective products need to be recalled and reworked at the manufacturer’s expense.
The money spent containing a quality problem is money lost. Scrapping, redesigning, and remaking these products is costly and may damage your company’s reputation.
Customers may put your company on probation after a quality issue emerges. If the issue isn’t resolved in a timely manner, customers may turn to your competitors for future orders. Acquiring new customers is more expensive than retaining current customers.
A Cautionary Tale: The Automotive Industry
The 2018 report The Auto Industry’s Growing Recall Problem – and How to Fix It found that the auto industry’s lack of investment in quality is costing it big time. Instead of focusing on quality management, many auto manufacturers have been putting all their time and money into innovations that satisfy consumer desires, such as automation and infotainment systems.
According to the report, recalls reached a record high in 2016, with GM recalling 23 million vehicles for faulty ignition switches at a cost of $4.1 billion. Additionally, airbag recalls cost parts supplier Takata $1 billion and the automotive manufacturers that installed the airbags, such as Honda, billions more.
EQMS helps OEMs track suppliers and reduce the chance that defective parts will be used in constructing their products. Tracking and vetting these suppliers will make recalls less likely.
EQMS Made Easy
The complexity of implementing EQMS shouldn’t be a barrier to adoption. When you partner with QAD CEBOS for EQMS, we guide you through the entire process. We also provide training and support to ease the transition.
Reducing risk and enjoying a healthy return on investment make the process of transitioning to EQMS worth it. EQMS centralizes quality management and integrates all the tools you need into one platform so you can innovate with confidence.
Get the perspective of a quality expert. Register for the webinar The Risks and Costs of Not Having EQMS today.