Whether you are producing cooking oil, baby oil or motor oil, one matter is constant, if you are trying to implement a quality system, you are competing with other projects for finite corporate resources. One of the most effective ways to compete for those resources and demonstrate project success is to be able to quantitatively demonstrate Return On Investment (ROI).
Louis Halvorsen, CTO, Northwest Analytics, will explain how to develop the ROI of quality systems and provide example case studies. He will present:
- How to choose the project justifications that best meet your commercial requirements and to improve your bottom line.
- What are common ROI targets and how may they be adapted to your plant requirements.
- How to quantify ROI.
Quality systems and operations typically deliver substantial cost benefits and rapid returns. Properly done, ROI modeling will not only enable you to obtain the necessary resources to develop your projects, but will also provide an ongoing basis to justify the quality management operations.
Mr. Halvorsen will present two case studies which illustrate how to set up data collection and analysis to successfully demonstrate ROI and provide for continuing reporting.
- An assembly process where management must determine which defects are most amenable to process improvement and will provide the greatest return for the effort.
- A food processor facing product giveaway by overfilling. How can the processor improve the filling performance and calculate the ROI of the effort?
Applying SPC to your production process is one of the quickest ways to realize a return from your quality system. SPC-based process improvements reduce variation and make further improvements possible.