New Whitepaper: Avoiding the High Cost of Quality Failure
In today’s fiercely competitive marketplace, more companies, ranging from medical devices to electronics, understand the painful costs of quality failure.
Product recalls, returns and brand damage are too debilitating to ignore.
The ability to proactively monitor errors and product failures with enterprise-wide visibility is only possible with a holistic approach to quality. When a Quality Management System (QMS) is one with design and development systems, supply chain oversights, employee missteps, and product design errors can be dramatically reduced.
Unfortunately, few companies have aligned supply chain stakeholders, manufacturing processes, and solution capabilities to achieve this deeply embedded ‘best practices’ level of standards. Failure to do this is the biggest detriment to ensuring quality.
In Arena’s new whitepaper “Avoid the High Cost of Quality Failure,” we highlight the pertinent best practices for, and benefits of, managing quality as an integrated part of your business to build a culture of collaboration and innovation. Topics covered include:
- Cost of Quality Failure
- Advantages of a Holistic Approach to Quality
- Financial Benefits of Integrating QMS with PLM
- Value of Centralizing Quality Data
- Why a PLM-based Quality Solution?
With a PLM-based quality solution, processes are connected with enterprise business systems and other external data sources through in-context links. This paper examines how integrating product and quality processes can provide the following business benefits:
- Reduce the cost of quality by up to 3X by switching from correction to prevention1
- Increase operating margins 25% and reduce failure costs 29% with integrated PLM and quality tools2
- Reduce the cost of poor quality (COPQ) to increase earnings 10 – 15% with consistent, integrated quality best practices3
Our research examines the benefits of a single, tightly woven, collaborative PLM, and quality solution to streamline the flow of information between teams. The paper examines how communication of actions taken by all relevant parties prevents disjointed and duplicated efforts. This facilitates company-wide collaboration to aid in and accelerate product improvements. The resulting business benefits include:
- Improved Time to Market – Operations, manufacturing, quality, and engineering collaborate to include quality processes proactively in the development cycle, addressing feedback upfront to speed time to market.
- Higher Product Quality – Teams build a better product in a culture of continuous improvement, where they are alerted to new issues in real time, and can learn from a documented library of past challenges as well as the precise steps taken for remediation.
- Reduced Costs and Higher Margins - Quality process improvements in operations, manufacturing, and development reduce scrap, rework, and labor to improve product margins and maximize return on investment.
- Increased Innovation – By leveraging all stakeholders, companies capitalize on the expertise throughout their workforce to create state of the art solutions to meet customer needs.
According to an Aberdeen Group report, PLM and QMS interoperability can help reduce internal and external failure costs by more than 50% and reduce the total cost of quality by 8%. Discover how enhanced interoperability through embedding can be a platform that turns a feedback loop into a collaborative circle of trust that ensures product quality. Check out the Arena Quality whitepaper or if you'd like to get more info about Arena Quality, contact us today.
1) International Journal of Management