As a consultant, I have been asked numerous times by management teams that are considering quality management systems (QMSs) such as ISO 9001, QS 9001, ISO/TS 16949, AS 9001, or TL 9000, “What’s in it for me? Companies complain that QMSs, such as ISO 9001, take up their employees’ time and cost too much money. They question the value a QMS offers for their investment.

I answer in terms of money—the language of upper management—“The only reason your company should implement a QMS is to reduce costs. Your QMS should pay you back more than you put into it. Doing it for any other reason is a waste of time and effort.”

They further complain that customers force compliance and expect lower prices in the future. I tell them, “Those customers requesting compliance have a QMS in place at their companies, and they know a QMS can reduce costs. That’s why they want you to implement a QMS. If you can reduce costs, then they expect you to pass a portion of the savings on to them in reduced prices.” Many executives don’t understand this, and they look at ISO standards, technical standards, and test laboratory standards as expenses instead of ways to reduce costs. I ask these companies what rework, sorting, rejects, scrap, and customer complaints cost. Most companies have no idea how much these internal and external quality nonconformities actually cost.

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