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SHOW ME THE MONEY
BY: MARCO LEANDRO CRUZ SANCHEZ
COD: 2004181093

The new ISO 10014 quality management provide the guidelines for realizing financial an economic benefit to the companies.

Inthis way it’s important that each company try to be more competitive beginning to implement a top management expects value-added activities from and within each department of the organization. In turneach department is expected to contribute to achieving the goal to maximizing the shareholder return.

Quality data function as a platform for decisions and analysis when the time comes to implementplanned improvements.

Also it’s important to separate the different perspectives, in this case: top management an quality professionals.

• Top management: The operations are highlycompressed and expressed in financial terms and use quality reports and terminology like “ SPC: Statistical Process Control, CpK: Cost of Poor Quality”; are wary of further investment in “culture”

•Quality: In this case using data and details supporting reductions and variations.

The quality manager use financial terminology such as “ROI: Return on Investment, EVA: Economic Value Added”; tryingto understand concepts like “Due diligence” “Depreciation schedule of capital investment”.

It’s important that the quality’s tools and data without the financial value of risk management areincomplete for communicating effectively to top management. Financial benefit is the single most compelling indicator to top management for counterbalancing risk.

ASQ’s 2003 Future Study includesattention to seven keys forces for defining quality in the next decade, but in this article only talking about two of them containing strong financial requirements:

1. Quality must deliver bottom-lineresult achieved benefits must be show in monetary units.

2. The economic case for a broader application of quality will need to be proven different cost/ benefit tools must be used to provide...
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