The Five Steps to Increase Profitability and Competitiveness



The Five Steps to Increase Profitability and Competitiveness

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Step 1: Strategic Quality and Process Planning

Achieve greater success by understanding and managing the critical success factors

• Link the improvement vision, goals and objectives to business success

• Understand how improved quality and process performance increases financial performance and competitiveness

• Identify opportunities, threats, strengths and weaknesses

• Develop an effective improvement strategy

• Establish coordinated system of business and improvement performance measurements

Step 2: Cost of Poor Quality Assessment

Identify and quantify the cost of nonvalue-added activities and waste caused by poor quality and inadequate business processes

• Cost of poor quality as a performance measure and cultural change agent

• Add a financial dimension to the quality and process improvement process

• Determine the dollar value of effective quality and process improvement

Step 3: Cost Driver Analysis

Determine the short-term, high payback opportunities to increase profits, reduce costs and improve customer satisfaction

• Identify the root causes of poor quality costs

• Determine the financial impact of the root causes of poor quality

• Conduct cost benefit analysis to identify the vital few projects

Step 4: Project Selection and Planning

Select the vital few quality and process improvement projects and develop a project plan to increase success through proper resource allocation and commitment

• Sequence projects to increase customer satisfaction, profitability and competitiveness

• Eliminate problems that cross functional boundaries

• Set realistic expectations and resource requirements

• Deploy the teams

Step 5: Monitor and Measure Progress

Ensure the right steps are taken to eliminate the root causes of poor quality and track the resulting improvements in profitability and competitiveness

• Accelerate quality and process improvement through accurate and timely reporting

• Report financial and non-financial achievements to top management

• Assess progress

• Determine the payback from quality and process improvement

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