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MONETARY BENEFITS OF IMPLEMENTING AN ISO 9001:2008 MANAGEMENT SYSTEM


A priority for management executives and senior managers is growing sales volumes and cutting costs through higher operating efficiency levels, quality products and service support.

Over one million companies, globally, are certified to the ISO 9001 Quality Management System for the same reasons, and consistently attest to the effectiveness of ISO 9001 management system as a proven management tool for driving organisational growth.

 

British Standard Institute (BSI) estimates that for every £1 spent on a quality management system over a three-year cycle, there is:
  1. An increase in revenue by £6
  2. A reduction in costs by £16
  3. An increase in profits by £3

To illustrate the benefits of being certified to ISO 9001 locally, for every N1, 000,000 spent on implementing a quality management system, your company can expect an increase revenue of up to N6, 000,000.00; a staggering cost savings of up to N16, 000,000.00 and an increase in profits of up to N3, 000,000.00

The above calculation was determined by using the averages of 5 different academic studies that assessed approximately 2,500 companies in different industries and geographical locations.

Other studies assert that implementing an ISO 9001 system typically leads to:

  • A contributory increase in gross profit resulting from having more streamlined internal processes, ranging between 0.15% and 5% of the annual sales revenues (an increase of N50, 000.00 gross profit for every N1, 000,0000.00 revenue).
  • In a gross profit contribution of up to 33% of the company’s annual revenue resulting from an enabled market uptake of products and an expanded market (a gross profit contribution of up to N330, 000.00 for every N1, 000,000.00 revenue).

A major factor driving the implementation cost is the man-hour requirement for building the system, and the certification fees.

At Leitung Gate Limited, we offer cost effective options for building and certifying organisations to the ISO 9001 standard.

Why not speak with one of our consultants to explore options for implementing a certified management system.

Akeremale, Adetutu

For: Leitung gate Limited

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