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The ROI of Quality Management Systems

Jesse Kolstad delves into the significant ROI of quality management systems, underscoring efficiency gains and cost savings. Unifize emerges as a pivotal tool in optimizing the ROI of quality management, demonstrating tangible benefits at Biovation Labs.

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Transcript

[00:00 - 00:02]
So as I've said before, quality isn't a revenue generator.



[00:02 - 00:28]
And and people like to use this illustration of quality isn't a problem till it's a major problem. So by doing our job where you don't think your seatbelt because you didn't crash that day, but you want the seatbelt when you crash, that's how I think about quality is it's not a revenue generator. And a mentor of mine once told me the cost savings and cost and cost avoidance is not revenue, and I understand that.



[00:28 - 00:50]
But because Unifize has this high visibility of everything, everywhere, all the time, all at once, it's impossible for people to not acknowledge what we've done, how we've increased throughput, and helped me build that model that I always want to build and always try to build of quality. Being there as a supportive function, not just pointing out the problems.



[00:50 - 01:15]
And when you see, you know, it's hard to get thanked for the mistakes you didn't make and Unifize because of this real time collaboration and effective communication, you you actually do see what the accidents you didn't get in. And by Unifize having that, it allows me to change our culture to a culture of quality and continuous improvement.



[01:15 - 01:27]
It's really it's always been hard to put a cost to quality because how do you put a dollar amount to the mistakes you didn't make or pitfalls you avoided?



[01:27 - 01:49]
So the ROI is sort of this intangible number, but it's very real and it's very large. As I said, they use this illustration of quality is just the tip of the iceberg. And then below is this massive what it could cost you. I mean, a food safety incident out in the marketplace on average costs about $10 to $12 million per incident if somebody gets sick off your product.



[01:49 - 02:16]
And that's really the intent behind the regulations and the intent behind having a quality department, not just because the FDA says we must have a quality department. Again, I want to build that. We're here to help and we're part of the whole and we're we're all here to make a better, faster, stronger product. And Unifize has allowed myself, my quality team and us as an organization to change to a culture of quality and continuous improvement.



[02:16 - 02:21]
And how do you put a price or a dollar value to getting better every day?



[02:21 - 02:51]
Unifize’s philosophy approach, approached quality management and more. We're from the place of a realistic understanding that it's all part of the organization, it's all part of the process. It's not standalone, it's not siloed and Unifize does a massively amazing job at preventing and breaking down those silos through collaboration, through visibility, through connectivity, and through being able to answer your question yourself every day.



[02:51 - 02:58]
Unifize is amazing because it grows with you. It solves problems with you as the problems come up. So if a conversation or process doesn't exist, guess what?



[02:58 - 03:15]
You can make it exist right then and there. So it's more than just quality management. It started there for us, but this journey has been amazing because it does so much more now. So and by being by breaking down those silos, but breaking down the walls and the barriers that this is quality job, this is quality function to this is all of our job, all of our function.



[03:16 - 03:39]
Then it expands and expands and expands and it gains its own inertia constantly. And what I mean by that is that every time there's a problem now, people start coming to me and saying, Hey, could Unifize's do this? And that's so unique. I've never seen that before in any company where I have people from maintenance or people from receiving or people from warehouse or various other areas coming to us to quality and saying, Hey, do you think that this could be a solution for us?



[03:39 - 03:44]
And it's so amazing to be able to say, Yeah, it is, let's do it.

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Transcript

But what we've known from what I experience was, is we were able to get there with the system. We still there with the system. The system has what is needed to provide us what we're looking for, because every company, admittedly, is trying to get compliant. If we educate people, if we get people the education that they need and to get over the fear factor, I think 90% of those things can be resolved because most people will go to what they're most familiar with.What I worked with from a different company, but they're not willing to sit down and look at what the demographics are saying. People are into social media now. People are moving fast into fast paced world. But technologies are still antiquated. So there's a disconnect here, right? So while we're moving at a fast pace at home with dragging at work, so why can't we continue that speed while we at work?If your supplier has issues and you're not informed on time, you want to have an alternate supplier in place. If your suppliers are not qualified, you may not know that that needs to happen. And so when you have an integrated system that speaks to itself and is giving you all this data, you literally have the pulse of the organization in your hands as an executive at a money bound access.

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