The Impact of Poor Quality on Organizations as shown by Boeing – Qooling

Boeing is facing big challenges these days. You bring a new product to the market and suddenly this seems to be the cause of several flight accidents. Since then, all the airplanes are grounded and the impact is huge, not only for Boeing, but also for the airlines.

This example clearly shows what a tremendous impact, a lack of quality can have on an organization. This can range from inefficiencies to lower customer satisfaction and even plain legal issues. As well as how important it is to invest in good quality control to prevent issues from happening. Hence, we use this article to highlight three possible effects, on how poor quality can affect your organization. 

Influencing Customer Satisfaction

Poor-quality products and services can have a significant impact on customer satisfaction. Such products and services cause a business to lose customers faster than they can gain new ones. In Boeing’s case, the crash will result in lower customer satisfaction because many countries around the world, have banned the 737 MAX from their airspace. The airlines aren’t allowed to use these plains anymore which will have some serious financial impact. Boeing’s product failed to meet customer expectations, which harms the company and the brand. Therefore, losing potentially business and revenue. 

Impact on Company’s Profitability

Poor quality can have a significant impact on a company’s profitability. This could be a lack of quality in human, physical, financial or knowledge factors that are needed to perform business processes. Boeing for example, delivered a product that was not up to mark, which will lead to significant costs. All the errors needs to be fixed, this leads to unbillable hours and delivering free components. These recalls have significant impact on the brand on the long term and on the profitability in the short term. An efficient and high-quality QMS platform can help prevent this in the future. Patterns can be analyzed and errors can be reduced.

Also all the financial litigations after the fact will have some serious impact on the bottomline of Boeing. There will be legal cases by airlines due to diminished revenue potential. The costs for this problem will be very high.

Causing Problems with Productivity

Poor quality costs a company a significant amount of money in terms of productivity problems. If quality is not a proactive measure, employees will spend their time on inefficient process and fixing incidents on a regular basis. It is crucial to find out which processes are inefficient and how to improve them. A correctly implemented QMS platform enables quality managers to access real-time productivity information, in terms of errors or incidents. With this information you can look for smarter, more efficient processes to get to the same goal and boosts productivity.

The solution

Investing in proper quality control is key to reduce poor quality. An effective QMS platform can help you to collect data and perform analyzes. Therefore, increasing the quality of your products and services over the long term. Ultimately, the cost of working with an ineffective system are exponentially higher than the cost of working with a proper quality management platform. Now let’s take a closer look at the benefits of a good quality management platform.