| Return On Quality
( ROQ) |
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There have been false starts and difficulties in the quality and management
revolution that has been going on in the United States since approximately
1980 and for a much longer period of time in other countries, such as Japan
since 1950. In the TQM Fallacy below we will discuss some of these problems. |
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One problem is that when any investment is made one must consider, according
to the first three QPI Principles, the global effects of the investment.
One also must recognize that any organization has finite resources. |
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It therefore becomes imperative before any resources are invested in a
specific quality improvement program that a return on the investment
should be estimated in terms of its global effect on the organization and
also in comparison to other possible applications of those limited resources.
QPI Principle Number Four emphasizes this fact. |
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A recent article in Business Week Magazine engaged in a discussion
of the whole concept of ROQ as if this was actually a new idea. It is my
belief that those companies that have discovered a QPI type of management
system, however they may have discovered it, have always practiced ROQ. |
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Certainly when any decision that is made takes into account the global
effects on all of the stakeholders, it must go through an ROQ analysis.
QPI Principle Four recognizes that and encourages it. |
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It is not appropriate to invest money in improving a specific process,
service, or product if the return on the investment is less than it would
be if those resources were invested in other activities. |
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