Value and Performance Generators of Quality Management

The quality endeavors of an organization, like other enterprise activities, must be oriented towards the economic principles. This approach give way to many organization to question the extent to which the quality management contributes for the overall business success and to pin point the areas where particularly a high value can be created in order to attain the maximum possible economic benefits out of QM-Systems. Without including the answer of this question in the decision making process, the resources can not be allocated optimally for the quality purpose. The following illustration depicts how the quality-based activities generate the value to enhance the performance and a variety of indicators reflects how they indirectly add value to an organization and hence contribute to its economic success.