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Seeking ideas here!
My boss is making me justify the cost of all money that we spend on the quality system, and my own time, in terms of how it will be cost beneficial to the company.
So, part of my performance review talks about how every 6 months I need to tell the company how much money I will save by cost reduction or cost avoidance in the following six months - which I think is really difficult when it comes to the Quality Management System. I also need to submit a proposal to get some of our internal auditors trained - including a SWOT (strength/weakness/opportunity/threat) analysis, to justify why we should spend the money and how much we will save by doing it.
I feel like saying "If we lose our 9001 certificate, we will lose X% customers and X% sales", but I don't think that answer will be accepted! I know it's not personal (the GFC has hurt us a lot and his role is mainly commercial), but still...
Any ideas how I should tackle this?

My boss is making me justify the cost of all money that we spend on the quality system, and my own time, in terms of how it will be cost beneficial to the company.
So, part of my performance review talks about how every 6 months I need to tell the company how much money I will save by cost reduction or cost avoidance in the following six months - which I think is really difficult when it comes to the Quality Management System. I also need to submit a proposal to get some of our internal auditors trained - including a SWOT (strength/weakness/opportunity/threat) analysis, to justify why we should spend the money and how much we will save by doing it.
I feel like saying "If we lose our 9001 certificate, we will lose X% customers and X% sales", but I don't think that answer will be accepted! I know it's not personal (the GFC has hurt us a lot and his role is mainly commercial), but still...
Any ideas how I should tackle this?

If I may, I would like to suggest reading Juran's Quality Handbook. It is often regarded as The Quality Bible. The book covers CoQ in chapter 8 in detail, including some examples. Basically, there are the cost of good quality and the cost of failure (poor quality). The cost of good quality consists of the cost of prevention actions (, training, Poka Yoke, mistake/error proofing, process controls, QMS audits, etc) and the cost of detection/appraisal (inspection, product audits, control & calibration of equipment, etc). The cost of failure consists of the cost of external failure (failure to meet customers' requirements and lost opportunities for sales revenue) and cost of internal failure (failure to meet customers' requirements and cost of inefficient processes). The idea is to strike the fine balance between the cost of failure and the cost of good quality: in one hand you have small investment in 'good' with big gains (reduction) in failure and in the other hand you have large investment in 'good' with little reduction in failure.
help some.
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