Every Decision has a cost.
This is the third and final part of our series Counting the Cost of Quality. In Part One, we discussed The Cost of Action, those decisions that are made on the basis of acting on information that has been provided. In Part Two, The Cost of Inaction covers the implications of not acting. Part Three will cover the Benefits.
As a company with a bias towards action, we consider the benefits of action far surpass the benefits of not acting. But acting after thoughtful analysis of the decision being considered. We acknowledge that any decision even a decision to act, carries some risk. Decision paralysis can take hold when the fear of making a decision is greater than not acting, part of the reason the cost of inaction can be high. We can consider as many variables as possible but there will never be enough information to completely mitigate risk from a decision.
So to consider the benefits of making a decision to act, let’s use an example of acquiring a Crimp Cross Section Lab to enhance your company’s quality process validation and monitoring capability. You have considered the upfront cost which includes the actual cost of acquisition, employee training and integration of this system into the company infrastructure. Consider the benefits which can apply to this decision:
Internally, individual employees directly involved with the new acquisition will be happy to see the company has provided new tools to help in their day to day work. As a collective, employees feel a higher sense of security that the company is investing in the company’s future.
As a company, new tools that are used can improve the overall quality of output. In the case of quality validation like our example, this provides a measurement tool to track the quality of output. Any tool to measure progress is critical (and may I say essential) to a company’s survival never mind growth.
Externally, existing customers will have a higher chance to keep existing business with your company when they see investment in infrastructure. Investments that can benefit them. And provide new opportunities to grow the business relationship through added contracts as they come up.
Potential customers will be more driven to work with you as they see investment in new infrastructure. In some cases, new processing or validating tools (like Cross Section Analysis as described) are minimum gateways to a business relationship even starting. For others, they will see your company set apart from your competition as internal investment in hard processing systems (capital) and training (human resources) are made. Where the investment is emerging and state of the art, you separate yourself from others who have not advanced as far as your company has.
These are just a few benefits to making the investment to improve quality. I am sure there are other direct and indirect benefits not mentioned.
This series was created to illustrate the opposing sides of a decision, to act on a decision or to stay the course (which in and off itself is a decision). You may not be in a position to be part of the decision making process of the company you are currently employed with. But regardless, you will be affected by any decision (or non decision) made.
In a perfect world all companies will err on the side of action and see the positive aspects of acting to improve the company. But some will stay the course and not act. And may not see any difference in the short term. The same with an action decision, there may not be a positive result in the short term. But the difference will lie in the long term implications. And if I were to consider the long term survival prospects of any company, the bias toward making positive action on decisions would make me more confident in that company’s future. Certainly that is the goal for our company.
WireProcess Specialties has many decades of experience in processing and validating technology for wire processing. We are here to help in making the right decision. Connect Your Way to start the dialog.