ROI of Automated Quality Management: Calculating the Value

AQM is an advanced tool employed by organizations today in an effort to ensure the delivery of high quality services. It encompasses the employment of applications that observe and improve the quality of the work processes without the need for a human touch. AQM systems are supposed to eliminate human influence and enhance productivity through regular implementation of quality control procedures in manufacturing lines or service provision jobs.

AQM is not just for identifying errors; it is about stopping them. Through this kind of control, companies are assured that all their products and services are of high quality before they are sold to the customers. This proactive approach helps in saving time and costs which may otherwise be used to perform manual quality checks.

The Costs Associated with Automated Quality Management (AQM)

There are some costs associated with implementing an automated quality management system. These are costs such as the cost of the software, the cost of the hardware on which the software will be installed and cost incurred in training employees on how to use the system. The initial cost of establishing the program may appear high, but the ROI is often very good.

Advantages of Automated Quality Management

The first advantage of AQM is an increase in operational efficiency. Reducing paperwork through such automated checks ensures that employees are saved time, which they can use to attend to other pressing issues. Moreover, AQM minimizes errors and hence, lessens the chances of rework or even product recalls which may be very costly and damaging to the reputation and profitability of a firm.

Another major advantage is that it allows for compliance with the established regulatory requirements. In many industries, standards of quality are very high and if these are not met, it can lead to fines or even legal problems. By preventing compliance problems, AQM systems also prevent possible monetary fines.

Read also: Unlocking ROI: How SEO Companies in Dubai Maximize Your Investment

ROI of Automated Quality Management: A Step by Step guide

ROI =       Net Benefits−Cost of Investment     x 100
Cost of Investment

​Net Benefits refer to the total benefit in terms of improved sales due to use of quality products, reduction in costs as a result of minimal errors and other benefits accrued from use of the system.

Cost of Investment covers all the expenditures incurred in procuring and putting the AQM system into use.

For example, if a company spends $100,000 on a new AQM system and saves $150,000 in avoided rework, waste reduction, and compliance fines, the ROI would be:

ROI =       $150,000−$100,000     x 100  = 50%

This means that the investment in AQM was beneficial as it yielded 50% on the investment.


Huge returns on investment are possible with Automated Quality Management systems. Sometimes the costs of implementing these systems are relatively high, but the benefits of increased efficiency, less errors, and compliance with the law justify the costs in the long run. Organizations that are planning to implement AQM have to understand that the systems are very useful. They should consider the short term and long term consequences when considering these systems.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button