Business results and reliability connect in many ways

Reliability – or the lack thereof – is often associated with cost of non-quality (CoNQ).
In our view, Reliability has a more profound impact on your business results than merely avoiding CoNQ!

In the diagram, reading from right to left, one can see the driving factors for each of the elements in a box.
Starting on the right hand side, Results are driven by Revenue and by Cost.

In turn, Revenue is driven by (please note this list is not exhaustive!):

  • First to volume: the ability to bring an innovation to market in volume faster than one’s competitors.
  • Sales Effectiveness: the ability of your sales force to sell a superior value proposition.
  • Brand image: Premium brands create trust and have a positive influence on decision makers, especially for non-commodity products & services.

It is worth noting that several drivers actually drive each other as well:

  • First to volume, or bringing meaningful & reliable innovations to market first, positively influences your Brand Image and possibly allows a better gross margin through premium pricing
  • Better integral margin gives a better competitive position during contract negotiations, hence driving revenues (in both contract number & value).

The same logic also applies for Cost at the bottom of the diagram (orange). A non-exhaustive list of driving factors is:

  • BoM : substantial cost is determined in the design of the product
  • CoNQ: costs related to quality issues emerging late in the process: during manufacturing or, worse, ‘in the field’

The ‘Reliability’ Connection

On the left hand side of the diagram, (blue boxes) we added our Reliability Solutions and the 4 principal benefits:

  • Shorter Time to Market
  • Improved system reliability
  • Improved process reliability
  • Supplier control

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