From the Editor: Money Matters

After a couple of dismal years, quality spending is expected to increase in 2011 to $2.6 billion, according to Quality Magazine’s Annual Spending Survey.



Have you heard the news? After a couple of dismal years, quality spending is expected to increase in 2011 to $2.6 billion, according to Quality Magazine’s Annual Spending Survey. (Turn to pg. 22 to read the full article.) While it’s a slow growth-about an 8% increase from this year’s numbers-it is a step in the right direction.

As was the case for 2010 spending, the principal motive behind quality investments in the upcoming year is to improve productivity, according to 60% of the respondents. Clearly the industry will continue to do more work with smaller staffs.

For a majority of the companies (52%) spending on quality equipment, systems, software and services will remain the same in the upcoming year. For another 36%, spending will increase, and 12% of respondents will see a decrease.

While companies are out to make a profit, there are a few areas where management needs to take a closer look at spending-or lack thereof.

“One area where spending is not increasing is in the quality assurance inspection of product,” says William H. Murray Jr., quality assurance manager at Bauer Compressors Inc. (Norfolk, VA). “Although the workload has increased and more product is being processed, the need to increase staff to meet this demand is not considered. Currently staffing is increasing in the production and engineering areas, but the quality area is bare bones. Downsizing over the past years has hit QA first and we will increase staff last. Management doesn’t see the need to increase yet, but when it does, the training cycle will still be needed, and product that will have to ship will not ship in a timely manner or help improve on-time delivery.”

And it’s not just in terms of people where spending needs to be increased; one reader said he needs more money for quality inspection equipment. While $2.1 billion is allocated for test, measurement and inspection equipment, that’s clearly not enough for many companies.

Industry standards are cause for concern and another area where a few readers suggested more money needs to be thrown. Forty-two percent of survey respondents indicated that one of the primary motives behind quality investments is to adhere to tighter part quality standards. This is an increase of 9% from just a year ago and a 12% increase from four years ago.

‘Tis the holiday season and the season of giving. Where would you like to see management increase spending in the upcoming year? Send along your wish list to at campbellg@bnpmedia.com, or share with other members of the Quality community at the Quality Magazine LinkedIn Group page at Quality Magazine LinkedIn Group page, the the Quality Facebook page and on Twitter .

Did you enjoy this article? Click here to subscribe to Quality Magazine. 

Gillian is Editor for Quality magazine. You can reach her at campbellg@bnpmedia.com

Recent Articles by Gillian Campbell

You must login or register in order to post a comment.

Multimedia

Videos

Podcasts

Bill Arbogast explains his perspective on quality, ISO 9001, and how to manage inevitable business changes.


Read: The 2013 Quality Professional of the Year

 
More Podcasts

THE MAGAZINE

Quality Magazine

magazine quality cover 2013 may audits

2013 May

Check out the May 2013 edition of Quality Magazine for features about Measurement, Software and Test & Inspection.
Table Of Contents Subscribe

Plant of the Year

Which is the most important factor in considering a Quality plant of the Year?
View Results Poll Archive

THE QUALITY MAGAZINE STORE

M:\General Shared\__AEC Store Katie Z\AEC Store\Images\Quality\prac-field-guide-for-iso.gif
A Practical Field Guide for ISO 9001:2008

The purpose of this field guide is to assist organizations, step by step, in implementing a quality management system (QMS) in conformance with ISO 9001:2008, whether from scratch or by transitioning from ISO 9001:2000. It examines each sub-clause of Sections 4–8 of ISO 9001:2008, which contain the requirements, and gives a list of the documentation/documents required, internal audit questions, a summary of management’s responsibilities, and a flowchart of the steps that need to be undertaken to satisfy the requirements.

More Products

Clear Seas Research

qcast_ClearSeas_logo.gifWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

eNewsletters

STAY CONNECTED

facebook_40.png twitter_40px.png  youtube_40px.pnglinkedin_40px.png