In recent days I have been struggling with a question. Does an NRMCA QMS Certification really offer as much benefit to the local and regional producers as it does to National and Multi-national groups? Or in other words, why should you invest any time, money or resources on a certification that only the big players can afford to secure? Where is the return for my company?

Unanticipated Expense or Loss

For any size producer unanticipated expenses or a direct loss impact the bottom line. But as the size of the organization gets smaller, the negative impact of each expense or loss gets larger. The greatest percentage of these unanticipated costs/losses are created either by or during the production, delivery or QC/QA segments of the process. In virtually every instance, some activity or action occurred with loose control of the process or perhaps it was a procedure that worked mostly but was only as effective as the training and capability of the person in control.

The Direct Benefits of QM

• Reduction in cost per CY
• Reduced losses  due to warranty expense
• More consistent performance by production, delivery and quality control
• Higher product quality and performance consistency overall
• Greater customer confidence

The Indirect Benefits

Any producer can develop a QMS that results in an NRMCA certification. The first benefit is it is tailored to the individual producer and their specific environment it reflects you and builds ownership by every team member through direct input as the system is developed. Secondly, it provides the team with a consistent process to follow regardless of the demands on the organization. Third, opportunities for identifying problems before they become added costs or lead to losses including clear processes for addressing those that do occur.

Purpose

A recent article written by John McManus and published on Builder Pulse Online/Hanley Wood focused on purpose. In part he writes “who are we?” and “who do we want to be?” To further make his point as to why these questions should be important to any company, he referenced the following quote taken from Black Rock CEO Larry Finks annual letter to CEOs which reads in part:

“To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society. Companies must benefit all of their stakeholders, including shareholders, employees, customers, and the communities in which they operate. Without a sense of purpose, no company, either public or private, can achieve its full potential. It will ultimately lose the license to operate from key stakeholders. It will succumb to short-term pressures to distribute earnings, and, in the process, sacrifice investments in employee development, innovation, and capital expenditures that are necessary for long-term growth. It will remain exposed to activist campaigns that articulate a clearer goal, even if that goal serves only the shortest and narrowest of objectives.”
(Larry Fink Annual Letter to CEOs 2018)

QMS Has Value Beyond the Bottom Line

There is definite calculable benefit to developing and certifying a QM system for any size producer. But the greater long-term benefit may well be that it defines the group internally and externally by stating clearly and with every load produced and delivered… This is our PURPOSE