TABLE OF CONTENTS The return on investment (ROI) methodology for ISO 9001 is a procedure to measure, quantify, and analyze its economic value. ISO 9001 is a set of requirements for quality management systems which must be met by firms within the European Union. ROI is the amount of money gained, returned, or earned above the resources spent on ISO 9001. Its ROI methodology is a six-part process that consists of estimating costs, benefits, benefit/cost ratio (B/CR), ROI%, net present value (NPV), and breakeven point. The ROI methodology for ISO 9001 has unique elements for estimating costs, benefits, and B/CR. Its cost and benefit methodologies are complex, although its B/CR, ROI%, NPV, and breakeven point methodologies are simple. Key elements include the process and total life cycle cost models, which are used to estimate the costs and benefits of using ISO 9001. (Much of the data are in the form of opinion surveys, and data are difficult to find.) Figure 53 illustrates the ROI methodology for ISO 9001.
The cost methodology for ISO 9001 is a procedure to measure, quantify, and analyze the amount of money spent. ISO 9001 incurs cost to develop processes, resulting in higher productivity and lower maintenance. Cost is the economic consequence of using ISO 9001 to create a new and improved software process. Its cost methodology is a seven-part process that consists of estimating process, product, preparation, audit, software, test, and maintenance costs. The cost methodology...
