“Where there is no standard, there can be no improvement. For these reasons, standards are the basis for both maintenance and improvement.” Masaaki Imai
How can business management systems help your business?
You can demonstrate to your customer that your operational capacity can fulfil the orders promised by your sales team.
Your manufacturing process will deliver a consistent product as your documentation will capture the process and the information will be readily available, so you are not reliant on individual skills and knowledge.
Your defects will be reduced as the errors can be identified, root cause and corrective action put into place and the system can be updated to prevent re-occurrence in the future.
You can obtain new business as you can demonstrate to potential customers that your processes are in control, therefore you can maintain quality and costs
You can gather data about your business in order to make evidence-based change to your business which will remove the guesswork of where your operational weak points and frailties are located
You can improve your business through continuous improvement in order to make it efficient and effective, which will save you time and money
You can provide customer satisfaction by meeting the customer’s specifications and requirements as well as delivering on time in full
How can Continuous improvement help your business?
You can extend the life of your machines and equipment
Your quality will improve through a cleaner environment
You can improve safety and ergonomics
You can increase productivity
You can free up space
You can create a culture of problem-solving
You can reduce your costs
How much is your Cost of Quality?
The following can affect the cost of quality:
Excess scrap and waste material created by inefficient manufacturing processes
Rework on defective or damaged products before they ship to market
Retesting and analysing processes and procedures to determine the point of failure.
If poor Quality is not caught before products or services reach the end customers, the external costs can include:
Long-term customer dissatisfaction
Decreased customer lifetime value.
Studies across manufacturing sectors show that the percentage cost is as follows:
Cost of external failures = 10% – 15%
Cost of internal failures = 10% -12%
Cost of appraisal = 4% - 6%
Cost of prevention = 1%
COQ = Prevention + Appraisal + Failure