Manufacturing

“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:

Recalls
Warranties
Complaints
Returns
Repairs
Long-term customer dissatisfaction
Brand damage
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