Quality Improvements

An Ounce of Prevention

The cost of quality progression goes something like this: It costs $0.01 to design potential defects out of a product, $0.10 to error-proof the manufacturing process, $1 to detect defects during production, $10 to fix those defects and $100 to make up for any defect that makes its way to your now unhappy customer.  Whatever your starting point, the cost of poor quality increases exponentially as defects and service failures get closer to your customer.

Some of the internal indicators of quality problems include high reject rates, scrap, rework, and machine downtime. End-of-line quality metrics include product returns, warranty claims, and customer complaints. Inaccurate invoices, dropped calls, long customer wait times, fail transactions, and system crashes are signs of quality issues in an office and service environment. Every such failure jeopardizes future sales to your customer and to any potential customers to whom they might have recommended your company, your product, or your services.

At TBM we work with discrete manufacturers, continuous process operations, and service providers to address quality problems before costs can balloon out of control.Our proprietary LeanSigma approach can quickly improve your product and service quality and reduce associated costs whether you're a manufacturer or large industrial equipment, a parts supplier, a pharmaceutical producer, a consumer-packaged goods company, or a financial service provider.

LeanSigma: Six Sigma on Steriods

The basic objective of the Six Sigma methodology is to reduce variation to just 3.4 defects per million opportunities by using statistical tools to pinpoint the root causes of quality failures. The problem with too many Six Sigma initiatives is that projects take too long to complete, they don't have meaningful impact on company performance or the customer experience, and the changes don't stick.

To address these shortcomings, our LeanSigma methodology emphasizes speed, results and sustainability in addition to the application of statistical tools to uncover the source of persistent abnormalities. First, we apply lean techniques to stablilize processes and eliminate wasteful, non-value-added activity. Such work naturally brings persistent problems to the surface, which we then attach using Six Sigma variation-reduction tools. Laying such groundwork can dramatically reduce typical project time from upwards of four months to just six to eight weeks.

 

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Before a team begins to measure anything, the success of a LeanSigma project depends on whether it is worth doing in the first place. Is it aligned with the business objectives? Will the savings really go to the bottom line? Will the project substantially improve customer satisfaction? Too many organizations are unwilling to spend time up-front to collect detailed information that could guide project selection.

This is where Lean Value Chain thinking comes in. LeanSigma efforts generate quality improvements across the value chain, starting with the largest opportunities. For example, every discrete part or continuous manufacturing process relies on incoming raw materials and components, which is why clearly defined quality specifications are a must. In addition to improving quality, any attempt to rationalize your supply chain should improve service, responsiveness and delivery reliability for your customers. It's also important to support the efforts of strategic suppliers to utilize lean practices for greater flexibility, reliability and cost.

TBM business consultants have worked with clients around the world to generate breakthrough quality improvements. To find out more about our experience and how we can help your company move forward, contact us at 91.124.437.5995.

For more information about how TBM has helped our clients leverage LeanSigma to transform their quality preformance, check out these quality-related articles and case studies:

Variation Elimination: The Five M's

At TBM Consulting Group we've identified five areas of focus when attempting to reduce variation:

  1. Method variance. Define your best methods based on your top practitioner, and set up a training program so that the best methods can be spread consistently throughout the process.
  2. Work (Man) variance. First establish your priorities: safety, quality, and speed. In that order. Then create standard work and a skills matrix with a clear path from novice to expert.
  3. Machine/tooling variance. Rather than pulling assorted tooling out of a drawer, create a permanent kit or cluster for each setup. Streamline the tools and rebuild your "criminal" dies that consistently cause trouble, stealing all or your time.
  4. Measurement variance. Don't spend too much time measuring. You should only measure what you're trying to improve.
  5. Material variance. If all of the above variances are being managed and improved, problems that can be attributed to defective raw material should be obvious.