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Using the Cost of Quality to Guide Manufacturing Improvements

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Delivering high-quality products and experiences for your customers is usually the top priority for manufacturers.  But how can you improve your operations to deliver better results while reducing costs along the way? Keep reading to explore how leveraging Cost of Quality at your manufacturing business can benefit you and your customers.

What Is Cost of Quality (COQ)?

The cost of quality (COQ) is the sum of all costs incurred in the design, development, manufacture, distribution, and sale of a product that is related to ensuring product conformance. On the other hand, the cost of poor quality (COPQ) is the sum of costs a company incurs to manage and correct failures found in its production processes.

COQ is also a methodology for measuring the amount of an organization’s resources that are used for defect prevention and ensuring product quality against the organization’s cost of failure. Adopting this methodology leads to fewer product defects—therefore also fewer product inspections—and facilitates a problem-prevention mindset throughout the manufacturing organization. Overall, the COQ mentality promotes a unifying culture that centers on reducing costs through improved product quality.

Why Is Knowing the COQ Important?

Knowing the cost of quality at your manufacturing organization is essential to understanding your overall bottom line. Product quality dictates how well your product sells, how loyal your customers will be to your organization, how many times your product is made with defects, and more. From start to finish, your manufacturing business is only as good as the quality of its products!

Let’s look at it from the perspective of these questions:

How much higher would your company’s profitability be if you were able to reduce your rework by just 10%?How different would your manufacturing organization’s profitability be if you were able to reduce price adjustments due to process problems in half?What would your revenue stream look like if you lost one or two big-ticket customers?

Defects are expensive in both obvious and subtle ways; on the surface, e.g. a product might incur additional production, inspection and processing costs due to aesthetic or functional defects, time to replace the parts, and process the RMA for the customer.

But upon deeper investigation, that same product might be costing the manufacturer in largely unseen ways like additional freight costs, administrative processing time, extra inspection, reworking and re-testing the product, and more. These costs might seem subtle or infrequent enough to be ignored at first but can have significant cumulative effects on your manufacturing company.

Four Major Cost Tracking Categories

When determining which costs to track in relation to quality, consider these:

Prevention Costs

These are the costs incurred in order to prevent defects and production failures. This might include the cost associated with quality planning, product specifications, design reviews, employee training, and more. What steps is your manufacturing company taking in order to prevent product defects?

Appraisal Costs

This factor is the cost to evaluate if your product meets established quality standards, such as those from your customer or other regulatory agencies. These costs might include product inspection, product testing labs, auditing process controls, preventative maintenance, supplier development, and more.

Internal Failure Costs

Internal failure costs can be broken down into five components:

Scrap: Defective product or material that can’t be repaired or sold
Waste: Additional paperwork, extra inventory due to poor organization, etc. The cost of reworking, sorting, and retesting products to fix errors
Machine breakdowns
Corrective action costs associated with failure analysis and the investigation of causes of product or process failures

Basically, this category of cost addresses which internal processes are leading to defective products or lessened quality.

External Failure Costs

Unlike internal failure costs, external failures are those that result from poor quality making it into the field such as service and repair costs, warranty claims, shipping damage that affects products, incorrect sales orders, and more.

How KPIs Support the COQ

KPIs (Key Process Indicators) are the essential metrics to help companies determine if they are achieving their goals in “key areas” such as expected process outputs, costs, resources consumed, quality, delivery timeliness, and safety. The measurement must always be expressed over time and compared against a plan or goal in order to maintain consistency and objectivity.

When it comes to addressing the COQ within your manufacturing organization, KPIs that aren’t hitting their goals are your best points of improvement. Measure the success of your efforts to reduce defects, rework, and cycle time in order to see the impact that quality has on your organization. Be sure that your metrics are always in a positive light – for improvement and not punishment—your goal is to use KPIs to develop a culture that is intensely oriented toward cost reduction and process improvement, which benefits everyone involved.

COQ Strategy for Success

The COQ strategy for success is only as impactful on your manufacturing business as the people who are striving to bring it to fruition. The foundational step to success here is to establish improving as an integral part of your business.

Follow this suggested flowchart when creating your own manufacturing company’s COQ strategy:

Flowchart your company’s key processes

Identify weak spots as financial opportunities

Create small teams for each major opportunity

Teams track cost data to highlight project impact from start to finish

Teams meet weekly to work through these opportunities

Teams perform root cause and corrective action analysis

Projects may continue for weeks or even months

Teams report on progress, which is celebrated no matter how small

A problem-solving culture is facilitated at your manufacturing business

Select the next set of projects and repeat!

Leveraging the cost of quality at your manufacturing company in order to improve your operations and bottom line is a great way to strengthen your team and thrive in this competitive market.

CMTC Is Here to Help with Every Step of the Way!

By assessing your COQ, you’re demonstrating a commitment to your customers and your team that you’re always striving for the best quality possible, from start to finish. COQ processes can be impacted by a multitude of factors, and CMTC is here to help every step of the way!

 

By: [email protected] (Gregg Profozich)
Sourced From: www.cmtc.com/blog/using-the-cost-of-quality-to-guide-manufacturing-improvements

 

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7 Essential Traits to Build a Resilient Growth Strategy

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Traits to Build a Resilient Growth

 

7 Essential Traits to Build a Resilient Growth Strategy

In their recent IndustryWeek webinar “The 7 Essential Traits of a Resilient Growth Strategy,” Chris Scafario and Sylvia Wower from the Delaware Valley Industrial Resource Center (DVIRC, part of the Pennsylvania MEP) shared insights from their experience helping companies innovate, market and grow their businesses successfully. Together, Chris and Sylvia have delivered over 900 projects to manufacturers across the country and helped generate over $300 million in value-added impact through market research, lead generation, digital marketing and overall growth planning. Their insights and tips are especially important now and can be adapted by any manufacturer in any industry.

manufacturing-career-opportunities

The definition of 2020 is adversity, and we all have been impacted in ways we never could have imagined a year ago. It’s taken us all by surprise, yet some manufacturers are making the most of this really trying situation – even thriving and growing their business.

While we couldn’t predict all the challenges 2020 has brought, disruption and economic downturn can happen to any company at any time. Disruptions can be intimidating, but companies that put thought and resources into contingency planning and continuous improvement are often in a better position to respond to adversity. Investing in a growth strategy and marketing are important to building resiliency in your firm.

What do resilient companies do differently? Here are seven traits discussed by DVIRC’s Chris and Sylvia.

1. Astute Situational Awareness

Too many companies are oblivious to changes around them while an equal number become frozen because they don’t know how to adapt. Business leaders should be aware, alert and engaged. This means talking to suppliers in the market segments they serve. Constant awareness of what’s coming helps companies avoid being blindsided. The OODA Loop is a tool that can help: observe the current situation, orient yourself to where you want to go, decide on a path and how to handle challenges, and act on the plan to implement your decisions. Planning a growth strategy and driving change takes time and structure. Market analysis, structured product development, and consistent marketing and sales efforts make all the difference!

2. Leverage Organizational Competencies

Why do companies buy from you instead of other suppliers? Your strengths are important, but they shouldn’t be all you think about. Resting on your strengths can be profitable but leads to stagnation. Companies that need to reboot and recapture the spirit of innovation can find a SWOT analysis (strengths, weaknesses, opportunities and threats) helpful. It’s a great tool for sparking a critical dialogue with diverse members of your team. It’s also important to talk to customers and suppliers to get the external perspective. Talking to these folks can instantly clarify opportunities such as problems your firm can solve. A single success such as meeting a customer’s need can transform your company culture and your employees into innovative problem-solvers.

3. A Growth Strategy Should Be as Unique as the Business It Serves

2020 has suddenly left many companies with no customers and nothing for their employees to do. What do you do to keep the business going and keep people employed? The Doblin Model is a tool that helps companies think through the core elements of how they add value. It can enrich existing and new products and makes it easy to spot missing dimensions that will strengthen a product. The Doblin Model can also create insights about your competition. Recognizing core elements and envisioning complementary products and services can help a company diversify … or in 2020, to pivot successfully and pursue an incredibly rapid path to innovation by serving, for example, current needs for personal protective equipment.

4. Take Thoughtful Actions That Are Measured and Managed

Set key performance indicators that keep your company on track and moving forward. SMART goals help you grow by putting you on a path to selling or marketing to carefully identified target audiences. Many smaller manufacturers struggle to put structure around how they target new opportunities. SMART goals help provide a structure and a pathway to lead generation and diversification. Market scouting (more on this later) is key to this – it’s a major effort and relies on structure, goals and transparency with your team.

5. Connecting Individuals With Opportunities

Make connections that lead to growth. Imagine new markets and new audiences and go a step further to identify the individuals that you hold in high regard in those markets. You know your firm can add value, so communicate that to the right people in the markets you like. Build their trust, and you’ll be positioned for success when you’re ready to expand. And don’t forget your current customers. There are frequently opportunities within your existing customer base. Find the time to review your customers and their market segments and then prioritize the path of least resistance toward increased sales!

6. Adapt Quickly to Changing Conditions

This is sort of a cousin to situational awareness. Markets can change quickly. Customers find other suppliers. It happens. Market scouting is a process that helps you face adversity with structure. You take a hypothesis and test it to see if it’s the best way forward. Market scouting involves getting your ideas in front of the people you think will benefit from them, and then tracking data from these interviews to identify opportunities. Basically, you come up with an idea and take it directly to potential end users to see if they would use it. Market scouting is a rapid-fire way to move forward if you think your existing core competencies match the needs of other industries.

7. A Resilient Growth Strategy Energizes the Culture of a Workplace

Companies that succeed have a culture of success. Yes, the saying is true: success breeds success. If people in your organization love what they do, they will do their best. If they see your company is innovative, they’ll be innovative. The path of continuous improvement is contagious, and it makes your company a very desirable place to work. Attracting the best talent means that growth sustains itself. You really can’t overstate the impact an energized workplace has on manufacturing. The role of being resilient doesn’t fall on one person – it’s not just the CEO’s responsibility. Your company’s culture should be one of resilience and problem-solving. With that, tremendous growth can occur.

Traits to Build a Resilient Growth

Where to Start?

Take the first step forward that is most comfortable for your organization. For many companies, that’s simply a customer survey. You can also contact lost customers to see how you can earn their business back and follow up with prospects that didn’t pan out in the past. Manufacturers can often find opportunities instantly by asking customers what’s next and how they can help.

Good times for your business can change on a dime, so don’t be complacent. Start creating a resilient growth strategy for your firm. Review the tools mentioned above and pick one that feels right for your business. Work with your team – from leadership to the shop floor – and your customers throughout the process. Build resiliency and innovation into your company’s culture so if market or customer demand suddenly changes you can adapt and thrive no matter the circumstance.

Remember, you’re not alone in this journey. Let CONNSTEP be your resource to help your company move forward faster.

This article originally appeared on NIST’s Manufacturing Innovation blog and is reprinted with permission.

The post 7 Essential Traits to Build a Resilient Growth Strategy appeared first on CONNSTEP.

Careers @ https://destinyrecruiting.com/sector/manufacturing/

 

By: CONNSTEP Team
Title: 7 Essential Traits to Build a Resilient Growth Strategy
Sourced From: www.connstep.org/business-growth/7-essential-traits-to-build-a-resilient-growth-strategy/
Published Date: Mon, 15 Nov 2021 21:06:54 +0000

7 Essential Traits to Build a Resilient Growth Strategy

 

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Manufacturing

The Symphony of Craftsmanship: Illuminating the Enigmatic World of Assembly Line Jobs

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This article aims to shed light on the intricate world of assembly line jobs. It will explore their evolution, the skill and precision they require, the challenges faced by workers, the impact of technology, and the future prospects of this sector.

Operations Manager in Manufacturing

By adopting an objective and impersonal approach, this academic piece aims to provide an unbiased analysis of assembly line jobs. It appeals to readers who seek information without personal biases.

Through this exploration, readers will gain a deeper understanding of the symphony of craftsmanship that underlies these enigmatic jobs.

The Evolution of Assembly Line Jobs

The evolution of assembly line jobs can be traced back to the early 20th century and has since undergone significant changes in terms of production methods and technological advancements.

Automation’s role in assembly line jobs has been instrumental in increasing efficiency and productivity. By automating repetitive and time-consuming tasks, companies have been able to achieve higher levels of output while reducing the need for manual labor. This has not only led to cost savings but has also allowed for the allocation of resources towards improving working conditions for assembly line workers.

Over the years, efforts have been made to enhance worker safety, reduce physical strain, and provide a more comfortable working environment. These improvements have been essential in promoting worker well-being and ensuring their freedom from hazardous working conditions.

The Skill and Precision Required in Assembly Line Jobs

Skill and precision are essential in assembly line work, demanding meticulous attention to detail and accuracy. The importance of training in assembly line jobs cannot be overstated, as it equips workers with the necessary knowledge and skills to perform their tasks effectively.

Training programs provide workers with a comprehensive understanding of the assembly process, safety protocols, and quality control measures. This enables them to handle complex machinery and tools, ensuring the production of high-quality goods.

Additionally, teamwork plays a crucial role in assembly line jobs. Collaborative efforts among team members foster a sense of unity and enhance productivity. Effective communication and coordination are essential for smooth workflow and minimizing errors.

Challenges Faced by Assembly Line Workers

One of the challenges encountered by workers on assembly lines is the repetitive nature of their tasks. This repetitive nature can often lead to a lack of job satisfaction and a reduced work-life balance.

Assembly line workers may find themselves performing the same task over and over again, which can lead to a sense of monotony and boredom. This lack of variety in their work can contribute to a decrease in job satisfaction, as workers may feel unfulfilled and unchallenged.

Additionally, the demanding nature of assembly line work can also impact work-life balance, as long hours and physically demanding tasks may leave workers with little time or energy for personal activities outside of work. Balancing the demands of their job with their personal life can be a constant struggle for assembly line workers, impacting their overall well-being and sense of freedom.

The Impact of Technology on Assembly Line Jobs

Advancements in technology have significantly impacted the nature of work on assembly lines, transforming the tasks performed and increasing efficiency. The advent of automation has revolutionized the assembly line industry, resulting in a shift from manual labor to machine-driven processes. Automation has the potential to streamline operations, reduce human error, and enhance productivity.

However, this technological progress has also led to job displacement for many assembly line workers. With machines taking over repetitive and monotonous tasks, human involvement in the assembly line has been minimized. While some argue that automation can create new job opportunities in other sectors, the reality is that the rapid pace of technological advancements poses challenges for displaced workers to adapt and acquire new skills.

The impact of technology on assembly line jobs is a complex issue that requires careful consideration of the consequences it has on individuals and the workforce as a whole.

Maintenance Mechanic

The Future of Assembly Line Jobs

The future of work in assembly line industries is a topic that necessitates a careful examination of the potential implications that technological progress may have on employment opportunities and the workforce as a whole.

With the advent of automation, job security has become a concern for many workers in these industries. Technological advancements have the potential to replace human workers with machines, leading to a decrease in job availability.

However, it is important to note that automation also creates new opportunities for retraining and upskilling. As technology evolves, workers can adapt by acquiring new skills and knowledge to remain relevant in the job market.

Therefore, while automation may pose challenges to job security, it also presents the potential for workers to enhance their capabilities and explore new roles within the assembly line industries.

Frequently Asked Questions

Q:  What Are Some of the Most Common Health and Safety Concerns for Assembly Line Workers?

A: Workplace hazards and ergonomic issues are common concerns for assembly line workers. These include exposure to harmful chemicals, repetitive motion injuries, musculoskeletal disorders, and noise pollution, which can have negative impacts on the workers’ health and safety.

Q:  How Do Assembly Line Jobs Contribute to the Overall Economy?

A: Assembly line jobs contribute to the overall economy through their significant economic impact and job creation. These jobs provide employment opportunities for a large number of individuals, thereby increasing productivity and stimulating economic growth.

Q:  Are There Any Specific Training Programs or Educational Requirements for Assembly Line Workers?

A: Training programs and educational requirements for assembly line workers vary depending on the specific industry and job role. Some employers may provide on-the-job training, while others may require a high school diploma or a vocational certificate in a related field.

Q: What Are Some of the Social and Psychological Impacts of Working on an Assembly Line?

A: The social isolation and potential negative effects on mental health are important considerations when examining the impacts of working on an assembly line. These factors can arise from the repetitive nature of the work and limited opportunities for social interaction.

Q: How Do Assembly Line Jobs Compare to Other Types of Manufacturing and Production Roles in Terms of Job Satisfaction?

A: Assembly line jobs, when compared to other manufacturing and production roles, may provide higher levels of job satisfaction due to factors such as increased assembly line efficiency, job stability, and security.

Conclusion

In conclusion, the world of assembly line jobs has undergone significant changes over time. The evolution of these jobs has demanded a high level of skill and precision from workers.

However, assembly line workers also face various challenges in their work environment. The impact of technology has both improved and posed challenges to assembly line jobs.

Looking ahead, the future of assembly line jobs remains uncertain, as technological advancements continue to reshape the industry.

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Streamlining Success: The Impact of Industrial Engineering in Business Operations

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Impact of Industrial Engineering in Business Operations

his article examines the impact of industrial engineering on business operations, focusing on its role in streamlining success.

By analyzing the efficiency and productivity of various business processes, industrial engineering techniques aim to optimize operations.

Furthermore, the integration of industrial engineering principles enhances the quality of products and services, resulting in improved customer satisfaction.

Additionally, industrial engineering contributes to cost reduction and profit improvement by identifying and eliminating inefficiencies.

Understanding these effects will provide valuable insights for businesses seeking to enhance their operational performance.

Impact of Industrial Engineering in Business Operations

The Role of Industrial Engineering in Business Efficiency

The role of industrial engineering in business efficiency is a topic that has garnered significant interest and attention in recent years. Industrial engineering focuses on improving workflow and reducing waste in order to maximize productivity and optimize resource utilization.

By analyzing and redesigning processes, industrial engineers identify areas of inefficiency and implement strategies to streamline operations. This can involve implementing lean manufacturing principles, such as just-in-time production, to reduce inventory levels and minimize waste.

Additionally, industrial engineers may utilize techniques like time and motion studies to identify bottlenecks and eliminate non-value-added activities.

Maximizing Productivity Through Industrial Engineering Techniques

To maximize productivity in a business setting, the implementation of industrial engineering techniques is crucial. Industrial engineering focuses on improving efficiency and process optimization to enhance overall performance. By analyzing and redesigning workflows, identifying bottlenecks, and implementing strategies to eliminate waste, industrial engineering can significantly impact productivity.

Through the use of tools such as time studies, computer simulations, and statistical analysis, industrial engineers can identify inefficiencies and develop solutions to streamline operations. This can involve optimizing production processes, reducing downtime, and improving resource allocation.

Streamlining Processes: How Industrial Engineering Optimizes Business Operations

By analyzing workflows and identifying inefficiencies, industrial engineering techniques can optimize business processes for enhanced efficiency and productivity. Through the application of these techniques, businesses can improve workflow and eliminate waste, leading to increased profitability and customer satisfaction.

Industrial engineers employ various strategies, such as time and motion studies, value stream mapping, and lean manufacturing principles, to identify areas of improvement within a business’s operations. They focus on streamlining processes, reducing unnecessary steps, and eliminating bottlenecks to create a more efficient and streamlined workflow.

Enhancing Quality and Customer Satisfaction With Industrial Engineering

Enhancing quality and customer satisfaction can be achieved through the application of industrial engineering techniques. These techniques aim to optimize processes and eliminate inefficiencies. Industrial engineering focuses on improving performance by analyzing and redesigning workflows to ensure maximum efficiency.

By identifying and eliminating bottlenecks and unnecessary steps, organizations can streamline their operations and deliver higher quality products and services. Process optimization is a key aspect of industrial engineering. It involves analyzing and improving the various stages of a process to enhance overall performance. This can include reducing cycle times, minimizing waste, and improving resource utilization.

Through the implementation of industrial engineering principles, businesses can achieve higher levels of quality and customer satisfaction. This, in turn, leads to increased competitiveness and success in the market.

Cost Reduction and Profit Improvement: The Impact of Industrial Engineering

Cost reduction and profit improvement can be achieved through the implementation of strategies informed by the principles of industrial engineering. Industrial engineering focuses on optimizing processes and eliminating inefficiencies. It places a significant emphasis on process optimization, aiming to enhance productivity, reduce costs, and maximize profitability.

By carefully analyzing and streamlining various business operations, industrial engineering identifies areas of waste and inefficiency and provides solutions to eliminate them. This can involve reorganizing workflows, implementing automation technologies, improving supply chain management, or adopting lean manufacturing principles.

Impact of Industrial Engineering in Business Operations

Frequently Asked Questions

Q: What Is the History of Industrial Engineering and How Has It Evolved Over Time?

A: The history of industrial engineering traces its evolution over time, with key figures playing significant roles. The field has grown, adapting to changing needs and technologies, and continues to contribute to the efficiency and effectiveness of business operations.

Q: Can You Provide Specific Examples of Industries That Have Successfully Implemented Industrial Engineering Techniques?

A: Industries such as healthcare and automotive have successfully implemented industrial engineering techniques. These techniques have helped to streamline processes, reduce waste, improve efficiency, and enhance overall operations in these sectors.

Q: How Does Industrial Engineering Differ From Other Engineering Disciplines, Such as Mechanical or Electrical Engineering?

A: Industrial engineering differs from other engineering disciplines, such as mechanical or electrical engineering, in its focus on process optimization and efficiency. It plays a crucial role in identifying and implementing strategies to streamline operations and improve overall productivity.

Q: What Are Some Common Challenges or Obstacles That Businesses Face When Implementing Industrial Engineering Strategies?

A: Common challenges and obstacles that businesses face when implementing industrial engineering strategies include resistance to change, lack of employee training and buy-in, inadequate resources, and difficulty in measuring the impact of the implemented strategies.

Q: Are There Any Ethical Considerations or Potential Negative Impacts Associated With the Implementation of Industrial Engineering in Business Operations?

A: Ethical considerations and potential negative impacts may arise from the implementation of industrial engineering in business operations. These may include issues of employee well-being, job security, and the potential for dehumanization of work processes.

Conclusion

In conclusion, industrial engineering plays a crucial role in streamlining business operations and maximizing efficiency. By implementing techniques such as process optimization, quality enhancement, and cost reduction, businesses can improve productivity and customer satisfaction while also increasing profitability.

Industrial engineering provides a systematic approach to analyze and improve various aspects of operations, ultimately leading to a more streamlined and successful business. Its impact on business operations cannot be underestimated and is essential for achieving long-term success in today’s competitive market.

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