What is the cost of poor quality?
When we think of quality do we consider just the end product or the quality of each step in the process?
Poor process or product quality can lead to a number of corrections needing to be done which cost in wasted time, material and resources. An apparent simple matter such as the wrong paperwork or incorrect data entry can delay the process and cause frustration which can lead to further “mistakes”.
The cost of rectification can be surprisingly high if you add up the resources required to fix the problem. These problems if passed onto the customer as delayed shipments or faulty products can cause the biggest cost of all which is loss of trust and potential loss of future orders.
With our SER® consultations, we have found it is imperative to ensure all the information is gathered and corrections are made from the point of ordering raw material to delivering products to our customers. Once the information is captured, actions are put into place to ensure that the cause of the corrections are prevented from recurring. We attempt to provide this through our key findings section of our SER® consultation.
Implementing processes to identify quality related issues to prevent them from being continued is the key to the long-term success of any manufacturing business. If your employees are empowered and encouraged to stop the production line when a quality problem is identified, your products will naturally improve and your customers will appreciate your work.
We have found, our customers pursue the SER® as a vehicle to look at their business in a different way to make some small changes to reap big rewards. The Steel Efficiency Review® aims to provide recommendations to support our customer’s business and at the same time improve our product and service offer.
To register for the Steel Efficiency Review® click here.