Supplier Sees 53% Reduction in Out-of-Spec Orders Case Study

The goal of perfection is a challenge. It is often viewed as an expensive process requiring large investments. Yet one company has realized a 53% reduction in orders that have to be set aside for additional Quality Control checks. How did they do it? They used communication techniques - not capital outlay!

The secret to there success revolved around team skills and communication. The company's Production Manager formed a focus group to discuss comprised of members from each department that was affected in some way by the rejects. Using a proven "problem identification" process, the production manager was able to facilitate a brain-storming session separating symptoms from root causes. The team was quickly able to identify the main reason for the rejections.

"Using this process lead us very quickly to a cause that we never would have even thought of otherwise," the Production Manager stated.

Parts were being rejected due to what Union members saw as an insignificant variation in the specifications. They did not understand managements was rejecting the part because of one or two degree differential in the temperature during one phase of production. Union members had grown to view the rejections as a management scheme to pick on shifts or individuals. Management knew the impact of the temperature on the finished product and the ultimate reliability of the part in the final product.

As the Quality Control Manager pointed out, "We had been working on what we thought the problem was for quite some time. We were addressing symptoms and never even got close to the root cause."

The success came after a Team Skills program was presented by Rochester Hills based Max Impact. During the program members of management learned through vivid examples and experiential learning how to use individual talents to generate synergy as a team." We learned how to work together in a way that will have long-term rewards," according to the company's President.

"Using the team problem solving model we learned in the Team Skills program, and the tools we received from the program, we saw the rejection issue in a different light," added the Production Manager said, "The problem has been haunting us a long time and was getting worse. With just three meetings we were able to reverse the trend dramatically."

Although pleased with this success, the company's President says, "it is exciting to know that we can use this same process to handle even more problems." He has his eyes on nearly a quarter million dollar savings he hopes to see within the next six months. "As good a success as it was, it is more rewarding to see that my manager now truly believe that things don't have to be the way they always have been. They know that even though we were good, we can do even better."

If you would like more information about the problem identification system used in this success, contact Max Impact at 248-802-6138 or via email: info@getmaximpact.com.

Rick Weaver is President of Max Impact, a national leadership and organization development company based in Rochester Hills, Michigan. Rick is an accomplished business executive with experience in retail, market analysis, supply chain and project management, team building, and process improvement. He has worked with hundreds of companies to improve sales, processes, and bottom-line results. MaxImpact offers leadership and organizational development services along with employee assessments and background checks. Contact Rick at 248-802-6138 or via email, rick@getmaximpact.com. MaxImpact is on the web at http://www.getmaximpact.com

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