06 May Supply Chain Quality Improvements
Client:
A furniture manufacturer was experiencing high levels of defective incoming product across the supply chain. Defective product was negatively affecting both cost and ability to make customer delivery dates.
Goal:
Reduce defective incoming parts by 80% for all supplied parts.
Results:
eMRI worked with the client to implement a system to accurately track incoming defects by amount, type, and supplier. Problem suppliers and parts were correctly prioritized and improvement activities identified. A system to retain and return all defective parts at the supplier’s cost was designed and implemented. Defective parts dropped by over 50% within 30 days and by over 80% within 6 months.
Savings:
$373,000 per year.
