15 Sep Manufacturing: Quality Problem
A manufacturing firm was experiencing a failure rate of over 25% on its largest volume product. The direct cost of the failures was estimated at over $500,000 per month. Indirect costs included missed and late customer deliveries.
eMRI sent in a full-time master black belt to lead a Lean Six Sigma team of customer employees. Within a week, a plan had been created and causal factors were under investigation.
Measurement system assessments showed that several measurement systems were not capable and improvements were made. With the improved measurement systems, it was discovered that supplied parts from a key supplier were outside of specification. This fact, interacting with excessive variation in the assembly process, was causing the problem. Within 3 weeks the internal issues were resolved and within 6 weeks the supplier issues were resolved.
$500,000 per month.