06 May Supply Chain Quality Improvements
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.
Reduce defective incoming parts by 80% for all supplied parts.
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.
$373,000 per year.