There have been numerous research reports that establish the benefits of implementing an SPC solution. While we can recite numerous examples of reducing scrap, rework, and downtime as well as increased productivity; are any of these the vital quality metric the “C” level is monitoring?
The Fastco Success Story
For Fastco, its Cost of Poor Quality (CoPQ) as a percent of sales metric is the most important quality measure. For ten years they met their goal. For a couple years, they did not. Dissatisfied with the results, the owner of the company brought in new management, purchased our software, and for the last 2 consecutive years, they have not only met the previous CoPQ as a % of sales but also lowered the CoPQ each year.
Obviously, the owner of this company knew the value of quality. How do you define quality at your company? Every company at the executive level has a quality metric that they monitor. I have heard terms like Return on Investment (ROI) but more specifically, Overall Equipment Effectiveness (OEE), Parts per Million (PPM), and now Cost of Poor Quality (CoPQ) as a % of sales, etc. How can we, as Quality Managers engage with executive management in terms they understand?
Here are some executive quality metrics from our existing customers:
PPM (Parts Per Million)
“Using the data from Synergy and a lot of hard work, we have been able to reduce our PPM from 50 to 10. Synergy highlights for me what I need to do next. It shows me where the process is out-of-control, so we can address it,” said Dan Corrigan of Halla Climate Control Canada.
Customer Defects to Zero
“Implementing Synergy, along with a lot of hard work, has reduced our defects to our customers to zero, whether it be the Navy, the Army, the Coast Guard, the Yacht industry, and others,” remarked Bob Batsche of Carlisle & Finch Co.
Trident Precision Manufacturing was a recipient of the Malcolm Baldrige National Quality Award in 1996. “We are a house that consistently performs at a 5 Sigma Level or better,” said April Lusk. “Since implementing Synergy we’ve been
able to maintain that and reduce internal rejects in the process.”
What is the quality metric that your executive management uses to drive your business? Schedule a Quality Assessment today!