This article is (#4) the FOURTH and final part in a 4-part series:
The 1st Article: Continuous Improvement for Cable/Harness assembly.
The 2nd Article: Divide and Conquer your BAD Cables/Harnesses
The 3rd Article: Getting Quality Right the First Time
The 4th Article: Measuring Success: Why Put a Dollar figure on Quality Improvement?
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Why Put a Dollar figure on Quality Improvement?
Step 5: Measuring the results to confirm Dollar Impact.
Your First Pass or other yield metric provides great "before and after" data. Why measure impact on results?
- To confirm that you have a working solution. Sometimes there is a hitch yet to be resolved. Checking can lead to discovery of something that is not yet right.
- To improve your project estimating skills. You may discover a saving or a cost that needs to be used in the future.
- Possible pilot of a project before full scale roll out. Setting up one workstation and verifying the results can keep you from duplicating a money-losing project.
- To gain credibility by demonstrating, not just projecting, savings. It will be easier to get funding next time around.
Remember our 5 steps:
- Measure First Pass Yield or some kind of errors per X opportunities
- Treat mystery defects as "Gold"
- Evaluate causes
- Take action. Consider all the options and estimate the impact. Keep asking, "How can we make sure we do it right the first time?"
- Measure the Results of the change. We need feedback on our projects, just like feedback for operators.
- Bonus Step: The Japanese lean call it Yokoten: "To share best practice across your organization." Are there other production stations, lines, or divisions that would benefit from such improvements? Also remember that you can impress customers with your focus on "Best Practices" that explain why your quality is exceptional and your costs can be low.
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Request your copy of the ROI Speadsheet!