Quality, along with safety and cost control, are cornerstones to successful manufacturing. A successful safety program ensures that people do not get hurt. Achieving spending budgets accomplishes our fiduciary responsibilities. And quality can be defined as meeting or exceeding our customers’ expectations.
What is the cost of quality? Seems like a pretty straightforward question, right? Earlier this year a batch of PONTAMINE Blue SP Liquid failed to meet product specifications; the raw material value was $98,000. For the year, Bushy Park lost 12 batches of dye having an estimated raw material cost of $900,000. Now most of the $900,000 was salvaged when the off-specification material was mixed away. So, perhaps, only $150,000 of raw material …show more content…
Opportunity cost is what you give up in order to get something. So here is my short list of what Bushy Park potentially gave up to make the 12 off-specification batches of dye:
• 1,500 hours of cycle time was lost. 1,500 hours is a less busy work schedule, maybe another day down at Christmas or maybe a Thanksgiving shutdown.
• Laboratory time to test and figure out how to mix-away off-specification dyes was lost. Time that could have been used to develop new products that generate new profits and ensure future Bushy Park production.
• Some of our customers lost their good faith in Bushy Park’s ability to deliver product on time and in full. Customers who may decide to buy from someone else next time.
• Finally, the use of $150,000 to buy new filtration membranes, or press clothes, or any other of a sundry of materials that could have made our lives on the production floor easier was lost.
Like safety, quality can never afford to take a day off. Our livelihoods depend on our ability to meet our customers’ expectations and our customers’ expectations are high. Follow the process(es) as written. If you don’t like the process, challenge it! See something that does not look right, question it! Got a better idea, let’s hear it! Let’s hear that good idea more than once if necessary!
We are all in this together: Let’s make it right the first
What is the cost of quality? Seems like a pretty straightforward question, right? Earlier this year a batch of PONTAMINE Blue SP Liquid failed to meet product specifications; the raw material value was $98,000. For the year, Bushy Park lost 12 batches of dye having an estimated raw material cost of $900,000. Now most of the $900,000 was salvaged when the off-specification material was mixed away. So, perhaps, only $150,000 of raw material …show more content…
Opportunity cost is what you give up in order to get something. So here is my short list of what Bushy Park potentially gave up to make the 12 off-specification batches of dye:
• 1,500 hours of cycle time was lost. 1,500 hours is a less busy work schedule, maybe another day down at Christmas or maybe a Thanksgiving shutdown.
• Laboratory time to test and figure out how to mix-away off-specification dyes was lost. Time that could have been used to develop new products that generate new profits and ensure future Bushy Park production.
• Some of our customers lost their good faith in Bushy Park’s ability to deliver product on time and in full. Customers who may decide to buy from someone else next time.
• Finally, the use of $150,000 to buy new filtration membranes, or press clothes, or any other of a sundry of materials that could have made our lives on the production floor easier was lost.
Like safety, quality can never afford to take a day off. Our livelihoods depend on our ability to meet our customers’ expectations and our customers’ expectations are high. Follow the process(es) as written. If you don’t like the process, challenge it! See something that does not look right, question it! Got a better idea, let’s hear it! Let’s hear that good idea more than once if necessary!
We are all in this together: Let’s make it right the first