Final Link

	Scenario #4: On Time Shipments Through Quality & Delivery Performance
	Material costs and product availability can be improved when more precise and complete information on the real problems and causes is available to user departments.

	Situation The VP of Manufacturing is facing falling performance of orders that ship on time. Customers are looking at alternative sources, so corrective action is needed. He discovers that the primary reason for this problem is that a high volume of rework is occurring. The VP meets with various people to pinpoint the cause of the problems, but receives unsubstantiated opinions rather than factual information. Also, there is some finger pointing at vendors and material specifications as well as at the process specifications from engineering. He commissions his Production Control Manager to dig around in the systems for the problems and causes. Meanwhile, the VP holds daily meetings to review every customer order that is in process or pending, and to get reports on progress and problems. This meeting is often quite long, involves most plant managers and supervisors, materials and purchasing and QC supervisor. Everyone has to lose time that could be better spent elsewhere. Three weeks later, the PC Manager reports there is little to add to the initial findings of a lack of clarity and blame on others. There is one report of poor quality at step 2 of the manufacturing process, but not detected until inspection prior to finished goods. Rework of up to 40% of a major product line has been required. An immediate fix is implemented, with 100% inspection at several process steps, and stern warnings to supervisors to increase their vigilance, and operator awareness. Some improvement occurs, but so does an increase in direct labor and supervisory overhead that includes inspection. Because people try to cover the shortfalls with additional quantities there is an increase in material costs and some higher inventory. Summary: Profit erosion to achieve only partially improved quality and deliveries, with lower plant morale. With Final Link Final Link ™ activities are established to record and communicate all product and process quality problems, with causes, as they occur. Depending on the process step, results are collated and analyzed by product, works order and/or customer order number and reason code, with descriptive text to identify the issue accurately. Within three weeks there is an accurate picture of the problems and causes, including material and vendor issues, process improvement needs and engineering specifications. Further, all the plant people feel they are contributing rather than being blamed. All the information is available in Final Link’s central repository to the different departmental managers, who become contributors to a coordinated crash program of corrective measures. The VP of Manufacturing can access all the reported problems, to gain the global perspective and monitor improvement. As and when they occur, problems that impact quality are sent to purchasing, materials planning and the appropriate shop foremen, so they can focus immediately on their areas of responsibility. Even the production scheduler can receive certain messages and be informed of any impacts on downstream operations or need for reissue work orders and replacement material. Final Link facilitates a quickly installed monitor of reliable shop floor and quality information. Immediate corrective action is accelerated and effective, with pointers to the need for longer-term actions such as operator training. Summary: Customer service improved quickly; lower levels of rejects and rework; no impact on costs, and better on time deliveries.


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