Tag Archives: Waste

Step One for Process Improvement? Eliminate the Process

The first step in process improvement should always be asking the question, “Do we need to do this process at all?” When many companies start a process improvement initiative, often the first thing they do is either conduct a Kaizen event, or flow chart the process, looking for waste to help target the improvements. This can result in a great deal of time and expense being spent improving something that you shouldn’t even be doing in the first place.

Eliminating the Rework Cell

One of the best examples in industry is the rework cell. Many companies have a special work center at the end of the production line whose sole purpose is to correct problems caused during the production process. I have seen companies spend many hours trying to make that work center more efficient by eliminating waste. The problem is – the whole work center is a waste! It reflects poor process throughout the rest of the production line. The goal should be to eliminate the rework cell rather than improve it.

Focus first on whether the process should be eliminated entirely. Once that decision has been made, then you can focus on improvement.

© 2012 – Rick Pay – All Rights Reserved

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Avoiding Obsolete Inventory

Industry Week just published an article I wrote in their June 2010 issue – Avoiding Obsolete Inventory – Possession is 9/10ths of the Problem. In the article, I mention that many executives are unwilling to admit that obsolete inventory even exists.  Why is that?  Can’t they see the damage it does to the company in terms of locked up working capital, warehouse costs, and just as important, morale?  Yes, morale!  The employees see the damage that obsolete inventory does.  It gets in the way, often has to be moved several times, and must be counted every time a physical inventory is taken.  The employees know that it exists because of decisions made by purchasing, sales or perhaps the CEO/owner himself believing that big sales were going to occur that never materialized.  The obsolete inventory is the red flag waving in their faces that bad decisions were made that now are costing the company money and the employee’s aggravation.  Management needs to step up and get rid of it.  Sell it at reduced prices, return it to suppliers, redeploy it to other parts of the company, donate it, give it away or throw it away.  The cost of holding it can accrue at 2 – 3 % per month and the morale impact is un-measureable.

© 2010 – Rick Pay – All Rights Reserved

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Does Quality Need A Department?

A senior sales and marketing manager was very concerned that his company had eliminated the Quality Department. There had been a personnel issue and the Quality Manager left the company. As a result, the company decided to have the Quality team report through Manufacturing Engineering. The sales manager was concerned that this would jeopardize the company’s ISO certification and possibly the quality of outgoing products.

Does the company need to have a Quality Department? Does it need to report to the President to be “independent”? The answer is no.

ISO, Shingo, and the other quality certifying standards do not require a quality department or even separate quality personnel. What they do require is that you have a quality policy, a system for quality and that it works. Working means that there is a means to measure quality of products, usually specified in drawings or processes, that people are trained in the quality system, and that it produces the expected result.

I have seen many companies with very effective quality systems that do not have Quality Departments. One could argue that the department is an unnecessary bureaucracy that is in itself a waste. Quality is everyone’s job. Just say what you do and do what you say.

© 2010 – Rick Pay – All Rights Reserved

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Filed under Quality