BACK TO BASICS

Best of

JANUA
2009 RY

BY ROBERT PINTAVALLE

Improving a System
Add value by evaluating rework time and internal, external causes
WHEN WE think of nonconforming

by all departments involved in reworking

ity, worker involvement, supplier communi-

material, we think about scrapped and

or dispositioning the nonconformance.

cation and worker morale.

reworked material or products that directly

Rework can be analyzed in two ways: by

cut into a companys bottom line. But a

time or money. To analyze by time, total

involvement and morale are difficult to

closer look shows that a nonconforming

the amount of rework time for the month

put a price tag on, but they can be the larg-

material system can provide a wealth of

and divide it by the total units produced to

est benefits. Workers usually stop ignoring

information.

determine the amount per unit. To analyze

issues that have been causing problems

by dollars, multiply the rework time per

and frustration in normal tasks. When the

unit by the labor cost.

nonconformances that have affected the

Most of this information is already

recorded for companies that use the ISO

The softer benefits of increased worker

workers are addressed, the employees be-

9001:2000 standard or have a similar quality

management system (QMS). The standard

Illustrate the findings

come a valuable part of the system. Soon

requires that nonconforming products be

A 12-month line chart showing these

after including this additional informa-

identified, controlled, (preventing) unin-

rework costs can be presented to manage-

tion and taking action on it, an increase

tended use and (recording) the nature of

ment. Add a line to the chart that repre-

in reported nonconformances may be

the nonconformity and any actions taken.1

sents a three or four-month moving average

observed.

Two pieces of information transform a

to smooth out monthly variation and see

Measures from the nonconforming

system that meets or contains the elements

the general trend in rework costs (see

system are also valuable inputs into the

of an international standard for a QMS into

Online Figure 2). These measures support

management review system. Review of

a dynamic system with additional benefits

Section 8 of the standard: measurement,

rework costs and sources of nonconfor-

that readily support the QMS.

analysis and improvement or similar ele-

mance by senior management creates

ments for measurements in a QMS.

buy-in and focus in these areas. The man-

The first bit of information answers the

To prioritize improvement efforts, cre-

question, Was the nonconformity created

agement review meeting also provides an

in house or by component parts supplied

ate a Pareto chart using rework time or

opportunity for senior leaders to review

from outside the organization? This can be

rework cost analysis for internally caused

not only specific action plans for reducing

recorded in a check box on the nonconform-

nonconformances. A Pareto chart of

nonconformances and rework, but also

ing material form (see Online Figure 1 at

nonconformances from suppliers (external

their progress toward established goals.

www.qualityprogress.com), which separates

cause) can focus supplier communication

Capturing a little more information

products into internal and external causes.

where it is required.

about nonconformances and process re-

Internally caused nonconformances become

A company that implemented this

work can add a lot of value to an organiza-

input for continuous improvement projects.

method saw a 55% reduction in rework

tion that focuses on doing it right the first

Those caused externally can be analyzed to

cost per unit over a 12-month period. The

time. QP

ensure adequate information is provided to

results demonstrated the cost savings of

the supplier or to determine whether correc-

improvement efforts and assisted in the

tive action by the supplier is necessary.

prioritization of future continuous improve-

While more difficult to obtain, the

ment projects.
Benefits of this additional information

second piece of information is equally valuable: rework time caused by the noncon-

include reduced costs, focused problem

formance, which includes the time required

solving, and increased management visibil-

READ MORE ABOUT THE BASICS

Visit www.qualityprogress.com to read more Back to Basics articles on topics

such as root cause analysis, data collection and fishbone diagrams.

REFERENCES
1. ANSI/ISO/ASQ Q9001-2000: Quality Management Systems
Requirements, International Organization for Standardization, 2000.
ROBERT PINTAVALLE is a senior
process engineer with Watson
Pharmaceuticals in Fort Lauderdale,
FL. He earned his masters degree in
mechanical engineering from Union
College in Schenectady, NY. Pintavalle
is an ASQ-certified Six Sigma Black
Belt, quality engineer, manager of
quality/organizational excellence and quality auditor. He is a
senior member of ASQ.

January 2016 QP 29