8 Key Strategies that

Reduce the Cost of Poor

Quality
Presented by:

Kevin King, Manufacturing Technology Director

NTMA

Christine Hansen, Product Marketing Manager

Epicor Software

Agenda
• About Epicor

• Industry Study of Quality Concerns and Strategies

• 8 Key Strategies that Reduce the Cost of Poor Quality

• Technology Trends to Support Strategies

• Questions

8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

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8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

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8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

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 Industry Focus
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8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

Industry Study of Quality

Concerns and Strategies

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Quality Cost and Customer Satisfaction

8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

Strategic Actions

8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

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 8 Key Strategies that Reduce
the Cost of Poor Quality

8 Key Strategies that Reduce the Cost of

Poor Quality
• Improved visibility of quality by product
Product and • Improved visibility of quality by process
process traceability • Shorter audits and more successful

Non-conformance • Measurement of number of non conformances

and corrective • Reason analysis
action • Reduce repeated corrective actions

Preventative • Less equipment failures

Maintenance • Reduced quality issues due to faulty equipment

Stronger • Accuracy in engineering changes

engineering change • Reduced risk in making the wrong product
management • Workflow that supports USE AS IS

8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

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8 Key Strategies that Reduce the Cost of
Poor Quality (Cont.)
Customer complaint • Standardized escalation workflow improves customer
and returns satisfaction
• Quality events get to engineering / production faster
management

• Ensures employees have the right skill for the process

Employee training • Speeds audits and improves success
management • Reduces employee related non conformances

Management of • Improves communication with suppliers

supplier quality • Reduces quality “gotchas”

Management of • Always ship with the right documentation.

electronic • Easier audits
• Speed information to the plant floor, improving accuracy
documentation

8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

Technology Trends to Support

Strategies

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End-to-End ERP with Quality in Mind

Customer Returns and Helpdesk Workflow

• Track customer cases
– issue / resolution
• Procedural workflow
– Escalation
– Return request
• Link to returns
• Returns management
integrated with receiving,
finance
8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

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Non Conformances Communicated from
the Shop Floor.
• Operators
communicate
problems as they
happen
• Reason codes
available for analysis
• Inspector workbench
available to inspect
non conformance and
accept / reject

8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

Inspection Plans and Test Results

• Inspection/Test Plans
– Incoming material
– In process
– First article
• Calibration Plans
• Available from shop
floor
• Results available for
analysis
8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

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Maintenance Management
• Maintenance Plans
– Periodic
– Metered
• Optimize tradesmen
time
• Maintenance queue
• Cost tracked
• In the schedule

8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

Engineering Change Management

• Check in/ out
• Approved by and
effective date
• Engineering change
order number

8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

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Document Management
• Attachment workflow
– Master Method to Job
• Location
– File on server
– Sharepoint
– Link to Epicor PLM
• Document requirements
flagged at shipping

8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

Product Lifecycle Management

One version of the truth.

• Engineering
collaboration
• One version of the
truth
• Engineering Change
Management
• Secure Document
Control

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Supplier Management
• Track supplier quality
• Skip lot inspection
logic
• Approved suppliers
• Return to vendor
capabilities
• Integrated with
Finance

8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

Employee Training
• Manage employee
information
• Skills and training
• Capability based
scheduling ensures
resource performing
work is qualified

8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

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Portals
• Collaborative tools
– Supplier expectations set
– Customer expectations
understood
• Reduces back and forth
and improves quality
• Offers online interaction

8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

Business Process Management

• Event
– Shop floor identifies
non conformance
• Condition
– If job is for Addison do
something
• Action
– Email salesperson for
Addison

8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

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Scorecards and Dashboards
• Measurements and
trends
– NCMs and Corrective
actions
– Cost of quality
– Reasons by product,
person, machine, etc.
– Test results data
– Rework hrs and cost
– Supplier quality

8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

Kevin King
NTMA
www.ntma.org
Presented by:

Christine Hansen
Questions Epicor Software
www.epicor.com

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