$150k in cost avoidance from product loss captured through quality failures on WorkClout
This company is a large distributor of home meal kits in the US and produces fresh meals across the country for its customers. They employ around 300-500 workers in their 2 facilities. Due to the nature of their services and product, saving time and increasing efficiency in their distribution processes is one of the most important keys to their growth and success.
When it comes to food, speed in delivery is a huge factor in the quality of the product.
Before WorkClout, this company used mostly manual paper processes to track and log quality activities during their distribution operations. Quality Managers would distribute paper checklists for workers to perform quality assurance checklists, cleaning checklists, and other general standard checks (HACCP and GMP). These checks would then be collected and stored into physical binders, which made it difficult to generate and analyze reports. In addition to the lag in data, not having the ability to compare past trends to the existing state of production made it difficult for Quality Managers to determine areas of focus for quality improvement. This has ultimately led to several missed quality issues during operations that manifested later in the cycle causing a large margin of loss to the company (1-10-100 rule).
Quality Managers knew the impact that improved quality can have on a customer's experience but did not have the necessary infrastructure to determine the changes that would be most impactful. The goal by adopting a system was to digitize existing processes, resolve quality issues quicker, and track quality KPI trends over time. This would ultimately lead to:
Tracking data trends would be the most important factor in success. They want to identify areas to focus their quality improvements so that they can more confidently take action. An increase in visibility would allow Quality Managers the ability to identify patterns that would lead to impactful decisions. Getting data on the time to complete certain audits would also give them the ability to allocate resources more effectively.
Step 1: Digitize their most common processes and audit checks onto WorkClout
Due to the nature of the company’s business, many of the audit and quality checks were rotated seasonally to match the change in product offerings. We’ve determined that the most impact would be to focus on processes that were offered year-round. This allowed us to ensure that the impact and data received would be immediately useful.
Step 2 - Track and complete the quality assurance checklists, and quality audits on WorkClout using tablets.
After determining the appropriate processes, we then uploaded and created custom forms on WorkClout that matched the existing processes and created on-demand tasks so that the tasks could be accessed whenever workers performed quality audits and checks.
Step 3 - Provide operational data insights that match their KPIs to give them the confidence to take action and improve quality.
One of the most important KPIs determined to be a benchmark for success was response times and awareness when quality issues occurred. Custom triggers were added to each quality form to notify managers when a failed inspection event occurred. Also, we provided managers access to a deviation report for each of their quality audits, accessible on the WorkClout analytics dashboard.
This allowed managers and workers to quickly correct any quality mistakes and deviations within their operations to maximize cost avoidance.
Over 30 days after the common audits were digitized and performed on WorkClout, the results were overwhelmingly positive. The teams using WorkClout were now able to stay compliant to industry standards and also become nimble in their daily work processes. The ability to work faster and still have constant visibility into their operations meant that problems could be identified quicker and resolved faster.
After the initial 30 day period, the WorkClout software was rolled out to the entire operations within a single facility and ended up becoming the company's recipe for success.
In just one month, it was projected that over $150k worth of product was protected from quality failures. Also, quality audit efficiency was boosted around 3x efficiency compared to the previous manual methods. Lastly, it was projected that over $20k was saved in annual paper waste at the facility by going digital.