Rate of defected units per 100 units down from 18-22% to 10.5% in 45 days, this accounted for $232,500 in savings
The company is an electrical & electronics manufacturer and employs 700-1000 people. They produce LED lighting for commercial and residential projects. One of the company's leading value propositions is its excellence in energy-efficient, green, and sustainable manufacturing processes.
The largest factor contributing to its carbon footprint when manufacturing its products was the amount of material waste generated.
The company had thoroughly organized and updated procedures for quality inspections, corrective action, and preventive action meant to limit the amount of raw material waste generated during daily operation. Despite their organization, the company was still experiencing an average of around 18-22% defect rate for every 100 units produced.
Even with projects, policies, procedures, and CAPAs in place, it was arduous to grasp the true downstream and upstream root cause of the issue that was generating a high percentage of product defects.
The company's operation lacked visibility into quality performance and worker activity. All their data was tracked in their ERP and MES system, but that only painted half the picture of what was needed to make impactful decisions.
The quality managers would often experiment with quality improvement initiatives, but lacked a streamlined method of tracking and documenting impact. Much of their projects were tracked individually on word documents or notebooks, communication was fragmented between email and word-of-mouth, and project KPIs distributed between manual process and their existing MES. The primary goal for this company was to streamline their various quality initiatives into WorkClout so that they could visualize the impact on waste reduction, cost reduction, and productivity as a whole.
When this company first approached WorkClout. The fragmentation in their processes provided a clear path of how WorkClout could help them achieve their quality goals. These were the steps taken:
Step 1: Digitize their existing quality practices.
Much of the company's quality audits, issues tracking, procedures, and CAPAs were tracked on either excel or word documents accessible via tablets or work stations. These materials and processes were transferred over to WorkClout, which made all information more easily accessible and searchable. Workers would now be able to easily perform quality audits, access procedures, report issues, and communicate with teams in as little as two clicks.
Quality audits and procedures were now accessible via QR codes generated on WorkClout. These QR codes were placed in convenient locations within the facility so that workers can scan them using the mobile application and immediately access information or perform audits.
Step 2: Connect their existing systems.
The company used a propriety MES system paired along with Epicor as their ERP. Integrating with these two systems to send and retrieve data was important when providing relevant statistical process analysis through WorkClout analytics.
Step 3: Run a series of Quality projects.
10 projects were created and ran on WorkClout for 90-days. Each project contained a specific goal that would contribute to a primary KPI of decreasing the number of quality defects per 100 units produced. Each project contained a Statistical Process Chart (SPC) with a goal line to help identify the desired impact. Also, individual tasks were tracked in the projects assigned to specific workers.
In 45-days, the company was able to pinpoint the most effective ideas and projects contributing to waste reduction. For the first time, the quality managers were able to easily correlate their actions to cost and waste reduction.
The rate of defected units per 100 units went from 18-22% to 10.5% in 45 days, this accounted for $232,500 in savings.
Quality audits were performed up to 3x faster with the use of QR codes and digitization.