ByWilliam H. MillerAt A Glance
- Since 1993 cost of quality as percent of sales reduced by more than 76%, scrap and rework by 46%.
- Order-to-shipment leadtime for major products reduced by 25%.
- Manufacturing cycle time slashed by 48%, setup times by 60% to 80%, inventory by 46.4%.
- Productivity (sales per employee) increased by 54.5%.
- Formal training for production employees boosted to 22 .6 days a year.
- Leadtime on major purchased materials cut by 64%.
- Number of benchmarking studies increased to 42 during the last year.
- Employee empowerment. Fully 90% of production workers participate in 26 self-directed work teams.
- Training. Production employees average 22.6 days of training a year.
- Benchmarking. The plant has conducted no fewer than 42 benchmarking studies during the last year. It even buys competitors' products and reverse engineers them to detect where they might have a cost advantage.
- Supplier relationships. The plant has been able to increase its percentage of purchased material that no longer requires incoming inspection from 50% to more than 70%. It has also reduced its average leadtime on major purchased materials by 64%.