Quality Improvement Program Implementation by RBC
The Client
The client is an Okhla based manufacturer, exporting to the European
Market. The company is managed by the owner with the help of
experienced staff in family like manner. The company deals with small
order quantities and high style variation. Stitching and embroidery is
totally outsourced. The factory works with about 15-20 fabrication
(stitching) units.
The factory enjoyed superior supplier rating from its customers in
terms of product development, product quality and timely delivery. But
the management also knew that the cost of quality of the factory being
quite high, substantial profit was being lost as rework and repair
costs. The client took part in the Quality Improvement Program offered
by RBC to arrest this drain on their earnings.
The Challenge
The management of the company though was completely convinced of RBC's
QIP methodology and its value, was unsure about the program
implementation challenges in high style, small order quantity
environment. Bringing quality improvement in subcontracted
manufacturing is considered difficult compared to in-house
manufacturing. Since all stitching in this factory is outsourced, the
challenge was to convince the subcontractors that they could and needed
to produce better quality apparel without expecting increase in sewing
charges. Most sub-contractors were very small entrepreneurs and were
relatively less educated. As a result they could not be expected to
follow extensive written documentation.
Solution
The three month long implementation involved:
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Gap Analysis to assess the existing performance, system and improvement potential |
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Intensive training of client's team in Quality Management philosophy and problem solving tools |
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Training on identification of internal customers and institutionalizing feedback mechanism |
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Confidence
building session with stitching subcontractors how right first time
quality is a win-win proposition for them as well as the company |
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Implementation of RBC's Quality Management Information System |
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Handholding during problem solving and implementation of improvement initiatives |
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Refining and establishing procedures |
Key Results
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The Defect per Hundred Units of six main manufacturing contractors reduced on average by 40.76%. |
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Stains related Defects per Hundred Units (DHU) at final finishing stage came down by 63% from 43% to 17%. |
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The
labor productivity of finishing section has more than doubled. The
factory has been able to achieve record output of 2100 pieces per day
as against average output of 800 pieces as result of Quality
improvement in all the areas. |
Business Impact
In the words of the owner of the company: "Main change has come in
the thinking of the team. Earlier everyone was working in isolation
with closed mind, now the doors and windows have opened. Now
everybody's confidence in themselves and others has improved."
As certified by finance department-
Chemicals cost for stain removing reduced by 74% from Rs. 1.38/pc to Re. 0.50/pc.
Electricity, diesel & water expenses reduced by 40.62% from Rs. 6.40/pc to Rs. 3.80/pc
There is also reduction in excess cutting, stitching and embroidery.
ROI has been fantastic. The project has paid back during the
implementation phase itself. In addition, the reduction in chemical,
water, fuel and electricity consumption has positive impact on the
environment.
Feedback of XYZ's management team
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Visual display is helping us and also our suppliers to motivate ourselves to do better |
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QIP has helped us understand the importance of data - a common language - and has taught us to speak in terms of it. |
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Teamwork has improved and we have learnt to collaborate better to solve problems. |
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We have started enjoying our work as never before. |
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We feel we have greater "control" of work than earlier. |
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Dedication towards work has improved. |
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