Quality Progress - January 2016 - 29

BACK TO BASICS Best of JANUA 2009 RY BY ROBERT PINTAVALLE Improving a System Add value by evaluating rework time and internal, external causes WHEN WE think of nonconforming by all departments involved in reworking ity, worker involvement, supplier communi- material, we think about scrapped and or dispositioning the nonconformance. cation and worker morale. reworked material or products that directly Rework can be analyzed in two ways: by cut into a company's bottom line. But a time or money. To analyze by time, total involvement and morale are difficult to closer look shows that a nonconforming the amount of rework time for the month put a price tag on, but they can be the larg- material system can provide a wealth of and divide it by the total units produced to est benefits. Workers usually stop ignoring information. determine the amount per unit. To analyze issues that have been causing problems by dollars, multiply the rework time per and frustration in normal tasks. When the unit by the labor cost. nonconformances that have affected the Most of this information is already recorded for companies that use the ISO The softer benefits of increased worker workers are addressed, the employees be- 9001:2000 standard or have a similar quality management system (QMS). The standard Illustrate the findings come a valuable part of the system. Soon requires that nonconforming products be A 12-month line chart showing these after including this additional informa- "identified, controlled, (preventing) unin- rework costs can be presented to manage- tion and taking action on it, an increase tended use and (recording) the nature of ment. Add a line to the chart that repre- in reported nonconformances may be sents a three or four-month moving average observed. the nonconformity and any actions taken." 1 Two pieces of information transform a to smooth out monthly variation and see Measures from the nonconforming system that meets or contains the elements the general trend in rework costs (see system are also valuable inputs into the of an international standard for a QMS into Online Figure 2). These measures support management review system. Review of a dynamic system with additional benefits Section 8 of the standard: "measurement, rework costs and sources of nonconfor- that readily support the QMS. analysis and improvement or similar ele- mance by senior management creates ments for measurements in a QMS." buy-in and focus in these areas. The man- The first bit of information answers the To prioritize improvement efforts, cre- question, "Was the nonconformity created agement review meeting also provides an in house or by component parts supplied ate a Pareto chart using rework time or opportunity for senior leaders to review from outside the organization?" This can be rework cost analysis for internally caused not only specific action plans for reducing recorded in a check box on the nonconform- nonconformances. A Pareto chart of nonconformances and rework, but also ing material form (see Online Figure 1 at nonconformances from suppliers (external their progress toward established goals. www.qualityprogress.com), which separates cause) can focus supplier communication Capturing a little more information products into internal and external causes. where it is required. about nonconformances and process re- Internally caused nonconformances become A company that implemented this work can add a lot of value to an organiza- input for continuous improvement projects. method saw a 55% reduction in rework tion that focuses on doing it right the first Those caused externally can be analyzed to cost per unit over a 12-month period. The time. QP ensure adequate information is provided to results demonstrated the cost savings of the supplier or to determine whether correc- improvement efforts and assisted in the tive action by the supplier is necessary. prioritization of future continuous improve- While more difficult to obtain, the ment projects. Benefits of this additional information second piece of information is equally valuable: rework time caused by the noncon- include reduced costs, focused problem formance, which includes the time required solving, and increased management visibil- READ MORE ABOUT THE BASICS Visit www.qualityprogress.com to read more Back to Basics articles on topics such as root cause analysis, data collection and fishbone diagrams. REFERENCES 1. ANSI/ISO/ASQ Q9001-2000: Quality Management Systems Requirements, International Organization for Standardization, 2000. ROBERT PINTAVALLE is a senior process engineer with Watson Pharmaceuticals in Fort Lauderdale, FL. He earned his master's degree in mechanical engineering from Union College in Schenectady, NY. Pintavalle is an ASQ-certified Six Sigma Black Belt, quality engineer, manager of quality/organizational excellence and quality auditor. He is a senior member of ASQ. January 2016 * QP 29 http://www.qualityprogress.com http://www.qualityprogress.com

Table of Contents for the Digital Edition of Quality Progress - January 2016

According to Plan
Solid Proof
Use Your Head
Stakeholder Management 101
Customer Delight
All About Data
Eight Simple Steps
Minimizing Chaos
Take Note
Pyramid Scheme
Assessing Failure
Which Six Sigma Metric Should I Use?
Turning ‘Who’ Into ‘How’
In the Beginning
Outputs and Outcomes
That’s So Random—Or Is It?
Understanding Variation
Improving a System
Putting It All on the Table
Know the Drill
It’s Fun To Work With an F-M-E-A
Solve Problems With Open Communication
Tell Me About It
Separate the Vital Few From the Trivial Many
To DMAIC or Not to DMAIC?
Breaking It Down
Smart Charting
1 + 1 = Zero Defects
QFD Explained
Curve Your Enthusiasm
Make a Choice
What Is a Fault Tree Analysis?
Successful Relationship Diagrams
The Benefits of PDCA
Creative Combination
Return on Investment
The Art of Root Cause Analysis
Why Ask Why?
Get to the Root of It
Checks and Balances
Calculated Risk
Sufficient Evidence
Sample Wise
Clearing SPC Hurdles
Supplier Selection and Maintenance
Team Advantage
Building a Quality Team
Plan Experiments to Prevent Problems
Substantiation Test
Training Day

Quality Progress - January 2016

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