Quality Progress - March 2013 - (Page 50)

Career Corner BY Jack B. ReVelle out of Hiding Uncover the true costs of not getting it right the first time sometime in the mid-1980s, while I organization’s total capacity that exists to hidden factory. This concept is not limited was the senior statistician for a manufac- rework or touch-up unsatisfactory parts, to factories. It also applies to nonmanu- turing division of a major aerospace firm, to replace products recalled from the field, facturing venues, such as warehouses, I shared the concept of the hidden factory to retest and re-inspect rejected units, libraries, hospitals, offices and a variety of with a statistical quality control (SQC) and to store unsatisfactory and rejected other service-oriented operations. training class composed entirely of senior goods until they can be reworked, touched and middle management. up, retested, re-inspected or disposed of. In denial Figures 1 and 2 depict two views of the Based on available data, it has been The hidden factory is the portion of an estimated that the hidden factory can be Hidden factory consumes up to 40% of productive capacity anywhere from 15 to 40% of the productive capacity of an enterprise. There is no / figure 1 better way to improve productivity than to convert the hidden factory to productive use. Enterprisewide total quality management or lean Six Sigma programs provide the most practical ways to accomplish this objective. When I noted the 15 to 40% hidden factory statistic with the class, one of the class members vociferously denied that Up to 40% rework such a figure was possible. To emphasize the strength of his denial, he told me during the class that he was going to have an audit conducted of his engineering division to determine the proportion of the resources and facilities under his control that was the hidden factory. He acknowl- the hidden factory edged it might be as high as 5% or so, but / figure 2 it would certainly be no more than that. About two weeks after the class, I was invited to attend a senior staff meeting for the organization where the member from my SQC class worked as a division Hidden factory manager; I wasn’t told why. The meeting included the organization’s group president, vice presidents, directors and senior Suppliers Manufacturing (Visible factory) Customers managers. I found out soon enough why I’d been invited: The member from my class was the first speaker on the agenda. He explained to everyone in the conference room what I had stated about the ex- 50 QP • www.qualityprogress.com http://www.qualityprogress.com

Table of Contents for the Digital Edition of Quality Progress - March 2013

Up Front
LogOn
Expert Answers
Keeping Current
Mr. Pareto Head
The Right Ingredients
Before the Fact
Apples to Oranges?
Five at the Forefront
Innovation Imperative
Measure for Measure
Quality in the First Person
Career Corner
Statistics Roundtable
Standards Outlook
QP Toolbox
QP Reviews
One Good Idea

Quality Progress - March 2013

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