Re: Validating the 25% in COQ

[Eugene Taurman <ilx@execpc.com>]

It is true. The cost of poor processes that do not work right is easily 20%
to 30% of total sales and most often invisible to those in the mire.

I have data for only one company. There we imported productivity by 300%.
by focus on making the processes work right. That data is in an SAE paper #
????.  But I have done the same in other companies.  

I usually resort to work sampling or work studies to help people see the
waste in their organization. With a work study conducted by the people who
work there it is usually possible to open some eyes. This requires defining
the actual work the customer pays for and the other activities. Other
activities which are waste are expediting, emergency repair, unscheduled
downtime, waiting, sorting, changeovers time, clarifying, etc. 

Another is to have everyone ask why am I walking? The answer is usually
because a tool is missing, instructions were not clear, go find etc. Most
often the reasons are waste that people simply accept.
 

Another way to open  the mind is with a flow chart or process map.

Another is simple a discussion of what happens when a part of the process
result sin an error or bad part or short ship or late part. By tracking
down all the activities it drives we can find lots of waste. 

Eugene Taurman
interLinx Consulting
414-242-3345
http://www/execpc.com/~ilx 
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