View
2
Download
0
Category
Preview:
Citation preview
GOALS DRIVING QUALITY 4.0
24%
23%
22%
27%
20%
20%
18%
18%
17%
Service execution
Product attribute/ requirement tradeoffs
Product safety
Environmental impact
Service planning
Manufacturing asset performance management
Physical testing(product verification and validation)
Virtual testing (product verification and validation)
Supplier selection
15%Management review
44%
37%
36%
34%
38%
31%
31%
29%
28%
27%
Employee recruiting, engagement, retention
New product requirements, critical parameters
Supplier management
Cost/effectiveness of quality monitoring
Product use cases
Employee efficiency or safety
Risk analysis/ risk management
Product quality
Product Planning
Manufacturing operations
27%Logistics
COST OF QUALITY IN CONTEXT OF CAPABILITIES MATURITY
PASS FAIL
Quality Check
QUALITY INSPECTION
99.782% 0.271%
QUALITY 4.0 USE CASE NAVIGATOR
Connected Worker
3 COMPANIES, 3 PATHS TO PREDICTIVE QUALITY
20%
15%
10%
5%
0%L1 - Ad Hoc L2 - Controlled L3 - Harmonized L4 - Agile L5 - Innovation Leader
Capabilities Maturity
Cost
of Q
ualit
y as
% o
f Rev
enue
Cost of poor quality (CoPQ)
Cost of good quality (CoGQ)
Total cost of quality (TCoQ)
QUALITY 4.0: Critical to Industrial Transformation (IX) Success
QUALITY PROBLEMS HAVE REMAINED FUNDAMENTALLY UNCHANGED for decades. Siloed quality organizations, ineffective technology, and weak data consistently stifle improvement efforts.
A COMPANY’S INDUSTRIAL TRANSFORMATION INITIATIVE HOLDS THE KEY TO UNLOCK QUALITY PERFORMANCE.
QUALITY is the LOW HANGING FRUIT of Industrial Transformation (IX). Early adopters of IX have demonstrated that industrial organizations must prioritize quality, engage quality teams in transformation initiatives, and focus throughout the value chain.
QUALITY 4.0 might be a standalone initiative, but most of the time it OVERLAYS OTHER DIGITAL TRANSFORMATION INITIATIVES across the value chain.
THE VALUE IS REAL: IMPROVING QUALITY MATURITY CAN REDUCE CoQ BY 5% OF TOTAL REVENUE.
LEARN FROM INNOVATORS
Innovators have addressed Quality 4.0 across 33 potential use cases in six categories across the value chain. Manufacturers should prioritize use cases by quantifying the value, and understanding implementation effort and impact on business objectives. There’s no silver bullet: each company should focus on those use cases that drive improvement in its specific industry and organization.
Leaders have demonstrated that engaging widely across the use cases can drive significant quality, manufacturing, and new product introduction improvement.
STRATEGIES TO LEVERAGE THE OPPORTUNITY: PREDICTIVE QUALITY AS AN EXAMPLE.
Many companies use “sampling plans” to inspect quality – they randomly select pieces to inspect in each lot. Sampling plans take place in-process at defined checkpoints and at final assembly. It’s an accepted good practice in most industries, since 100% inspection is expensive and time consuming.
INNOVATIVE MANUFACTURERS APPLY ANALYTICS to data from connected equipment, in-line and off-line quality inspections, and product – they PHYSICALLY AND VIRTUALLY INSPECT 100% OF PRODUCT and at many more points throughout the manufacturing process.
THE FUTURE IS TODAY: TRANSFORM QUALITY THROUGH INDUSTRIAL TRANSFORMATION INITIATIVE.
QUALITY 4.0 IS NOT A STANDALONE INITIATIVE, but it does permeate and overlay the value chain. Take inspiration from innovators and LOOK TO THE SIX CATEGORIES OF QUALITY 4.0 USE CASES TO KNOCK DOWN SILOS and improve performance. Ultimately, strive to lead the company to include quality across all initiatives to achieve results unlike any with traditional quality approaches.
Only 9% of level 1 maturity companies
know their“cost ofquality” (CoQ), while 32% of level
5 maturity companies know the CoQ
Most companies lack up-to-date
corporate-wide CoQdrill-down insights with
underlying drivers
Going from level 1 to level 5 translates to
reducing CoQ by 5%, or roughly one-third
Even traditional technology applied to
quality can unlock significant value
Connected Supply Chain
ConnectedOperations
Connected Worker
Robotic ProcessAutomation
Digital Voice of the Customer
Connected Product
RELATED INITIATIVES(Industry 4.0, autonomous
assets, others)
RELATED TECHNOLOGIES(analytics, ERP, PLM, others)
PHARMA COMPANY
• New chief digital officer (CDO) role
• Launched factory of the future initiative
• Quality as #1 use case of the initiative
CONSUMER DURABLE GOODS MAKER
• Correlate operational, warranty, and online marketplace data
• Identify in-process variables that improve outcomes for customers, lower warranty costs, increase marketplace ratings
ELECTRONICS MANUFACTURER
• Assess efficacy of screening procedures
• Eliminate any that don’t impact quality
• Improve by focusing only on select variables
PRESENTED BY:
© LNS Research, 2019. All Rights Reserved.
License to distribute this research report has been granted to:
37%
24%
23%
22%
16%
16%
16%
15%
Disparate quality systems and data sources
Quality metrics not measured effectively
Quality is “department” not a “responsibility”
No formal process to manage risk
Lack of visibility into supplier quality
No formal process for continuous improvement
Ad hoc audit and compliance management
No formal process to capture non-conformance
Lack of executive support
Engineering lacks feedback on quality
37%
36%
37%
37%
35%
CHALLENGES TO ACHIEVING QUALITY OBJECTIVES (n =1882)
2016 2017
18%
16%
17%
14%
10%
20%
8%
Recommended