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Presented by:

8 Key Strategies that Reduce the Cost of Poor Quality

Kevin King, Manufacturing Technology Director

NTMA

Christine Hansen, Product Marketing Manager

Epicor Software

Agenda

• About Epicor

• Industry Study of Quality Concerns and Strategies

• 8 Key Strategies that Reduce the Cost of Poor Quality

• Technology Trends to Support Strategies

• Questions

8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

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Epicor at a Glance

* Based on Full Year 2009 Revenue

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8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

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Industry Focus

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8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

Industry Study of Quality

Concerns and Strategies

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Quality Cost and Customer Satisfaction

8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

Strategic Actions

8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

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8 Key Strategies that Reduce

the Cost of Poor Quality

8 Key Strategies that Reduce the Cost of Poor Quality

• Improved visibility of quality by product• Improved visibility of quality by process • Shorter audits and more successful

• Improved visibility of quality by product• Improved visibility of quality by process • Shorter audits and more successful

Product and process traceability

• Measurement of number of non conformances• Reason analysis• Reduce repeated corrective actions

• Measurement of number of non conformances• Reason analysis• Reduce repeated corrective actions

Non-conformance and corrective

action

• Less equipment failures• Reduced quality issues due to faulty equipment• Less equipment failures• Reduced quality issues due to faulty equipment

Preventative Maintenance

• Accuracy in engineering changes• Reduced risk in making the wrong product• Workflow that supports USE AS IS

• Accuracy in engineering changes• Reduced risk in making the wrong product• Workflow that supports USE AS IS

Stronger engineering change

management

8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

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8 Key Strategies that Reduce the Cost of Poor Quality (Cont.)

• Standardized escalation workflow improves customer satisfaction

• Quality events get to engineering / production faster

• Standardized escalation workflow improves customer satisfaction

• Quality events get to engineering / production faster

Customer complaint and returns

management

• Ensures employees have the right skill for the process• Speeds audits and improves success• Reduces employee related non conformances

• Ensures employees have the right skill for the process• Speeds audits and improves success• Reduces employee related non conformances

Employee training management

• Improves communication with suppliers• Reduces quality “gotchas” • Improves communication with suppliers• Reduces quality “gotchas”

Management of supplier quality

• Always ship with the right documentation.• Easier audits• Speed information to the plant floor, improving accuracy

• Always ship with the right documentation.• Easier audits• Speed information to the plant floor, improving accuracy

Management of electronic

documentation

8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

Technology Trends to Support

Strategies

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End-to-End ERP with Quality in Mind

Customer Returns and Helpdesk Workflow

• Track customer cases

– issue / resolution

• Procedural workflow

– Escalation

– Return request

• Link to returns

• Returns management integrated with receiving, finance

8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

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Non Conformances Communicated from the Shop Floor.

• Operators communicate problems as they happen

• Reason codes available for analysis

• Inspector workbench available to inspect non conformance and accept / reject

8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

Inspection Plans and Test Results

• Inspection/Test Plans

– Incoming material

– In process

– First article

• Calibration Plans

• Available from shop floor

• Results available for analysis

8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

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Maintenance Management

• Maintenance Plans

– Periodic

– Metered

• Optimize tradesmen time

• Maintenance queue

• Cost tracked

• In the schedule

8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

Engineering Change Management

• Check in/ out

• Approved by and effective date

• Engineering change order number

8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

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Document Management

• Attachment workflow

– Master Method to Job

• Location

– File on server

– Sharepoint

– Link to Epicor PLM

• Document requirements flagged at shipping

8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

Product Lifecycle ManagementOne version of the truth.

• Engineering collaboration

• One version of the truth

• Engineering Change Management

• Secure Document Control

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Supplier Management

• Track supplier quality

• Skip lot inspection logic

• Approved suppliers

• Return to vendor capabilities

• Integrated with Finance

8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

Employee Training

• Manage employee information

• Skills and training

• Capability based scheduling ensures resource performing work is qualified

8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

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Portals

• Collaborative tools

– Supplier expectations set

– Customer expectations understood

• Reduces back and forth and improves quality

• Offers online interaction

8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

Business Process Management

• Event

– Shop floor identifies non conformance

• Condition

– If job is for Addison do something

• Action

– Email salesperson for Addison

8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

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Scorecards and Dashboards

• Measurements and trends

– NCMs and Corrective actions

– Cost of quality

– Reasons by product, person, machine, etc.

– Test results data

– Rework hrs and cost

– Supplier quality

8 Key Strategies that Reduce the Cost of Poor Quality. © 2010 Epicor Software Corporation.

Presented by:

Questions

Kevin KingNTMAwww.ntma.org

Christine HansenEpicor Softwarewww.epicor.com