A typical case, not a client
This study does not describe any real clients and does not report any results obtained from a client: our confidentiality commitments prohibit this. It sets out explicit working hypotheses and then deduces orders of magnitude through a calculation that you can replicate line by line. Change a hypothesis, and the result changes. During a diagnosis, these hypotheses are replaced by your actual figures.
The modelled situation
Industrial companies face increasing challenges regarding quality, often exacerbated by inefficient processes and waste. In this context, it is crucial to understand how quality-related costs impact overall performance. Industry players must be able to identify the production stages where defects occur, as well as the resources mobilised to correct these anomalies. A thorough analysis of current processes can highlight opportunities for improvement. By integrating methodologies such as Lean Six Sigma, companies can not only reduce costs associated with quality but also improve customer satisfaction by delivering products that meet expectations.
| Initial hypothesis | Value | Unit |
|---|---|---|
| Annual turnover | 60 000 000 | MAD |
| Production workforce | 85 | people |
| Scrap and rework rate observed in the diagnosis | 4,5 | % du CA |
| Addressable share in 12 months through a structured approach | 40 | % |
Result, line by line
The calculation table provides a summary of quality-related costs, highlighting the various categories of expenditure. It is important to note that this table does not provide a comprehensive picture of costs, but rather an overview of the main sources of expenditure. Users should interpret the data considering the specifics of their own industrial context. The above assumptions should also be taken into account for a more detailed analysis. By cross-referencing this data with feedback from teams, it is possible to refine the actions to be taken.
| Calculated magnitude | Formula | Result | Unit |
|---|---|---|---|
| Annual cost of non-quality | 60 000 000 × 4,5 % | 2 700 000 | MAD/year |
| Target share over 12 months | 2 700 000 × 40 % | 1 080 000 | MAD/year |
| Production equivalent per person | 1 080 000 ÷ 85 | 12 705,9 | MAD/person |
| New targeted non-quality rate | 4,5 % − (4,5 % × 40 %) | 2,7 | % du CA |
What we measure first
Identification of hidden costs
Costs related to non-quality, often invisible, can include product returns, discounts granted, or time lost in correction processes.
Process analysis
A close examination of production stages allows for the identification of failure points and waste.
Team engagement
Raising awareness and involving employees are essential to establishing a culture of quality within the organisation.
Use of Lean Six Sigma tools
The application of these tools allows for structuring data analysis and guiding improvement actions.
How the mission unfolds
Process mapping
Establish a detailed mapping of processes to visualise workflows and identify critical points.
Team training
Implement training sessions to raise awareness among teams about quality issues and the use of Lean tools.
Establishment of performance indicators
Develop relevant indicators to track the evolution of costs related to quality and measure the impact of the actions implemented.
Management of improvement projects
Launch targeted projects to reduce non-quality costs, involving teams at every stage.
Follow-up and adjustment
Establish a regular monitoring process to adjust actions based on the results obtained and feedback received.
The indicators we implement
These indicators are recorded from the diagnosis and then monitored throughout the mission: they are what make the result demonstrable, rather than declarative.
- Scrap rate by line and by reference
- Cost of rework, recorded each month
- Customer service rate and delivery delays
- Number of open customer complaints and their processing time
- Changeover time (SMED) on bottleneck stations
What causes this type of project to fail
Lack of team buy-in+
Underestimation of hidden costs+
Insufficient training+
Lack of monitoring+
What is being asked of us
How to involve teams in the improvement process?+
Which Lean Six Sigma tools are most suitable?+
How to measure the impact of the actions implemented?+
What are the first steps to take to get started?+
Let's redo this calculation with your figures
The diagnosis replaces each hypothesis on this page with data collected from you. It lasts half a day and does not commit you to anything.
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