Cost Savings

Six Sigma – iSixSigma Forums Old Forums General Cost Savings

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    Somehow, my Companies best practice forum got turned into a cost savings one.  I have been asked to provide three ways that QA can reduce cost in the upcoming QTR/Year.  Reducing COPQ is the top of my list, but rather than present 4 or 5 ideas that may not work, I thought I would see what has beeen proven in the past – PJJ


    Mike Carnell

    You should be able to do a best practices and Cost savings at the same time. As a best practice part of the process of deeming it a best practice should be that it is a better cost solution than any other. Present the best practice with that part of the analysis.
    QA is by definition part of COPQ. Pareto what the most expensive things you do are and find out how to eliminate the need to do them. Just as an example, we (the US) went through a phase where we realized Incoming Inspection was NVA back in the late 80’s. A lot of companies eliminated it. They didn’t eliminate the need for it. The cost moved to the production floor. You can set up the typical fly the Supplier QE all over the country, where they have relatively little effct. The containment and corrective action will happen even in their absence. You can add to their responsibilities NPI as a proactive approach. Get the parts designed correctly and the processes engineered correctly before you build them so you do not need Incoming Inspection. This takes some time to impact the bottom line.
    Just my opinion. 

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