iSixSigma

Question

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  • #46914

    Whitehurst
    Participant

    Would like opinion on the following:
    Whats is more important and why: Cost or Schedule
    Thanks

    0
    #155761

    TC
    Member

    Joe,
    The short answer is, ask your customers! 
    This is a very generic question; the answer depends on many factors.  I have been in industries (e.g., medical devices) where product delivery schedule was driven by the relative positioning of the company to the competition and status of long term clinical trials.  In the oil & gas industry right now, many companies are struggling to ramp up capacity to keep up with huge demands driven by increased oil exploration, and on-time delivery numbers at 50-60% (and lower) are not uncommon.
    All companies who plan to be profitable need to continuously work at reducing costs.  From the customer’s perspective, their “cost” is your “price” to them, but you need to look at your total cost of quality which includes warranty, rework, scrap, etc.
    Your senior management should have some strong opinions as well, though I expect they may want you to tell them (without knowing your role).  Having a robust cost of quality model is a good start.

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    #155772

    McD
    Participant

    TC is absolutely correct with his “it depends” answer, but depending on context, one thing you should be aware of.  To many managers, schedule is a more reliable estimate of cost than cost estimates, so managers will sometimes behave as if schedule is more important.
    But from a SS perspective, TC’s “ask your customer” is the right answer!
    –McD
     

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