Supplier Eliminating Inspection because it is not Economically Feasible

[dame]

Hi, I have been given a Quality assurance question but am struggling to get to grips with it. I was wondering if you could help me in anyway either by offering some advice or giving me some contacts who could help. Any assistance would be most grateful.

Many many thanks, Dame.

A company sells a flat packs containing a pair of speaker enclosures for self-assembly by hi-fl enthusiasts. The method of assembly is designed around a special fastener patented by the company.

Manufacture of the fastener has been subcontracted to Holdtight Ltd, which, despite much effort, has only been able to average about 95% good fasteners per manufacturing batch. The company consequently inspects every fastener before selecting twenty as required for each flat pack

It has been noticed at the company that the cost of inspecting a fastener is five times the manufacturing cost of a fastener. In response to this information the company has abandoned the inspection of fasteners but has increased the number of fasteners enclosed in each flat pack by one to make a total of twenty-one.

Since implementing the change the company has experienced a significant increase in the number of customer complaints (previously less than 2%). An investigation has identified that most of the increase is directly associated with the fasteners.

What advice can you offer to the company? Suggestions for some relevant numerical analysis appreciated.

[D.Scott]

Hi again Dame -

I promise I am not following you around the boards here LOL.

Please don't take this the wrong way, but although a lot of people here are happy to share information with you, none are willing to do your assignments for you. You won't be much of an engineer when you come out and you sure wouldn't thank anybody for that.

That said, there are a number of things the company should look at (depending on which company you are referring to). You should look toward an 8D style corrective action to determine the actual root cause and develop C/As. Look at cost of quality analysis to determine actual costs both in reject and production. Check into reliability studies on the process.

Anybody else think of a few areas that could be looked into?

The numbers you stated look to me to be a significant feature of the assignment. Sorry, but I don't think I should just "tell" you why, but you might want to look there for some possibilities.

Good luck with your studies.

Dave

[Marc]

> It has been noticed at the company that the cost of
> inspecting a fastener is five times the manufacturing cost
> of a fastener. In response to this information the company
> has abandoned the inspection of fasteners but has
> increased the number of fasteners enclosed in each flat
> pack by one to make a total of twenty-one.

They're screwing you (the fastener manufacturer) by passing the inspection costs on to you. It is more expensive to you if you 'discover' defective supplier parts in your receiving, not to mention in your process, than it is for them to inspect. This is a REALLY lazy company. They have told you they have no intention of fixing the problem or installing a poke-yoke (or other check) to ensure they do not ship defective product.

Now - What are you going to do? Accept their terms? Initiate a strict receiving inspection plan for that part? Supplier development? New supplier?

'Nuff said.

Dame,

What are the industry standards for fall out rates on fasteners?

[Elsmar Server Administrator]

Originally posted by Al Dyer

What are the industry standards for fall out rates on fasteners?

Depends upon the fastener. But 'industry standard' doesn't excuse shipping bad product in my opinion.

Agreed,

Just lookong for additional benchmarking opportunities!