Choosing Nonconformities to Report

[Kronos147]

If a problem occurs everyday that is just under the cost threshold, what is the cumulative value?

Will you not be able to see that trend because it is not even noted?

Organizations need to establish when to apply resources (like corrective action management), but it helps to at least capture events to determine the extent that it happens, in order to have the data to support when the cumulative cost crosses that cost threshold.

 

[Ninja]

Good point indeed, though most folks (myself included) would know about stuff like that without having to read about it in a report...
If a Mfg Manager didn't know how big the waste bin was, documenting NC's is not the big red X...

 

[John Broomfield]

Embrace the 80/20 “rule” as your risk based thinking then start the cycle.

A. Record all instances of nonconforming services and products.
B. Determine the 20% of the nonconformities that represent 80% of the cost of the nonconformity over 12 months.
C. Invest in removing the root causes of vital few nonconformities.

Repeat A, B and C to drive out the causes of nonconformities from your system.

 

[Jim Wynne]

Embrace the 80/20 rule as your risk based thinking then start the cycle.

A. Record all instances of nonconforming services and products.
B. Determine the 20% of the nonconformities that represent 80% of the cost of the nonconformity over 12 months.
C. Invest in removing the root causes of vital few nonconformities.

Repeat A, B and C to drive out the causes of nonconformities from your system.

You can find out where the money's going, but there is no empirical basis for the 80/20 "rule." There's a tendency for the relative few to result in the majority of losses, but there's certainly no "rule."

 

[John Broomfield]

Granted but C. clarifies this is only a “rule” by its reference to the vital few.

Just to make this clearer, rule is now “rule”.

 

[Jim Wynne]

Granted but C. clarifies this is only a “rule”...

What does this mean? What is "C."?

 

[John Broomfield]

As in the first C. in post #23.