Cost of Processing a Corrective Action

[Jim Wynne]

$1000.00? That's a bit on the high side, more than it was estimated in my group.

Why do you say that? Is it because it's a shockingly high number? Or it didn't agree with your feelings about where it should be?

If you consider what the person should be doing, which doesn't get done, while they are processing a corrective action, then it doesn't look so unworldly.

First of all, I'm not sure that it's a good idea to begin with to consider time spent on CA as a liability, so long as the same mistakes aren't being repeated, which then means that the effectiveness of the CA process is in question.

Next, it's not a good idea to be pulling numbers like $1000 out of one's pocket. If such a thing were questioned, I doubt that "A guy on the Internet said it" would be accepted as justification.

The whole thing is a very touchy area, and there are landmines in it that need to be avoided. Unless some activity is actually subtracting from the bottom line somehow, and that negative value can be reasonably calculated, it shouldn't be assumed as a "cost." Someone spending time filling out a form doesn't always equate to lost productivity in a general sense, and as I suggested, if it results in something good happening (problems being solved) it's not a liability at all.

If anyone does start adding up these phantom "costs" and presents them to management, she had better be prepared to justify them as liabilities, otherwise the "demise" of her credibility is possible.

 

[Mike S.]

Whatever the cost of processing a CAR, it is much less than ignoring the problem and not processing it! Prevention is undeniably best, but when that fails (or isn’t even attempted) the next best thing is to determine the cause and implement a good, effective corrective action. This is very often low hanging fruit that even today way too many companies ignore.

 

[Greg B]

Let me know your feedback about the following inquiry:

What would be a good method of determining the administrative cost each time a CAR or NMR is generated, if you factor the time it takes to fill one, send it to the next person that could be in another plant, waiting time, etc. an approx. cost would be more in tune with this question.
Appreciated.

How much does it cost when someone fills in a Holiday/Leave application? How much does it cost when someone fills in their time sheet? How much does it cost when someone completes a request for stores? How much does it cost to fill in a Safety Report? Does your business add up these costs or they just picking on Quality.
As I said in my last post...we calculate time spent on collecting evidence (audits etc), time/resources spent correcting the problem and calculating the cost if the problem is NOT fixed. The actual time spent filling in and deliverying bits of paper is non sensical otherwise the accounts department would be the most ineffective department in our business as they generate more paper and files than all of production combined. I'd stick with the hard numbers of Resources and Costs 'if the problem is NOT fixed'