T
I can't quite grasp some of your cost catagories for a NC. "Parts Supplied Incorrectly" sounds more like a root cause than a cost. The cost would be "Customer Reject". You might be making it too complicated. You don't have to capture everything at the initial event. You can come back to the record over time and add in the costs are they are realized. I'm not too sure about trying to capture
I am setting ours up with catagories such as:
Scrap - Internal
Scrap - By Customer
Rework - Internal
Rework - By Customer
Freight - Internal
Freight - Expedited
Penalty - Line Down
Admin
Travel
Lets say that I shipped 10,000 widgets to my customer. They called to complain that they are finding 50% defects. They demand I send someone to sort parts, and get them replacement inventory because I am shutting their line down. I buy my Q tech a plane ticket to go sort parts for two days. I also have our people sort the additional 50,000 pieces we have in inventory. Turns out exactly 50% of the parts are bad, so I have to remake them. My cost is $1 each. My costs probably look like:
Travel - $1000 (flight, hotel, meals, for two days)
Sort - At Customer: $300 (two days wages for my on-site person)
Scrap - At Customer: $5000 (5000 bad units)
Penalty - Line Down: $10,000 (lets say they hit me for $2000 for each of five hours they were down)
Sort - Internal: $800 (40hr @ 20 per)
Scrap - Internal: $25,000 (25K bad units)
Rework - Internal: $30,000 (replace my and customer inventory)
Freight - Expidited: $500 (next day air charges to replace bad units)
You get the idea. I highly recommend setting up catagory - subcatagory like I did so people can easily find them in a list.
I am setting ours up with catagories such as:
Scrap - Internal
Scrap - By Customer
Rework - Internal
Rework - By Customer
Freight - Internal
Freight - Expedited
Penalty - Line Down
Admin
Travel
Lets say that I shipped 10,000 widgets to my customer. They called to complain that they are finding 50% defects. They demand I send someone to sort parts, and get them replacement inventory because I am shutting their line down. I buy my Q tech a plane ticket to go sort parts for two days. I also have our people sort the additional 50,000 pieces we have in inventory. Turns out exactly 50% of the parts are bad, so I have to remake them. My cost is $1 each. My costs probably look like:
Travel - $1000 (flight, hotel, meals, for two days)
Sort - At Customer: $300 (two days wages for my on-site person)
Scrap - At Customer: $5000 (5000 bad units)
Penalty - Line Down: $10,000 (lets say they hit me for $2000 for each of five hours they were down)
Sort - Internal: $800 (40hr @ 20 per)
Scrap - Internal: $25,000 (25K bad units)
Rework - Internal: $30,000 (replace my and customer inventory)
Freight - Expidited: $500 (next day air charges to replace bad units)
You get the idea. I highly recommend setting up catagory - subcatagory like I did so people can easily find them in a list.
. We have chosen to use the categorisation of events to show us what our biggest issues are (pareto analysis easiest way) and then do thorough investigations on these and bring their occurence rate down thus reducing costs until we are at a manageable level to investigate everything coming in to the system thoroughly.