Quality metrics for Demand-Driven Manufacturing

Quality

Metrics for

Action

in Demand-Driven Manufacturing

From a customer-centric Demand-Driven Manufacturing perspective, the quality metrics worth measuring are those that can directly impact the customer and therefore, profitability. All of these Quality metrics are measured at the Global (plant) level.

Business Value to Demand-Driven Manufacturers:

These Quality metrics help Demand-Driven Manufacturers pre-empt issues that may impact quality with real-time insight into performance indicators.

RMA

Return

Global Measurement

The RMA (Return Material Authorization) metric refers to the number of times a customer returns products based on quality, obsolescence and failure to meet requirements. RMA is calculated by:

RMA Percentage

= Number of RMAs issued in a given time period

/ Total number of deliveries for a given time period

Action:

Isolate the reasons for return by capturing as much data as possible from the customer. Identify if the issue is based on processing techniques, materials provided from certain suppliers, or shipping and handling issues.

Yield

No issues

Global Measurement

Yield is the percentage of products that are manufactured correctly the first time, without any quality issues, scrap or rework required. Yield is calculated by:

Yield

= Number of products with no issues in a given time period

/ Number of products manufactured in a given time period

Action:

Based on historical data, establish a reasonable Yield benchmark to measure against with the goal to increase that benchmark over a given period of time by looking for opportunities for continuous improvement. For example, review any contextual data you may have around the quality issue to determine the root cause of the problem – then take action. Data aggregators and historian systems like SyncOperations™ that collect and analyze real-time machine and system data can help to quickly pinpoint the root cause.