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Implementing zero defects programmes can reduce waste and costs

Vivekananda Bhat, industry manager, manufacturing & process consulting practice, Frost & Sullivan, on how organisations can go about it

Implementing zero defects programmes can reduce waste and costs

Zero Defects is a motivational approach to eliminating defects attributable to errors and deficiencies in manufacturing processes. It is an organized effort to inspire personnel at all levels in an organization to do their jobs right the first time, every time. The Zero Defects concept is dedicated to preventing defects by detecting and removing the causes of their generation.

An organization could implement a typical Zero Defects program through the following step-by-step structured approach:

Management support: Without direction and support of upper management, a Zero Defects program has little chance of success. The management’s endorsement is required at the start of the program and also throughout its subsequent stages. Once management outlines the potential benefits of program adoption, implementation instructions should be prepared to reflect management’s complete commitment.

Appointing a program champion: The program begins by assigning a person at an appropriate staff level to lead the implementation drive. A Zero Defects advisory committee may also be useful in planning, initiating, sustaining, and evaluating the program. The basic plan and schedule for implementing Zero Defects must be precisely and comprehensively prepared. This plan should provide management with a clear picture of scheduled events and costs to implement and support the program.

Pre-kick-off activities: This includes the preparation of promotional materials such as posters, banners, tags, stickers, badges, pledge cards, etc. A handbook to help supervisors understand and carry out their assigned roles should be made available before the program is launched. Training workshops should be conducted across hierarchies.

Kick-off activities: An effective way to launch a Zero Defects program is to hold a company-wide rally on kick-off day. Representatives from management, the supervisory level, employee union, suppliers, and customers should be given key roles in this event. Brief motivational speeches should be made by individuals who hold leadership positions in the organization. A pledge card with the Zero Defects philosophy and pledge to strive toward the goal helps each employee endorse and accept the challenge.

Formulating objectives: The first step in identifying the primary targets for Zero Defects action is to survey the performance of each functional area of the organization. Quantitative rates of defectiveness and the related costs involved in scrap and rework should be determined, along with the data to be sourced from inspection reports, cost accounting summaries of scrap and rework, customer complaints, etc. The cost-reduction potential is the principle criterion in selecting prime targets for Zero Defects. In addition, the relative importance of a component or an assembly to the satisfactory functioning of the final product must be considered.

Establishing numerical goals: The targets in each area must be expressed in quantitative terms to measure and reward achievements. If the goals are realistic and are expressed in terms that employees can understand and accept, the typical employee is expected to make a serious and sustained effort.

Performance reporting: The program champion is responsible for ensuring that timely, accurate, and complete data is gathered on the progress made toward achieving targets. The data must be analyzed and presented to management and all stakeholders in the organization so that achievements are clearly and readily apparent. Simple trend charts could be displayed for visual communication and ease of understanding.

Root-cause analysis and corrective and preventive action: The potential causes of defects should be determined through team brainstorming, and applicable causes must be narrowed down for verification. The final root cause or causes will go through a structured problem-solving approach. Corrective and preventive actions will close the loop.

Sustaining activities: A company-wide display could highlight customer appreciation for exceptional performance, reduced rework and scrap rates, and cost reductions. Arranging employee visits to companies where similar programs are successfully implemented could also add a lot of value. Seminars or workshops with similar industries help in exchanging new ideas quickly and effectively to a large number of employees.

Briefing new employees: A Zero Defects program should be included in the induction program for new employees and they should be provided the opportunity to participate and contribute.
Management visits to the shop floor: Effective management and employee contact through periodic visits to the shop floor is essential to the success of a Zero Defects program. In areas where significant achievements and progress have been made, such visits reinforce the effectiveness of immediate supervisors and provide opportunities to recognize the accomplishments of individuals and groups.
Rewards and recognition: Official and public recognition is an important part of the Zero Defects program. Accordingly, procedures must be devised to identify and evaluate accomplishments that warrant such recognition. The provision of small and large group recognition is important to promote teamwork rather than individual contributions.
It is more difficult to sustain a Zero Defects program than to start one, primarily due to the normal human inclination to lose interest in something that is no longer new. The plan to sustain interest in the program must be thoughtfully and innovatively developed before it is adopted.