Cost savings exceeded $2,000,000 with an immediate opportunity for
another $2,000,000.
A multi-facility, billion dollar ink supplier developed a serious batch quality problem at one of its North American facilities. The firm produced flushed pigment and then used the pigment to produce ink. The pigment used to produce the ink did not meet customer specifications. Batch quality, typically produced at 90% levels now ran at 80% levels with significant variability. The ink division of the same company that would normally buy the pigment was now buying pigment from a competitor. Internal confidence of the ink division was lost. In addition large losses due to costs, inventory, handling, reworking and reprocessing were being incurred. In addition, demand was increasing while capacity was decreasing.
Approach
The firm had a prior relationship with Luftig & Warren International involving work at another company. As a result of solving a complex manufacturing problem for that company, the ink supplier asked if we would help participate in returning production operations to their former levels.
The approach to this issue involved several points. These included, rigid disciplinary process controls for addressing shift to shift variability, measurement system evaluation for stability of all gauges measuring critical product characteristics, an experimentally design study for a number of criterion variables and implementation of the findings. The findings were then institutionalized via a quality function deployment process.
Results
A key critical characteristic, which directly impacted cost, was improved by 3.6%. Batch success rate improved to more than 96%. Business demand for the pigment product by the customer increased 21%. Confidence in the product was restored. Capacity attributable to rework improved by 3%. Cost savings exceeded $2,000,000 with an immediate opportunity for another $2,000,000. Customer complaints dropped nearly 50% within six months.
Submitted by LWI
Consultant
Bob Pahlkotter