Iron River Paper Mill Cost of Quality Analysis

1
Iron River Paper MillCost of Quality Analysis

• Jessica Brown Jeff Hern
• April 22, 2004
• GSM 645

2
Agenda

• Mike Lawson, Quality Assurance Dept.
• Ken Gibson, Mill Manager
• Welcome
• Customer Analysis
• Profitability
• Cost of Quality
• Your Involvement

3
Iron River Paper Mill

• Founded in 1906
• Paper for Magazines Catalogs
• 220 Million Sales
• 632 Employees
• 1 Mill Manager
• 12 Managers
• 22 Departments (10 Production, 12 Admin
  Support)

4
Customer Analysis

• Printers Publishers
• Deadlines ? Quick Supply, Reliability
• Need for Quality
• Runability
• Printability
• Need for Service
• Timely Delivery
• Supplier Loyalty

5
Customers Profitability

• Commodity vs. Product Differentiation
• Recent Industry Trends
• Searsport Maine Mill

Quality Matters
6
Quality Costs

• Conformance Costs
• Prevention
• Inspection
• Non-Conformance Costs
• Internal Failure
• External Failure

7.6 million 35.3 million 42.9 million
Is it better to know when weve made a mistake,
or to know when were about to make a mistake?
7
Cost of Quality Analysis
82 Non-Conformance Costs
18 Conformance Costs
8
Your Involvement

• Where are our opportunities for quality
  improvement?
• Who can answer this question?

The Front-Line Workers
9
Your Involvement

• Are you willing to give these workers the power
  to make these changes?
• What can we do to facilitate this?

10
Brainstorming

• Training
• Incentives
• What would the good manager do?
• Organizational change

11
Follow Up
What ONE THING will you change in your
department as a result of todays discussion?
12
(No Transcript)