Case Study: How JAYCE Consulting Helped Reduce Scrap and Improve Margins for a Class A Part
One of our clients faced significant scrap issues with a Class A part weighing 9 pounds, produced using a two-cavity mold with a total shot weight of approximately 18 pounds. The annual volume for this part was 30,000 units, with a sales price of $165.00 per pair. With a scrap rate exceeding 20%, the financial impact was considerable. JAYCE Consulting was brought in to tackle this problem head-on.
Understanding the Problem
Our initial approach was twofold: first, we quantified the extent of the scrap issue, and second, we assessed whether clear criteria had been established between the customer and the OEM to define what constituted an acceptable part. Through our analysis, it became evident that inconsistencies in judgment among inspectors were contributing to the high scrap rate.
Implementing Attribute Agreement Analysis (AAA)
To address these discrepancies, JAYCE Consulting conducted an Attribute Agreement Analysis (AAA) involving both our client and their customer. The first round of AAA revealed significant disagreement among inspectors, leading to inconsistent decisions on whether parts were acceptable or defective.
What is Attribute Agreement Analysis?
Attribute Agreement Analysis is a statistical tool used to assess the consistency and accuracy of decisions made by multiple operators when evaluating categorical data. This data could pertain to various attributes such as pass/fail, good/bad, or defective/non-defective. AAA ensures that all personnel involved in the inspection process are aligned in their evaluations, leading to consistent and reliable results.
Achieving Consensus and Reducing Scrap
By working closely with all stakeholders, we were able to reach a consensus on the criteria that defined good and defective parts. This alignment alone led to a dramatic reduction in scrap, bringing it down to less than 5% consistently. This improvement not only reduced waste but also had a direct positive impact on the client’s margins.
The Broader Impact of Attribute Agreement Analysis
In today’s competitive manufacturing environment, reducing waste and improving efficiency are crucial for maintaining a competitive edge. Attribute Agreement Analysis is a powerful tool that helps manufacturers achieve these goals by ensuring consistency and accuracy in the evaluation of product attributes.
How JAYCE Consulting Can Help
At JAYCE Consulting, we specialize in helping manufacturers leverage tools like Attribute Agreement Analysis to reduce scrap, improve margins, and enhance overall sustainability efforts. Our team of experts can guide your organization through the AAA process, helping you achieve significant operational improvements and long-term success. Whether you’re facing challenges with scrap reduction or quality consistency, JAYCE Consulting is here to provide the expertise and support you need to drive sustainable growth.