Auditing a factory's quality system, and helping them patch the main holes found by the auditor, is helpful. But is it enough? I used to think so. A good quality management system is supposed to stop defects before it is too late. However, I have seen too many Chinese manufacturers get very high scores on a quality audit, and then try to ship batches containing 5-20% of defective goods. Setting up control points relevant to each production step does help, but improving quality takes much … [Read more...]
Production optimization in China. Good luck with that.
As the pressure on costs is getting more intense, many importers wish their suppliers focused on optimizing their production. In most cases, there are no optimization efforts going on. Why is that? 1. A focus on the golden eggs, not on the goose Most factory owners don't intend their kids to take the relay once they retire. They see their business as a risky endeavour that might fail, or might be shut down by the local government, in the not-so-distant future. So they focus on the cash … [Read more...]
Benefits of quality control inspections
The question is, are inspections useless? What are the benefits of quality control inspections, if any? As I mentioned in a previous article, more and more importers are switching their focus from standard QC inspections to improving key suppliers. My opinion is, there are benefits, but they depend on the kind of inspection. Here is Shingo's typology: #1. "Judgement inspection" (prevents shipment of defective batches) Quantify, and if possible sort out, defects. Takes place … [Read more...]
What should factory operators do when defects are found?
A few months ago, I drew a flow chart for buyers to follow when a problem is detected during an in-process inspection. But the very best would be for factory operators themselves to notice defects and to solve the problem immediately, right? I just found an excellent flow chart that addresses this purpose: Source: "Cedar Works" case study, Becoming Lean: Inside Stories of U.S. Manufacturers, edited by Jeffrey Liker. Unfortunately, it only works if line workers are allowed to stop … [Read more...]
How to reduce costs in a factory? The lean approach.
The number one challenge of Chinese suppliers is price, as revealed by a recent survey. Their costs keep rising, but price competition is stronger and stronger. Factory owners spend a lot of time trying to reduce costs. Unfortunately, they tend to focus only on three levers to keep their costs under control: Negotiating down material prices; Limiting salary raises; Pushing the employees to work hard, for long hours. These are actually NOT the main drivers of cost though... … [Read more...]
Is it expensive to increase the quality level in a factory?
Does it necessarily cost more to reduce the number of defects? That's a good question in the sense that it brings up different responses from different people. I am going to expose a few very different mindsets about the whole "quality" concept. The traditional mindset that is prevalent in China If you ask 99% of Chinese manufacturers, they will say "of course, it will cost more to reduce the proportion of defects". They think there are only two ways of increasing the quality … [Read more...]
Lean, 6 sigma, etc.: comparison of process improvement approaches
Michel Baudin, a Lean consultant whose blog I follow with great interest, published an extremely interesting article that compares different approaches for process improvement in manufacturing organizations. I have read a lot of attempts by consultants and academics to explain how two or three of these approaches a complementary. Baudin's opinion is as below: They really are competitive brands put out by consultants vying for clients in overlapping markets. And they are so different is scope … [Read more...]
6 tips to design products to be made in China
I have been in contact with a number of "inventors" over the years. They have an idea for a cool/useful product that currently doesn't exist. And they want to get it made in China, which has a reputation for getting things done fast. I can categorize them in three groups, from the free-form designers to the adepts of "design for manufacture". 1st group: free-form design, and reliance on one random supplier They go on trade shows, look for the closest product they can find, and ask the … [Read more...]
The benefits of a factory’s lean turnaround
Tell Chinese manufacturers that you can help them achieve substantial reduction of costs, and they will listen. They might not believe that it is possible without applying new technologies, but at least that's a topic they are interested in. However, importers place more and more importance on quality and speed. Not to mention the need lower MOQs and fewer CSR issues. Well, a solid implementation of lean principles can help. Here are the mechanisms at play: There are clear … [Read more...]
Lean transformation: how it drives costs down
Whenever I am in front of a Chinese factory owner, the dialogue goes like this: Me: "you know, you can drive your costs down significantly simply by re-organizing your production." Chinese boss: "Hmmm... I don't know what you are talking about. We've been doing this way since the beginning, and it works fine. All my competitors do the same. I don't know of any other way". It can be frustrating to explain how it works, and sound idealistic. There are cause-and-effect relationships, and they … [Read more...]
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