Why Do Organizations Struggle with Controlling Cost Drivers?

iBASEtWhy Do Organizations Struggle with Controlling Cost Drivers?



Why Do Organizations Struggle with Controlling Cost Drivers?

Speaker: Michel Gadbois

The first struggle our customers have when it comes to controlling cost of quality is the past. These aerospace companies have been around for years. In many cases until recently, their employees have been around for a long time. It is not uncommon to see people that have been on the shop floor for 30 and sometimes even 40 years, although that is changing now. They have a process in place with which they are very comfortable. The number one driver that companies usually use to determine if they are doing well is profit. Aerospace companies usually make money. So, there are often cases when companies have the legacy of what they have done for the last 30 or 40 years and if they are still making money, they think everything is good. 

What we try to do is to go into these companies and say, “Look at what some of your competitors are doing. Look at how much lower their cost of quality is, and look at what is happening to your workforce.” A little known fact in this industry is that every employee that comes to work has become a good employee or a good worker by making anywhere between $100,000 and $200,000 worth of mistakes during their career and somehow surviving that experience. When all of these experienced people who were keeping you from having high cost of quality are leaving and you are bringing in new people, imagine that these new people are like empty error vessels just waiting to be filled. The only way that they are going to get up to speed and learn how not to make the same mistakes that the people before them have made is by having clear, simple instructions that walk them through the process in a way that they can understand. The old generation used to read. They used to love to read. You could give them a paragraph with 40 lines of text and they would actually read it and execute per that paragraph. The new generation does not do that. 

The way to keep constant quality in control is to deliver clear, concise instructions. We are going to build in the verifications. We are going to help the industry understand how much inefficiency exists in the way that they are doing things today so that there is a yearning to get away from those costs and to get to something simpler.

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