What did that rework cost?
This is the third blog is a series of questions for executives and staff in the glass and window industries to ask ourselves, our staff, our customers and our suppliers.
In my job I get to meet a lot of business owners and factory managers for glass and window companies in their facilities. Some are very open about their rework costs and issues. Others tell me they never have rework. Either way most end up buying a solution where one of the major benefits is reduced rework.
So what did that rework cost?
Imagine a window fabricator who's taking a load of custom made windows to their customer site one hours drive from their factory. Along the way one of the windows, an average sized and valued unit, is scratched and the factory glazed DGU gets cracked. What does this actually cost the window fabricator? Is it the cost of the unit? The steps involved in fixing this issue could include the following :
1. The driver phones the business owner
2. The driver tells the customer
3. The customer and the business owner talk
4. Someone tries to work out why this happened, and what the business can do differently to reduce the likelihood of the same thing happening again. This may lead to new policy and procedure, training, and/or corrective action.
5. The business orders more aluminum or PVC and a new DGU
6. The business owner and the supplies haggle over delivery times and who is to pay
7. The business owner advises the customer of likely dates/times for the replacement window
8. The business owner schedules the manufacture of the replacement unit in the factory
9. The business receives the raw materials and manufactures the unit
10. The unit is delivered to site
11. The customer is disappointed and the credibility of the business is impacted
12. Payment for the windows may be delayed
I spoke to a few window fabricators about what the actual dollar value of the fix is. I estimated the cost at around $400. One window fabricator said it would be at least twice that. What do you think?
Most agree that the cost of rework can be calculated and that the cost is high.
The keys to reducing rework is to stop hard surfaces from touching finished product, reduce the unwanted movement of finished product (such as when being transported), and reduce the number of "touches" of the product post manufacture. The Glass Racking Company has many products to achieve this. Some of these products are very low cost and have an immediate benefit and cost saving for the business using them. I believe these are "no-brainers".
So I challenge you to think about your most recent rework. What was the cost of the fix, why did it happen, and how could you reduce the likelihood of this happening again?