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Iron River Paper Mill Cost of Quality Analysis. Jessica Brown & Jeff Hern April 22, 2004 GSM 645. Agenda. Mike Lawson, Quality Assurance Dept. Ken Gibson, Mill Manager Welcome Customer Analysis Profitability Cost of Quality Your Involvement. Iron River Paper Mill. Founded in 1906
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Iron River Paper MillCost of Quality Analysis Jessica Brown & Jeff Hern April 22, 2004 GSM 645
Agenda Mike Lawson, Quality Assurance Dept. Ken Gibson, Mill Manager • Welcome • Customer Analysis • Profitability • Cost of Quality • Your Involvement
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)
Customer Analysis • Printers & Publishers • Deadlines Quick Supply, Reliability • Need for Quality • Runability • Printability • Need for Service • Timely Delivery • Supplier Loyalty
Customers & Profitability • Commodity vs. Product Differentiation • Recent Industry Trends • Searsport Maine Mill Quality Matters
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 we’ve made a mistake, or to know when we’re about to make a mistake?
Cost of Quality Analysis 82% Non-Conformance Costs 18% Conformance Costs
Your Involvement • Where are our opportunities for quality improvement? • Who can answer this question? The Front-Line Workers
Your Involvement • Are you willing to give these workers the power to make these changes? • What can we do to facilitate this?
Brainstorming • Training • Incentives • What would “the good manager” do? • Organizational change
Follow Up What ONE THING will you change in your department as a result of today’s discussion?