Many companies have experienced some kind of “rework,” but what exactly does this refer to?
"20/80 Rule: Spend 20% reflecting on what you did, but 80% on what you're going to do."
REWORK = FREE WORK
Rework is when you pay twice or more to get the same output. If a widget costs €.25 to make and you had to do it twice to get it right, then your cost just went up to €.50 and most likely you didn’t make money on that widget. Furthermore, you can’t meet your schedule of delivering 10,000 widgets that week, so your customers are not happy, and your employees are frustrated. Some rework is common and acceptable since no process is perfect. How much rework is acceptable? 1%? 5%? Maybe more? This seems to differ according to product, process, and corporate philosophy
Product: If you are making plastic toys, perfection may not be mandatory; a less-than-perfect product may be acceptable. Cost and use of the product play an important role; the more expensive the product, the pickier the customer is, and higher quality is expected. Safety is another factor in producing a quality product. Rework is more common when high-priced tickets or safety may be a concern. For these products, precision is key; measure twice, cut once, and aim for initial accuracy. Most of us will accept a bad purchase on eBay but want our airplane pilot to get it right the first time, every time.
Process: The more standardized the process the less rework and the opposite is true. Standard Operating Procedures (SOP) are a must for large manufacturers to maintain consistent quality products. However, having SOPs in place is hardly enough. How well employees understand and follow these SOPs makes a world of difference. Road and speed signs are posted everywhere, but we still have hundreds of thousands of cops to enforce the law.
Corporate Philosophy: Corporate leaders dictate what’s acceptable when it comes to rework. I’ve seen 1% being too much and 25% being acceptable. Who is paying for rework? When cost is passed to customers, rework is more common and acceptable than when it is absorbed as operating cost
What are the common causes of rework?
- Culture that promotes Silos
- Poor skills and training
- Insufficient job instructions
- Deadline pressure
- Environment
- Lack of supervision and accountability Wrong tools and/or materials
- Poor planning
"Aim for pilot safety, surgeon quality, a Santa Claus schedule, and Walmart cost."
"Measure twice, cut once."
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Taking action to reduce rework is essential. It requires a proactive approach to identify and address the root causes, implement effective training improve programs, communication, and refine processes. By doing so, we can create a work environment that values quality, efficiency, and accountability, leading to higher customer satisfaction, improved financial performance, and a motivated workforce.
When we embrace a mindset of getting it right the first time, we can enhance efficiency, reduce costs, and ensure customer satisfaction.
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