The main aim of manufacturers is to generate huge profits while satisfying their customers. Hence, during the manufacturing process, it is very important to minimize product defects.
The defect rate can be helpful in determining the average number of errors involved in production. Regardless of the industry, manufacturers work hard to reduce and if possible, eliminate product defects.
By simply determining the defect rate, companies are able to identify the particular points where most of the defects occur and implement the necessary changes. Defect rates are usually checked at different points throughout the production cycle.
How will you calculate the defect rate? Here are the simple steps that you can follow:
1. Check the inventory and determine if there are any defects. You need to set a sample size. For instance, for every 150 products, you are able to find 3 defects. In this example, the sample size is 150.
2. You have to divide the defects by the sample size. In the example above, you have to divide 3 by 150 and the quotient is 0.02; you need to multiply 0.02 with 100% to get 2%.
3. There you have it – the defect rate is 2%.
When you are able to monitor the defect rate, you can improve profitability over the long term. The methods used to determine the rate of defects may vary among industries but the main aim is still the same and that is to reduce defects during production.
Reducing product defects is possible with the collaboration of each individual, including the management team of an organization. To significantly reduce the defect rate, those people involved in the production process must cooperate and work towards the same goal.
With the contribution and effort of each employee, there will be less mistakes and errors. Product defects can be lowered significantly throughout the production cycle. It is not enough that management identifies the problem areas. You must talk with the employees concerned to determine the real problem.
You can ask for their ideas on how to address the problems. Brainstorming is a good way to find the most appropriate solution in lowering the defects.
The possible changes must be identified, and a plan should be devised to ensure that changes are strictly enforced. Not everyone welcomes change, so you have to talk to your people.
Forming a team to document the steps or measures that were undertaken is vital to success. You will be able to see which ones work and produce the best results. The outcome must be evaluated as well. Any change in the production cycle should benefit everyone.
The team designated by management should know every aspect of production. Every manufacturer aims to save money, and this should considered even if you’re trying to reduce the defect rate. There is no sense in lowering the defect rate when there is also a significant increase in the production cost.
You may also need to change some of your goals if you are to succeed in your chosen industry. Calculate the defect rate today, and apply the right strategies to address such issues.