FAILURE COST AND CLAIM REDUCTION IN MANUFACTURING

Course Overview

Failure Cost And Claim Reduction In Manufacturing : This programme is designed to help participants understand the impact of failure cost on manufacturing performance, product quality, and customer satisfaction. It provides practical knowledge on identifying failure points, analyzing root causes, reducing internal and external failure costs, and developing effective improvement actions to minimize defects and customer claims.

Course Objectives

• Understand the concept of failure cost and its effect on production cost, profitability, and business performance.
• Identify the main sources of internal and external failure cost throughout the manufacturing process.
• Apply root cause analysis tools to investigate defects, process issues, and customer complaints effectively.
• Use practical quality and lean improvement methods to reduce scrap, rework, downtime, and warranty-related costs.
• Develop a basic failure cost reduction action plan with suitable performance indicators for continuous improvement.

Duration

Time: 9.00 a.m. – 5.00 a.m.

Days: 2 days

Who Should Attend

• Production Managers and Supervisors
• Manufacturing Engineers
• Quality Assurance (QA) and Quality Control (QC) Personnel
• Process Engineers
• Continuous Improvement / Lean Practitioners
• Maintenance Engineers and Technicians
• Operations Managers
• Industrial Engineers
• Production Planners
• Supply Chain and Logistics Personnel involved in manufacturing operations
• Customer Complaint Handling Personnel
• Executives and Team Leaders responsible for quality, cost reduction, and process improvement initiatives
• Anyone involved in manufacturing, quality improvement, defect reduction, and operational excellence activities

Course Content

1. Understanding Failure Cost in Manufacturing

1. 1. Importance of failure cost management in manufacturing
   2. Relationship between cost control, budgeting, and profitability
   3. Definition of Cost of Quality (COQ)
   4. Hidden factory costs: rework, scrap, and downtime
   5. Categories of Cost of Quality:
      • Internal Failure Cost
      • External Failure Cost

2. Mapping Failure Cost Across the Production Process
   1. Overview of manufacturing business flow process and documentation
   2. Failure points in manufacturing:
   3. Waste and defect across production stages

3. Root Cause Analysis
   1. Type of failure
      • Sporadic failure
      • Chronic failure
   2. Sporadic RCA
      • 5 Why Analysis
      • Fishbone Diagram
   3. Chronic RCA
      • Cause and Effect Matrix
   4. Data-driven defect analysis
      • Attribute Analysis
        1. Pareto Analysis
      • Variable data analysis
        1. Trend Charts
        2. Box Plot
      • Case study: analysis of real defect case scenarios

4. Reducing Internal Failure Cost (Scrap, Rework, Downtime)
   1. Analysis Waste
      • 7 wastes
   2. Measuring 7 waste
   3. Quantifying defect and defective
   4. Value Stream Mapping for defect detection

5. Final Workshop and Action Plan

1. 1. Participants design or improve an existing Failure Cost Reduction Plan
   2. Analyze current failure mechanism
   3. Analyzing defect data
      • Quantifying cost of defect
   4. Prioritize issue and brainstorm improvement
   5. Control and Sustain implementation
   6. Next Step and building culture.