ASSUMPTIONS AND THEIR ROLE IN COSTLY MISTAKES – PART 3

Fool proof systems never work; sometimes I am driven to this conclusion. See the

following story.

     The Factory had a type of special type of component which should be used for ‘Severe Service’. The only difference between the one which is used for ‘Normal Service’ is a special coating on the surface of the component. The order was for a special severe/service product, the marketing people conveyed to design department. Design department issued a special Bill of materials (BOM) suiting that. This BOM went to the planning department. When the planning Engineer raised the indent (manually prepared Purchase requisition) for the items, the wrong item was requested, the one without coating . The Purchase Order was made out of the wrong item and it went for technical approval(vetting) to Design department. The error was overlooked by the design department. The Purchase Order  was released for the wrong item. There was delay in supply of the item from the supplier. Everybody was following up that item. As soon as it arrived, the item was inspected as per Purchase Order(as it was for “without coating”), used in the assembly and then went for testing.

    The product withstood to the ‘Severe’ stage and final testing, later it got installed at the customer’s project(may be a case of factor of safety).

    How did this get exposed that the wrong items went into the product?

     Later there was a similar order for another customer. Again wrong items got ordered. That day, the line supervisor for the assembly was on leave and another supervisor was officiating for him.

     The new supervisor checked the items as per specifications required and found that it was in variance from the BOM. He raised the alarm. Then QA checked the previous order, just in case . The error was identified only then.

     What is the root cause here? In how many places did ‘ASSUMPTION’ wreak its havoc?

ASSUMPTIONS AND THEIR ROLE IN COSTLY ERRORS – PART 2

There are a few things wrong with our industrial management culture.

They are:

1.      Assumptions

2.      Over confidence

3.      Bluffing

4.      Blaming

5.      Finding a scapegoat

Another case in the point is as follows:

Customer order requires the border of a product to be made with another fabric, the line supervisor assumed that it should be safe-edge (made of same fabric). 30 pieces  were produced that way.

     30 pieces got inspected by the QC and cleared for dispatch. Then also, it was not found out.

     Now it has gone to the customer and it is going to be a high value claim.

Root cause – considered the order as a repeat order of the previous order, without verifying the stipulations of the current order. Groupthink also contributed to the error.

learning: never assume that the other person is incapable of errors 

ASSUMPTIONS AND THEIR ROLE IN COSTLY ERRORS – PART 1

Recently I visited a plant which has incurred a claim statement of Rs. 17 lakhs.

     The manager in charge of the unit got a new job and left the organization without communicating. There was no proper supervisor for the work also.

     The workmen thought that the order they have received is similar to the one which they had executed   earlier. One container load of the product was sent to OVERSEAS customer. The customer rejected it and wanted a full replacement.

     The replacement resulted in the company incurring a loss of Rs. 17 lakhs due to the additional costs.

Root Causes – The communication chain broke down, there was assumption which was damaging and also the inspection team failed to inspect as per customer requirements (or sent the item as concessional acceptance).

     I consider this a management failure. What do you feel?

sentiments of the boss

if the sentiments of the boss see corrective action on customer complaints and the monthly objective achievement reports with the same intensity as the monthly billing and payment collection- we have won

how to make and send an e mail

I am reminding of the mail protocol we should follow, so that you take care without fail in all future mails,  any mail without these is not acceptable

1. always mark a copy to one backup mail id

2. mention

a)subject

and b)reference on the top

3. mention the purpose of your mail

4. type out the body of your message

5. list out the attached files if any in the mail itself 

6. anticipate any question the receiver may ask ,and try to cover that also in your mail

7. request the receiver,  for the action you want them to take based on your mail

request for an acknowledgement 
If you don't get an acknowledgement in one working day .resend the message, ask for reply

horror stories in audit part 6

Location Calicut

Large Dairy. The auditor raised a query that the FSMS risk rating system should be mathematically modeled and the decision whether the food safety risk was significant or not should be taken based on a risk priority number (RPN).

        However the same hazard assessment had been cleared by their own audit team member for another location (unit of the same parent company) in the group.

        I checked the model he had suggested as a template. Even for the “yes or no” questions in the hazard assessment, you have to assign marks 1,5,10 depending on the assessment, multiply all numbers together and then arrive at an “RPN”.

         It was “pure mathematical magic” What is the purpose? The Lead Tutor from the same organisation, who taught us, had asked us to keep the rating model simple. The auditor can suggest anything and go away. The Food Safety team will then have to pointlessly waste their time (in calculations-like probability of earthquake or rains- for which super computers have to be used for).

         I believe the management systems are for “better practices” to be in built and control risks, not to make brilliant mathematics to impress and confuse.

Whither auditor consistency

Horror Stories in Auditing 5

Horror Stories in Auditing

Over the years I have received from many known persons certain horror stories which I would like to share here.

5. Location Trivandrum

Auditor team from the leading Certification body of the pleasure capital of Europe, arrived from Delhi. It was a multiple day audit. The auditors were behaving like headmasters.(Arrogant)

         The auditors had come (mostly retired people) first time to this part of the country. They had heard that good spices will be available in Kerala. They made their list and handed over their demands to their counterpart in the client organisation

        The MR (lady) prepared the list and arranged purchase of separate 4 bundles of spices, intended for each member of the team. The spices (supposed to be complimentary and costing thousands of rupees) 4 bundles were handed over to the auditors. Half the team left on the last day by 11 a.m. They carried with them all the four bundles.

        The M.R was flabbergasted; she had to once again arrange two bundles for the remaining team.

Whither dignity of auditing?