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Practical example

Launching a quality initiative to reduce quality-related costs

Analysis and creation of transparency regarding all quality-related costs in value-added and non-value-added processes at a manufacturer in the medical technology and pharmaceutical industries.

One of the key challenges in launching quality initiatives aimed at reducing quality-related costs is the comprehensive analysis of process weaknesses. To this end, transparency regarding the current quality cost situation in the company’s value-added and non-value-added processes is essential.

Background

  • Rising customer expectations and quality standards in the markets.
  • A significant increase in the costs associated with non-conformities (complaint costs, goodwill costs).
  • Lack of transparency regarding the total quality-related costs in value-added and non-value-added processes.
  • Lack of an "outside perspective" on the issues of quality and reliability (with regard to both products and processes).
  • Lack of transparency regarding areas for improvement (overview of areas requiring action, including recommended measures).

Specific task

  • Creating transparency regarding quality-related costs.
  • Independent assessment of quality management and quality-related processes using the “KBC Q-Scan” (top-down quality analysis).
  • Identification of process-related causes for selected failure patterns in medical devices (tracing the root causes of product issues).
  • Derivation and initialization of short-, medium-, and long-term optimization recommendations.

KBC's Approach

Whenconductingthe “KBC Q-Scan,” we used a structured, interview-based questionnaire to identify, in a top-down approach, the respective process weaknesses in both value-added and non-value-added processes.

At the same time, by conducting a bottom-up root cause analysis for specific technical product issues using a root cause framework tailored specifically to our client, we were able to quickly identify the relevant process weaknesses. We then cross-referenced these weaknesses with the results of the top-down analysis, clustered them, and prioritized them. In the next step, targeted process improvement measures were derived from this analysis with the goal of permanently resolving the product issues. Finally, we evaluated the recommended measures in terms of their costs and potential benefits for future quality-related costs and presented the results to management in a transparent, business-case-oriented format.

A man with short brown hair and dark blue eyes, wearing glasses and smiling; he is wearing a white shirt and a dark blue suit and is standing with both hands in his pants pockets
A man with short brown hair and dark blue eyes, wearing glasses and smiling; he is wearing a white shirt and a dark blue suit and is standing with both hands in his pants pockets
Tobias Budde
Partner

Impact achieved

Together with our client, we were able to analyze areas requiring action and develop process optimization measures. Through content-focused optimization projects—evaluated and agreed upon using business cases—we were able to sustainably improve quality management in our client’s key process areas and proactively prevent product issues. The processes and methods for initiating measures, which KBC had already tested in other initiatives, were thus successfully applied to a quality initiative in the medical technology and pharmaceutical industries.