Supply Chain Disruptions: CAPA-SCARS
A disruption can be as minor as a production slow down or as catastrophic as a massive product recall. Disruptions can also be seen as additional steps needed to assure quality or as rework to accommodate lower quality product. Disruptions may also require additional overhead for inventory, and should take into consideration containment costs. All of these disruptions reduce production yield and margins by having to spend extra resources outside of the standard labor and material used to produce your finished goods.
GSQA delivers alerts in advance of a potential disruption, saving time and expense, ultimately improving productivity and production yield. By providing advanced notice of potentially catastrophic production conditions, GSQA is a key component in maintaining your brand identity in the market.
When a disruption does occur, the GSQA Nonconformance Management is used to capture information about the issue, and follow a workflow through to resolution. The NCR module is designed for supplier corrective action reporting (SCAR) and production batch issues (NCR).
Take a look at the list below, and see if you have experienced any of these disruptions:
Under $5,000 per disruption, including labor and material
- Line slowdown because materials were not optimal?
- Material standardization activities (i.e. mixing materials from multiple suppliers) because materials have different characteristics from different suppliers?
- Sorting raw and in process materials because of mislabeled packaging?
- Supplier paperwork not present?
Over $5,000 per disruption, including labor, material and overhead
- Line stoppage because inconsistent materials affected production?
- Line changeover because materials were not delivered on time?
- Sorting finished goods (for example, products that do not meet final inspection)?
- Increased working capital for safety stock to accommodate supply chain availability issues?
Over $100,000 per disruption, including material, labor, overhead, and containment
- Product recall because of lower quality product?
- Lower yield because of additional processes needed to determine if raw materials meet specification?
- Fines because of lack of compliance to government (FDA) or industry (TS/QS/ISO) regulations?
- Increased WIP to accommodate production inefficiencies?
Over $1,000,000 per disruption, including material, labor, overhead, containment and brand identity
- Product recall because of potential safety issues (i.e. Firestone)?
Simplify Nonconformance Management
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