What is a Disruption?
Executive Overview
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.
Disruption Examples
Take a look at the list below, and see if you have experienced any of these disruptions:
Small 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?
Medium Disruptions
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?
Large Disruptions
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?
Catastrophic Disruptions
Over $1,000,000 per disruption, including material, labor, overhead, containment and brand identity
- Product recall because of potential safety issues (i.e. Firestone)?