How well do you know your supply chain? A supply chain is only strong as its weakest link. When it comes to controlling your suppliers, the better you are at understanding the entire chain and identifying weak links, the better your company will be in the long run.
The recently released API Spec Q1 9th Edition – Addendum 2 focuses on supply chain controls, specifically relating to multi-tier suppliers. As you are aware, Q1 has always required us to manage our supply chain. However, the revised requirements expand the controls to include associated (tier 2 & 3 level) suppliers that are essential for product realization.
To that end, in today’s post we will focus on a couple of tips to improve the effectiveness of your supply chain controls.
An efficient supply chain control program enables your company to reduce costs, minimize risk and satisfy customer expectations. For more information on how Accupoint Software can help your organization to improve your supply chain control program, please contact us today.
The Cost of Quality, sometimes referred to as COQ, is a measurement that sums up the costs related to the prevention and subsequent detection of defects, and the costs associated with these defects. The COQ defines the total costs of quality activities. This is money spent beyond the basic production costs to ensure that the customer receives a quality product. Let's take a look at how COQ is calculated.
The COQ includes the money spent on prevention, appraisal, and correction in a production environment. COQ can be expressed as the effort in terms of time, but it is probably best served as a calculation involving money.
The calculation itself is not complicated, and it is the addition of two compound values (which makes this the most straightforward approach to COQ):
The Cost of Control and Cost of Failure of Control each require a calculation based on their components.
Cost of Control
The Cost of Control can be defined as follows:
The Prevention Cost is the amount of money spent to prevent defects incurred during the manufacturing process. All Quality Assurance programs and efforts are included in this number, including any preventive measures taken.
The Appraisal Cost is the cost associated with all efforts focused on the detection of defects. The cost associated with Quality Control efforts are included here, including final testing and other forms of quality control.
Cost of Failure of Control
The Cost of Failure of Control is sometimes known as the Cost of Non-Conformance. This is the total cost of failure within the manufacturing process. It is broken up into Internal Failures and External Failures.
Internal Failure Cost is the direct cost associated with internally recognized defects and the costs associated with correcting them. For example, this would be the expense of fixing the discovered defects and retesting them, also known as Cost of Rework.
External Failure Cost is the cost associated with defects discovered by the customer and their correction. This Cost of Rework for external failures can include such items as product service, liability issues, and recalls.
Getting the COQ to a minimum requires careful balancing between the Cost of Control and the Cost of Failure of Control. The prevailing thought is that an increased Cost of Control will keep the Cost of Failure of Control to a minimum.
However, in most practical applications an increased Cost of Control can rapidly approach a diminishing return on investment when it is raised beyond a certain degree of effectiveness. The key is to keep the costs balanced as needed.
Quality has a price that can be calculated and studied. But the importance of maintaining the business image has many returns in repeat business and word of mouth.
For more information on how Accupoint can help your organization monitor and reduce your COQ, please contact us today.
Regardless of the industry you work in, calibration is one of those things you simply cannot overlook. Inspection equipment needs to function reliably and accurately. Calibration ensures consistency and is a requirement of quality management standards across the globe. In this week’s blog will examine four key steps to ensure that your organization is ready for your next audit.
The Calibration process does not have to be time consuming. With the right systems in place, you will be prepared for any audit, as well as have the peace of mind that comes with protecting yourself from liability. For more information on how Accupoint Software can help simplify the calibration process, contact us today.
The Net Promoter Score (NPS) can be a great tool to improve the customer satisfaction of your business. It can also help to expand your customer base. NPS is a simple process, but the effects can have a significant impact on your business. Let's look at the advantages of NPS.
1. The NPS Process Is Customer Friendly
How likely is it you would recommend us to a friend or colleague? Determining the NPS requires only asking the single question above. When you ask it, the customer responds with a range from 0 (not at all) to 10 (extremely likely.) It requires minimal effort on their part. By asking only a single question, the customer is more likely to take the time to give an answer. The last thing you want to do is to burden your customers with an exhaustive survey. Since they are not, the customer will provide accurate information and still leave in a good mood.
2. NPS Provides a Target for Focusing Customer Relations Efforts
NPS gives a clear picture of how customers view your products and services. People tend to be conservative when it comes to making a recommendation. By asking this question, you can get a good measure of the customer's satisfaction. Once you have the measurement in place, it gives you a clear goal to focus on while you try to raise it. The goal should be to move all the detractors (those with a score of 0 to 6) to a passive level (7 or 8.) And you should, in turn, move all the passives you can to promoters (9 or 10.) Promoters can do incredible things for your business when it comes to getting the word out.
3. NPS Can Reduce the Cost of Customer Acquisition
The best way of increasing a customer base is by word of mouth. Since the NPS is a direct measure of how likely this is to happen, it gives you a very focused metric on which to improve. You will want to nurture low scoring customers. Doing this will increase the likelihood of future product and service recommendations. Taking care of low scoring customers will also help to keep them coming back for more business. Every saved customer relationship is one you don't have to pay to replace later. This can have a positive impact your bottom line. The NPS can be a simple yet powerful tool in customer relations for your business.
Contact us today for more information on how Accupoint Software can help streamline your customer bench-marking process.
With the changing landscape of the oil and gas industry, companies are under increasing pressure to improve operational efficiencies as prices continue to remain low and margins are narrowed. In order to reduce costs and increase efficiency, many service supply organizations are implementing API Spec Q2.
Accupoint’s SAM™ solution ensures compliance and the correct documentation to meet the API Q2 requirements. It defines strategies, goals and best practices and the means to secure them. Our system provides industry best practices for all components including: service quality, risk assessment, employee training, document control, MOC, corrective actions and preventive maintenance. A comprehensive solution may seem difficult for an industry with such vast core areas to cover; however, incorporating common standards of practice is essential to realizing integrated process management and operational excellence simultaneously.
The bottom line: API Spec Q2 tells your customers that you are at the top of your class and aiming for the best in quality and delivery of services, ultimately ensuring customer loyalty, operational efficiency and growth.
Please contact us today for more information on our family of quality management systems specific to the petroleum industry.