Avery Dennison (FRNA) with over a billion dollars in sales, and manufacturing operations throughout North America, had identified workmanship error as the root cause for most of their customer complaints. The cost of these errors amounted to tens of millions of dollars annually in terms of credit notes, scrapped product, expedited freight and price accommodations. In spite of an active Six Sigma program, the number and impact of these errors did not show material improvement. Solutions that produced a temporary reduction in workmanship errors lacked sustainability, and the same errors would eventually resurface.
SatiStar performed an assessment of the situation and among numerous improvement suggestions, recommended that Avery introduce Mistake-Proofing technology throughout their plant operations. A pilot project was initiated that included SatiStar providing two Mistake-Proofing workshops. SatiStar provided performance guarantees that included the identification of a number of Mistake-Proofing applications during the workshops. In addition, the agreement specified that a set number of these Mistake-Proofing applications had to be implemented and be proven effective in use through a demonstrated reduction in workmanship errors.
As a result of the workshops, over 50 Mistake-Proofing applications were identified. Dozens of these applications were implemented within the weeks that followed the workshop. The impact in terms of workmanship related error reduction went well beyond the client’s most optimistic expectations, and a further $500,000 was budgeted to extend the program to all operating facilities.