How Visualizing the cost of defects helped me solve a problem in 1 day.

There is always a cost associated with defects.

The Problem: While working as Production Manager in a Vet. Capsule Manufacturing Co., for visual sorting of defective capsules (black/white spots, bubbles, cut-marks, pin-holes etc.) sorting tables were used. Tables had six inch walls to prevent spilling of capsules.

However during unloading of capsule drums on table-top some capsules will spill from the table walls & fall on floor & would eventually be rejected as fallen capsules were not acceptable as per quality guidelines.

I had repeatedly insisted the sorters to be careful as rejection was costing us heavily, but some capsules continued to fall on floor & I almost concluded that this manual process will always have some rejection which was proven wrong later.

What was done: As each capsule on floor was costing us two Rupees those days I took a photo-copy of two Rupee note on Right side of paper & made a sketch of a capsule on left side & an equal-to sign to join them. I explained them that each capsule on floor costs us two rupees. I displayed the paper in their Gemba (work place).

Now I would move from table to table counting like’ Table one 3 capsules 6 rupees’, ‘Table two 4 capsules 8 rupees’ & like wise. Next morning to my surprise I found no capsules on the floor & I appreciated their good work. This continued next day also. On third day I could not visit them as I was busy in one long meeting. In afternoon one of the members of the group came to me & asked me to visit their gemba & I told him that I believe in them that there will be no spillage.

Moral of the story: People are not bad. They need feedback. Visualize the cost of defects & you can get first level improvement even without making any physical changes in gemba.