Resource management software: a way to reduce quality costs in production
In the highly competitive manufacturing industry, efficient management of resources is crucial to success. Resource management software gives companies the tools to plan, manage and optimise resources effectively. The benefits of such software are described in the study “Reducing Internal Failure Quality Costs Using Plan-for-Every-Part Methods in High-Mix-Low-Volume Production Within a Large Manufacturing Company” by Juho Lampimäki. This case study shows how implementing resource management software can contribute to a considerable reduction in quality costs.
Challenges in manufacturing
In manufacturing, especially with a high product variety and low production volumes (high-mix-low-volume), managing resources is particularly complex. Companies have to coordinate a large number of components and materials to ensure efficient production processes. Without structured management, this can lead to considerable quality problems and internal failure costs.
Benefits of resource management software
Resource management software helps companies master these challenges by:
- Creating transparency: all resources and their status are tracked in real time, so bottlenecks and excess stock can be avoided.
- Enabling efficient planning: detailed planning and tracking allow companies to make sure that all required resources are in the right place at the right time.
- Supporting quality management: automated monitoring and documentation functions help to detect and fix quality problems early.
Case study: plan-for-every-part method
Juho Lampimäki’s case study describes in detail how a large manufacturing company was able to reduce internal failure costs using the plan-for-every-part method. The method is based on the precise planning and management of every single part in the production process.
Key measures and results:
- Detailed inventory management: the company implemented a software solution that enabled comprehensive and accurate inventory management. This made it possible to avoid excess stock and missing parts.
- Real-time monitoring: the software provided real-time monitoring of resources, allowing immediate reaction to problems and proactive maintenance.
- Reduction of failure costs: by improving the use of resources and quality controls, internal failure costs were reduced significantly. This led to a clear improvement in overall quality and customer satisfaction.
The case study showed that the biggest cost drivers were caused by defective parts that led to rework both in machining (70% of total quality costs) and in assembly (30% of total quality costs). Introducing standardised procedures and using a centralised database to manage part information were crucial to minimising these sources of error.
Conclusion
Implementing resource management software in the manufacturing industry, especially in complex production environments such as high-mix-low-volume, offers immense benefits. Juho Lampimäki’s case study shows how structured, technology-supported management of resources can contribute to a significant reduction in quality costs. Companies that invest in such technologies are better equipped to succeed in a competitive market.
By using modern software solutions, manufacturing companies can not only increase their efficiency but also improve the quality of their products and thus secure their success in the long term.
If you also need support in managing your equipment and controlling your manufacturing processes, we at Craftcloud are your reliable partner. With our tailor-made IT solutions we help companies work more efficiently and always keep track. Feel free to contact us to find out more!
Sources:
Lampimäki, Juho. *Reducing Internal Failure Quality Costs Using Plan-for-Every-Part Methods in High-Mix-Low-Volume Production Within a Large Manufacturing Company* (Master’s Thesis, Tampere University, 2019).
