QRM: Not Just Another Buzzword
Essentially, QRM relentlessly pursues the reduction of lead time in all aspects of an organization. However, to gain more insight, it is useful to address the definition of QRM in two contexts: externally (as perceived by its customers) and internally (in terms of its implications for organizational policies). Externally, QRM means responding to customers’ needs by rapidly designing and manufacturing products customized to those needs. QRM goes beyond the established goals and even the capabilities of JIT. Equally important is what QRM means internally to an organization. While JIT (or lean manufacturing) focuses on the continuous improvement of eliminating non-value-added waste to improve quality and reduce cost, QRM focuses on the relentless pursuit of reducing lead times throughout an operation to improve quality, reduce cost, and eliminate non-value-added waste.
Today’s business climate is fast paced, and that, in fact is one of the drivers of the need for QRM. Alexandria Extrusion Company has implemented 10 QRM principles that enable them to stay competitive within their marketplace and allows customers to purchase high quality aluminum extrusions with minimal lead times compared to the industry norm.
Traditional Beliefs vs. QRM Principles
• Traditional belief number 1: Everyone will have to work faster, harder and longer hours in order to get jobs done in less time.
QRM Principle number 1: Find whole new ways of completing a job with the focus on lead time minimization
• Traditional belief number 2: To get jobs out fast machines and people must keep busy all the time.
QRM Principle number 2: Plan to operate at 80 percent or even 70 percent capacity on critical resources.
• Traditional belief number 3: To reduce lead times, efficiencies need to improve.
QRM Principle number 3: Measure the reduction of lead times and make this the main performance measure.
• Traditional belief number 4: All departments and suppliers must place great importance on “on-time” delivery performance.
QRM Principle number 4: Stick to measuring and rewarding reduction of lead times.
• Traditional belief number 5: Installing a material requirements planning (MRP) system will help reduce lead times.
QRM Principle number 5: Use MRP to plan and coordinate materials. Restructure the manufacturing organization into simpler product-orientated cells. Complement this with a new material control method that combines the best of push and pull strategies.
• Traditional belief number 6: Negotiate quantity discounts with suppliers since long lead time items need to be ordered in large quantities.
QRM Principle number 6: Motivate suppliers to implement QRM, resulting in smaller lots at lower cost, better quality and shorter lead times.
• Traditional belief number 7: Encourage customers to buy products in large quantities by offering price breaks and quantity discounts.
QRM Principle number 7: Educate customers about QRM and negotiate a schedule of moving to smaller lots sized at reasonable prices.
• Traditional belief number 8: Implement QRM by forming teams in each department.
QRM Principle number 8: Cut through functional boundaries by forming a quick response office cell (Q-ROC), which is a “closed-loop,” collocated, multi-functional, cross-trained team responsible for a family of products. Empower the Q-ROC to make necessary decisions.
• Traditional belief number 9: The reason for implementing QRM is to charge customers more for rush jobs.
QRM Principle number 9: The reason for embarking on the QRM journey is that it leads to a truly lean and mean company with a more secure future.
• Traditional belief number 10: Implementing QRM will require large investments in technology.
QRM Principle number 10: The biggest obstacle to QRM is not technology, but “mind-set.” Combat this through training. Next, engage in low-cost or no-cost lead time reductions. Leave big-ticket technological solutions for a later stage.
If you would like to learn more about this highly-effective manufacturing philosophy, please contact our internal QRM specialist, Al Fyhrie at (320) 762-7660 or by email: afyrie@alex-extrusion.com.
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