The 10 Principles of QRM
Traditional Belief #1:
Everyone will have to work faster, harder, and longer hours in order to get jobs done in less time.
QRM Principle #1:
Find whole new ways of completing a job, with the focus on lead time minimization.
Traditional Belief #2:
To get jobs out fast, we must keep our machines and people busy all the time.
QRM Principle #2:
Strategize to operate at 80% or even 70% capacity on critical resources.
Traditional Belief #3:
To reduce lead times, we have to improve our efficiencies.
QRM Principle #3:
Measure the reduction of lead times and make this the main performance measure.
Traditional Belief #4:
We must place great importance on "on-time" delivery performance by each of our departments and suppliers.
QRM Principle #4:
Stick to measuring and rewarding reduction of lead times.
Traditional Belief #5:
Installing an MRP system will help in reducing lead times.
QRM Principle #5:
Use MRP to plan and coordinate materials. Restructure manufacturing organization into simpler product-oriented cells. Complement this with a new material control method that combines the best of push and pull strategies.
Traditional Belief #6:
Since long lead time items need to be ordered in large quantities, we should negotiate quantity discounts with suppliers.
QRM Principle #6:
Motivate suppliers to implement QRM, resulting in small lots at lower cost, better quality, and short lead times.
Traditional Belief #7:
We should encourage customers to buy our products in large quantities by offering price breaks and quantity discounts.
QRM Principle #7:
Educate customers about your QRM program and negotiate a schedule of moving to smaller lot sizes at reasonable prices.
Traditional Belief #8:
We can implement QRM by forming teams in each department.
QRM Principle #8:
Cut through functional boundaries by forming an empowered, closed-loop QROC (collocated, multi-functional, cross-trained team responsible for a focused target market segment or FTMS).
Traditional Belief #9:
The reason for implementing QRM is so that we can charge our customers more for rush jobs.
QRM Principle #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 #10:
Implementing QRM will require large investments in technology.
QRM Principle #10:
The biggest obstacle to QRM is not technology, but mindset. Combat this through training. Next, engage in no-cost or low-cost lead time reductions. Leave big-ticket technological solutions for a later stage.
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