ETQ Reliance for Manufacturing ETQ Reliance Empowers Manufacturers to Mitigate Quality and Safety Risks The manufacturing industry faces unprecedented threats from every direction. Between prolonged global trade uncertainties, market volatility, rapidly shifting consumer preferences and, most importantly, supply chains that are becoming longer, more complex and less transparent, manufacturers are © Copyright 2019 facing increasing levels of risk and the potential negative impact to both on the bottom line and brand reputation. In this environment, manufacturers can’t afford to let quality and safety problems slip through the cracks. www.etq.com | +1 800-354-4476 2 | Introduction According to the American Society for Quality (ASQ), quality costs total as much as 40 cents of every dollar of revenue and form part of the so-called “hidden factory” of process inefficiency that actively undermines quality. On the safety side, the most recent U.S. Bureau of Labor Services (BLS) data show workplace injuries and fatalities cumulatively cost companies over $160 billion in 2017, including worker’s compensation, productivity losses, medical expenses, administrative costs and vehicle damage. And, again, the bulk of those injuries and deaths could be classed as preventable. In fact, those are only the quantifiable costs. News of product recalls and safety disasters travels almost instantly in today’s social media-fueled society. The result can mean damage to a company’s bottom line as well as an entire industry’s public image. Of course, recall costs are just the tip of the iceberg within the larger context of warranty costs, scrap, rework and other quality costs as a whole. Looking even deeper beyond just the reported product failures are unknown quantities of defective products that are shipped undetected to consumers who never report them, opting simply to abandon the brand entirely. The result: declining brand loyalty, fewer customers and shrinking market share. Within this context, manufacturers today face a fundamental choice. On one side lies automation and the “factory of the future” concept of Industry 4.0, promising a transformation in productivity to propel future-oriented companies to market leadership. On the other is the status quo: error-prone manual processes where data is hidden in obscure spreadsheets and email chains, putting companies on a collision course with quality and safety failures. ETQ Reliance for Manufacturing ETQ Mdoc.102519 © Copyright 2019 Looking even deeper beyond the reported product failures are unknown quantities of defective products that are shipped undetected to consumers who never report them, opting simply to abandon the brand entirely. 3 | Manufacturing’s Strongest Brands Trust ETQ Reliance to Deliver Quality and Safety The question is no longer whether companies will adopt these new technologies, but rather just how far early adopters will pull ahead of the competition by integrating them into existing business optimization processes. Automated quality and safety systems are fast becoming a basic requirement in this highly competitive landscape, enabling manufacturers to standardize processes, improve visibility and systematically reduce risk for improved performance. Manufacturing’s Strongest Brands Trust ETQ Reliance to Deliver Quality and Safety Manufacturers ranging from small startups to Fortune 500 companies choose ETQ Reliance because of its flexibility to meet their unique and evolving business needs. Reliance meets you where you are today and is agile enough to conform to changing needs as customers progress on their Quality Journey. GE Transportation GE Transportation, a Wabtec company, is the largest manufacturer of diesel-electric locomotives in North America. The company also manufactures equipment for railroad, marine, energy and mining industries. In 2010, the company saw an uptick in product failures totaling over $100 million annually, traced back in part to a lack of visibility among legacy quality tools ranging from spreadsheets to old mainframe applications. With ETQ Reliance, the organization was able to eliminate these legacy apps to bring all of its QMS under a single, enterprise-wide platform, integrating processes such as supplier management, production part approval process (PPAP) and inspection status tracking. Results: • 25% reduction in defects per unit • Reduced cost of quality 20%, saving $30M in quality program costs • $10-12M in productivity gains over 9 years GM General Motors (GM) is one of the largest automakers in the world, with over 180,000 employees and manufacturing facilities in 37 countries. Prior to implementing ETQ Reliance, the company struggled with manual data collection, reporting and audit processes that were costly and inefficient to manage in siloed systems. The company chose ETQ Reliance for its flexibility and ease of use, using the software to standardize EHS audits, manage supplier costs and eliminate use of external consultants for plant decommissioning. Results: • Took in $1M+ in scrap revenue and saved $160,000 on a single decommissioning project • Ensures compliance with complex federal and state regulations • Automates supplier tracking for monthly savings reports, freeing up resources while improving accuracy ETQ Reliance for Manufacturing ETQ Mdoc.102519 © Copyright 2019 “Our information isn’t siloed anymore. We can show value immediately, like in the tear-out work where information from barcode scans on decommissioned items is directly available to the finance department through ETQ Reliance.” – Joel Wolf, Staff Solutions Architect, General Motors 4 | Mission-Critical Customer Relationships Rheem Rheem is North America’s largest manufacturer of water heating products, manufacturing heating, cooling, pool and commercial refrigeration products. The company previously faced significant QMS challenges around expanding and changing their processes to meet evolving business needs. Rheem implemented ETQ Reliance to track ISO compliance and supplier management, and to develop a custom workflow to standardize and streamline how users create new QMS applications. Results: • 3,000 man-hours saved on three projects • $94,000 saved in the first year • Total ROI 650% Cooper Tire Cooper Tire is a global manufacturer of tires for cars, SUVs and light trucks, operating since 1914 and known for its commitment to quality. After moving strictly from the after-market replacement tire business into supplying automakers directly, the company needed a way to document compliance with IATF 16949, an automotive industry standard built on top of ISO 9001 requirements. Originally deploying ETQ Reliance to handle document control, the company now uses the software to manage audits, employee training and more, making Reliance the QMS of record for all quality assurance processes in plants across 10 countries. Results: • Reduces scrap costs • Lower overall cost of quality • 80% reduction in audit administrative time Sikorsky Sikorsky is a U.S.-based subsidiary of aerospace and defense giant Lockheed Martin, with aircraft manufacturing operations in 5 continents and over 16,000 employees worldwide. Before using ETQ, the company had difficulties managing foreign object debris or damage (FOD) prevention, a key safety issue that has the potential to injure employees and damage aircraft. Sikorsky implemented ETQ Reliance to standardize FOD audit data, metrics and communication, ultimately expanding use of the platform for tracking accident data and mitigating risk during production testing. Results: • Harmonizes safety data across multiple platforms for a high-level view of risk • Improves hazard identification through more effective data analysis and trending tools • Prevents accidents by providing visibility into high-risk issues requiring mitigation ETQ Reliance for Manufacturing ETQ Mdoc.102519 © Copyright 2019 “The Employee Training Module has been incredibly useful. We used to struggle with maintaining training records for each employee in each location. Now, we have definitive access to training records that show us exactly what has been accomplished and what needs to be done in the future.” –Michael Fennema, Leader, Quality Systems, Cooper Tire & Rubber Company 5 American Society for Quality. Cost of Quality. [Accessed 7 October 2019.] https://asq.org/quality-resources/cost-of-quality 1 National Safety Council. Injury Facts. [Accessed 7 October 2019.] https:// injuryfacts.nsc.org/work/work-overview/work-safety-introduction/ 2 About ETQ ETQ is the leading provider of quality, EHS and compliance management software, trusted by the world’s strongest brands, like Kimberly-Clark, Novartis, Herman Miller and Chobani. More than 500 global companies, spanning industries including automotive, biotech, food and beverage, manufacturing and medical devices, use ETQ to secure positive brand reputations, deliver higher levels of customer loyalty and enhance profitability. ETQ Reliance offers built-in best practices and powerful flexibility to drive business excellence through quality. Only ETQ lets customers configure industry-proven quality processes to their unique needs and business vision. ETQ was founded in 1992 and has main offices located in the U.S. and Europe. To learn more about ETQ and its product offerings, visit www.ETQ.com. ↗ Call +1 800-354-4476 ETQ Reliance for Manufacturing ETQ Mdoc.102519 © Copyright 2019
