The Challenge: Disconnected Problem Solving and Lack of Visibility
A consumer products manufacturer with 10 worldwide brands was struggling with inconsistent problem solving processes and a lack of centralized knowledge management. This lead to:
Recurring Problems: Teams were solving the same issues repeatedly across different sites, wasting time and resources.
Inconsistent Root Cause Analysis: Problem solving efforts often failed to identify the true root cause, resulting in ineffective solutions.
Siloed Knowledge: Problem-solving information was stored on individual computers or in personal files, making it difficult to share best practices and learn from past experiences.
Inefficient Reporting: Generating reports and KPIs for management meetings required pulling data from multiple systems and Excel sheets, which was time-consuming.
Lack of Supplier Accountability: Suppliers did not follow proper problem solving methodologies, and there was no system to guide them through root cause analysis.
Limited Management Visibility: Management lacked a clear view of ongoing problems and couldn’t effectively intervene when issues escalated.
These challenges resulted in significant financial losses, decreased efficiency, and reduced customer satisfaction.
The Results: Enormous Cost Savings and Better Use of Problem Solving Knowledge
Reduced Costs: Eliminating the recurrence of problems saved significant costs related to downtime, rework, and scrap. Before PHRED, they estimated losing $1.3 million per quarter by re-solving problems which had already been solved elsewhere.
Increased Efficiency: Automation of reporting and tracking freed up valuable time for employees.
Improved Quality: Standardizing problem solving ensured that the true root causes are identified and eliminated.
Better Supplier Performance: PHRED helped to track and hold suppliers accountable for the quality of their products and services.
Enhanced Customer Satisfaction: Faster resolution of complaints and higher product quality resulted in happier customers and increased retention.
Increased Management Visibility and Control: Management can view all problems and actions across the organization, allowing them to make more informed decisions and intervene when needed.
Improved Knowledge Sharing: Teams can quickly access past solutions and learn from previous experiences, creating an organization that learns and improves continuously.
Development of Skilled Problem Solvers: PHRED empowers all employees to be part of the problem-solving process and to develop their skills.
Conclusion
PHRED's problem-solving software offered this manufacturer a comprehensive solution to improve their problem solving capabilities and foster a culture of continuous improvement. By providing a centralized system for tracking, analyzing, and resolving issues, PHRED helped them reduce costs, increase efficiency, and improve quality with PHRED’s standardized, collaborative, and question-based approach. Problems are now solved effectively and knowledge is captured and shared for future benefit.
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