Yesterday morning I got a great lesson in the cost of quality. I stopped at a local convenience store and needing breakfast and having a small sweet tooth I went to the donut case. Grabbed a plastic bag, grabbed the tongs, and proceeded to put a bismark in the bag.
All's good! Put a second one in and the seam on the bottom of the bag split and I'm standing there with custard on my dress shoes as well as two on the floor. I looked to the clerk and she smiled and said not to worry and helped me clean up and said to select two more "on the house". So I grabbed a bag, grabbed the tongs, and put a bismark in the bag. No sweat. You got it... I added the second one and the bag split again. The clerk and I looked at each other astonished and laughed. We switched to paper bags and we were good.
The clerk tossed all the plastic bags not wanting to chance another mishap. On the way to my client, I found this incident eating at me. I got curious and went on line and looked. The cost of the bags are 2 cents each and the donuts sell for 99 cents each. So 4 cents of failing bags cost the convenience store 6 donuts or $5.94. A magnitude of 14,850% And that doesn't include the bags she tossed and the paper bag used. An expensive lesson in the cost of quality
CSCP, CPIM, CLTD, CHSCA, CSSC, CPIA
FOUNDER, THE GURU OF BIZ
EMAIL : firstname.lastname@example.org
WE HELP SUPPLY CHAIN PROFESSIONALS MAKE MONEY, SAVE MONEY, AND FIX PROBLEMS WITHOUT PAYING BIG FEES
Chuck Nemer is a trainer/consultant with 40 years of experience in Supply Chain Management, Lean, Leadership, and APICS. He currently works with approximately 50 universities and 3000 students annually in supporting the use and play of the simulations in the classroom. Within those 40 years, he has taught, and continues to teach, professional certification classes for APICS, professional development seminars and programs on his own, and on behalf of colleges in their outreach programs to local and regional manufacturing firms.
FRONTIERS OF SUPPLY CHAIN MANAGEMENT.
This LinkedIn group is all about a place to learn and discuss what's going on at the frontiers of supply chain management. We are posting supply chain articles, news, host interviews, and host live streaming conversations so you can stay on top of what's going on in supply chain.