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are most effective at reducing quality problems. From a strategic standpoint, there is no question that those actions should focus on defect prevention. In turn, reducing defects in products is ultimately going to up reputations, thus increasing revenue.


thE 1-10-100 RUlE: how to mAkE it woRk foR EvERyonE The 1-10-100 Rule can provide a helpful guidepost when it comes to measuring the effectiveness of quality enhancing processes. A concept that is central to the Total Quality Management (TQM) philosophy, this rule shows that quality costs increase in order of magnitude as you move from prevention to detection to correction (and beyond). The key take-away here is that prevention


is a relatively low-cost, high-impact way to reduce quality costs, and ensure optimum production capacity. Companies that understand this front-load their investment in high-leverage activities such as:


Assessing potential failures in product design or manufacturing processes with failure mode and effects analysis (FMEA) and process failure mode and effects analysis (PFMEAs).


defects by even a modest amount—say 10 per cent. Not only are there direct savings from reducing cost of quality, which can run into the millions or more for the average company, there are indirect benefits that unlock revenue growth, including:


Increasing productivity by manufacturing more units at the same cost, freeing up time for operators to make good product as opposed to reworking defectives.


Increasing production capacity by manufacturing more good product with the same materials and equipment.


Higher sales due to improved customer satisfaction and reduced customer churn.


These improvements represent the flip side of


opportunity costs of poor quality—they are the opportunities you could be capturing when you do not pay to produce or fix defects.


Upping qUAlity doES not AlwAyS mEAn pUtting hAndS in pockEtS According to experts at McKinsey, only a small number of companies ever reach the level of maturity where they can truly say quality is the basis for their reputation. One interesting point they note, however, is that organisations with the most advanced quality practices are not necessarily spending the most on quality. As it turns out, the key to making the right investments is to prioritise those actions that


UKManufacturing Summer 2021


Using a layered process audit platform to verify that controls are in place for high-risk PFMEA items.


Implementing process improvement programs that help build a culture of quality.


The partnership between quality and


revenue growth is one that cannot be separated. And whilst on first glace it may seem like you need to make large investments in order to improve quality, in reality there are a few, inexpensive methods of increasing quality across the board. By making the right investments and focusing on those towards the top of the 1-10-100 Rule pyramid, it is possible to increase quality levels, and brand reputation, as well as reducing the opportunities for recalls and defective products. It is clear that companies can either


prioritise quality from the very beginning or be forced to pay for it later down the line. What is more, not paying for quality essentially hands your competitors an advantage. And with the sector now gaining momentum after multiple COVID-19 shutdowns, there has never been a more critical time to ensure your production line is better than the competition’s. So, by making the right choice you can stay ahead of the competition whilst making sure your reputation continues to grow.


EASE www.ease.io


tax incentive


take advantage of the super-deduction


C


ompAir is encouraging British firms looking to invest in new industrial air equipment to take advantage of the


government’s super-deduction tax incentive, announced in the 2021 Budget by the Chancellor of the Exchequer. From 1 April 2021 until 31 March


2023, companies investing in industrial air equipment can claim a 130 per cent super-deduction capital allowance. This covers compressors, dryers and gas generators, vacuum pumps, and low- pressure equipment. The super-deduction allows businesses


to cut their tax bill by up to 25p for every £1 invested. This creates a real opportunity for businesses looking to invest in new industrial air systems to make significant financial gains. Companies will also be able to claim a


50 per cent first-year allowance on qualifying special rate assets, which would ordinarily only be eligible for six per cent. Following the impact of the COVID-19


pandemic on the economy, and the predicted fallout in the months to come, it is hoped the measures will encourage firms to invest in productivity-enhancing plant and machinery assets that will help them to grow in years to come. Andrew Power, sales director for


Northern Europe at CompAir, said: “The super-deduction tax incentive is a fantastic opportunity for British businesses over the next two years. Not only will this tax break equate to a significant cash windfall for these organisations, but it will also help bolster cash flow for businesses at a really critical time. “For instance, if a company spends


£100,000 on qualifying industrial air equipment, the company can deduct £130,000 when it comes to calculating its taxable profits. As a result, the company will then save up to 19 per cent of that – equivalent to £24,700 – on its corporation tax bill.” www.compair.com/en-gb


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