Originally Posted by
scott967
Disagree, at least in the context of Deming. What you need is a repeatable process that can meet six sigma. Testing in QC is kind of a losing proposition. But I suspect most of these places don't have process engineers nor capture the needed data on their processes.
scott s.
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‘Ruthlessly tossing’ may be considered as shorthand.
I can tell you that when a shipment is not accepted for delivery, returned, no payment forthcoming, everyone sits up and takes notice. When that happens everyone knows what the score is. The supplier makes it right very quickly or the purchaser goes to plan B and supplier B. When there is no plan B the purchaser is out of luck. For most of the outsourced industry plan B is theoretical.
On the other side once it is established that there are no standards, that any large or small variance will be accepted and paid for, then no one in the production process has any reason to make anything but junk. Anyone on the line who says NO will just be laughed at. Any purchaser who has been accepting junk does not have a leg to stand on.
Can we talk about markups and margins? Asian bike frames sell at huge markups. The customer who pays $1000 or $3000 for a frame thinks he bought something exceptional. Very hard to tell that customer he bought a commodity from designers and marketers with little or no expertise and no business sense. The gap between expectations and reality is vast. All the incentives are perverse.