Quistem’s Cathy Fisher and I have been strong advocates about breaking down the silos among quality, supply chain and IT a lot on the Auto Supply Chain Prophets podcast through our research on the intersection of MMOG/LE and IATF 16949, which then led to our 24 essential supply chain processes. However, most wonder how it can be done. We recently had Mike Payionk, Quality Control Program Manager at PennEngineering on the podcast and here is what he had to say!
Why Implement QAD EQMS at PennEngineering?
Mike indicated that there was a patchwork of different companies at PennEngineering. They had a decentralized model that worked against them. So, as they acquired new companies or built new plants each had their own independent system. It was one of the biggest things they looked at and knew they needed to standardize their processes.
In addition, one of the biggest challenges for PennEngineering was their lack of visibility into quality information. They needed a cloud-based solution so that they could easily track and measure quality information at 12 sites across the globe. This was key for PennEngineering. They wanted to make sure they weren’t storing it in some file on a plant or corporate computer. Today, they can access quality information from any mobile device anywhere that has internet access. This was an improvement they really welcomed.
The Business Benefits of EQMS
Mike worked in quality for many years and saw everything from Access databases, Excel spreadsheets and paper and pencil. However, the benefits PennEngineering saw from implementing an Enterprise Quality Management System far outweighed anything he had ever imagined, including transforming their business. They achieved the following benefits to date:
- Decreased the cost of poor quality from 1.62% to 1.32% at one plant as sales were increasing
- Visibility into sister plant issues and the ability to ask, “I saw this happen, how did your plant fix it?”
- Ability to see customer concerns/calls to ensure that no steps are being missed
- Track intercompany corrective actions
- Control documents so that no due dates are missed with increased accountability to all departments
- Better management of APQP through automation of the process
- Make external audits easier by demonstrating automated document control
Mission Accomplished
Today, PennEngineering has transformed their entire business. They no longer even worry about the lack of standardization. When they acquire a new company or build a new plant, the quality management system is this furthest from the minds of those doing the work because they know there is an established system ready to use. It is so easy for PennEngineering to bring on new plants and it makes it really worth it.
Next Steps
Since the data is all in one system, PennEngineering can now apply artificial intelligence (AI). They already started to look at taking the data using AI to determine the company’s biggest issues and detect similarities. Mike stressed “we couldn’t do that without having all of our information in one spot to look at. And, the organization’s that don’t jump in try to adopt Industry 4.0 are either going to be left behind or they’re going to be struggling to catch up.”
In addition, PennEngineering is also developing external suppliers by giving them access to the EQMS portal to work through corrective actions.
PennEngineering is not waiting for customers such as Ford to automate their quality management system. They know there are more customers to come and so they are getting ahead of the future customer requests. This way, by the time their customers ask for it, they are already doing it.
Please visit the Auto Supply Chain Prophets podcast website to hear the complete interview with PennEngineering’s Mike Payionk.
