Quality is a key component of manufacturing companies’ performance in terms of both customer happiness and profitability. However, managing and maintaining quality can be challenging for managers. They must constantly strive to improve performance by implementing updated systems and processes. Thus, outsourcing in manufacturing becomes very crucial.

Outsourcing of Quality Management System (QMS) is significant for a manufacturing company as it ensures that it produces high-quality products and services that meet or exceed customer expectations. A QMS helps to identify, control and monitor the various processes in an organization to ensure they are consistent and in compliance with industry standards and regulations. It also helps to identify areas of improvement and implement corrective actions to prevent errors and defects.  

Implementing a top-notch manufacturing quality management system (QMS) helps enhance communication between production and quality processes. Managers must set forth clear rules, rapidly recognize and address any issues relating to quality, and offer instructions for the resolution to maintain ongoing quality.

Client Background

A leading US-based company in the signage industry providing industry-leading design, manufacturing, installation, and maintenance of signage, lighting, and architectural elements to construction companies, design firms, national brands, and local customers was struggling to maintain a consistent level of quality and efficiency in its manufacturing processes.  

To address these issues, the company decided to outsource a quality assessment of its processes to ARDEM, a leading outsourcing company in the manufacturing industry. By working with ARDEM, the company could streamline its manufacturing processes, improve the quality of its products, and increase its production capacity to meet the demands of its customers.

Client Issues  

The company faced several challenges in maintaining a consistent level of quality and efficiency in its manufacturing processes. These challenges included:

1. High Levels of Rework

The company was experiencing a high rate of rework in their manufacturing processes, hindering their ability to satisfy customer requests and adding to delivery delays. 

2. Inadequate Quality Assessment

The company struggled to evaluate the products’ quality across several processes and divisions, from program preparation for a sign to dimensions of each sign, designing, etc., which resulted in bad quality and unsatisfied customers. They were unable to do quality data collection.  

3. Lack of clear dollar value for each department

The company did not establish clear dollar values for each department, making it challenging to monitor and evaluate the performance of each department separately. 

4. Poor Documentation

Company’s documentation for their various manufacturing processes was not in compliance with ISO 9001 protocol, which created obstacles in quality management and assessment. 

5. Quality Management System (QMS) was not in place

The company did not have a quality management system (QMS), but they were interested in implementing one to raise the quality of their goods and services. 

ARDEM Findings

Trained Team

ARDEM thoroughly evaluated the company’s manufacturing procedures to address the quality concerns the business was experiencing. ARDEM examined over 90 documents about various procedures during the assessment, and queries were also raised to determine whether the processes were built-in or recorded and produced in a well-documented manner. This aided ARDEM in comprehending the scale of quality and identifying areas that need improvement.  

During the evaluation, ARDEM discovered several recommendations to raise the quality of the company’s goods and services. 

  • They discovered, for instance, that transporting huge signs may be challenging and that packing is a crucial part of the production process. Additionally, they found that broken, scratched, and damaged signs were being reported at the installation location, which can be a sign that the packaging team or the transportation team is having problems. 
  • Additionally, ARDEM discovered that there was no mechanism for monitoring and reporting concerns at installation sites and that the company’s management team was unaware of the issues being reported at any of its 11 manufacturing locations. To solve this, ARDEM designed a tracker for the teams that required detailed information from each department to be filled out. This would offer management visibility into delays and problems at different stages, such as material location and manufacturing.
  • In addition, ARDEM discovered that several drill-down techniques were required to be in place to make the data accessible for in-depth analysis and that many employees were unaware of the requirements for high quality and how to track data. 
  • Additionally, they discovered that the best quality levels were not yet established for each department or at a company-wide level.

How Business Process Outsourcing Helps

Business Process Outsourcing companies can help manufacturing companies manage the quality of goods and services by providing well-structured strategies and cost optimization.   

1. Expertise

Outsourcing to companies like ARDEM can help clients tap into specialized knowledge and the latest technologies, materials, and techniques they may not have in-house.  

2. Cost savings

By outsourcing a specific talented role in the manufacturing processes, companies can reduce overhead costs and improve the bottom line. 

3. Increased Efficiency

Outsourcing non-core activities can help companies focus on their core competencies and improve efficiency. 

4. Scalability

Outsourcing can offer a more flexible and scalable option, enabling businesses to react rapidly to changes in demand. 

5. Simplifying The Workflow

Several factors, including site assessments, the installation of hardware and software, and the integration of utilities, go into a successful deployment. Companies will not have to worry about keeping track of numerous specialists and service providers since expert professionals can assist in organizing each of these jobs.  

6. Ensure to Follow The Legal Guidelines

Outsourcing can also help companies ensure that their projects comply with all legal procedures. Outsourcing to a reputable vendor, like ARDEM, can also help companies avoid potential legal problems and liability issues that may arise from non-compliance.

The ARDEM Approach

To address the company’s quality issues, ARDEM offered a comprehensive solution that focused on improving the quality control of each department.

The solution included several key elements: 

1. Tracker for Teams

ARDEM designed a tracker for their teams and assisted the organization in identifying the management and communication gaps across various divisions. This tracker required detailed information from each department to be completed and would provide management with visibility into delays and problems at multiple stages, such as the location of materials and production. 

2. Root-Cause Analysis

ARDEM went above and beyond the call of duty by demonstrating to the company the direction of productivity, how to address problems, what problems there are, who needs to be engaged, and how to perform root-cause analysis. 

3. Accountability Setting

ARDEM aided the business in establishing accountability at the operational and senior management levels, fixing mistakes, and establishing accountability for each department. 

4. Corrective Actions

ARDEM helped the company to prepare for corrective actions by providing visibility for each department and how each is doing and by ensuring that each location was able to provide the necessary information, including the associated dollar value.  

5. Employee Education

ARDEM gave training on how to track data and comprehend the quality fundamentals after realizing the need for employee education and the fact that many employees were unaware of the quality basics and how to track data. 

6. Culture Change

ARDEM acknowledged that a culture change was required in governance, and everyone was questioned at a higher level.    

7. Cost Savings

Finally, ARDEM helped the company to establish a baseline for cutting losses and fixing accountability for each department, to save cost.  

As a result of implementing these recommendations, the company significantly improved the quality of its products and reduced the amount of rework required. They also saved significant money by cutting losses and improving efficiency in their manufacturing processes.

The Takeaways

Manufacturing companies often experience significant challenges in their processes, impacting the quality of their products due to mismanagement or inaccuracies. This can lead to not just loss of sales but also damage to the company’s reputation. Thus, outsourcing quality management is crucial these days.  

Business Process Outsourcing (BPO) companies can provide an effective solution with advanced technology and skilled resources. ARDEM, a leading BPO company, can provide a quality management system, and assist in automating quality data collection tasks utilizing cutting-edge tools such as machine learning and robotic process automation. This can help companies manage their processes efficiently and cost-effectively. Further, ARDEM can provide customized solutions to help improve the manufacturing and processes of an organization.

ARDEM provides Business Process Outsourcing and Business Process Automation Services to established companies to help them improve operational Efficiency and Reduce Costs.  For more information please reach out to us  at or call us at 908-359-2600.

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