Challenge
Industrial manufacturer of Gas Pumps was experiencing a fallout rate +18% (300 Units / Month at a selling price of $10K/Unit) = $3M miss in Revenue.
Strategy Applied
Problem Solving tool of 5 Why’s was utilities. Step 1 – Analyze fallout trend, Step 2 – Level 1 Pareto of top causals, Step 3 – Level 2 Pareto of top causals, Step 4 – 5 Why’s with Root Cause and Corrective Actions
Results
After implementing the corrective actions for the main fall-out causals, Fallout rate went from 18% to 5%. Revenue improvement of $2.2M
