2. What is the Hidden Factory in Quality Management?
Updated: Nov 14, 2019
The concept of Hidden Factory defined by Quality Guru, Dr.Armand Feigenbaum, was explained.
In this blog post, I will present you my study on the Hidden Factory.
The purpose of the organizations today is to increase revenues, profits and market share while decreasing the cost of goods and services they provide.
Organizations correct the failures and errors associated with goods and services during the designing, production and delivery. As quality guru, Dr.Armand Feigenbaum, said
Dr. Armand Feigenbaum, a well-known authority on quality, has found that almost each organization devotes approximately 15 to 40% of its resources to detect, correct, and improve system errors. Similarly, George (2002: 7) stated that these findings are still valid today. George states that slow processes are prone to errors, and the greatest improvements are obtained by accelerating these slow processes. George also states that two to four times of the resources directly used in the production of goods and services are devoted to fixed costs and low quality costs.
Dr Feigenbaum, for the first time used the concept of hidden factory for the costs of all activities rather than the activities directly to the production of goods and services (in other words, for the customer's wishes). By this concept, all the resources (personnel, money, materials, time, etc.) that the company uses for the correction of error/failures either during the production of goods and services or after the delivery to the customer
You can find more videos about Lean Management both in Turkish and English
on my YouTube Channel "Dr.Bahtiyar EREN".
You can find the detailed information about Lean Management in my book "Lean Management and Techniques: Questions and Answers" published by Yazardan Direkt Publishing House. Please note that the book is in Turkish.
Please check my webpage www.freeleansixsigma.com for mor information about Lean Six Sigma both in Turkish and English.
Quality is not an act, It is a habit.
George, L.Michael. (2002). Lean Six Sigma: Combining Six Sigma Quality with Lean Production Speed. New York: McGrawHill.