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Variation in Output & Revenue Impact

Submitted by Sheila Kester, Vice President of Operations at TwinThread
Every great organization is seeking innovative ways to deliver premium quality products consistently, and its customer-base comes to expect nothing less. Your organization would not allow below-quality products to be released to the public, but that’s not the issue. The problem is when there is a lack of control over the output.
When a company produces three different product quality levels: generic, standard, and premium, and there is a lack of control over output at a granular level, the producer may have no choice but to point all quality levels toward the highest grade. Unfortunately, customers notice. So, instead of opting for the premium, being wise to the lack of difference from product line to product line, they begin to buy one level below their needs. This can cause a revenue loss of around 0.25 per unit, or millions annually.
How can this code be cracked so that revenue is not impacted by a lack of control over variability in production output? By including more data elements than you think you need. Drawing on a larger data lake will allow you to drive recipes to your specific, targeted quality levels.
Ensuring you integrate a comprehensive Predictive Operations Platform, that has in its arsenal an easy-to-use predictive quality application, and an in-line testing model for predicted quality results (which can be used to see real-time output projections) is the very best way to harness control over variability within whatever you produce.
With this methodology in place, the gap between delivering the highest quality products and hard economic benefits for your company will quickly disappear.
To further hone in any variations in production quality, schedule a demo with TwinThread today.
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