How AS9145 Impacts Quoting and New Business
You may be wondering what AS9145 can do for your quoting and new program introduction. In short, what impact does it have on your business management system.
Shown on the chart below we identify two different companies, Company 1 (red) is the one that comes in at the absolute bottom of the price ladder. This is the company that gets the job at any cost. The problem is, once you launch the costs begin to rise and they rise very quickly. They rise outside of what you can sustain when you originally quoted the job.
AS9145 on the other hand may cost you a little more to implement up front – because there is a lot more up-front work. Those that use AS9145 may cost a little bit more initially, yet they lead to better performing, more predictable, consistent programs in the long term.
Let’s take a look at the Aerospace core tools that are in AS9145. When you engage in AS9145, you are engaging in all the tools shown below. Each one of these tools is going to have an impact on the cost of the program.
Businesses Think in Terms of Investment
Think with your business mind here. Businesses think in terms of investment, consumers think in terms of price.
Well what is the price? We are going to be more interested in the business standpoint which is – what is the investment.
So, if you look at the investment in FMEA – it may take me a little bit of workforce to do the FMEA, that is true, but, when you are looking at the FMEA and looking at the risks, the risks that you are able to mitigate as the result of a good FMEA far outweigh the costs of getting people together to do one.
Pennies on the dollar to get your team to do one, but if you do not do that later on, you are one of the people that is in the red.
The Cost of AS9145
The first cost of AS9145 is going to be the cost of the pre-planning, the use of FMEA and during the FMEA you are going to make decisions on the types of testing that you’re going to do. Now the type of tests you’re going to do will then impact the Measurement System Analysis (MSA).
We might think of MSA as an additional cost, but in reality MSA asks ‘Can I measure the risk” and “What is the variation that is introduced by my measurement system?”. This is huge.
Think about a part right on the edge of being a scrap part, subtle variations of the measurement system can force that part into the scrap bin unnecessarily, or put that part in the shippable goods, which leads to a tremendous cost when that is found out.
When you go through the Statistical Process Control (SPC) it is going to cost as well. When you get the FMEA established, the MSA established – you now have to engage some form of SPC, appropriate SPC – when you manufacture the part.
That is going to cost a little bit of time to get up and running because it is all about being predictable.
- AS9145 is the system that will lead to predictability in your business processes
- It will run you a little bit more to implement but in the long term will lead to predictability that will save you a ton more than if you were Company 1
All the Aerospace Core Tools are included in AS9145; the FMEA is going to provide your risk analysis, the MSA is going to tell you how much of the error is due to how you measure. The SPC is going to lend you predictability in your manufacturing operation, and lastly the PPAP will give you a leg to stand on when it comes to contract review.
That is a little bit of what AS9145 does, and we can easily think of it in terms of our consumer mind which is how things cost. Think about it from the business perspective instead – in what it delivers versus what it costs.