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Use AC172 to Improve Efficiency/Reduce Costs
This is the first of a series of articles on the IAS Fabricator Inspection Program by Sandi McCracken, IAS Fabricator Program Manager.
For many, the IAS Fabricator Inspection Program is simply a way to help fabricators demonstrate to building officials that they are code compliant, but it is so much more. In fact, this program is an invaluable business tool that allows fabricators to improve operational efficiency and product quality.
Sound improbable? To understand the impact of this program on the day-to-day business of fabrication, let's examine some key definitions included in the IAS Accreditation Criteria for Fabricator Inspection Programs for Structural Steel AC 172.
3.2 Quality Assurance: Measurable systematic actions to ensure confidence that the implementation of planned activities result in meeting objectives, goals and project specifications.
3.4 Quality System Management: A management approach to quality improvement based on the participation of corporate management in improving processes, products and services provided to the fabricator's customer.
3.8 Nonconformance: An action employed that renders a member or component unacceptable for the intended use as specified in contract specifications or this criteria.
3.9 Corrective Action: Implemented action or solutions necessary to eliminate or reduce the root cause of an identified problem.
Now, let's put that technical jargon into common practice.
First, we all know that errors may occur in all operations of a fabrication facility. Without a program to quantify and measure the root cause of errors, there is little chance to eliminate them and no way to determine the cost of these errors to your business.
One way to determine if your quality management system is meeting your company's goals and objectives is to simply document all the re-work operations that occur. Most of the smaller problems that we feel are inherent in the fabrication of a member or components are the largest cost burdens. In fact, analysts estimate that most fabrication facilities spend between six to eight percent of their profits reworking structural steel members.
Think about this for a moment. How many times are clips removed and replaced, missed welds caught in another operation, or welded stiffeners or connection plates inaccurately located? Other such common occurrences include arc strikes that require grinding, weld repairs, incorrect material cuts and off-location bolt holes.
Now imagine during an in-process inspection you were able to document these errors and enter them into a basic Excel spreadsheet. A manager could then sort errors by type of repair, personnel, job number, and time necessary to bring the member or component into compliance. It would become easy to identify the most difficult fabrication projects, the best detailers and the operators that might need some additional training.
Keep in mind that each repair made in your facility costs time and money. Quality professionals report that the true cost of repairs is equal to the time to perform the workmanship multiplied by three; others quantify the cost times five. The concept is the same. You pay employees to perform the work. If it does not meet compliance, you pay them to remove or repair the item and, while paying them to re-work the item, they are not able to perform the next task on the list of assignments for that given day. In this scenario, there's a strong likelihood that you will not meet your projected estimates.
The answer? Use the quality management concepts in IAS AC172 to your advantage, identify and eliminate errors, and watch your quality and profit margins increase!