Employee performance objectives are sometimes based on output, but that can be the wrong reward system. It encourages quantity over quality and fosters a mindset of letting the little defects slide. That, in turn, can result in increasing customer rejections rates, which can hurt your company's reputation and send customers elsewhere.
The rejection rate is a far better measure for evaluating performance. Bringing it down can motivate everyone to concentrate on customer satisfaction.
Here are five basic steps for reducing rejection rates and driving up sales:
Making a commitment to reducing customer rejection rates requires a new way of thinking about work and the role of employees. Once teams buy in, they examine their own behavior and production processes to put into effect methods that improve quality, maintain output and lower rejection rates.
In five years, one manufacturer slashed its annual customer rejection rates from a range of 250-500 parts per million to just three. The company attributes a big part of this stellar improvement to an incentive program that shifted from rewarding quantity to rewarding quality and customer satisfaction.
After the plant adopted Six Sigma data-driven process controls, employees found that set-up was often the source of defects. They analyzed the process and arrived at a solution. Now, set-up on one line is double-checked by an employee from another line who signs off on it.
Get in touch today and find out how we can help you meet your objectives.