Warranty and QC Cost Reductions

The challenge: A regional ready mix producer was concerned about excessive warranty claims and costs. The business requested a review of its production, quality control and delivery processes.

The approach: RMCAC examined five ready mix plants and identified the need for process, production and reporting consistency among the plants. In partnership with senior management and plant management, RMCAC principals designed an operational system that included all levels of production, QC and delivery personnel at all five locations. Personnel were trained, and the systems were implemented.

The results: From FY2009 to FY2010, there was a net reduction of warranty claims and costs from $0.82/yd to $0.06/yd. Quality control costs were reduced from $1.28/yd to $0.83/yd. The initial results brought costs from out-of-norm highs to low norms based on an NRMCA 2010 Quality Benchmarking Survey.

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