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Signature Posts Third Quarter Quality Metrics - October 14, 2011 PDF Print E-mail

Wixom, MI. October 14, 2011.  Signature Automotive Products announced today outstanding quality metrics for the nine months ended September 30, 2011.  All quality metrics exceeded those posted in 2010 which had previously been the highest marks in Company history.

One important measure of quality is our out-of-box reliability metrics that record our restylers’ satisfaction with the products when received.  These reliability results are as follows:

No part shortages in shipment                       99.991% (unit or parts order complete)

Order fulfilled correctly                                 99.991% (correct unit or part sent)

No quality concern at bench test stage           99.991% (bench test was satisfactory)

No shipping damage to product                    99.978% (no damage to parts/units)

Products shipped to correct location             99.961% (multiple store entities)

On a parts per million basis, the error rates range from a mere 86 per million (for the three highest quality categories) to 216 per million for shipping damage and 389 per million for shipping accuracy.  Comparing reliability errors through September 2011 to the prior period year-to-date, reported reliability problems issues have decreased 31.2%.

A second important quality metric we track is the dollars of warranty expense compared with current period revenue.  Although this is an imperfect relationship because warranty claims may be related to units installed as long as six years ago, the metric is a measure that we have tracked since reading an advertisement from our largest competitor several years ago touting that they had achieved a 2.0% cost-to-revenue ratio.  And that was before any recall issues.  For the nine months ended September 30, 2011, our warranty expense to current period revenue fell to 0.30%, and this compares to the comparable 2010 period result of 0.35%.  Our full year 2010 result was 0.38%, so we are on track to have the lowest warranty relationship ever a full calendar year.

Our third quality metric is the number of reported product concerns, whether or not they turn into a warranty expense, as we record all quality issues noted by our restylers.  The number of reported quality issues have dropped by 24.8% in the nine months ended September 30, 2011 compared to the comparable 2010 period.  This is especially significant in light of the significant increase in the number of units sold this year.

Per Pete Grasshoff, Technical and Warranty Manager, “Our improved Signature Series inbuilts are definitely driving the improvement in our quality metrics.  Since their release beginning in 2009, our restylers have raved about the quality and reliability of all Signature inbuilt models.  Adding to our success is the fact that we make 100% of our sunroofs in our Wixom, Michigan facility and we have the highest quality control standards and processes.  Of course we will never be satisfied until our reliability metrics all reach 100%, but we are making progress every quarter and every year.  From our designers and engineers to our quality staff to our assembly crew, we have a staff dedicated to quality workmanship on each and every sunroof we build.”

Last Updated on Friday, 14 October 2011 18:45