Managing tolerance stack-up through process integration team in steel industry

Tolerance is defined as “the difference between the maximum and minimum dimensions that can be allowed in terms of product functionality.” Company A, a steel manufacturer, follows the textbooks in presetting and managing tolerances so that its processes can flow seamlessly without any adjustments, as long as conditions remain within the range of tolerance. However, tolerance stack-up risk has been observed in the production of high-grade products such as automotive steel sheets because the quality measurements have approached the tolerance limits in several consecutive processes even though the said measurements have stayed within the tolerance range (which means that the products are not classified as defective). On the other hand, Company B (also a steel manufacturer) has been successful in managing tolerance through a method that is entirely different from the textbook model by having its Integrated Quality Control Group adjust the tolerances between processes and a) Faculty of Business Administration, Kindai University, 3-4-1 Kowakae, Higashiosaka-shi, Osaka Prefecture, Japan 577-0818, byun@bus.kindai.ac.jp A version of this paper was presented at the ABAS Conference 2019 Summer (Byun, 2019). © 2019 Sungwoo Byun. This is an Open Access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted reuse, distribution, and reproduction in any medium, provided the original work is properly cited. Annals of Business Administrative Science 18 (2019) 223–236 http://doi.org/10.7880/abas.0191002a Received: October 2, 2019; accepted: November 6, 2019 Published in advance on J-STAGE: November 20, 2019