Question;Chapter 16: Quality Control and SPCCase: LINDSAY ELECTRIC COMPANYLindsay Electric is a distributor of electrical automation and power transmission products. The company recently began to implement a total quality management process. One manager was eager to collect data about the organization?s receiving process because of a decrease in the organization?s on-time deliveries. The manager suspected that the data entry person in the purchasing department was not entering data in the computer in a timely fashion, consequently, packages could not be properly processed for subsequentshipping to the customer. A preliminary analysis indicated that the manager?s notion was inaccurate. In fact, the manager was able to see that the data entry person was doing an excellent job. The analysis showed that handling packages that were destined for a branch operation in the same fashion as other packages created significant delays. A simple process change of placing a branch designation letter in front of the purchase order number told the receiving clerk to place those packages on a separate skid for delivery to the branch. However, this analysis revealed a variety of other problems. Generally, anywhere from 65 to 110 packing slips were processed each day. These were found to contain many errors in addition to the wrong destination designation that contributed to the delays. The data below shows the number of errors for samples of 100 packing slips.Date21-Jan22-Jan23-Jan24-Jan27-Jan28-Jan29-Jan30-Jan31-Jan3-Feb4-Feb5-Feb6-Feb7-Feb10-Feb11-Feb12-Feb13-Feb14-Feb17-Feb18-Feb19-Feb20-Feb21-Feb24-Feb25-Feb26-Feb27-Feb28-Feb2-Mar3-MarErrors151323371188111212611841088381313747458853Date4-Mar5-Mar6-Mar9-Mar10-Mar11-Mar12-Mar13-Mar16-Mar17-Mar18-Mar19-Mar20-Mar23-Mar24-Mar25-Mar26-Mar27-Mar30-MarErrors81361355384674411136668Errors included? Wrong purchase order? Wrong quantity? Purchase order not on the system? Original order not on the system? Parts do not match? Purchase order was entered incorrectly? Double shipment? Wrong parts? No purchase orderMany packing slips contained multiple errors. After consolidating the types of errors into five categories, a Pareto analysis was performed. This analysis showed the following:CategoryPercentagePurchase order error 35Quantity error 22No purchase order in system 17Original order not in system 16Parts error 10Case Questions for Discussion1. Develop a control chart for the error data. What conclusions do you reach?2. What information does the Pareto analysis provide? How do you think the company might use this information?2. What information might a separate control chart for each error category provide?Would you recommend spending the time and effort to make these additional computations?
Paper#61848 | Written in 18-Jul-2015Price : $27