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krm8_ism_ch06 - Chapter 6 Process Performance and Quality...

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DISCUSSION QUESTIONS 1. Although major advances have been made in the area of quality over the past 10 years, many of the improvements have been to processes that have been automated. Managers can make additional advancements by increasing the involvement of employees in quality efforts. Many firms are trying to develop organizational structures that foster teams and “employee ownership” of processes. The concept of “value” as a quality concept needs to be emphasized in the TQM philosophy. 2. It is important for the new corporation to have a high-quality product right at the start because it has no market presence in the automobile market. Making sure that the process is capable is very important for a secure start and long-term presence. Many companies have failed miserably when introducing a new product because the production system was not capable of producing a product without defects. The automobile industry is very demanding from a quality perspective. Quality can be considered an “order qualifier” in many instances. This puts pressure on any new venture, but especially on a new company trying to compete against Japanese, American, and German companies who have been in the market a long time. However, delaying a market entry has important marketing implications. Competitors have more time to combat the entry and secure their own market shares. 3. Responses to this question will be diverse. The objective of the exercise is to get the students to think of nontraditional applications of SPC, particularly in their fields of interest. Some generic responses would include: q Accounting and finance—In the billing process, audits can reveal incidences of incorrect dollar amounts, bad addresses, incorrect items sold to the customer, and tardy payments to suppliers. These could be treated with a p -chart and monitored for improvements over time. q Marketing—In order processing, samples of orders can reveal accuracy problems, delays in entering the order into the system, and the time taken to fill the order. These measures can be controlled with attribute or variable control charts. Chapter 6 Process Performance and Quality
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104 l PART 2 l Managing Processes PROBLEMS 1. Quickie Car Wash x = 390 sec, n = 9, R = 10 sec From Table 6.1, 2 A = 0.337, 3 D = 0.184, 4 D = 1.816 R UCL = 4 D R = 1.816(10 sec) = 18.16 sec R LCL = 3 D R = 0.184(10 sec) = 1.84 sec x UCL = 2 x A R + = 390 sec + 0.337(10 sec) = 393.37 sec 2 x LCL x A R = - = 390 sec – 0.337(10 sec) = 386.63 sec 2. Isogen Pharmaceuticals 150 x = milliliters, n = 4, 3 R = ml From Table 6.1, 2 0.729 A = , 3 0.0 D = , 4 2.282 D = ( 29 4 2.282 3 ml 6.846 R UCL D R = = = ml ( 29 3 0.0 3 ml 0.0 R LCL D R = = = ml ( 29 2 150 ml 0.729 3 ml 152.187 x UCL x A R = + = + = milliliters ( 29 2 150 ml 0.729 3 ml 147.813 x LCL x A R = - = - = milliliters 3. Garcia’s Garage 0.10 p = , n = 100, z = 2 ( 29 ( 29 1 0.10 0.90 100 0.03 p p p n σ = - = = ( 29 0.10 2 0.03 0.16 p p UCL p z σ = + = + = ( 29 0.10 2 0.03 0.04 p p LCL p z σ = - = - = At 8 of 100, the number of returns for service is below average, but this observation is within the control limits. The repair process is still in control.
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