Question: 2) Case Study: Reducing Packaging Defects in Juice Production through Six Sigma A beverage manufacturing company specializes in producing bottled fruit juices for retail distribution.
2) Case Study: Reducing Packaging Defects in Juice Production through Six Sigma A beverage manufacturing company specializes in producing bottled fruit juices for retail distribution. The company currently fills and seals approximately 15,000 bottles per month. Due to inconsistencies in the packaging line, \(5\%\) of these bottles are found to have defects. These defects include leakage, improper sealing, and labeling issues, which render the products unsellable. Each defective bottle incurs a cost of \(\$ 30\) to either dispose of, rework, or replace, leading to significant monthly losses. In response to this recurring problem, the company's quality control department has proposed the implementation of a Six Sigma quality improvement initiative. The objective of the program is to reduce the defect rate and improve the reliability of the packaging process. The Six Sigma program involves comprehensive staff training, equipment calibration, and process optimization. The expected outcome is a reduction in the defect rate from \(5\%\) to \(1.8\%\). However, the implementation of the program will involve a monthly cost of \(\$ 6,000\), which covers training, consultancy, and process evaluation services. The company management must decide whether the proposed Six Sigma initiative will result in a meaningful cost saving or if it will increase operational expenses.Answer the following questions to assist in the decision-making process:a) Calculate the current monthly cost associated with defects based on the existing 5%defect rate.b) Calculate the expected monthly cost of defects after implementing the Six Sigmaprogram, using the improved defect rate of 1.8%.c) Determine the net monthly financial impact (savings or additional cost) ofimplementing the Six Sigma initiative by comparing the reduction in defect costsagainst the program's $6,000 monthly cost.d) Draw a flowchart to illustrate the implementation process of the Six Sigma qualityinitiative. The flowchart should start from identifying the packaging defect issue andend with monitoring post-implementation results. It must contain at least five processsteps and use standard flowchart symbols (rectangles for process steps, diamonds fordecisions, arrows for flow direction). Do not include numeric values in the flowchart.1NOTE : DONT UPLOAD AI GEN FLOWCHART IMAGE !! MUST DRAW THE FLOWCHART OTHERWASE I WILL REPORT YOUR SOLUTION
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