Question: A._A Step 1 Question related to Chartering a team: (5 Points)- Given the following problem, provide a SMART Goal that the Management team might have

A._A Step 1 Question related to Chartering a

A._A Step 1 Question related to Chartering a team: (5 Points)- Given the following problem, provide a SMART Goal that the Management team might have in a Team Charter Problem: The primary shaft in our Model D2 Rotary Drill Unit is prematurely failing in the field for our Oil Sands customers. The failure rate in the field is 6% for units in use with fewer than 100 hours on them. Our guarantee to the customer is less than 1% failure rate in 5000 hours of use. We are currently at a 14% failure rate at 500 hours of in-field use. With the number of units in use and our "Guaranteed" performance to be under a 1% failure rate, we are held accountable to contract penalties of $500 per percentage point per month over the 1%, multiplied by the number of failed units in service. We currently have 150 units in service. The quality problem has been consistent month-to-month for the past 4 months and our customers are considering us default on the contract and going with another supplier unless we can fix the issue and retrofit the units in the field by May 15, 2020. Today's date is December 12, 2019. Note: We have an opportunity to provide 500 more Model D2 Rotary Drill Units over the next 2 years if we can fix this issue. Our units sell for $5000 and our net profit is planned to be 25% of Revenue provided we stay under the 1% failure rate. Provide a SMART Goal for the team charter the Management team will put in place to address this challenge: B._Step 2 Question related to SIPOC (3 Points in total)- What is a CTQ? (2 points) What is the CTQ for the process step "Customer uses product in the field" as it relates to the problem outlined in question 1A? (1 Points)

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