A key customer contacted a machine tool manufacturer about poor recent performance they had experienced regarding...
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A key customer contacted a machine tool manufacturer about poor recent performance they had experienced regarding on-time delivery of the product. On-time deliveries were at 85%, instead of the desired target value of 100%, and the customer could choose to exercise a penalty clause to reduce by up to 15% of the price of each tool, or about a $60,000 loss for the manufacturer. The customer was also concerned about the manufacturer's factory capac- ity and its capability to meet their production schedule in the future. The customer represented about $8 million of business volume for the immediate future the manufacturer needed a revised business process to resolve the problem or the customer might consider seeking a sec- ond source supplier for the critical tool. A team was formed to determine the root causes of the delivery problem and implement a solution. One team member was a project engineer who was sent to a supplier factory, with the purpose to work closely with the supplier, to examine all the processes used in manufac- turing of the tool, and to identify any gaps in the processes that affected delivery. Some of the supplier's processes might need improvement. DMAIC Example of Improving on-time delivery 1-what to define? 2-what to meature? 3-what to analyze? 4.what to improve? 5-what to control? A key customer contacted a machine tool manufacturer about poor recent performance they had experienced regarding on-time delivery of the product. On-time deliveries were at 85%, instead of the desired target value of 100%, and the customer could choose to exercise a penalty clause to reduce by up to 15% of the price of each tool, or about a $60,000 loss for the manufacturer. The customer was also concerned about the manufacturer's factory capac- ity and its capability to meet their production schedule in the future. The customer represented about $8 million of business volume for the immediate future the manufacturer needed a revised business process to resolve the problem or the customer might consider seeking a sec- ond source supplier for the critical tool. A team was formed to determine the root causes of the delivery problem and implement a solution. One team member was a project engineer who was sent to a supplier factory, with the purpose to work closely with the supplier, to examine all the processes used in manufac- turing of the tool, and to identify any gaps in the processes that affected delivery. Some of the supplier's processes might need improvement. DMAIC Example of Improving on-time delivery 1-what to define? 2-what to meature? 3-what to analyze? 4.what to improve? 5-what to control?
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Define Define the problem The team needs to clearly define the problem statement which is the poor ontime delivery performance and its impact on the customer and the manufacturer Define project goals ... View the full answer
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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