Question: Please solve this problem A key customer contacted a machine tool manufacturer about poor recent performance they had experienced regarding on-time delivery of the product.


Please solve this problem
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 futurethe 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 controlStep by Step Solution
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