Question: Using some or all of the following data points, define a Lean Six Sigma project. As part of the process of creating a project charter,you

Using some or all of the following data points, define a Lean Six Sigma project. As part of the process of creating a project charter,you create the followingelements of the project charter:

  1. Problem Statement
  2. Project Goal Statement
  3. Use a SIPOC diagram to define the project scope and avoid scope creep.
  4. Brief business case including paybackperiod analysis
  5. A basic process flow chart
  6. Cause and EffectDiagram for your project

Background:

WXRII (Waterloo X-ray Integrators Inc.) is a supplier of high end industrial X-ray systems. The company provides x-ray imaging solutions to a wide range of customers with various industrial applications, from weld inspection of pipelines, to quality control of tires to tile and lumber inspection and othernon-destructive imaging applications.

The companys main product XR2018 is configured in various ways for various applications, however the product platform remains the same. The platform consists of an X-ray source, an X-ray detector, an electronics module, a special graphics card that resides in a standard PC and a user interface software. The following is a diagram of the XR2018 system:

x-ray Source x-ray detector Electronics Graphic Card PC + App. Software

Below is some information related to the manufacturing of the system:

  1. Due to the high customization required and high cost of two of the system components, namely the x-ray source and the x-ray detector, the company has implemented a make to order manufacturing scheme. Make to order is a manufacturing process in which theproduction of an item begins only after a confirmed customer order is received. The company hold only 2 counts of x-ray sources and 2 counts of x-ray detectors in its inventory.
  2. The company outsources x-ray sources from 2 different vendors and outsources the x- ray detector from only one manufacturer. These items have a lead time of 2 months.
  3. The companyinventory of all other requiredsystem components ensuresavailability of the items at all times during the manufacturing process.
  4. The company has designed the electronics module and implemented the application software. The software is installed during the manufacturing process. The electronics module is designed by the engineers of R&D department; however, the manufacturing of the electronics module is done by a local PCB manufacturing shop. This item has alead time of one week.
  5. The specialgraphic card is outsourced and has a lead time of 30 days.
  6. The PC used is a general purpose industrial PC available from many vendors, with a lead time of 5 days.
  7. Table 1 lists all the components and their associated costs.
  8. Below are the steps in manufacturing a complete system:
    1. After an order is received it takes 6 hours for order verification by support engineers in order to ensure configuration accuracy. The support engineer feeds system configuration information to the order entry system, which ensures that the final product is customized to the customersexact needs.
    2. An order for all required components of the system, including the x-ray source, detector, electronics, graphic card, PC and application software is issued to the suppliers.
    3. The next step in the process is the assembly of the x-ray source in its enclosure,which takes 0.5 hours.
    4. Testing of the same assembly 1.5 hours.
    5. X-ray detector and electronics moduleassembly, 1.5 hour.
    6. Assembly of the graphicscard and standard PC, 0.5 hour.
    7. Testing of the assembled PC 1 hour.
    8. Interface software installation and customization 1 hour.
    9. System assembly 1.5 hrs.
    10. System functional test 1.5 hours.
    11. System calibration 8 hours which includes the following steps:
      1. Detector characterization over a wide range of temperatures, 4 hours.

  1. Detector calibration 2 hours.
  2. Characterization and calibration resultsarchiving 1 hour.
    1. Ifat any stage, a test isfailed, the previousstep is repeateduntil the test is passed. If the detector calibration in step k is failed, the detector must be replaced by a new one and step e must be repeated.
    2. Packaging and handling 1 hour.

Table 1

Item Component Quantity Cost
1 X-ray Detector 1

$30,000 Current detector

The new detector is

$33,000

2

X-ray detector

enclosure

1 $100
3 X-ray source 1 $10,000
4 Electronics Module 1 $300
5 Graphics Card 1 $1500
6 Standard PC 1 $1000
7 Software 1 $10

Labour cost information

Assembly Technicians wage $30/hr

Test technician wage $35/hr

Field setvice/ support wage $40/hr DesignEngineer Wage: $45 /hr

On average the company sells about 1000 systems per year. The average cost for the customer service department who supports after sales service is about 20% of the finished system cost including material and labour.

System redesignopportunity:

Recently, a novel x-ray detector technology was introduced to the market. The new detectors, although more expensive than the previousdetectors, provide the following benefits:

  1. The new detectors do not suffer from thermalinstability.
  2. The scrap rate for the new detectors is 10% lower than the current detectors.
  3. The new detectors will require the same amount of calibration time during the manufacturing process.
  4. The new detector shows more consistent output over time.
  5. Due to the robustness of the new technology, customerservice department cost will be reduced to only 10% of the finished system cost.
  6. System sales revenue is expected to remain unchanged.
  7. In orderto incorporate the new detectorinto the manufacturing process, it is expected that the design engineers will have to spend 3 months redesigning the system and introducing the new system to the manufacturing process. The material cost for the redesign is estimated at $80,000 plus $20,000 for various regulatory system certifications.

Assume each day is 7.5hrs of work time and each month consist of 20 workingdays.

Other Supporting Information:

A customer survey consisting of many field visits by the customer service department has revealed the following information:

  1. Most of the customers recharacterize the system after receiving the system. This almost always results in customers performing their own detector calibration and not using the factorycalibration.
  2. The surveyreveals that majorityof customer dissatisfactions results from the followings in orderof importance:
    1. Difficulty in learningand using the software interface.
    2. Difficulty in findingtroubleshooting information on the companys website.
    3. Long response times from the customer servicedepartment.
    4. Change in system characteristics over time, whichrequires recalibration done by the customer.

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