Dynamic Seal - Mba: Six Sigma / Operations Case
Issue: Dynamic Seal, a precision parts manufacturer with a reputation for high quality, does not currently utilize a Statistical Process Control (SPC) system. However, United Airlines (UA), a major customer representing 14% of Dynamic Seal’s business, insists they implement an SPC system or loose United Airlines’ business. In addition Dynamic Seal do not have a sound preventative measure quality control system in place, preferring 100% inspection to cull bad quality, rather than building parts correctly from inception.
Goal: Reduce product variance and the need for rework by implementing a company-wide quality control system that includes an element of Statistical Process Control. A secondary goal is to reduce waste by focusing on Lean
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The second data set refers to the Cincinnati Milling Machine. Initial analysis indicates the machine is capable of meeting the required specs, so X-bar and R-bar run charts were constructed to visualize output performance against the IMS specs. Positions 8 to 10 on the R-bar chart (exhibit B) clearly indicate the process is out of control. The X-bar chart (exhibit C) further supports this claim by showing the process is out of control at positions 9 and 10. Although a bigger concern is that all but one data point lies above the control line, indicating the process could be off-center and require recalibrating. As Dynamic Seal’s materials and production methods are so expensive, before machine recalibration occurs, a fish bone diagram should be used to trace the problem to its source.
Alternative Options: There are four significant options open to Dynamic Seal. The can opt to do nothing and potentially lose the United Airlines contract, plus risk further losses as more customers begin to impose stricter quality control requirements. They can implement a company-wide Quality Management system such as Six Sigma that incorporates SPC analysis. They can implement an SPC system on one type of machine throughout the manufacturing plant. Or they can implement a Quality Management / SPC system within the United Airlines production cell alone.
Recommendation Short-term: To reduce project scope, I recommend