Oak Hills Is Facing, And How Will They Influence The Company

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)What are the specific quality problems Oak Hills is facing, and how will they influence the company’s ability to convert to a lean system? Oak Hills facility is a unit of The Oil and Gas Services Company (TPGS). Mainly TPGS produces testing equipment that is Used in Exploration and Extraction unit (E&E). To increase operational efficiency, Oak Hills proposed to reduce the lead- time to one week, as now testing equipment was between one and two weeks. Many E&E domestic orders were rush jobs that had to expedited on the shop floor and the daily cost of an idle exploration well could range from U.S. $50,000 to U.S. $100,000 a day. Oak Hills intention of reducing inventory levels and enhancing customer service by implementing a lean…show more content…
Related to the large workload, there were also not enough proper quality check points to check the quality of the work in progress. Quality is mainly controlled during assembly, and not checked while being packaged. If a product was not controlled during assembly and was damaged during shipping, the correct department is not able to be addressed to correct the issue resulting in bad quality control. If all the above task inefficiency is taking place the processes cannot deliver a quality product and on time. For the lean system to be implemented all the concerns need to be addressed, and employees are one of the keys to this change. Currently employees are worried to lose their jobs and are over worked, with this state, employees might not be acceptable to the changes. Machines and systems need to be updated to save money, time, and to reduce raw material waste. Quality can be achieved when employees and management are dedicated to make this their priority, it is not only on the quality team but the whole companies. 2)What changes in the manufacturing environment need to be undertaken in order to convert the current system to a lean system? Think about this from both a short-term and a long-term perspective. According to Paul Myerson from The Lean Supply Chain, “The concept of

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