Quality Management Your line manager has become increasingly concerned about the product and service quality. This results from a surge in the number of customers who have contacted her to highlight problems they have encountered while shopping at the Pet Kingdom store. The complains seem to focus on two areas; billing errors being made at the checkout and variations in the weight of Pet Kingdom branded dried dog food bags. To better understand the situation, Ms Lionheart has requested detailed data to be collected. Table 3 shows the data from the audit of 50 random bills per day issued over the past 30 days. Table 4 presents the weight sampling data (mean and range in kg) for 27 random samples of five observations each taken from the daily dog food deliveries. Ms Lionheart noticed that the number of billing errors increased in the last third of the month. She knows that the company wants high quality standards and wonders if both processes meet 3 sigma standards. She wants you to analyse the available data and produce a short report (1,000 words ± 10%) with all relevant tables and figures, to address the highlighted issues. In your report you need to consider the following for both sets of data: 1. Analyse and explain the data. 2. Set up appropriate 3‐sigma control limits and generate the control charts. Explain your approach. What does 3‐sigma indicate about the acceptable quality? 3. Is the process in control? Explain. 4. Explain your findings and the consequences. 5. How could implementing TQM help the company? 6. Provide two key recommendations for the company.
Quality Management Your line manager has become increasingly concerned about the product and service quality. This results from a surge in the number of customers who have contacted her to highlight problems they have encountered while shopping at the Pet Kingdom store. The complains seem to focus on two areas; billing errors being made at the checkout and variations in the weight of Pet Kingdom branded dried dog food bags. To better understand the situation, Ms Lionheart has requested detailed data to be collected. Table 3 shows the data from the audit of 50 random bills per day issued over the past 30 days. Table 4 presents the weight sampling data (mean and range in kg) for 27 random samples of five observations each taken from the daily dog food deliveries. Ms Lionheart noticed that the number of billing errors increased in the last third of the month. She knows that the company wants high quality standards and wonders if both processes meet 3 sigma standards. She wants you to analyse the available data and produce a short report (1,000 words ± 10%) with all relevant tables and figures, to address the highlighted issues. In your report you need to consider the following for both sets of data: 1. Analyse and explain the data. 2. Set up appropriate 3‐sigma control limits and generate the control charts. Explain your approach. What does 3‐sigma indicate about the acceptable quality? 3. Is the process in control? Explain. 4. Explain your findings and the consequences. 5. How could implementing TQM help the company? 6. Provide two key recommendations for the company.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Case Study 2:
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allu 2021 then we call suongly agree that this is not a stasunal product menee the use
of seasonal multiplicative method is not necessary. We have been given 4 years of
data which implies that we need to use a long-range forecast method.
Dictate
For table 2, the trend projection with least square method is not appropriate because it
states that it has too much inventory. We have only been given 2 years of data which
is not enough to use while using the trend projection with least-squares method.
Therefore, we would have to use a medium range forecast method.
3. For table 1, a method that would be good to accurately predict the forecast sales for
this would be trend projection with least-square method because it would create a
more reliable forecast which would consider the previous data and forecast the trend
the future sales will have. This method will be able to spot out anomalies that we have
in the data and ignore them when creating trend projection graphs.
!!!!
E
Editor
For table 2, we could use weighted moving average because we do not have more
than 2 years of day and therefore this method would ensure that the most recent data
has more weightage than previous one. It would also predict the trend direction.
However, once we have the actual demand for the third year, the forecast used will
have to be reassessed based on inventory and sales.
6. The company can use JIT (Just In Time) method to minimize the chances of
overstocking or understocking products. This will increase the chances of profits and
reduce the chances of
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Table 3: Number of incorrect bills issued at checkout (50 observations)
Number of
Number of
Number of
Day
Day
Day
Incorrect Bills
11
1
21
12
22
Incorrect Bills
2
Incorrect Bills
3
1
2
2
3
1
13
3
23
3
14
3
24
15
2
16
3
17
2
18
2
19
1
20
3
Answe
Mean
44.96
44.98
44.96
44.97
45.02
45.03
45.04
45.02
45.08
45.12
45.07
45.02
45.01
44.98
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4 / 4
Answe
94% + |
W Gildan 18500 - He...
Range Sample
0.42
15
0.39
0.41
0.37
0.39
0.40
0.39
0.42
0.38
0.40
0.41
0.38
0.41
0.40
16
17
18
19
20
21
22
23
24
25
26
27
MGT2221 & MGT2222 Operations Management; 2022-23
25
26
Table 4: Dog food weight (kg) samples (5 observations)
Sample
1
2
3
4
5
6
7
8
9
10
11
12
13
14
My Qu
287828
5568055
29
K.
30
Mean
45.00
44.95
44.94
44.94
44.73
44.95
44.93
44.96
44.99
45.00
45.03
45.04
45.03
4
Range
0.39
ES
0.41
0.43
0.40
0.38
0.41
0.39
0.41
0.40
0.44
0.42
0.38
0.40
Mic x
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