Your first action is to review the data and develop a Pareto Analysis chart of by frequency of occurrences. Create a Pareto Chart based on cost of the defects What order would you attack the problem based on the information above?

Practical Management Science
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Author:WINSTON, Wayne L.
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Chapter2: Introduction To Spreadsheet Modeling
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You have been called in to review the defects found at a company that makes household cleaning liquid for their customers.  The products consist of two different sizes: 16 and 24 oz products in plastic bottles with sprayers attached (see picture below).  These products can be run on several different filling lines so management has had difficulty in trouble shooting to determine which defects to tackle, what size product and production line to address first and as a consultant, you've been asked to help with the decision making process.  Company executives have provided you with the data listed below, of numbers and costs of different types of defects experienced in the most recent runs of the lines (assume that these defects are out of a recent sample taken from each line, all in the same time frame so they are sharing the same plant-wide conditions).

You learned from Purchasing that the containers are purchased from 2 suppliers and the sprayers are purchased from 1 supplier.  Labels are purchased from 3 different suppliers and the cleaning formula is made in-house.

  1. Your first action is to review the data and develop a Pareto Analysis chart of by frequency of occurrences.
  2. Create a Pareto Chart based on cost of the defects
  3. What order would you attack the problem based on the information above?
  4. Analyze the data and list the conclusions you can draw from the data.
  5. What action would you take and in what order?
  6. For each line and bottle size (e.g., “Line 1, 16 oz”), use the AQL tables with the lot sizes below, and assuming you’re at General Inspection Level II with a “minor” severity level of 4.0%,
    1. What is the sample size you should use? (i.e., the number of bottles you should have altogether in each sampling)? And,
    2. What are the maximum number of defective bottles allowed in a complete sample of each line/bottle-size combination?

Data for Cleaning Product Problem

 

Line 1

Line 2

Line 3

Line 4

Cost/defect

Defects

16 oz

24 oz

16 oz

16 oz

24 oz

24 oz

$/defect

Pin holes

1

2

1

0

1

4

1.03

underfills

4

2

8

2

3

1

0.18

overfills

9

6

0

1

2

1

0.05

crooked labels

1

0

1

7

10

3

0.03

bad sprayer

0

1

0

1

1

0

0.35

defective nozzle

1

0

0

2

1

1

0.08

missing labels

1

2

3

12

8

0

0.06

               

Lot Size

20000

15000

10000

8000

8000

25000

 

 

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