Markham Innovator, Inc. is a major provider of specialized parts for the automotive industry. MII’s biggest customer, Specialized Motors was not happy with customer service this month. The customer made it explicitly clear that Specialized Motors was disappointed with the level of quality relative to the balancer plates. In particular, the customer was disappointed with the current average of rejects at the rate of 1,350 defects per million opportunities (DPMO) at a cost of poor quality of just over $137,000 per quarter. She said the industry standard is <40 DPMO and if we do not get the level of quality to industry standard (as a minimum) within the next six months, MII should not expect to keep the business next year.
C) Scope/process (clearly define where the process starts and ends)