Analyze (T Test), Analyze (Chi Square), Improve (DOE), Improve (Scatter Diagram), Scatter, Control (XmR Chart), and Control (Pp Ppk) from the manufacturing project?
Lovell Levelers, Inc. is a major provider of specialized parts for the automotive industry. LLI's biggest customer, Specific Motors was not a delighted customer this month. In fact, last Monday, the executive vice president of Specific Motors headquarters, Phyllis Kendall was diverted from a return trip from Singapore to drop in unexpectedly at the LLI plant. There was nothing routine about this visit. She made it explicitly clear that Specific Motors was disappointed with the level of quality relative to the leveler plates. In particular, she was disappointed with the current average of rejects at the rate of 1,350 defects per million opportunities (DPMO) that has created a cost of poor quality of just over $256,000 per quarter for them. She said the industry standard is 50 DPMO and if we do not get the level of quality to the industry standard within the next six months, LLI will lose Specific Motors as a customer.