(Solution) IE 6016 DMAIC Semester Project: Due - August 2, 2016 MANATEY Computer (MC) Inc. Is A Leading Computer Company Located In The West Coast. They... | Snapessays.com


(Solution) IE 6016 DMAIC Semester Project: Due - August 2, 2016 MANATEY Computer (MC) Inc. is a leading computer company located in the West coast. They...


IE 6016 DMAIC Semester Project::  Due – August 2, 2016                             MANATEY Computer (MC) Inc. is a leading computer company located in the West coast. They assemble computer systems for industrial applications, 30% of their sales are for custom orders where the profit margin per unit is typically higher. Their finance department estimates a budget overrun cost of $120 per unit for each day late (for extra inventory carrying costs, facility space for storage, internal tracking costs once production of a unit begins in the manufacturing department, and increased shipping costs for late orders) Competition and reduced profitability has forced the MANATEY management to take a second look at their processes in an effort to improve their revenues. The management considers customer satisfaction paramount and has decided to use customers as a driving force for their process improvement project.                    MANATEY management has recently decided to use the Six Sigma method applying the DMAIC structured five-step approach; using this method the current processes are to be benchmarked and improvements made based on customer driven Critical to Quality characteristics (CTQs). They believe that by utilizing this approach to define the project scope and goals, timeline, team members, and the activities of their upcoming projects, will enable the company to create a competitive advantage over others. In order to initiate this process, MANATEY management plans to reduce the order filling times of their computer systems. The management has put together a team for this project and a detailed description is given below. As the Six Sigma analyst you are required to use DMAIC on MC based on the in-house data that they have been generated (see EXCEL data ) starting with developing a  Six Sigma Project Charter and making a business case to Management that your approach would improve their bottom line.   Using the information given in the following memorandum. Memorandum: Reducing computer system order filling times for MC. To: Six Sigma Analyst From: Board of Directors, MANATEY Computers (MC) After reviewing computer filling times  for past three years (2012-2015), MC believes that corrective measures have to be taken to improve the company’s bottom line and improve customer’s satisfaction ? Project Leaders: Varun A./Matthew T. (Team Leaders) ? Team Members: Deepak C., Giri C. (Black Belts), Dheeraj G., Shiva K. (R&D Directors), Vaibhav K., Antonio, P. (Green Belts), Johnathan R. - Construction Engineer ? Stakeholders: Dinesh R. -Team Champion, Binoj R. - Production Director, Vinod R., Mohamed S. (Marketing and Sales Directors) The business case can be rephrased as: Computer order fillings times reduction ad hoc exercises recently completed did not meet the requirements of customers/clients. MC finance department estimates a budget overrun cost of $120 per unit for each day late (for extra inventory carrying costs, facility space for storage, internal tracking costs once production of a unit begins in the manufacturing department, and increased shipping costs for late orders). Based on a 28-day budget, they had 582 days of late order overruns in the past three months, equating to approximately $70k per quarter (or ~$280K annually). These issues have created customer dissatisfaction and cost the company roughly $70k per quarter. Preliminary Plan Target Date Actual Date Start Date ? DEFINE ? MEASURE? ANALYZE ? IMPROVE ? CONTROL ? Safety Reviews ? Completion Date ? The data provided by MC include the following.   The process map for MC computer systems order filling processes Historical (H) Order filling times data for 244 orders collected over the past three months with 28 days or less requirement. A more in-depth look at order filling times - Special fill times (S) - To better understand the sources of variations. Possible causes for late order deliveries A new and verified order filling times based on your analysis report back to the company (Verification) Major Tools to be used: Many Box plots Many Pareto Charts Many Cp capability histograms (you must understand the output from Cp analysis and check how that interfaces with your Box plots) Deliverables. A formal report due August 2, 2016 in a DMAIC Format (Hard Copy) Oral Presentations – 5 Min. July 28.IE 6016 DMAIC Semester Project :: Due – August 2, 2016 MANATEY Computer (MC) Inc. is a leading computer company located in the West coast. They assemble computer systems for industrial applica±ons, 30% of their sales are for custom orders where the proFt margin per unit is typically higher. Their Fnance department es±mates a budget overrun cost of $120 per unit for each day late (for extra inventory carrying costs, facility space for storage, internal tracking costs once produc±on of a unit begins in the manufacturing department, and increased shipping costs for late orders) Compe±±on and reduced proFtability has forced the MANATEY management to take a second look at their processes in an e²ort to improve their revenues. The management considers customer sa±sfac±on paramount and has decided to use customers as a driving force for their process improvement project. MANATEY management has recently decided to use the Six Sigma method applying the DMAIC structured Fve-step approach; using this method the current processes are to be benchmarked

 

and improvements made based on customer driven Cri±cal to Quality characteris±cs (CTQs).

 

They believe that by u±lizing this approach to deFne the project scope and goals, ±meline, team

 

members, and the ac±vi±es of their upcoming projects, will enable the company to create a

 

compe±±ve advantage over others.

 

In order to ini±ate this process,

 

MANATEY

 

management plans to reduce the order Flling ±mes

 

of their computer systems. The management has put together a team for this project and a

 

detailed descrip±on is given below.

 

As the Six Sigma analyst you are required to use DMAIC on MC based on the in-house

 

data that they have been generated (see EXCEL data ) star±ng with developing a

 

Six

 

Sigma Project Charter and making a business case to Management that your approach

 

would improve their bo³om line.

 

Using the informa±on given in the following

 

memorandum.

 


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