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1.

Compare and contrast JIT, MRP, and synchronized manufacturing, stating their main features, such as where each is or might be used, amounts of raw materials and work-in-process inventories, production lead times and cycle times, and methods for control. 2. Explain the concept of Six Sigma. How is it measured? How has it evolved into a comprehensive improvement philosophy? Explain the DMAIC process 3. The Website http://supply-chain.org gives a comprehensive understanding of SCOR model and other recent trends. Review section on SCOR to give an overview of the model and review Resource& tools and other sections to summarize key trends in supply chain management. 4. a. Using control charts, interpret the data shown in the table. Is the overall process in statistical control? If not, what might be the likely cause? Compute revised control limits after eliminating any out-of-control points. Solution: First, we would check if the cutting operation process is controlled and capable or not. This could be done by calculating the Capability Index (Cpk). We calculate the process mean for the given 30 samples (150 readings) as, = 29.99266 and the standard deviation as,

= 0.040165. The lower tolerance limit (LTL) and upper tolerance limit (LTL) are given as: LTL = 29.875 Cpl = 0.97647 and UTL = 30.125. and Cpu = 1.0983

Cp = min (Cpu,Cpl) = 0.97647. So Cpk less than 1 shows that the cutting operation process is not control and not capable. Next the out-of-control points has to be found out using the Lower control limit for Upper control limit for

x - chart and R - chart.

x x

= 29.95013 = 30.03519

Control line = 29.99266 We plot the

x - chart below;

30.05 30.04 30.03 30.02 30.01 30 29.99 29.98 29.97 29.96 29.95 29.94 29.93 29.92 29.91 29.9 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29

Sample Average Control Line LCL UCL

From the control chart above, it is observed that sample 9, sample 21 and sample 24 have sample average below the Lower control limit.

From the initial sample, we can see that these samples were cut by the same worker named Cameron. So the worker Cameron is likely to be incapable of producing the samples within prescribed control limits. After removing the samples, we repeat the same process with the rest of the 27 samples. Here are the findings: We calculate the process mean for the given 27 samples (135 readings) as, = 30.00044 and the standard deviation as, = 0.030077. The lower tolerance limit (LTL) and upper tolerance limit (LTL) are given as: LTL = 29.875 and UTL = 30.125.

Cpl = 1.3902 and Cpu = 1.3805 Cp = min (Cpu,Cpl) = 1.3805. So Cpk more than 1.33 shows that the cutting operation process is in control and is capable. Next the out-of-control points has to be found out using the Lower control limit for Upper control limit for

x - chart and R - chart.

x x

= 29.9607. = 30.04018.

Control line = 30.00044. We plot the

x - chart below;

30.05 30.04 30.03 30.02 30.01 30 29.99 29.98 29.97 29.96 29.95 29.94 29.93 29.92 1 3 5 7 9 11 13 15 17 19 21 23 25 27

Sample Averages Control line LCL UCL

Here all the 27 samples are within the control limits and thus removing the out-of-control points has made the process controlled and capable.

b. Examine the data in relation to the acceptable specification limits. What would you conclude? Though the acceptable specification limits are mentioned as 29.875 and 30.125 and all the 30 samples are within the specified limits, there is a degree of deviation in the sample units. Due to this deviation, it is possible to have a few samples where the units are beyond the specified limits if we add more samples (more than 30). The findings related to the out-of-control points are indicative of this conclusion. c. After establishing control, additional samples were taken over the next 20 shifts, shown below. What conclusion can you reach about the process now? Is there any evidence that the process has changed relative to the established control limits in part (a)?

After establishing control (done by removing Cameron from the cutting operation), we again check the capability and control of the process. This could be done by calculating the Capability Index (Cpk). We calculate the process mean for the given 20 samples (100 readings) as, = 30.00788 and the standard deviation as, = 0.034542. The lower tolerance limit (LTL) and upper tolerance limit (LTL) are given as: LTL = 29.875 and UTL = 30.125.

Cpl = 1.28231 and Cpu = 1.13022 Cp = min (Cpu,Cpl) = 1.13022. So, Cpk more than 1 and less than 1.33 shows that the cutting operation process is capable, but may not be in control.

Next the out-of-control points has to be found out using the Lower control limit for Upper control limit for

x - chart and R - chart.

x x

= 29.9644 = 30.0513

Control line = 30.00788 We plot the 30.06 30.05 30.04 30.03 30.02 30.01 30 29.99 29.98 29.97 29.96 29.95 1 3 5 7 9 11 13 15 17 19 Process Sample Control Line UTL LTL

x - chart below;

Of 20 samples considered, only one sample is out-of-control i.e. sample1. Thus probability of a sample going out-of-control is reduced to 5% from pervious 10% (3 out of 30). But the cutting operation process is still not fully controlled, which is also evident from the Cpk calculated above. Thus with the attempt of establishing control, the process is showing better results.