Triangle Order Fulfillment
Analysis In June the total number of orders that was received was 280900. The total number of defected orders was 2227. Defects per opportunity can be calculated here by using the formulae DPU= number of defect/number of opportunities = 2227/280900 = 0.0004081 This value is small indicating that the defects level is average. However the next month see the company having a DPU of 0.0089. This is a very large increase showing us that the level of error per total number of orders has increased. In august, the DPU reduced with a small range from that of July to get 0.0085. After this the DPU has been increasing steadily to reach 0.009 in November six months after the first DPU is measured. The increase in the DPU over the years shows that there is an increase in the number of low quality work that is done by the staff. The DPMO of all the months can be calculated as DPMO= 1000000*DPU. The DPMO of the month of June is 1000000*0.000408 this gives us 408. The DPMO of the next month increases to 8800 showing a significant increase over the two months. The DPMO of the following months has been on the increase increasing steadily to reach the 9000 mark. This value shows that if one million orders are taken then 9000 of they will have defects. Though this might seem a small number, the problem comes by the way that it has arisen from 480 to 9000. . This shows that there are some changes that have been seen over the past 6 months. The graph below shows the way that the DPU as well as the DPMO have been increasing over the past 6 months....
This shows us that there might been a change or a significant event occurred between June and July to cause the changes that occur in the change in the DPU. K sigma can also be calculated from the above data but the standard deviation has to be calculated first. From the data the SD= 567. K= tolerance/ (2*SD) this we get the K sigma to be 1000000/ (2*567) ewe get value 881. Therefore the value is high and shows that the quality rate is reducing every time. If these defects are to be reduced then six sigma should be adopted by the company. There are lots of benefits that come with the use of six sigma, one is the improvement in quality of the work that is done, six sigma also provides an opportunity for the removing of the causes of defects in the organization and to also make sure that variability is reduced. The quality management tools that are used by six sigma also provide a special infrastructure of the general work force and this in turn helps the management to know the experts in each specific fields. For Ms. Jackson to convince Mr. Nguyen of the importance of six sigma, she needs to get all the benefits of six sigma and list them to the manager. She also needs to do research on companies that have successfully used six sigma and how they have benefited from the six sigma method. She also needs to inform the manager, that even if the implementation of six sigma would cost the company, it will help in saving for the expenses that come due to low quality. For six sigma to be in fully implemented, the following roles have to be taken The executive leadership has to be taken. The CEO and the top members of the management are to be in this category Champions who have the responsibility of implementing the six sigma Master black these are identified