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Triangle Order Fulfillment - Case Study Example
Author : aliviakuhic
Pages 3 (753 words)
Every client always wants the best quality when it comes to products and services. For any company to be successful, quality must be their main focus as this will lead to an increase in the number of clients and profit…
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. ...