Case Study 2: Quality Management Your line manager has become increasingly concerned about the product and service quality. This results from a surge in the number of customers who have contacted her to highlight problems they have encountered while shopping at the Pet Kingdom store. The complains seem to focus on two areas; billing errors being made at the checkout and variations in the weight of Pet Kingdom branded dried dog food bags. To better understand the situation, Ms Lionheart has requested detailed data to be collected. Table 3 shows the data from the audit of 50 random bills per day issued over the past 30 days. Table 4 presents the weight sampling data (mean and range in kg) for 27 random samples of five observations each taken from the daily dog food deliveries. Ms Lionheart noticed that the number of billing errors increased in the last third of the month. She knows that the company wants high quality standards and wonders if both processes meet 3 sigma standards. She wants you to analyse the available data and produce a short report (1,000 words ± 10%) with all relevant tables and figures, to address the highlighted issues. In your report you need to consider the following for both sets of data: 1. Analyse and explain the data. 2. Set up appropriate 3‐sigma control limits and generate the control charts. Explain your approach. What does 3‐sigma indicate about the acceptable quality? 3. Is the process in control? Explain. 4. Explain your findings and the consequences. 5. How could implementing TQM help the company? 6. Provide two key recommendations for the company.Table 3: Number of incorrect bills issued at checkout (50 observations) Day Number of Incorrect Bills Day Number of Incorrect Bills Day Number of Incorrect Bills 1 2 11 1 21 3 2 2 12 2 22 3 3 1 13 3 23 3 4 2 14 3 24 4 5 2 15 2 25 5 6 3 16 3 26 5 7 2 17 2 27 6 8 2 18 2 28 8 9 1 19 1 29 5 10 2 20 3 30 5 Table 4: Dog food weight (kg) samples (5 observations) Sample Mean Range Sample Mean Range 1 44.96 0.42 15 45.00 0.39 2 44.98 0.39 16 44.95 0.41 3 44.96 0.41 17 44.94 0.43 4 44.97 0.37 18 44.94 0.40 5 45.02 0.39 19 44.73 0.38 6 45.03 0.40 20 44.95 0.41 7 45.04 0.39 21 44.93 0.39 8 45.02 0.42 22 44.96 0.41 9 45.08 0.38 23 44.99 0.40 10 45.12 0.40 24 45.00 0.44 11 45.07 0.41 25 45.03 0.42 12 45.02 0.38 26 45.04 0.38 13 45.01 0.41 27 45.03 0.40 14 44.98 0.40 Case Study 2: Quality ManagementYour line manager has become increasingly concerned about the product and servicequality. This results from a surge in the number of customers who have contacted her tohighlight problems they have encountered while shopping at the Pet Kingdom store. Thecomplains seem to focus on two areas; billing errors being made at the checkout andvariations in the weight of Pet Kingdom branded dried dog food bags. To better understandthe situation, Ms Lionheart has requested detailed data to be collected. Table 3 shows thedata from the audit of 50 random bills per day issued over the past 30 days. Table 4presents the weight sampling data (mean and range in kg) for 27 random samples of fiveobservations each taken from the daily dog food deliveries.Ms Lionheart noticed that the number of billing errors increased in the last third of themonth. She knows that the company wants high quality standards and wonders if bothprocesses meet 3 sigma standards. She wants you to analyse the available data and producea short report (1,000 words ± 10%) with all relevant tables and figures, to address thehighlighted issues.In your report you need to consider the following for both sets of data:1. Analyse and explain the data.2. Set up appropriate 3-sigma control limits and generate the control charts. Explainyour approach. What does 3-sigma indicate about the acceptable quality?3. the process in control? Explain.4. Explain your findings and the consequences.5. How could implementing TQM help the company?6. Provide two key recommendations for the company. Table 3: Number of incorrect bills issued at checkout (50 observations)Number ofNumber ofIncorrect BillsIncorrect Bills1Day1234567891022122322127891011121314Day111213Mean44.9644.9844.9644.9745.0245.0345.0445.0245.0845.1245.0745.0245.0144.98141516171819203Range0.420.390.410.370.390.400.390.420.380.400.410.380.410.403NN22Table 4: Dog food weight (kg) samples (5 observations)Sample1234561Day21222324252627282930Sample15161718192021222324252627Number ofIncorrect BillsMean45.0044.9544.9444.9444.7344.9544.9344.9644.9945.0045.0345.0445.033334556855Range0.390.410.430.400.380.410.390.410.400.440.420.380.40

1. Analyse and explain the dataTable 3: Audit of 50 random bills per day issued over the past 30…

Answered: In your report you need to consider the…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Case Study 2: Quality Management Your line manager has become increasingly concerned about the product and service quality. This results from a surge in the number of customers who have contacted her to highlight problems they have encountered while shopping at the Pet Kingdom store. The complains seem to focus on two areas; billing errors being made at the checkout and variations in the weight of Pet Kingdom branded dried dog food bags. To better understand the situation, Ms Lionheart has requested detailed data to be collected. Table 3 shows the data from the audit of 50 random bills per day issued over the past 30 days. Table 4 presents the weight sampling data (mean and range in kg) for 27 random samples of five observations each taken from the daily dog food deliveries. Ms Lionheart noticed that the number of billing errors increased in the last third of the month. She knows that the company wants high quality standards and wonders if both processes meet 3 sigma standards. She wants you to analyse the available data and produce a short report (1,000 words ± 10%) with all relevant tables and figures, to address the highlighted issues. In your report you need to consider the following for both sets of data: 1. Analyse and explain the data. 2. Set up appropriate 3‐sigma control limits and generate the control charts. Explain your approach. What does 3‐sigma indicate about the acceptable quality? 3. Is the process in control? Explain. 4. Explain your findings and the consequences. 5. How could implementing TQM help the company? 6. Provide two key recommendations for the company.

Table 3: Number of incorrect bills issued at checkout (50 observations) Day Number of Incorrect Bills Day Number of Incorrect Bills Day Number of Incorrect Bills 1 2 11 1 21 3 2 2 12 2 22 3 3 1 13 3 23 3 4 2 14 3 24 4 5 2 15 2 25 5 6 3 16 3 26 5 7 2 17 2 27 6 8 2 18 2 28 8 9 1 19 1 29 5 10 2 20 3 30 5 Table 4: Dog food weight (kg) samples (5 observations) Sample Mean Range Sample Mean Range 1 44.96 0.42 15 45.00 0.39 2 44.98 0.39 16 44.95 0.41 3 44.96 0.41 17 44.94 0.43 4 44.97 0.37 18 44.94 0.40 5 45.02 0.39 19 44.73 0.38 6 45.03 0.40 20 44.95 0.41 7 45.04 0.39 21 44.93 0.39 8 45.02 0.42 22 44.96 0.41 9 45.08 0.38 23 44.99 0.40 10 45.12 0.40 24 45.00 0.44 11 45.07 0.41 25 45.03 0.42 12 45.02 0.38 26 45.04 0.38 13 45.01 0.41 27 45.03 0.40 14 44.98 0.40