Modern Oak Furniture Limited had been in business for more than 40 years, serving customers in Southwestern Ontario. The business consists of three different divisionsCustom Designs DivisionManufacturers crafted items, such as dining room suitesKitchen Cabinets DivisionManufactures kitchen cabinetsBanister DivisionManufactures and installs quality oak railings Each division reports to a Vice-President, who in turn report to the President of the company, Mr. Frederick Johannsson, who was also to founder of the company. Total sales for all divisions are projected to reach 10,000,000.00 in the current fiscal year. Mr. Johannsson has been quite pleased with the performance of two of the divisions, Custom Designs and Kitchen Cabinets, which together account for about 85% of the company’s sales revenue. He does however, have some concerns about the Banister Division based on the previous year’s profit performance and the first week of August’s sales report for the installation crews as shown in the Department Monthly Report shown in Appendix 1. Appendix 1Installation department Monthly Report – August 9 Job NumberCrew NumberBudgetAmountActualAmountComments71561$1,100.00$1,127.00Waited ½ hour for customer71572$985.00$1,154.00Fit Problem with spindles71585$1,200.00$996.00 71604$1,500.00$1,854.00Recalled for Loose spindle71632$850.00$865.00Two split spindles71665$1,200.00$1,385.00Fit problem with spindles71671$1,450.00$1,620.00Customer changed design refit71684$1,800.00$2,254.00Spindle shims needed71695$1,100.00$1,080.00 71712$980.00$1,200.00Handrail rough finish71724$1,560.00$1,860.00Loose spindles71741$1,200.00$1,650.00Not to drawings71752$975.00$1,320.00Handrail cracked71774$1,400.00$1,875.00Fit problem spindles71793$2,250.00$3,200.00Recalled for loose bannister71815$1,900.00$2,520.00Fit problem spindles71823$1,800.00$2,260.00Fit problem spindles71843$1.750.00$1,780.00Customer changed designTOTAL $25,000.00$30,000.00 It is now the second week of August and the new installation market is just starting up. Bannisters are installed in new homes in the fall when the homes are nearly finished and ready for sale. There is some demand for bannisters throughout the year for renovations. However, this business is concentrated in the fall and quickly dies off before Christmas. Any problems with the bannisters should be resolved before the peak season begins. On Monday, Frederick met with Thomas Marks, the vice-president of the division, and voiced his concerns. Frederick suggested that the meet again on Friday to discuss some further actions to get back on track. Thomas felt the concerns were a bit premature but agreed grudgingly. Thomas felt that some of his key people should attend, so Robert Colson, the sales manager, Peter Harman, who was in charge of the five two-main installation crews, and Henry Storm, the manufacturing supervisor, were invited to the meeting. During the meeting, Thomas asked each one of his people to describe their individual concerns about the past week’s installation report. Henry began by giving a brief outline of the manufacturing process that he was responsible for in plant. Spindle TestBDimension AA .65 +/- .01 inchesB1 inchThe following fifty readings have been taken and recorded as of August 14Spindle Widths - Inches.60.63.60.62.60.59.61.67.57.61.62.59.61.64.67.66.69.63.69.68.61.67.68.67.60.61.68.60.62.60.66.60.63.62.68.67.62.70.67.68.58.68.67.69.58.69.65.68.59.64Hole Diameters - Inches.57.56.58.59.57.58.56.58.56.58.58.59.60.55.61.60.58.57.58.60.56.61.57.59.58.57.55.57.59.57.60.5856.60.56.62.59.58.62.59.57.62.59.61.63.59.64.60.61.631. Analyze the customer complaints using a Pareto Analysis to identify the largest cause of complaints2.Construct histograms of the spindle and hole data to see if there is an assignable cause to the problem3. Complete three inter-office memos to show how Henry Storm could implement your recommendations.DATE: August 17TO: Lead-Hand – Hand RailsFROM: Henry StormSUBJECT: Customer Complaints - BannistersDATE: August 17TO: Lead Hand - SpindlesFROM: Henry StormSUBJECT: Customer Complaints - BannistersDATE: August 17TO: Thomas MarksFROM: Henry StormSUBJECT: Customer Complaints - Bannisters The oak was purchased in 16 foot lengths and inspected for any flaws or excessive knots to ensure it was #1 grade.2. Any rejects were sent to the cabinet division to be used for interior shelves or to make spindles.The approved boards were run through a multi-head mill that planed the bottom side and shaped the top and sides of the1.3.handrail.4. They were inspected again for rough grain and any knots that could cause quality problems. Any rejects were then cut intoshorter usable lengths for shorter handrails or spindlesThe handrails were then sent to the drilling machine where the holes were automatically spaced and drilled by the operatoron an industrial quality drill press.6. Occasionally the operator inspects the dimensions of the holes using a dual purposes go/no-go gauge. On one end of the5.gauge is a metal rod that is inserted in the hole to measure the depth. The rod has a hatch mark marked area that has a PASSstamped into the metal. The other end of the gauge is long and round and has three steps cut into the circumference. Thismakes the rod get bigger around at about 4 from the end and % from the end. If the first part goes into the hole but not themiddle, the hole is undersized. If the second step but not the third enters the hole, the hole is of the correct diameter. Thethird step indicates oversize.The handrails are then sent for sanding and varnishing. A final inspection is performed for appearance and finish. The handrailsections are then sorted by length for full size and shorts.7.Spindle AreaOak is purchased, inspected, and cut to length. Approximately 5% also comes form the handrail area.Sections are placed on a planer and run through twice to give the square end dimensions. Pieces are then placed into apattern lathe, which provides the product with the spindle design and tapered top end. The operator also lightly sands thespindle while it is on the lathe.1.2.An occasional inspection is performed using a go/no-go gauge. The inspection procedure requires the operator to fit over theend of a spindle the gauge, which is an aluminum bar with a specified hole size. The spindle will pass inspection if 4 to ½ inchof the spindle protrudes through the gauge. The gauge is actually marked with red paint outside the limits to assist theoperator when inspecting.4. The operator sets the pre-angles cutter to maintain the desired size of the spindle end.5. The approved spindles are then sent to final sanding and varnishing and final inspection.3.Henry felt that his people did the best job possible given the wood and machinery available.Robert Colson, the sales manger, felt that his people were certainly doing their jobs since sales had increased at a rate of 15% overthe past three years. One major concern that Robert did have was the increased number of complaints from his major customer,Lionel Homes, for the quality of the installations. Lionel Homes have already told Robert that they will take their business elsewhereif the quality does not improve immediately.Peter was the most vocal of the group, since his area was getting the flack. He felt his crews were being pushed as hard as possiblebut just couldn't keep on plan. Modern Oak bannisters are designed to be easily installed in the field even for custom work. However,crews seem to have to refit every other piece and spend time chasing defects. Peter recently started having his crews keep track ofreasons why they were over or under budget on each job.Frederick Johannsson angrily told everyone that he didn't care whose fault the problems were, he just wanted them fixed yesterdayand stomped out of the room.Thomas and his group had just recently completed a quality management course, and all agreed they might as well see if it could helpthem solve the problem and get Johannsson off their backs.Inspection Report – SpindleThe following figure shows the specified depth and allowable tolerances for the pilot study on spindle fit using the knife-edge gaugedesigned for the purpose.

Doing the pareto investigation of the protests utilizing the objections or remarks recorded in the…

Modern Oak Furniture Limited had been in business for more than 40 years, serving customers in Southwestern Ontario. The business consists of three different divisions Custom Designs Division Manufacturers crafted items, such as dining room suites Kitchen Cabinets Division Manufactures kitchen cabinets Banister Division Manufactures and installs quality oak railings Each division reports to a Vice-President, who in turn report to the President of the company, Mr. Frederick Johannsson, who was also to founder of the company. Total sales for all divisions are projected to reach 10,000,000.00 in the current fiscal year. Mr. Johannsson has been quite pleased with the performance of two of the divisions, Custom Designs and Kitchen Cabinets, which together account for about 85% of the company’s sales revenue. He does however, have some concerns about the Banister Division based on the previous year’s profit performance and the first week of August’s sales report for the installation crews as shown in the Department Monthly Report shown in Appendix 1. Appendix 1 Installation department Monthly Report – August 9 Job Number Crew Number Budget Amount Actual Amount Comments 7156 1 $1,100.00 $1,127.00 Waited ½ hour for customer 7157 2 $985.00 $1,154.00 Fit Problem with spindles 7158 5 $1,200.00 $996.00 7160 4 $1,500.00 $1,854.00 Recalled for Loose spindle 7163 2 $850.00 $865.00 Two split spindles 7166 5 $1,200.00 $1,385.00 Fit problem with spindles 7167 1 $1,450.00 $1,620.00 Customer changed design refit 7168 4 $1,800.00 $2,254.00 Spindle shims needed 7169 5 $1,100.00 $1,080.00 7171 2 $980.00 $1,200.00 Handrail rough finish 7172 4 $1,560.00 $1,860.00 Loose spindles 7174 1 $1,200.00 $1,650.00 Not to drawings 7175 2 $975.00 $1,320.00 Handrail cracked 7177 4 $1,400.00 $1,875.00 Fit problem spindles 7179 3 $2,250.00 $3,200.00 Recalled for loose bannister 7181 5 $1,900.00 $2,520.00 Fit problem spindles 7182 3 $1,800.00 $2,260.00 Fit problem spindles 7184 3 $1.750.00 $1,780.00 Customer changed design TOTAL $25,000.00 $30,000.00 It is now the second week of August and the new installation market is just starting up. Bannisters are installed in new homes in the fall when the homes are nearly finished and ready for sale. There is some demand for bannisters throughout the year for renovations. However, this business is concentrated in the fall and quickly dies off before Christmas. Any problems with the bannisters should be resolved before the peak season begins. On Monday, Frederick met with Thomas Marks, the vice-president of the division, and voiced his concerns. Frederick suggested that the meet again on Friday to discuss some further actions to get back on track. Thomas felt the concerns were a bit premature but agreed grudgingly. Thomas felt that some of his key people should attend, so Robert Colson, the sales manager, Peter Harman, who was in charge of the five two-main installation crews, and Henry Storm, the manufacturing supervisor, were invited to the meeting. During the meeting, Thomas asked each one of his people to describe their individual concerns about the past week’s installation report. Henry began by giving a brief outline of the manufacturing process that he was responsible for in plant.

Modern Oak Furniture Limited had been in business for more than 40 years, serving customers in Southwestern Ontario. The business consists of three different divisions Custom Designs Division Manufacturers crafted items, such as dining room suites Kitchen Cabinets Division Manufactures kitchen cabinets Banister Division Manufactures and installs quality oak railings Each division reports to a Vice-President, who in turn report to the President of the company, Mr. Frederick Johannsson, who was also to founder of the company. Total sales for all divisions are projected to reach 10,000,000.00 in the current fiscal year. Mr. Johannsson has been quite pleased with the performance of two of the divisions, Custom Designs and Kitchen Cabinets, which together account for about 85% of the company’s sales revenue. He does however, have some concerns about the Banister Division based on the previous year’s profit performance and the first week of August’s sales report for the installation crews as shown in the Department Monthly Report shown in Appendix 1. Appendix 1 Installation department Monthly Report – August 9 Job Number Crew Number Budget Amount Actual Amount Comments 7156 1 $1,100.00 $1,127.00 Waited ½ hour for customer 7157 2 $985.00 $1,154.00 Fit Problem with spindles 7158 5 $1,200.00 $996.00 7160 4 $1,500.00 $1,854.00 Recalled for Loose spindle 7163 2 $850.00 $865.00 Two split spindles 7166 5 $1,200.00 $1,385.00 Fit problem with spindles 7167 1 $1,450.00 $1,620.00 Customer changed design refit 7168 4 $1,800.00 $2,254.00 Spindle shims needed 7169 5 $1,100.00 $1,080.00 7171 2 $980.00 $1,200.00 Handrail rough finish 7172 4 $1,560.00 $1,860.00 Loose spindles 7174 1 $1,200.00 $1,650.00 Not to drawings 7175 2 $975.00 $1,320.00 Handrail cracked 7177 4 $1,400.00 $1,875.00 Fit problem spindles 7179 3 $2,250.00 $3,200.00 Recalled for loose bannister 7181 5 $1,900.00 $2,520.00 Fit problem spindles 7182 3 $1,800.00 $2,260.00 Fit problem spindles 7184 3 $1.750.00 $1,780.00 Customer changed design TOTAL $25,000.00 $30,000.00 It is now the second week of August and the new installation market is just starting up. Bannisters are installed in new homes in the fall when the homes are nearly finished and ready for sale. There is some demand for bannisters throughout the year for renovations. However, this business is concentrated in the fall and quickly dies off before Christmas. Any problems with the bannisters should be resolved before the peak season begins. On Monday, Frederick met with Thomas Marks, the vice-president of the division, and voiced his concerns. Frederick suggested that the meet again on Friday to discuss some further actions to get back on track. Thomas felt the concerns were a bit premature but agreed grudgingly. Thomas felt that some of his key people should attend, so Robert Colson, the sales manager, Peter Harman, who was in charge of the five two-main installation crews, and Henry Storm, the manufacturing supervisor, were invited to the meeting. During the meeting, Thomas asked each one of his people to describe their individual concerns about the past week’s installation report. Henry began by giving a brief outline of the manufacturing process that he was responsible for in plant.

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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Job Number	Crew Number	Budget Amount	Actual Amount	Comments
7156	1	$1,100.00	$1,127.00	Waited ½ hour for customer
7157	2	$985.00	$1,154.00	Fit Problem with spindles
7158	5	$1,200.00	$996.00
7160	4	$1,500.00	$1,854.00	Recalled for Loose spindle
7163	2	$850.00	$865.00	Two split spindles
7166	5	$1,200.00	$1,385.00	Fit problem with spindles
7167	1	$1,450.00	$1,620.00	Customer changed design refit
7168	4	$1,800.00	$2,254.00	Spindle shims needed
7169	5	$1,100.00	$1,080.00
7171	2	$980.00	$1,200.00	Handrail rough finish
7172	4	$1,560.00	$1,860.00	Loose spindles
7174	1	$1,200.00	$1,650.00	Not to drawings
7175	2	$975.00	$1,320.00	Handrail cracked
7177	4	$1,400.00	$1,875.00	Fit problem spindles
7179	3	$2,250.00	$3,200.00	Recalled for loose bannister
7181	5	$1,900.00	$2,520.00	Fit problem spindles
7182	3	$1,800.00	$2,260.00	Fit problem spindles
7184	3	$1.750.00	$1,780.00	Customer changed design
TOTAL		$25,000.00	$30,000.00