CIGNET: A PROCESS GONE WRONG
PROCESS GONE WRONG
Addressing the situation at Cignet, I would let the president know that an overhaul of the current process system may be expensive and timely. Changing the entire system to fix the defects could prove to be detrimental to the company. Through the audits of quality assurance, there may be issues with variations in the process. Meaning there could be an issue in the process and can be fixed with minimal expense. Managers need to be able to analyze every aspect of the process before a decision is made. Juran’s 85/15 rule states that improving defects can be accomplished by improving the operating systems. ‘To eliminate mistakes and errors lies mostly in improving the systems through which work is done not in changing the workers. This observation has evolved into the rule of thumb that at least 85% of problems and less than 15% are under a worker’s control and the split may lean even more towards the system”(Davis & Goetsch, 2010). There is an issue in the process, but the question is where are the defects occurring? To find a problem you must start at the beginning of the process. In having conversations with management and other employees it was brought to our attention that since the company switched to a new line of plastics they have been having issues with the injectors and molds. Gathering this information and after further investigation we discovered that in March, 2010 the company started buying cheaper plastic from Kobe Japan. The company was going to save millions of dollars using this company. They also switched raw material providers to save money. Since this change there has been a rise in defects since the use of raw materials. In June, 2010 the company had 6.5 defects per 1000 dies. Four months later in October, 2010 the defects increased to 25 defects per 1000 dies. We decided to present this data using...
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