Dynamic Seal - Mba: Six Sigma / Operations Case
Issue: Dynamic Seal, a precision parts manufacturer with a reputation for high quality, does not currently utilize a Statistical Process Control (SPC) system. However, United Airlines (UA), a major customer representing 14% of Dynamic Seal’s business, insists they implement an SPC system or loose United Airlines’ business. In addition Dynamic Seal do not have a sound preventative measure quality control system in place, preferring 100% inspection to cull bad quality, rather than building parts correctly from inception.
Goal: Reduce product variance and the need for rework by implementing a company-wide quality control system that includes an element of Statistical Process Control. A secondary goal is to reduce waste by focusing on Lean engineering processes.
Competitive Environment: Dynamic Seal are a successful manufacturer of mechanical components for aerospace, marine and military application. Their products require precision engineering, and the company has built an excellent reputation based on “high quality, innovative engineering and close tolerance manufacturing.” The company makes use of expensive superalloy materials manufactured to extremely tight tolerances, with many products selling for $10,000 to $50,000. A significant defective rate with such high cost materials / products will severely impact the company’s bottom line. The United Airlines production line operates under a separate department, with dedicated equipment and personnel. Dynamic Seal’s quality reputation is a result of highly skilled machinists and a 100% inspection policy. The company employs a workforce of approx. 400 people, in a 120,000 sq. ft. facility and has increased it’s sales ten-times over the last 10 years to $130 million.
Key Facts:
1. Dynamic Seal does not have a company-wide Quality Management ethos.
2. There is a customer requirement to use SPC.
3. No SPC system is currently in place and equipment has not been tested for capability.
4. Quality is controlled by
Goal: Reduce product variance and the need for rework by implementing a company-wide quality control system that includes an element of Statistical Process Control. A secondary goal is to reduce waste by focusing on Lean engineering processes.
Competitive Environment: Dynamic Seal are a successful manufacturer of mechanical components for aerospace, marine and military application. Their products require precision engineering, and the company has built an excellent reputation based on “high quality, innovative engineering and close tolerance manufacturing.” The company makes use of expensive superalloy materials manufactured to extremely tight tolerances, with many products selling for $10,000 to $50,000. A significant defective rate with such high cost materials / products will severely impact the company’s bottom line. The United Airlines production line operates under a separate department, with dedicated equipment and personnel. Dynamic Seal’s quality reputation is a result of highly skilled machinists and a 100% inspection policy. The company employs a workforce of approx. 400 people, in a 120,000 sq. ft. facility and has increased it’s sales ten-times over the last 10 years to $130 million.
Key Facts:
1. Dynamic Seal does not have a company-wide Quality Management ethos.
2. There is a customer requirement to use SPC.
3. No SPC system is currently in place and equipment has not been tested for capability.
4. Quality is controlled by