Hilcrest Auto Case
Hilcrest Auto
The Importance of Quality Issues
Hilcrest Auto is a manufacturing company specialized in producing specific parts for automobile assemblers. Hilcrest Auto is currently facing quality control issues, possibly leading to financial issues or threats of losing future contracts. Quality control has been an essential concern for most manufacturing industry. Low-quality control in the manufacturing process could increase the cost of good manufacturing and returns from customers. However, quality control is especially critical in the automotive supply industry. One reason is that there are only limited numbers of consumer firms dominated by Ford, GM, and Daimler-Chrysler. Producing parts that are not “up-to-spec” could result in worsening customer relationship. In Hilcrest
Auto’s case, inability to consistently providing “up-to-spec” heater core tubes to top tier assemblers could lead to customer dissatisfaction and potentially losing future business contracts.
Theoretical Capacity
Hilcrest Auto’s current manufacturing process for heater core tubes includes three parts: the pressing machine, the bending machine, and the washing machine. The pressing machine takes seven seconds per tube; the bending machine takes 13 seconds per tube, and the washing machine takes 0.06 seconds per tube (60 seconds per 1000 tubes). Each of these processes runs simultaneously, so the theoretical capacity is constrained by the process that takes the longest period per tube: the bending machine. Under the current policy, Hilcrest Auto is operating two eight-our shifts a day and five days per week. There is a weekly total of 288,000 seconds in operations, allowing Hilcrest Auto to produce 22153 tubes.
“Good Day” Capacity
In this case, the production output of Hilcrest Auto ranges from 1,000 to 2,000 heater core tubes per shift. Hilcrest Auto considers a shift with 1300 tubes “a good day.” If every day turns out to be a “good day” for Hilcrest Auto, its weekly supply will be 13,000
The Importance of Quality Issues
Hilcrest Auto is a manufacturing company specialized in producing specific parts for automobile assemblers. Hilcrest Auto is currently facing quality control issues, possibly leading to financial issues or threats of losing future contracts. Quality control has been an essential concern for most manufacturing industry. Low-quality control in the manufacturing process could increase the cost of good manufacturing and returns from customers. However, quality control is especially critical in the automotive supply industry. One reason is that there are only limited numbers of consumer firms dominated by Ford, GM, and Daimler-Chrysler. Producing parts that are not “up-to-spec” could result in worsening customer relationship. In Hilcrest
Auto’s case, inability to consistently providing “up-to-spec” heater core tubes to top tier assemblers could lead to customer dissatisfaction and potentially losing future business contracts.
Theoretical Capacity
Hilcrest Auto’s current manufacturing process for heater core tubes includes three parts: the pressing machine, the bending machine, and the washing machine. The pressing machine takes seven seconds per tube; the bending machine takes 13 seconds per tube, and the washing machine takes 0.06 seconds per tube (60 seconds per 1000 tubes). Each of these processes runs simultaneously, so the theoretical capacity is constrained by the process that takes the longest period per tube: the bending machine. Under the current policy, Hilcrest Auto is operating two eight-our shifts a day and five days per week. There is a weekly total of 288,000 seconds in operations, allowing Hilcrest Auto to produce 22153 tubes.
“Good Day” Capacity
In this case, the production output of Hilcrest Auto ranges from 1,000 to 2,000 heater core tubes per shift. Hilcrest Auto considers a shift with 1300 tubes “a good day.” If every day turns out to be a “good day” for Hilcrest Auto, its weekly supply will be 13,000