Reference no: EM132303450

Valtec Electronics files orders for its electronic components and parts by truck to customers through several distribution centers. A measure of its supply chain responsiveness is order to when it is delivered to the customer. Valtec Electronics has recently been receiving complaints from retailers that the lead-time to ship the parts is higher than other competitors. James West, head of the 6-Sigma program at Valtec’s plant, believes that there is no problem because average lead time is 3 days. To reduce the lead-time further would require implementation of a new tracking software. Nevertheless, he is concerned enough to ask you develop control limits and gave you the data consisting of 24 samples of 5 orders each during the month and recorded the lead time for each as follows (Table 1):

Measure performance of this process using SPC charts. Do you agree with Mr. West? Is the process in control? What might cause a process to be out of control? Establish the valid upper and lower control limits so that these limits can be used by workers in future.

In using these valid limits established in part a, suppose following samples (see Table 2) were taken in the next few days. What information does this provide to Mr. West.

In using these limits established in part a, assume a demanding customer provides specifications for their delivery dates as USL = 4 days and LSL=2 days. Compute Cp and Cpk indices and also calculate probability of delivering earlier than 2 days as well as later than 4 days (Assume that m = mean of the sample means and s = 1.392 days can be approximated). What would be your recommendation to Mr. West? Should he take on this customer based on your computations.