Quality Problem on the Greasex Line Essay

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What are the differences between high and low customer contact service (CCS) businesses, in general for the dimensions listed below? (Example – Facility Layout; in a high CCS, the facility would be designed to enhance the feelings and comfort of the customer while in a low CCS, the facility would be designed for efficient processing.)

Worker Skill

Low CCS Business – The direct workforce need only have technical skills.

High CCS Business – The direct workforce constitutes a major part of the service product and so must be able to interact well with the public.

Capacity Utilization

Low CCS Business – Storable output permits capacity at some average demand level.

High CCS Business – To avoid lost sales, capacity must be set to match peak demand.

Level of Automation

Low CCS Business – The customer is not involved in the majority of processing steps.

High CCS Business – This has a direct effect on the customer. If automation is low, the customer could have to spend more time than needed.

Chapter 9 Case Study

1. What are the causes of the quality problems on the Greasex Line? Display our answer on a fishbone diagram.

2. What general steps should Hank follow in setting up a continuous improvement program for the company? What problems will he have to overcome to make it work?

Unfortunately I think Hank has his hands full. He will need to establish the following procedures: First he will need to establish the standard of design quality. The fundamental to any quality program is the determination of quality specifications and the cost of achieving, or not achieving the goals. He will need to break out the costs into four assumptions: 1. Appraisal cost, cost of inspection and tasks to ensure the product or process is acceptable; 2. Prevention costs, the sum of all costs to prevent defects, the cause of them, cost to train personnel, cost of system redesign and equipment replacement; 3. Internal failure costs, costs for defects incurred within the system, scrap rework and repair; 4. External cost failures, costs for defects that pass through the system: customer warranty replacements; loss of customers or goodwill; handling complaints and product repair.

Hank is going to have numerous problems to overcome. It seems that senior management wants to fix the quality problem, but is overlooking the problems causing the quality issues. He is going to need complete buy in from his leadership. He is also going to need support from the folks on the floor. The floor supervisors will need to enforce the quality program not just laugh about it and push product through to meet production quotas. Another big problem is communication, everyone seemed to continue to say, well I’ll talk to them next time I see them or next time they come in. For instance the purchasing department had not addressed the issues with the nozzle not working properly. Each department will need to play a part in the quality program and he will need 100% support from all levels of management. Quality seems to be a joke at this point.

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