Universal Computer Company

Issue:

The main problem with the two plants, Phillips and Crawley is the quality of the twelve types of modules which falls below 95% level and the other issue is regarding the quality acceptance level of all the modules. We have come up with the recommendation which will help to solve the issue of quality problems of all the modules including the twelve types of modules.

Background:

Universal Computer Company is producing computers. It has different plants as profit centers producing single line of products or range of products and the parts made at one plant are transferred to another plant for further production.

Crawley Plant

Crawley Plant is supplying different modules to the Phillips Plant for further production. The plant always follows the practice of doing quality check by sampling method at 95% level of acceptance. But there have been problems with 12 modules which are below 95% level when reached at the Phillips plant. Lot of efforts is being made at Crawley plant to make further improvement but these 12 types of modules are troubling them a lot and modules are rejected at the Phillips plant at a rate of about $8,000 a week. So, finally a solution has to be finalized which helps solve the problems of both the plants.

Phillips Plant

Phillips plant’s receives the modules from the Crawley plant which at times are defective so they have to bear the repairing cost along with the overtime and additional inspections. There have been delay in production many times and even complaints from customers. All this along with the 12 modules are the major issues to be handled by the Phillips plant.

Analysis & Recommendation:

Following recommendations are suggested on the basis of detailed analysis of the various problems so that all the problems of both the plants are solved and it is overall beneficial for the company as a whole:

1. The main issue relating to the quality test can be handled by purchasing two quality control machines at the cost of $ 400,000. One machine can be kept in Crawley plant where the modules are ready for the delivery and one at the entrance in Phillips plant where the major inspection is going on.

2. To look after the quality control areas and handle the machines, 6 Supervisors need to be employed. 1 Supervisor will be placed at the stage where raw materials arrive at the Crawley plant; usually the delivery takes place between 9 am. to 5 pm. so only 1 supervisor is enough for the quality inspection of raw materials. 2 supervisors at the delivery gate of Crawley