Question

use trendlines and regression analysis to assist in evaluating the data to reach a useful conclusion.

Case: Performance Lawn Equipment In reviewing the data in the Performance Lawn Equipment Database. Elizabeth Burke noticed that defects received from suppliers have decreased (worksheet Defects After Delivery). Upon investigation, she learned that in 2014, PLE experienced some quality problems due to an increasing number of defects in materials received from suppliers. The company instituted an initiative in August 2015 to work with suppliers to reduce these defects, to more closely coordinate deliveries, and to improve materials quality through reengineering supplier production policies. Ms. Burke noted that the program appeared to reverse an increasing trend in defects; she would like to predict what might have happened had the supplier initiative not been implemented and how the number of defects might further be reduced in the near future. In maating with PL Ele human resources director Ms Burke also discovered a concem about the high rate of turnover in its field service

Answer 1

Trend Analysis (Using Least Squares Method): Least squares method is a standard regression analysis method.

Cell E3:E22 are actual data. Cell E23 onwards, the "Trend" formula in excel has been used on rolling basis.

0 Solution.xlsx - Excel Tell me what you want to do... - Sign in 0 x & Share View Power Pivot AutoSum Custom Fill - Wrap Text E Merge & Center - Alignment G $ 48.29 Insert Delete Format % Number Conditional Format as Cell Formatting Table Styles Styles Clear Sort & Find & Filter Select Editing Cells F G H I J K L M N O P Q R 810 Comparison BSSY Jabe = File Home Insert Page Layout Formulas Data Review % Cut 11 - A A === BE Copy Paste Format Painter | B IU . I. - A E Clipboard Font E23 : x fc =TREND(E3:E22,C3.C22) 4. A B C D E Actual Trend (From 2 Year Month Period Defects August 2015) 2014 January | Jan-14 812 812 2014 February Feb-14 810 2014 March Mar-14 813 813 6 2014 April Apr-14 823 823 2014 May May-14 832 832 8 2014 June Jun-14 848 848 9 2014 July Jul-14 837 837 2014 August Aug-14 831 831 11 2014 September Sep-14 827 827 12 2014 October Oct-14 838 838 13 2014 November Nov-14 826 826 14 2014 December Dec-14 819 819 15 2015 January Jan-15 828 828 16 2015 February Feb-15 832 832 17 2015 March Mar-15 847 847 2015 April Apr-15 839 839 2015 May May-15 832 832 20 2015 June Jun-15 840 840 2015 July Jul-15 849 849 2015 August Aug-15 857 857 23 2015 September Sep-15 839 816 24 2015 October Oct-15 842 Sheet1 Ready 900 800 700 600 500 400 18 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul 15 Oct-15 Jan-16 Apr-16 Jul 16 Oct-16 Jan-17 Apr-17 Ju-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 --Actual Defects - Trend (From August 2015) 842 823 @ J -- + 100% 9 2:32 PM ^ 2 * 24/03/2020 12

Further quality improvement initiatives:

Based on the facts in the question, it is understood that the Company has begun adopting a "TQM Initiative" (Total Quality Management Initiative). This implies that in every process of an organization, implementing standard processes, having a system to identify inefficiencies and defects, analysing the root causes, taking preventive or corrective action as well as periodic review of the existing processes for further improvement becomes necessary.

In the above question, it is clear that the initiative to address the material quality issues brought down the defects by roughly 46.31% over a period of 3.5 years from August 2015. However, Pareto Analysis can be used as a effective tool to understand what are the major causes of problems. In simple terms, 80% of the problems cause 20% of the pain. But 20% of the problems cause 80% of the pain.

Other specific initiatives that can be taken to reduce defects:

Inputs ------ Manufacturing Process------Output

A. Inputs:

1. Assessing the inward logistics process to check whether there are damages to the materials after it has been dispatched by the vendor.

2. Assessing the procurement policy to check whether the Company is inherently dependent on poor quality suppliers.

3. Assessing the quality assurance policy and process to assess whether the materials are not being passed through a robust quality check.

4. Assessing the company's internal storage system to check whether the materials are being damaged by the internal material handling teams.

B. Manufacturing Process:

1. Assessing the manufacturing processes to check whether certain processes are not processing materials as intended (benchmarking the process).

2. Implementing "Six Sigma" or "Kaizen" principles in the process.

3. Assessing whether certain processes are redundant or whether they can be automated.

4. Assessing the quality of the machinery to check whether the capabilities of the machinery are compromised.