OM5 C16 IM
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Note that although no values are outside of the specification limits, the capability
indexes are less than one. The instructor might ask the students why this is so. This
Case Teaching Note: The Casey Company
The Casey Co. is a distributor of electrical automation and power transmission products.
When the company began to implement a total quality management process, one manager
was eager to collect data about the organization’s receiving process because of a decrease
in the organization’s on-time deliveries. The manager suspected that the data entry person
in the purchasing department was not entering data in the computer in a timely fashion;
consequently, packages could not be properly processed for subsequent shipping to the
customer.
A preliminary analysis indicated that the manager’s notion was inaccurate. In fact, the
manager was able to see that the data entry person was doing an excellent job. The
analysis showed that handling packages that were destined for a branch operation in the
same fashion as other packages created significant delays. A simple process change of
placing a branch designation letter in front of the purchase order number told the
receiving clerk to place those packages on a separate skid for delivery to the branch.
However, this analysis revealed a variety of other problems. These were found to
contain many errors in addition to the wrong destination designation that contributed to