Control in organization
From the above analysis, what is evident is that the two processes involving the materials are in control although the mean from the Super plastic model is a bit higher than the standard material. The mean number of defect with regards to the supper plastic model would be [241/20] = 12. 05 per day or 60. 25 per week. This figure is far more than the standard means of 9. 65 or 48. 25 which is the means or the acceptable number of defects.
What is implied here is that control charts are very good indicators of estimating medium to large changes in operations though they tend to be unresponsive to small changes (SQCOnline. com, 2...
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...007). The two processes are generally in control because the variations indicated all seem to be purely from random causes (SkyMark Corporation, 2009). This implies that there is no evidence to suggest that the variations indicated in the Superplastic models are from special causes (SQCOnline.
com, 2007). With respect to subjectivity, it can be seen that the Superplastic model is more prone to errors than the Superplastic model. This implies that the company is likely to experience more defects while using the Superplastic model more than the Standard model. Therefore this implies that the materials are not equally subject to the defects. My advice to the CEO is to stop the production using the Superplastic model and instead concentrate in the Standard model.
The other important thing to note is that control charts make use of average subgroup ranges standard deviation to reflect the variations within a particular subgroup (SQCOnline. com, 2007). In conclusion, them main function of control charts is to indicate the presence of special sources of variations (SkyMark Corporation, 2009). Conclusion In conclusion therefore before an attempt is made to determine the reorder points for Kony and Toshiki, it is important to have an understanding of the whole concept of economic order quantity (EOQ) in the management of inventories (Terspine, 1993).
The implication here is that the economic order quantity is the level of inventory which when ordered would minimize the cost of placing an order while maintaining the ordered inventory (Hamblin et al. 1973). This will be so owing to the fact that the model assumes that the demand is constant overtime among other assumptions. Regarding process controls, even if a process is in control, the organization should not be complacent but instead should strive to eliminate special causes in order to achieve a stable working process.
References Hamblin, R. L. , Jacobsen, R. B. , & Miller, J. L. 1973, A Mathematical Theory of Social Change New York, NY: John Wiley & Sons, Inc. Piasecki, D. 2001, Optimizing Economic Order Quantity, Inventory Operations Consulting L. L. C. Russell,R. , Taylor,B. , 2006. Operations Management: Quality and Competitiveness In a Global Environment, John Wiley & Sons, New Jersey. SkyMark Corporation. 2009, Control cart: Is Your Process Consistent, Available at http://www. skymark. com/resources/tools/control_charts. asp