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Three Stooges
Stooge Enterprises
The key issues in Stooges’ case are basically the increased volume of demand on its mallet products, expansion of operation shifts, confidence and capability of company employees and capabilities of cutting operation. In the initial control chart it can be shown that the control process is not the cause of diameter difference complained by plastic Inc. This is because; from the computed mallet diameter, the allowable dimensions need fall between 16.46 inches and 16.54 inches. So taking this value across the chart, it can be seen that all days, all shifts have recorded correct dimensions with exceptions of day two and day eight. This signifies that the error comes from the control process. Similarly, it signifies that shift increment is not the source of the diameter error.
From the control chart it can be seen that day two and eight records erroneous mallet diameters. To effectively investigate into the cause of such observations, it would be imperative to get the names of company operators who were on various shifts. In this regard, day two had Moe, Shemp and Curly. Moe and Curly were in first and third shifts which did not record such errors in the diameter. However, Shemp, in his second shift had three mallets with diameter errors. In addition, day eight had these three company operators but with Shemp being in charge of the third shift. On this day Moe and Curly had no mallet with diameter errors. However, Shemp had four mallets with diameter errors. Therefore, it can be said that the diameter problem comes from the company operators especially Shemp.
To reduce this occurrence, it would be logical for Shemp to be trained further on his operational responsibilities and production process. This is because; there is likelihood of him negligently or incompetently performing his tasks compared with other operators. So the extra hired Excelsior College graduate, responsible for operator training would be advised to be keen and thorough on training Shemp. To make this effective, the trainer as well as Shemp should be present during the analysis and resolutions on the control chart. To ascertain that Shemp has improved, another sampling should be carried out then followed with the same analysis approach as in the initial one. If errors still persist in Shemp’s shifts, it would be better to shift him from company operator to a less sensitive production section.
The process capability in Stooges Company is quite perfect following facts that the company has well trained and dedicated employees. On the other hand, the control process which is recommended by the plant manager was very reliable since it is able to link the mallet diameter problem with the cause. This control process tell the company that as much there may be well trained and dedicated employees, there are some slight incompetence and negligence existing among the company operators.
Analytically, Stooges Company faces a serious problem which needs to be addressed professionally and as soon as possible. According to Lyve (2011), Slapsticks Inc is perceived as a potential Customer. Lyve says that no business can stay without satisfying the needs of customers, so Stooges has no otherwise but to address the mallet diameter which is unfavorable to their potential customer. This is because; errors in the mallet diameter may cause Slapsticks Inc to stop Stooges from supplying them with mallets. If this occurs then it would be a great business hitch to the company in a number of ways as the potential customer which initiated expansion programs would no longer be there. When Stooges expands its operation shifts and hires extra employees, it implies that it would deliver the required volumes of mallets within a given time. This would increase the business Return on assets since Return is basically the product of margin and velocity (Lyve, 2011). However, by dropping the potential customer, it would mean that the company assets, which were involved in the expansion program, would turn out to be liability to the company thus reducing asset Return to the company. Once asset Return has been reduced; Cash generation would also reduce thus forcing the company experience negative growth (Lyve, 2011). So generally it would mean that Stooges shall have not realized the four business principles like customer retention, increased asset Returns, increased Cash generation and positive Growth. On the other hand, quality reduction as claimed by Slapsticks can have negative effect on Stooges since her competitors may take this as a tool to challenge them in the market; a case which can cause loss of existing customers. Once both new and old customers are lost, the company can easily flop.
From the control chart, we have 150 mallets which are sampled. From this sample, 7 mallet heads do not meet the customer requirement. This implies that the probability of a mallet picked at random not meeting customer requirement is 7/150. Translating these on 10,000 mallets means that {(7/150) X 10,000)}. This approximates to 467 mallets.
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