In: Operations Management
A computer manufacturer has operating failures (problems) of one type laptop continuously. The quality engineer forms a team and starts a project to eliminate the failures. The team obtains the data given in Table 4E.2. Use the necessary quality tool(s) to help the team in preparing project report that will state the starting point(s) to eliminate the failures. (20 p). (You may use empty columns)
TABLE 4E.2 Laptop Failure
Data Component name Number of components Cost per component (Monetary Unit)
Screen 95 5 mu/part
Keypad 43 8 mu/part
Processor 15 12 mu/part
Printer driver 10 3 mu/part
DVD driver 9 10 mu/part
Hard Disk 6 12 mu/part
USB socket 5 10 mu/part
ABC analysis is an appropriate tool to start with. It is necessary to know the items which incur the maximum cost and are most important to the project budget.
Item | Number of component | Cost per component | Toal dollar value | % value | Category |
Screen | 95 | 5 | 475 | 38.27558 | A |
Keypad | 43 | 8 | 344 | 27.71958 | A |
Processor | 15 | 12 | 180 | 14.50443 | A |
Printer driver | 10 | 3 | 30 | 2.417405 | B |
DVD driver | 9 | 10 | 90 | 7.252216 | B |
Hard Disk | 6 | 12 | 72 | 5.801773 | B |
USB socket | 5 | 10 | 50 | 4.029009 | C |
The table helps to identify the most important items and prioritise them according to the cost and quantity needed for same. The Screen, Keypad and processor are the category A items which are most important and comprise of around 80% dollar value of the expenses incurred due to failures . Less important are the category B items which constitute around 15% of cost, while bottom 4% of items is category C items.
The report can help to focus on most important items contributing to the failure costs and correct them on priority basis. Less important ( B and C category) may follow later.