Process Improvement Paper

Process Improvement Plan Paper

Process Improvement Plan

Abstract

This paper will discuss the data collected throughout the past weeks and illustrate the changes made to the initial flow chart and the impact within the manufacturing process. Currently, keyless entry fobs are provided to approximately 835,000 cars annually; however, the company is encountering challenges; as they added a new dealership with projected sales of 150,000, in addition to the current workload. Having said that; the total production is projected at 1,135,000 cars annually; therefore, two units of keyless entry fobs are essential for each car produced, totaling 2,270,000 units of the product to satisfy the company's demand, increasing the current production volume to almost 18%.

Process

According to Chase, Jacob & Aquilano (2006), a process is any part of an organization that takes inputs and transforms them into outputs that, it is hoped, are of greater value to the organization than the original inputs. It's imperative to understand that processes impact an entire organization and is a continual action, operation, or sequence of changes taking place in a specific manner.

Designing a flowchart was completely in week one to illustrate a process to introduce a new version of an automotive keyless entry fob. The purpose was to illustrate the process of manufacturing the fob, in addition to being illustrating efficient and effective way to organize and chose suppliers, maximize time, and preserve costs. Additionally, identifying potential bottlenecks within the process is also vital. Goldratt's Theory of Constraints gave direction for identifying system constraints, deciding how to exploit the system constraints, elevate system constraints, and subordinating everything else to that decision; a continual improvement process.

Capacity planning of the factories in also important; as production must continually run. "When a process is operating "at capacity", the only way to take on more work without increasing the waiting time is to add more capacity", (Chase, Jacob, & Aquilano, 2006).

Process Improvement

Continuous process improvement enables lower cost, quality service or products, and new innovations for which stimulate healthy competition, save money, increase efficiency, improve quality of service, reduce waste, and promotes opportunities. Utilizing such tools as: Kaizens, ISO - 9000, Six Sigma, and Total Quality Management (TQM) will to improve the process and promote continual improvements to processes. Another element to consider is

Goldratt's Theory of Constraints (TOC). TOC is a management philosophy that many use as a tool to identify constraints and improve processes. According to Gundlach (2009), TOC is based on the idea of using scientific principles and logic to guide human-based organizations in their decision-making processes. Ultimately, the goal of the TOC is to help organizations achieve their goals and, more importantly, continue doing so through changing times.

Data

The data collected is as followed:

* CL = Average of 30 reading

* LCL = Average -2.66 Mrbar

* UCL = Average +2.66 Mrbar

According to the above data, the total operating time must be reduced in order to be more efficient and effective. This new operating time of 2.66 minutes will be the control limit, for which production