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Deutsche Allgemeinversicherung
Process Measurement and Improvement
Introduction
The case is based on an insurance service company which traced back to 1994. The company was facing problems in controlling and improving service quality and operation performance. This essay will stress on introducing the SPC (statistical process control) to DAV and providing suggestions on improving both the SPC and the company’s operation performance. The five questions required are covered and allocated
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The average of fraction defective is merely a number which cannot tell us what to do with it even when we get it. Thus SPC is more accurate and systematic to analyze the process of customer service operation.
2. Primary challenges
There are basically two challenges that implementing the SPC to a service company:
1) Difficulties of deciding and selecting what to measure and
2) Too much uncertainty because of the human behavior
3. Sample: how SPC works
Here is an example of employing SPC (P-Chart) for DAV’s PMV project.
The first 12 weeks of the data displayed in Appendix I represent the diagnostic period for the Policy Extension Group.
From the calculation (See Appendix I), we get the 3-sigma control limits for the process, i.e. UCL=0.091, LCL=0.014. These control limits indicate that if the error proportion is within the range of [0.014, 0.091], the process is under control; if not, the process is out of control.
Here is the P-Chart for the data from Week 13 to Week 30.
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It is then clear that the process is out of control in Week 23 and Week 24.
In addition to process control, SPC can also help lower rank employees to better understand the different standards of the services and draw their attention to self-control of fraction
13. Which of the following characteristics makes it EASIER to measure the quality of a service, relative to that of a product or facilitating good?
1) What accounts for Deutsche Brauerei’s rapid growth in recent years? Specifically, what policy choices account for this success?
Quality Associates, Inc., a consulting firm, advises its clients about sampling and statistical procedures that can be used to control their manufacturing processes. IN one particular application, a client game quality associates a sample of 800 observations taken during a time in which that client's process was operating satisfactorily. The sample standard deviation for there data was .21 ; hence, with so much data, the population standard deviation was assumed to be .21. Quality associates then suggested that random samples of size 30 be taken periodically to monitor the process on an ongoing basis. BY analyzing the new samples, the client could quickly learn whether the process was operating satisfactorily. when the process was not
Maintaining the established personnel level throughout the process even during the ups and downs in the output level so as to increase the confidence of workers and to decrease the redundant costs of hiring.
A process that monitors standards by take measurements and corrective action as needed. It is in control when only variation is natural, if variation is assignable then discover cause eliminate it. Take samples to inspect/ measure- reduce inspection time, reduce opportunity of bad quality. Control charts graph of process data over time-show natural and assignable causes. Control charts for variable data (characteristic that is measured, length,height, etc) are X-chart (average) and R-chart (range)must use x and r to get correct results. central limit theorem follow normal curve. When we know . When we don’t know . Control charts for attributes (categorical-defective, good/bad) P-chart (percent) or C-chart
The final table calculates the upper and lower control limits for the entire sample. Since I wake up every day at 6:30am and must leave the house by 7:40am, I have 70 minutes total to complete all of my tasks in the morning. According to my calculations on the final table, I need to leave the house anywhere between 7:34am and 7:39am. Doing so means that I have made my bus and my process has been a success for the day.
This type of chart is used when one wants to identify the total number of defects that have occurred during a sampling period. The number of samples that occur during the period are essentially the same. This chart has the number of defects on the vertical axis and the number of samples (weeks) on the horizontal axis. The sample size for this problem is over a period of 20 weeks, where a new process was implemented at week 11. Since a new plan was implemented, it caused the two different graphs to appear. The first graph, which occurs before week 11, has a UCL of 28.4 and an average of 16.3. A UCL stands for an upper control limit, which is generally 3 standard errors from the median, and is always the top line of the graph. The median is used as the centerline of the graph. An LCL is apparent in the graph (bottom line), but no exact value is given. The points that are shown on the graph are the “statistical measurement samples taken from the process at different times” (Control Charts PPT., 25, 2016). The second graph, which occurs after week 11, has a UCL of 7.4 and an average of 2.6. This subgroup is also complete with an upper UCL line and a median centerline. After week 11, a new plan was implemented into the hospital to reduce the number of defects. The plan that they used decreased the total number of defects, decreased the UCL, average, and LCL. A strategy that may have been able to reduce the amount of defects was Six Sigma. Six Sigma would work for this type of scenario because it measures how many defects exist in a process and you can figure out how to eliminate them all
● Monitoring — Internal control systems need to be monitored–a process that assesses the quality of the system’s performance over time. This is accomplished through ongoing monitoring activities, separate evaluations or a combination of the two. Ongoing monitoring occurs in the course of operations. It includes regular management and supervisory activities, and other actions personnel take in performing their duties. The scope and frequency of separate evaluations will depend primarily on an assessment of risks and the effectiveness of ongoing monitoring procedures. Internal control deficiencies should be reported upstream, with serious matters reported to top management and the board.
Analyze the process map and SIPOC model to identify possible main root causes of the problems. Next, categorize whether the main root causes of the problem are special causes or
| Reflects the highest level of ability to analyze complex issues and formulate sound supervisory practices. The assignment exceeds the standards by addressing all elements of the task comprehensively and completely. The paper is effective and well-grounded, has relevant and complete support and elaboration to enhance ideas. Detail and specificity is exemplary.(20-15 points)
Quality Associates, Inc., a consulting firm advises its clients about sampling and statistical procedures that can be used to control their manufacturing processes. In one particular application a client gave Quality Associates a sample of 800 observations taken during a time in which the client’s process was operating satisfactorily. The sample standard deviation of this data was 0.21; hence with so much data, the population standard deviation was assumed to be 0.21. Quality Associates then suggested that random samples of size 30 be taken periodically to monitor the process on an ongoing basis. By analyzing the new samples, the client could quickly learn whether the process was operating satisfactorily. When the process was not operating satisfactorily, corrective action could be taken to eliminate the problem. The design specification indicated the mean for the process should be 12. The hypothesis test suggested by Quality Associates follows.
a) Under this condition, what proportion of defective sheets will the extruder produce (for the Six Sigma process)?
Issue: Dynamic Seal, a precision parts manufacturer with a reputation for high quality, does not currently utilize a Statistical Process Control (SPC) system. However, United Airlines (UA), a major customer representing 14% of Dynamic Seal’s business, insists they implement an SPC system or loose United Airlines’ business. In addition Dynamic Seal do not have a sound preventative measure quality control system in place, preferring 100% inspection to cull bad quality, rather than building parts correctly from inception.
* Introduces the construction and use of statistical process control (SPC) charts and an understanding of the relationship between SPC and conformance quality.
22. If a point on a control chart falls outside one of the control limits, this suggests that the process output is non-random and should be investigated. TRUE