Course Project 2 Lean and Six Sigma Background: Mullenax Automobile Parts Inc., Process Management Odis Mullenax is the owner and president of Mullenax Automobile Parts Inc. His company makes various parts for major automobile manufacturers worldwide. They manufacture intake manifold systems, air induction systems, coolant pump modules, oil filtration systems, coil springs, stabilizer bars, precision springs, and other key components within their three business units. Mullenax Automobile Parts Inc. is one link in a very long supply chain. Odis understands that the supply chain is not a single line of suppliers and buyers. Odis knows that the supply chain is more like a complex web where inputs come from multiple directions, often appearing unrelated to one another. As Odis and Estella Epperson, vice president of operations, continue to work through their strategic plan, they choose process management as the next challenge to face. Specifically, they believe lean and Six Sigma are the processes required to enable Mullenax Automobile Parts Inc. to achieve the firms goals of high quality, fast response, and low cost. Edgar Kalish, director of quality and performance, begins to examine what Mullenax is currently doing to ensure they achieve the desired goals and then determine what process improvements they should make. As Edgar meets with his team, they decide after an extensive brainstorming session to focus on reducing waste. They analyze current data for the following areas: overproducing, waiting, transportation, overprocessing, excess inventory, excess movement, and scrap and rework. Edgar meets with Madie McConke, director of inventory management, to discuss the processes she had implemented. Since Madie is using methods such as Economic Order Quantity (EOQ) and Inventory Turnover Ratio, Edgar feels that now inventory management is in good hands and excess inventory isnt a major issue currently. However, after inspecting the warehouse, Edgar suggests Madie implement the Five Ss. Each S is a Japanese term and translates to organization, tidiness, purity, cleanliness, and discipline. These terms also have their English version of the Five Ss. Edgar and his team take a step backwards and decide the first action is to determine what the Six Sigma level is and what their target should be. They can work with each department and establish what the current state is, then work on processes to move each department toward the desired state. The first department they analyze is manufacturing. For one particular day, the data shows that the number of defects is 750 and the number of units produced is 500. Also, the number of opportunities for a defect (OFD) per unit is 15,000. This information will enable them to calculate the defects per million opportunities (DPMO). As Edgars team continues to review the data, they determine control charts are necessary to identify if the specifications of critical parts are in compliance. They develop both a x chart and an R chart. The x chart will enable them to track the central tendency of the sample means. The R chart will enable them to track sample ranges or the variation of measurements within each sample. They select a part to do a test run that they can share with the manufacturing department. This particular part, AV1, must be between 10 and 11 inches; otherwise, it cannot be used as a universal part for different makes of cars. Below is the data chart. They collected samples each hour for a single shift (8 hours). Each hour they randomly measured 4 parts. The Data for this project is in attached excel file. Instructions: Use excel to create your analysis and charts. Then incorporate these charts and perhaps tables into a managerial report (no longer than 5 pages, single spaced) that answers the following questions in an organized manner. Please note that the audience for your paper is the CEO which will evaluate based on organization and thoroughly answering the following questions. You may want to organize your managerial report into sections based on the requirements below: 1. Based on the data provided in the case, calculate the DPMO. a. Using attached data file, what is the approximate Sigma level based on the DPMO? 2. Using the data in the Variable Data Samples of AV1 chart above, calculate the following: a. x-bar b. R c. X-bar d. R-bar e. UCL of x-bar f. LCL of x-bar g. UCL of R h. LCL of R Note: Use attached excel file when calculating UCL and LCL for and R. 3. Graph the and R charts. Does the process look to be in control? Why? 4. The Japanese Five Ss translate to organization, tidiness, purity, cleanliness, and discipline. These terms also have their English version of the Five Ss. What are they? Which do you think are the most important? Why?

		Samples of AV1
	Hour	1	2	3	4	X-bar	R
	1	10	10.5	11	10.9
	2	9.9	10.2	11	10.8
	3	11.1	10.4	10.6	10.9
	4	10.1	11	10.8	11.1
	5	10	10	11	10.5
	6	11	10.2	10.2	10.9
	7	10.1	10.6	10.4	10.9
	8	11	10.7	10.5	10.4

	Constants for computing control chart limits (+/- 3 sigma)
	Sample Size	Mean Factor (A2)	UCL (D4)	LCL (D3)
	2	1.88	3.268	0
	3	1.023	2.574	0
	4	0.729	2.282	0
	5	0.577	2.115	0
	6	0.483	2.004	0
	7	0.419	1.924	0.076
	8	0.373	1.864	0.136
	9	0.337	1.816	0.184
	10	0.308	1.777	0.223