Please provide the root cause analysis for the below mentioned problem

FAULTY RECEIVING AND STORAGE

When the order is shipped to Sysinteg by DP suppliers, the products remain idle for 1 day after their sorting is done. They are stored next day when their personnel designate space to store them. Keeping the order for a day on the receiving dock can damage the product by:

• Moving staff
• The receiving dock gets jammed and other drivers have to wait for their load to unload
• Products may get mixed with others on the dock if not putaway on time

So, this not only cause the wastage of time but also impose additional charges to the warehouse for recovery of damaged goods. Therefore, the receiving system of sysinteg is not scheduled and is faulty.

• In addition to this, products remain idle in receiving storage area for 45 days before they pick for inspection, which is more than average, which our group points out as unnecessary.

POOR COMMUNICATION

• Due to unintegrated system of communication, all the 3 companies have different specifications of the spacer-disc design. This is the reason why 60 percent of the spacer discs fail in inspection process, because all the 3 organizations are not having a common discussion about the drawing of the product.
• Another evidence of poor communication here is that, in case there is a mismatch of the product with specified design of huge orders, sysinteg personnel have to travel to the DP supplier's facility to resolve the issue because they are not able to contact DP suppliers. This issue could have been settled otherwise on phone call or video conferencing to save time of both the parties.

UNNECESSARY INSPECTIONS

Sysinteg spends too much time on inspection processes which otherwise are not necessary. For example, 90 minutes of inspection on drawing specification is done on first lot of production which is newly sent by the manufacturers. But this can be skipped because design specifications are not modified from a long time.

The company's main goal should be to cut the Manufacturing Critical-Path time in half, and fixing the quality and dimension inspection problems at SysInteg is seen as essential to achieving this purpose. These issues impede SysInteg's business operations because they cause customers to wait longer for their orders and don't offer value. Among the most pressing issues that require attention are the drawn-out quality inspection, which takes more than 90 minutes to complete, and the repetitive dimensional inspection.

Why do we feel MCT is the main problem?

1. Errant production schedules and frequently missed shipments suggest that the lead time is not being properly managed.
2. High inventory carrying costs indicate that inventory is not being managed effectively and efficiently.
3. The company's previous attempts to improve ordering practices and reduce stock-out costs were unsuccessful, indicating that the current system is not working.
4. Non-value-added operations and missed testing and review steps increase the lead time and slow down the production process.
5. The long wait time before the inspection stage of the product and the delay before the CQAR travels to the SysInteg facility further increase the MCT.
6. Lack of proper communication and review throughout the production process leads to issues with design specifications and the need for extra inspections and sorting out problems.
7. The delay in disk packs being inspected, the high pass rate of the inspection step, and the lack of understanding of the significance of this step, suggest that this step may not be necessary and adds to the MCT.
8. The problems arising from incorrect products or quantities being shipped and design specifications revisions being out of date suggest that there is a lack of coordination and communication in the production process, leading to longer lead times.

The common theme across all the reasons for the issues with the production and logistics at XS operations is poor planning, lack of effective communication, and inadequate systems and processes. These issues lead to problems such as irregular production schedules, a shortage of inventory storage space, missed deliveries, excessive inventory carrying costs, and ineffective attempts to improve ordering procedures and reduce stock-out expenses. Additionally, non-value-added operations and skipped testing or review steps contribute to longer lead times and decreased customer satisfaction. The lack of proper communication and review throughout the production process can lead to incorrect or rejected products and a drawn-out inspection process. These underlying problems contribute to an overall inefficiency in the production process and a failure to meet the specified standards and requirements.

The company must revisit its foundations and assess all the challenges it has encountered. To resolve these issues, the company must prioritise enhancing its communication methods and establishing effective solutions. An efficient communication system is key to addressing the primary issue of MCT.