Question
Toms Karten is leading manufacturer of leather luggage (up to 62) for the style-conscious people around the globe. It is made up of two independent
Toms Karten is leading manufacturer of leather luggage (up to 62") for the style-conscious people around the globe. It is made up of two independent divisions in New Delhi. The division 'Mx' performs all manufacturing and packaging operations. All sales are made through the division 'Rx' which has 11 retail stores in New Delhi, as well as through Toms Karten's own well- developed website. Toms Karten has also retail operations in Dubai, Kuala Lumpur, Bangkok as well as in Singapore. These overseas businesses operate as independent subsidiaries within the Division 'Rx'.
Toms Karten revolutionized the industry by offering cheap but stylish luggage bags. Toms Karten is able to keep its prices low by offering a very basic level of service. Luggage Bags are sold in boxes for customers to assemble themselves and all deliveries are made through third party distributor 'osta Cruise'.
Dr. Philips (Managing Partner) is bothered about increasing sales returns and massive complaints about product purchased from Toms Karten on social media. With this concern,Kamoor has appointed you as performance management expert to help the firm to execute six sigma technique to reduce number of sales returns and to evaluate firm's existing performance.
Dr. Philips has heard that Six Sigma analysis involves large quantities of data.Kamoor stated-
"I'm not confident on our current IT systems. I doubt whether system would be able to identify the required data related to cutting, preparation, closing, lasting etc. These manufacturing sub divisions may be the root causes of the problem. Further, quarterly compiled sales return data has not enough detail. We may need to do more analysis on customer satisfaction and manufacturing quality."
You have been given access to feedback given by customers for returning goods to measure existing performance in this area (refer below):
Difficult to assemble or pieces missing (47%) - Bags were not as demanded (24%) - Poor Quality (19%) -Arrived damaged (9%) - Arrived late (1%)
Required
ADVISE Managing Partner on Six Sigma implementation to reduce number of sales return using DMAIC method.
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