Goodman Tire and Rubber Company Case Study The U.S. National Highway Traffic Saf

Question

Goodman Tire and Rubber Company Case Study

The U.S. National Highway Traffic Safety Administration (NHTSA) independently tests over 2,400 types of tires annually. In 2015, they issued over 900 recalls, affecting 51 million vehicles nationwide. Obviously, tire failure is a leading cause of accidents, injury, and death. The cost of poor quality can be in the hundreds of millions of dollars to the tire manufacturer due to lawsuits, liability claims, and the cost of recalls to fix the problem.Your safety depends on a high level of tire quality and performance.

Therefore, the Goodman Tire and Rubber Company periodically tests its tires for tread wear under simulated road conditions. To study and control its manufacturing processes, the company uses x- and R-charts. Twenty-five samples, each containing three radial tires, were chosen from different shifts over several days of operation. Exhibit 16.7 shows a spreadsheet (available at OM Online) that provides the data for tread wear in hundredths of millimeters. Lower numbers in Exhibit 16.7 represent better performance.Engineers have determined that, over the time in which the tires were tested, the design specifications are 28 ± 6 millimeters, in order to provide the 60-month lifetime the tires are designed to achieve.

Exhibit 16.7. Goodman Tire

Case Study Questions for Discussion

3. Provide two examples of each of the four major categories of quality costs applicable to this situation (i.e., prevention, appraisal, internal and external failure costs).

Sample Tread Wear Sample Mean Range 1 31 42 28 33.7 14 2 26 18 35 26.3 17 3 25 30 34 29.7 9 4 17 25 21 21.0 8 5 38 29 35 34.0 9 6 41 42 36 39.7 6 7 21 17 29 22.3 12 8 32 26 28 28.7 6 9 41 34 33 36.0 8 10 29 17 30 25.3 13 11 26 31 40 32.3 14 12 23 19 25 22.3 6 13 17 24 32 24.3 15 14 43 35 17 31.7 26 15 18 25 29 24.0 11 16 30 42 31 34.3 12 17 28 36 32 32.0 8 18 40 29 31 33.3 11 19 18 29 28 25.0 11 20 22 34 26 27.3 12 21 18 24 30 24.0 12 22 24 28 19 23.7 9 23 27 32 20 26.3 12 24 39 26 19 28.0 20 25 17 32 27 25.3 15 Sum 710.7 296 Exhibit 16.7.: Goodman Tire SAMPLE TRE AD WEAR 31 42 28 2 26 18 35 3 25 30 34 4 17 25 21 5 38 29 35 41 42 36 7 21 17 29 8 32 26 28 41 34 33

Explanation / Answer

Category Examples Prevention 1 Controlling raw material (rubber) parameter more closely at the supplier end 2 Proper design of tire fitment profile area to avoid improper caster/ camber Appraisal 1 Sampling and inspection of tire wore tread wear and depth 2 Inspection of raw material (rubber) at the supplier end Internal Failure 1 Soft raw material leading to high tread wear and rejection of entire lot when the sampling inspection finds tread wear beyond the specification limit 2 Rework of tires (e.g. heat treatment) for smaller intensity of defect before dispatching to customer end External Failure 1 Warranty claim from customer due to failure from market 2 Recalling an entire lot of tire for few tires outside the 28 ± 6 millimeters specification reaches the customer

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