Users/aliyasultanmuratova/Downloads/Slack%20et%20al%20(p.599-601)%20(1).pdf sepc

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Users/aliyasultanmuratova/Downloads/Slack%20et%20al%20(p.599-601)%20(1).pdf sepc Facebook CASE STUDY Turnaround at the Preston plant6 Introduction Before the crisis, production monitoring was done to please the client, not for problem solving. Data readouts were brought to Production meetings, we would all look at it, but none of us were looking behind it (Chief operating officer (COO), Preston Plant) The Preston plant was located in Preston, Vancouver. Precision-coated papers for specialist printing uses accounted for the majority of the plant's output. The plant used state-of-the-art coating machines that allowed very precise coatings to be applied to bought-in rolls of paper After coating, the coated rolls were cut into standard sizes The curl problem In the spring of 2008 Hewlett Packard (the plant's main customer) informed the plant of problems it had encoun tered with paper curling under conditions of low humid- ity. There had been no customer complaints. HP's own personnel had noticed the problem, but they took the problem seriously Over the next eight months the plant's production staff worked to isolate the cause of the prob lem and improve systems that monitored processing been making a loss for two years and had incurred HP's dis metrics. By January 2009 the process was producing approval over the curl issue. The group made it clear that, acceptable product, yet it had not been a good year for if the plant did not get the Viper contract, its future looked the plant. Although volumes were buoyant the plant was bleak. Meanwhile, in the plant,the chief concen was plant making a loss of around C$10 million a year. In October productivity, but also HP was starting to make complaints 2008, Tom Branton was appointed as Coo. about quality levels. Yet HP's attitude caused bewilderment in the production team. When HP asked questions about our process the operations guys would say. Look we're making Slipping out of control Although the curl project was solved, productivity, scrap roll after roll of paper, it's within specification and we've got and rework levels were poor. In response to this, opera- 97 per cent up-time. What's the problem?" (C00, Preston tions managers increased the speed of the line in order to Plant) But it was not until summer that the full extent of raise productivity. Looking back, changes were made with HPs disquiet was made clear. 1 will never forget that day in SAMSUNG

Explanation / Answer

Summary:

1. This case is about a plant called priston. It was into coating papers, business which was used for specialized printing purposes.

2. The main problem in the case was that HP who was this plants valid customer has encountered paper curling issue in 2008.

Question 1:

Most significant events in the story of how the plant survived because of its adoption of quality based principles are as below:

1. Curl Project Issue: Once the plant came to know about the problem the plants production department worked on the problem and tried to improve the same by using monitored processing metrics and hence this curl project issue was solved.

2. Capabilitymentality: The plant also found out that the productivity scrap and rework levels were poor. In order to sort out this the operations manager increased the speed of production. Even though the plants culture was to be within specification, they tried to change it with HP input which was "capabilitymentality", which made the plant think about the future benefits with HP.

3. Viper Project: HP gave an other chance to work for new paper for its next generation printers called Viper projects but by then the company has again drop down it's quality and HP started complaining with the process data it had.

4. Controlling: The COO after this issues tried to bring back the plant back under control through effective monitoring systems, daily reviews on processing data, analysis of the data, meetings to discuss on the implications of productive data and finally inviting the client HP itself to attain this discussion. Finally the morale increase and the process was under controlled.

5. Cost Reduction: A zero based assessment was made to cut unnecessary cost which was done in transparency.

6. New Product Ideas: Finally new product ideas were innovated like recyclable protective wraps etc.

7. Conclusion: Inspite of all these failures finally in 2009 the plant made profit for the first time after their downfall. HP as their valid client started looking at them more favourably.

Question 2:

The following are the main benefits of bringing plant process under control.

1. The plants efficiency improved by brining in the production under control.

2. Quality level increased due to process improvement.

3. On time delivery was possible.

4. Customer orders increased.

5. Inventory level was under control.

6. Other benefits included cost reduction and new product ideas were implemented.

Question 3:

1. SPC can be defined as statistical process control which means quality controlling done through control charts, data monitoring where in the datas are collected, evaluated, analysed and finally used to control the process.

2. I would say below are the strategic benefits through bringing the plant under control.

a. Monitored processing metrics which a statistical control process was used to improve process system and the benefit was solving the curl issue which was strategic in nature.

b. Process data another kind of statistical control process was implemented for each production department and also a clear review was done with the team member and client HP which was a very strategic move.

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