Scenario
The following chart displays the results of the first year’s production of a new electric-car produced by Sleek Motors. The table was created from data supplied by the company’s entire production department managed by Isaac Newton, as a means of controlling production output. You recently joined the production department as a quality assurance associate after grading with a degree in business. Your manager, Tomas has asked you to do an analysis on the first year’s production results. Tomas indicated that this information will be used by the Vice President in his evaluation of areas of improvement, change, or processes used by the production department in the production of the mini-car. The company aims for the highest possible quality products for consumers.
The chart below describes the standards set by the department and the results for each branch of Sleek Motors. A comparison of the standard to the results allows the reader to form conclusions about the success or failure of the production department to meet the goals envisioned by the company. It also allows the reader to recognize patterns from the data from which conclusions can be drawn as to the relationship between elements (e.g. cost expended vs time expended; those who spent more time had a higher cost).
Metrics Standard Fort Wayne Georgetown Koenigsegg Kansas City Lingotto
Total Cost to Manufacture (per unit) 13,500 15,250 14,100 12,750 16,000 14,250
Manufacturing Cycle Time (time to complete single vehicle – in hours) 15 18 16 12 12 14
Yield (percentage of cars produced to specifications first time without rework) 98% 99% 97% 96.50% 97.50% 95.15%
Defective Rate/Recall Rate 2% 1% 3% 3.50% 2.50% 4.85%
Scrap Rate 2% 3% 4% 2.50% 2% 1.90%
Average Production Downtime 0.50% 1% 1.50% 0.75% 0.50% 0.75%
Training Time (hours per month) 8 6 3 5 7 4

• Compare the actual performance with the standards for the electric-car drawing conclusions from what is evident from the data in the table. Make sure to discuss each standard and explain the results for each branch.
• Analyze the deviations between the branches and the standards for each metric.
• Determine whether more control is necessary or if the standard should be changed. Explain the reasoning.

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