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Oxypure: Usage of Control Charts

CASELET, STATISTICS FOR MANAGEMENT
ET Cases, 2 pages

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OxyPure: Usage of Control Charts

 

OxyPure, a family-owned water company, established by George Mathews (George), had grown from a small company to a well-known water brand in Mumbai, India. The company distributed 500 millilitres, 1 litre and 1.5 litre water bottles. George started this company, after an extensive research to confirm the quality, purity and properties of water to be used. OxyPure started the small bottling line operations in 2010. In the initial days he used his car to deliver the water bottles. As the demand grew, he upgraded the bottling line operations (Exhibit I) in 2012. The demand for OxyPure bottles came from major supermarkets, health food outlets, fitness centres, hotels as well as restaurants......................

Teaching Note Preview

OxyPure: Usage of Control Charts

 

Prerequisite Conceptual Understanding

  • • Richard I. Levin and David S. Rubin, “Chapter 10: Quality and Quality Control”, Statistics for Management, 7th Edition, Pearson Education, 2008

 

Synopsis

The caselet enables a discussion on the concept of Control Charts. Within 3 years of its inception in 2010, OxyPure a family-owned water company in Mumbai, India, became a very sought after brand. However, the Founder-CEO of OxyPure wanted to be known for their quality product pan-India. In order to achieve their goal the company introduced Statistical Process Control (SPC) to improve the quality of the product. Will SPC help control the process and improve the quality of the product?

Expected Learning Outcomes

  • • The concept of Control Charts
  • • Analyze and Infer from control charts

Assignment Questions

  • I. Is the volume of water in a bottle a variable or an attribute?
  • II. What kind of control chart should be used to monitor the average volume of water in each bottle? Determine the three-sigma control limits for this chart.
  • III. Plot the average bottle volume for each sample on the appropriate chart. Is the process in-control with respect to the average volume? What action should be taken?
  • IV. ....................................

 

Teaching Plan

The Teaching Note follows a defined Teaching Plan [Annexure (TN)-I], which guides in conducting the classroom discussion............

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Abstract


The caselet enables a discussion on the concept of Control Charts. Within 3 years of its inception in 2010, OxyPure a family-owned water company in Mumbai, India, became a very sought after brand. However, the Founder-CEO of OxyPure wanted to be known for their quality product pan-India. In order to achieve its goal the company introduced Statistical Process Control (SPC) to improve the quality of the product. Will SPC help control the process and improve the quality of the product?



Pedagogical Objectives

  • To discuss the concept of Control Charts
  • To understand how to infer from Control Charts to help improve the process



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