Arvind Auto: Usage of Control Charts

Arvind Auto: Usage of Control Charts

Arvind Auto Components (Pvt.) Ltd. (Arvind Auto), an Indian auto component manufacturing company based in Chennai, India, was involved in manufacturing of valves, brackets, rings, etc. Its client list included major auto companies like Hyundai and Ford. As of 2013, the company started exporting.

The company which was founded as a valves manufacturing company in 2008 by Michael Simpson (Michael), basically an engineer, had grown to become one of the leading auto component suppliers in India. The company had planned to become a billion dollar company by financial year 2014. In 2010, within 2 years of its inception, it implemented Statistical Process Control (SPC) methods to survive the tough market competition.......................

Exhibits

Exhibit I: Sample Observations Collected

Arvind Auto: Usage of Control Charts

Prerequisite Conceptual Understanding

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

Synopsis

The caselet enables the discussion on the concept of Control Charts. Arvind Auto Components (Pvt.) Ltd., is an upcoming auto component manufacturing company in Chennai, India. Within a few years of its inception in 2008, the company implemented Statistical Process Control (SPC) methods to survive the market competition. The Founder-Director wanted to inspect the defective parts to improve the quality of the products. It’s to be seen whether this will help control the process.

Expected Learning Outcomes

• • The concept of Control Charts
• • How to infer from control charts

Assignment Questions

• I. What kind of control chart should be used to monitor the valve manufacturing process? Determine the three-sigma control limits for this chart.
• II. Is the process in-control? What action should be taken?

Teaching Plan

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

Exhibits

Exhibit (TN)-I: Control Chart

Exhibit (TN)-II: P-chart for Sample Valves