Modern Oak Furniture Limited had been in business for more than 40 years, serving customers in Southwestern Ontario. The business consists of three different divisions

Custom Designs Division

Manufacturers crafted items, such as dining room suites

Kitchen Cabinets Division

Manufactures kitchen cabinets

Banister Division

Manufactures and installs quality oak railings

Each division reports to a Vice-President, who in turn report to the President of the company, Mr. Frederick Johannsson, who was also to founder of the company. Total sales for all divisions are projected to reach 10,000,000.00 in the current fiscal year.

Mr. Johannsson has been quite pleased with the performance of two of the divisions, Custom Designs and Kitchen Cabinets, which together account for about 85% of the company’s sales revenue. He does however, have some concerns about the Banister Division based on the previous year’s profit performance and the first week of August’s sales report for the installation crews as shown in the Department Monthly Report shown in Appendix 1.

Appendix 1

Installation department Monthly Report – August 9

Job

Number

Crew

Number

Budget

Amount

Actual

Amount

Comments

7156

1

$1,100.00

$1,127.00

Waited ½ hour for customer

7157

2

$985.00

$1,154.00

Fit Problem with spindles

7158

5

$1,200.00

$996.00

7160

4

$1,500.00

$1,854.00

Recalled for Loose spindle

7163

2

$850.00

$865.00

Two split spindles

7166

5

$1,200.00

$1,385.00

Fit problem with spindles

7167

1

$1,450.00

$1,620.00

Customer changed design refit

7168

4

$1,800.00

$2,254.00

Spindle shims needed

7169

5

$1,100.00

$1,080.00

7171

2

$980.00

$1,200.00

Handrail rough finish

7172

4

$1,560.00

$1,860.00

Loose spindles

7174

1

$1,200.00

$1,650.00

Not to drawings

7175

2

$975.00

$1,320.00

Handrail cracked

7177

4

$1,400.00

$1,875.00

Fit problem spindles

7179

3

$2,250.00

$3,200.00

Recalled for loose bannister

7181

5

$1,900.00

$2,520.00

Fit problem spindles

7182

3

$1,800.00

$2,260.00

Fit problem spindles

7184

3

$1.750.00

$1,780.00

Customer changed design

TOTAL

$25,000.00

$30,000.00

It is now the second week of August and the new installation market is just starting up. Bannisters are installed in new homes in the fall when the homes are nearly finished and ready for sale. There is some demand for bannisters throughout the year for renovations. However, this business is concentrated in the fall and quickly dies off before Christmas. Any problems with the bannisters should be resolved before the peak season begins.

On Monday, Frederick met with Thomas Marks, the vice-president of the division, and voiced his concerns. Frederick suggested that the meet again on Friday to discuss some further actions to get back on track. Thomas felt the concerns were a bit premature but agreed grudgingly. Thomas felt that some of his key people should attend, so Robert Colson, the sales manager, Peter Harman, who was in charge of the five two-main installation crews, and Henry Storm, the manufacturing supervisor, were invited to the meeting.

During the meeting, Thomas asked each one of his people to describe their individual concerns about the past week’s installation report.

Henry began by giving a brief outline of the manufacturing process that he was responsible for in plant.
Transcribed Image Text:Spindle Test B Dimension A A .65 +/- .01 inches B1 inch The following fifty readings have been taken and recorded as of August 14 Spindle Widths - Inches .60 .63 .60 .62 .60 .59 .61 .67 .57 .61 .62 .59 .61 .64 .67 .66 .69 .63 .69 .68 .61 .67 .68 .67 .60 .61 .68 .60 .62 .60 .66 .60 .63 .62 .68 .67 .62 .70 .67 .68 .58 .68 .67 .69 .58 .69 .65 .68 .59 .64 Hole Diameters - Inches .57 .56 .58 .59 .57 .58 .56 .58 .56 .58 .58 .59 .60 .55 .61 .60 .58 .57 .58 .60 .56 .61 .57 .59 .58 .57 .55 .57 .59 .57 .60 .58 56 .60 .56 .62 .59 .58 .62 .59 .57 .62 .59 .61 .63 .59 .64 .60 .61 .63 1. Analyze the customer complaints using a Pareto Analysis to identify the largest cause of complaints 2. Construct histograms of the spindle and hole data to see if there is an assignable cause to the problem 3. Complete three inter-office memos to show how Henry Storm could implement your recommendations. DATE: August 17 TO: Lead-Hand – Hand Rails FROM: Henry Storm SUBJECT: Customer Complaints - Bannisters DATE: August 17 TO: Lead Hand - Spindles FROM: Henry Storm SUBJECT: Customer Complaints - Bannisters DATE: August 17 TO: Thomas Marks FROM: Henry Storm SUBJECT: Customer Complaints - Bannisters
Transcribed Image Text:The oak was purchased in 16 foot lengths and inspected for any flaws or excessive knots to ensure it was #1 grade. 2. Any rejects were sent to the cabinet division to be used for interior shelves or to make spindles. The approved boards were run through a multi-head mill that planed the bottom side and shaped the top and sides of the 1. 3. handrail. 4. They were inspected again for rough grain and any knots that could cause quality problems. Any rejects were then cut into shorter usable lengths for shorter handrails or spindles The handrails were then sent to the drilling machine where the holes were automatically spaced and drilled by the operator on an industrial quality drill press. 6. Occasionally the operator inspects the dimensions of the holes using a dual purposes go/no-go gauge. On one end of the 5. gauge is a metal rod that is inserted in the hole to measure the depth. The rod has a hatch mark marked area that has a PASS stamped into the metal. The other end of the gauge is long and round and has three steps cut into the circumference. This makes the rod get bigger around at about 4 from the end and % from the end. If the first part goes into the hole but not the middle, the hole is undersized. If the second step but not the third enters the hole, the hole is of the correct diameter. The third step indicates oversize. The handrails are then sent for sanding and varnishing. A final inspection is performed for appearance and finish. The handrail sections are then sorted by length for full size and shorts. 7. Spindle Area Oak is purchased, inspected, and cut to length. Approximately 5% also comes form the handrail area. Sections are placed on a planer and run through twice to give the square end dimensions. Pieces are then placed into a pattern lathe, which provides the product with the spindle design and tapered top end. The operator also lightly sands the spindle while it is on the lathe. 1. 2. An occasional inspection is performed using a go/no-go gauge. The inspection procedure requires the operator to fit over the end of a spindle the gauge, which is an aluminum bar with a specified hole size. The spindle will pass inspection if 4 to ½ inch of the spindle protrudes through the gauge. The gauge is actually marked with red paint outside the limits to assist the operator when inspecting. 4. The operator sets the pre-angles cutter to maintain the desired size of the spindle end. 5. The approved spindles are then sent to final sanding and varnishing and final inspection. 3. Henry felt that his people did the best job possible given the wood and machinery available. Robert Colson, the sales manger, felt that his people were certainly doing their jobs since sales had increased at a rate of 15% over the past three years. One major concern that Robert did have was the increased number of complaints from his major customer, Lionel Homes, for the quality of the installations. Lionel Homes have already told Robert that they will take their business elsewhere if the quality does not improve immediately. Peter was the most vocal of the group, since his area was getting the flack. He felt his crews were being pushed as hard as possible but just couldn't keep on plan. Modern Oak bannisters are designed to be easily installed in the field even for custom work. However, crews seem to have to refit every other piece and spend time chasing defects. Peter recently started having his crews keep track of reasons why they were over or under budget on each job. Frederick Johannsson angrily told everyone that he didn't care whose fault the problems were, he just wanted them fixed yesterday and stomped out of the room. Thomas and his group had just recently completed a quality management course, and all agreed they might as well see if it could help them solve the problem and get Johannsson off their backs. Inspection Report – Spindle The following figure shows the specified depth and allowable tolerances for the pilot study on spindle fit using the knife-edge gauge designed for the purpose.

Question

Modern Oak Furniture Limited had been in business for more than 40 years, serving customers in Southwestern Ontario. The business consists of three different divisions

Custom Designs Division
- Manufacturers crafted items, such as dining room suites
Kitchen Cabinets Division
- Manufactures kitchen cabinets
Banister Division
- Manufactures and installs quality oak railings

Each division reports to a Vice-President, who in turn report to the President of the company, Mr. Frederick Johannsson, who was also to founder of the company. Total sales for all divisions are projected to reach 10,000,000.00 in the current fiscal year.

Mr. Johannsson has been quite pleased with the performance of two of the divisions, Custom Designs and Kitchen Cabinets, which together account for about 85% of the company’s sales revenue. He does however, have some concerns about the Banister Division based on the previous year’s profit performance and the first week of August’s sales report for the installation crews as shown in the Department Monthly Report shown in Appendix 1.

Appendix 1

Installation department Monthly Report – August 9

Job Number	Crew Number	Budget Amount	Actual Amount	Comments
7156	1	$1,100.00	$1,127.00	Waited ½ hour for customer
7157	2	$985.00	$1,154.00	Fit Problem with spindles
7158	5	$1,200.00	$996.00
7160	4	$1,500.00	$1,854.00	Recalled for Loose spindle
7163	2	$850.00	$865.00	Two split spindles
7166	5	$1,200.00	$1,385.00	Fit problem with spindles
7167	1	$1,450.00	$1,620.00	Customer changed design refit
7168	4	$1,800.00	$2,254.00	Spindle shims needed
7169	5	$1,100.00	$1,080.00
7171	2	$980.00	$1,200.00	Handrail rough finish
7172	4	$1,560.00	$1,860.00	Loose spindles
7174	1	$1,200.00	$1,650.00	Not to drawings
7175	2	$975.00	$1,320.00	Handrail cracked
7177	4	$1,400.00	$1,875.00	Fit problem spindles
7179	3	$2,250.00	$3,200.00	Recalled for loose bannister
7181	5	$1,900.00	$2,520.00	Fit problem spindles
7182	3	$1,800.00	$2,260.00	Fit problem spindles
7184	3	$1.750.00	$1,780.00	Customer changed design
TOTAL		$25,000.00	$30,000.00

It is now the second week of August and the new installation market is just starting up. Bannisters are installed in new homes in the fall when the homes are nearly finished and ready for sale. There is some demand for bannisters throughout the year for renovations. However, this business is concentrated in the fall and quickly dies off before Christmas. Any problems with the bannisters should be resolved before the peak season begins.

On Monday, Frederick met with Thomas Marks, the vice-president of the division, and voiced his concerns. Frederick suggested that the meet again on Friday to discuss some further actions to get back on track. Thomas felt the concerns were a bit premature but agreed grudgingly. Thomas felt that some of his key people should attend, so Robert Colson, the sales manager, Peter Harman, who was in charge of the five two-main installation crews, and Henry Storm, the manufacturing supervisor, were invited to the meeting.

During the meeting, Thomas asked each one of his people to describe their individual concerns about the past week’s installation report.

Henry began by giving a brief outline of the manufacturing process that he was responsible for in plant.

Spindle Test
B
Dimension A
A .65 +/- .01 inches
B1 inch
The following fifty readings have been taken and recorded as of August 14
Spindle Widths - Inches
.60
.63
.60
.62
.60
.59
.61
.67
.57
.61
.62
.59
.61
.64
.67
.66
.69
.63
.69
.68
.61
.67
.68
.67
.60
.61
.68
.60
.62
.60
.66
.60
.63
.62
.68
.67
.62
.70
.67
.68
.58
.68
.67
.69
.58
.69
.65
.68
.59
.64
Hole Diameters - Inches
.57
.56
.58
.59
.57
.58
.56
.58
.56
.58
.58
.59
.60
.55
.61
.60
.58
.57
.58
.60
.56
.61
.57
.59
.58
.57
.55
.57
.59
.57
.60
.58
56
.60
.56
.62
.59
.58
.62
.59
.57
.62
.59
.61
.63
.59
.64
.60
.61
.63
1. Analyze the customer complaints using a Pareto Analysis to identify the largest cause of complaints
2.
Construct histograms of the spindle and hole data to see if there is an assignable cause to the problem
3. Complete three inter-office memos to show how Henry Storm could implement your recommendations.
DATE: August 17
TO: Lead-Hand – Hand Rails
FROM: Henry Storm
SUBJECT: Customer Complaints - Bannisters
DATE: August 17
TO: Lead Hand - Spindles
FROM: Henry Storm
SUBJECT: Customer Complaints - Bannisters
DATE: August 17
TO: Thomas Marks
FROM: Henry Storm
SUBJECT: Customer Complaints - Bannisters

The oak was purchased in 16 foot lengths and inspected for any flaws or excessive knots to ensure it was #1 grade.
2. Any rejects were sent to the cabinet division to be used for interior shelves or to make spindles.
The approved boards were run through a multi-head mill that planed the bottom side and shaped the top and sides of the
1.
3.
handrail.
4. They were inspected again for rough grain and any knots that could cause quality problems. Any rejects were then cut into
shorter usable lengths for shorter handrails or spindles
The handrails were then sent to the drilling machine where the holes were automatically spaced and drilled by the operator
on an industrial quality drill press.
6. Occasionally the operator inspects the dimensions of the holes using a dual purposes go/no-go gauge. On one end of the
5.
gauge is a metal rod that is inserted in the hole to measure the depth. The rod has a hatch mark marked area that has a PASS
stamped into the metal. The other end of the gauge is long and round and has three steps cut into the circumference. This
makes the rod get bigger around at about 4 from the end and % from the end. If the first part goes into the hole but not the
middle, the hole is undersized. If the second step but not the third enters the hole, the hole is of the correct diameter. The
third step indicates oversize.
The handrails are then sent for sanding and varnishing. A final inspection is performed for appearance and finish. The handrail
sections are then sorted by length for full size and shorts.
7.
Spindle Area
Oak is purchased, inspected, and cut to length. Approximately 5% also comes form the handrail area.
Sections are placed on a planer and run through twice to give the square end dimensions. Pieces are then placed into a
pattern lathe, which provides the product with the spindle design and tapered top end. The operator also lightly sands the
spindle while it is on the lathe.
1.
2.
An occasional inspection is performed using a go/no-go gauge. The inspection procedure requires the operator to fit over the
end of a spindle the gauge, which is an aluminum bar with a specified hole size. The spindle will pass inspection if 4 to ½ inch
of the spindle protrudes through the gauge. The gauge is actually marked with red paint outside the limits to assist the
operator when inspecting.
4. The operator sets the pre-angles cutter to maintain the desired size of the spindle end.
5. The approved spindles are then sent to final sanding and varnishing and final inspection.
3.
Henry felt that his people did the best job possible given the wood and machinery available.
Robert Colson, the sales manger, felt that his people were certainly doing their jobs since sales had increased at a rate of 15% over
the past three years. One major concern that Robert did have was the increased number of complaints from his major customer,
Lionel Homes, for the quality of the installations. Lionel Homes have already told Robert that they will take their business elsewhere
if the quality does not improve immediately.
Peter was the most vocal of the group, since his area was getting the flack. He felt his crews were being pushed as hard as possible
but just couldn't keep on plan. Modern Oak bannisters are designed to be easily installed in the field even for custom work. However,
crews seem to have to refit every other piece and spend time chasing defects. Peter recently started having his crews keep track of
reasons why they were over or under budget on each job.
Frederick Johannsson angrily told everyone that he didn't care whose fault the problems were, he just wanted them fixed yesterday
and stomped out of the room.
Thomas and his group had just recently completed a quality management course, and all agreed they might as well see if it could help
them solve the problem and get Johannsson off their backs.
Inspection Report – Spindle
The following figure shows the specified depth and allowable tolerances for the pilot study on spindle fit using the knife-edge gauge
designed for the purpose.

Accepted Answer

Doing the pareto investigation of the protests utilizing the objections or remarks recorded in the…