The Denver facility produces a wide variety of liquid chemicals.
Raw materials arrive at the Denver facility by railroad tank car.
Most shipments made in single or multiple compartment semi-trailer tankers.
Problems with delivered product quality
roduction systems appear to be out of control at times
Too many (non-Carbide) vehicles driving through plant.
Appears that drivers are not fully aware or observant of proper safety measures
Neighborhood residents and police complaining of trucks blocking the streets in
front of the plant.
Road blockages are normally short lived but consistently occur in the morning and late afternoons.
Automotive customers require that laboratory testing report on each SKU accompany each shipment. Denver facility is slow in producing lab reports.
Noncompliant trucks leaving Denver facility with lab reports stating that the products are non-compliant.
Plant transportation operations group (dispatching and scheduling) does not know when trucks will arrive at the gate.
20% of trucks arrive with no advance notice and with no order on file, but with purchase order in hand.
Denver periodically runs out of products without warning.
Denver facility has requested funds for new truck scales, but the need was not justified on a cost/benefit basis.
Conduct a root cause analysis of the various issues that Mr. Walters presented
Discuss how the performance of the various areas impacts one another.
Come up with solutions
Draft a trip report for Mr. Walters of your groups preliminary recommendations.
Identify the underlying root cause of the problems and provide a reasonable and acceptable solution along with a trip report to include the following.
1. Dispatching 2. Transportation & Scheduling 3. Quality Control Laboratory
4. Production Units & Operational Departments 5. Product Loading
6. Facilities & Operations 7. Product Loading of Polyols
Root Cause Analysis:
1. Production systems out of control: Causes: old machinery, poor raw material and few production personnel.
2. Vehicles driving through plant: No one counter facilities for customer trucks, no proper guiding posts for trucks.
3. Trucks blocking streets: Main entrance not large enough, nobody gives directions to truck drivers for getting deliveries.
4. Denver facility slow in producing reports: Facility understaffed, outdated lab equipment.
5. No advance notice when the trucks will arrive: No communication with customers, no link with incoming trucks, no knowledge of incoming orders.
6. Product run outs: No links with customers, no contact with incoming trucks;
7. Outdated truck scales: Lack of funds, low product prices.
How the performance of the various areas impacts one ...
Root cause analysis is discussed in great detail in this solution.