Komtek Operations Case Study

KomTek, a prosthetic hip manufacturer, is facing a new problem with an unusual new order. One of their clients has asked for a customized product (distal tip). For this product, the straightening process is not consistent and this could possibly be leading to differences in targeted price to cost ratios and actuals. The cost of manufacturing the prosthetic hip has spiraled up recently. This is due to costs arising from scrap levels that reach 10% on this customized product as opposed to a maximum of 6%. This is causing serious concerns to the management.

The above numbers illustrate the dilemma of the management as they measure the efficiency of their production line. The actual P-C ratio which stands at 1.08 falls outside the company’s expectations, since they have added the distal tip

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KomTek – Run Charts

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What is a Run Chart?

§A run chart takes data in a sequential order and plots it  into a simple graphical representation.

§It can also be called a line chart.

§A run chart is useful to identify variations over time. It can also help in identifying correlations between multiple trends.

§Run Charts also help in identifying if the process is deteriorating.

§The run chart will help us identify if there is any relationship between the tip-lengths and the straightness.

What is it used for?

Why are we using it here?

KomTek – The Run Chart

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CONCLUSION: We have calculated the correlation co-efficient (of 0.0248) and as a result we have concluded that there is no correlation between the two variables.

To understand what is causing the current problem we would need additional information (such as other Six Sigma components  and quality control processes)

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Comments and Evaluation

§Explanation is good, except for the comments about looking for the relationship between two variables.. That is more for the scatter plot.

§The scale chosen for the run chart(s) is so compressed that it is not possible to detect and...