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asty Morsels Chocolates manufactures chocolate candy. Their main production line

is fully automated, requiring little human intervention. Tasty Morsels uses charts to

track production amounts, scrap rates, production times, order quantities, and delays

in shipment. Every six weeks, these charts are collected and discussed by manage-

ment. No statistical analysis takes place. Despite their efforts, they have production

cost overruns. Cost overruns can be caused by excessive scrap rates, rework amounts,

inspection costs, and overtime.

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wo areas stand out as having problems. The first occurs following the cooling

chamber. Chocolate is mixed until it reaches the right consistency, then it is poured

into mold trays. As the chocolates leave the cooling chamber, two workers reorganize

the chocolate mold trays on the conveyor belt. This non-value added, inspection-type

activity essentially wastes the time of two workers. It also could result in damaged

chocolates if the trays were to flip over or off of the conveyor.

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asty Morsels Chocolates prides itself on their quality product. To maintain their

high standards, before packaging, 4 workers inspect nearly every piece of chocolate as

it emerges from the wrapping machine. A full 25% of the chocolate production is

thrown out in a large garbage can. Though this type of inspection prevents poorly

wrapped chocolates from reaching the consumer, this is a very high internal failure

cost of quality. So far, though these two problems are apparent to nearly everyone in

the plant, no efforts have been made to improve the process.

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asty Morsels Chocolates manufactures chocolate candy. Their main production line

is fully automated, requiring little human intervention. Tasty Morsels uses charts to

track production amounts, scrap rates, production times, order quantities, and delays

in shipment. Every six weeks, these charts are collected and discussed by manage-

ment. No statistical analysis takes place....