Abstract

Background: This case study is designed for upper-level undergraduate students in a basic operations management course. Prerequisites would include statistics and computer science. Objective: The purpose of the case is to give the students an opportunity to apply statistical quality control techniques. The case presents an interesting problem in a real setting and students will be forced to consider realistic issues in tradeoffs between cost and quality. The setting is a job shop, where jobs arrive randomly and have different requirements, as opposed to a mass-production type of system. Methodology: The analysis lends itself nicely to working on spreadsheets and the data may be changed easily to provide for reuse of the case. Based on probability calculations of the number of defects found in a group of current jobs, students calculate the costs of various sampling techniques. Results: Students are expected to try different sampling alternatives in order to minimize costs and also to consider nonquantitative ramifications of different alternatives and the realities of the situation. Conclusion: From this case study students should develop a good appreciation of statistical quality control techniques, as well as other aspects of a total quality management program.

Highlights

  • Linda and Doug Rice are the founders and owners of the Clayboy Pottery Company

  • Background: This case study is designed for upper-level undergraduate students in a basic operations management course

  • If we find more than one that is defective, we inspect every single item before shipping the job out and correct all the defects

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Summary

INTRODUCTION

Linda and Doug Rice are the founders and owners of the Clayboy Pottery Company. While an art major at the University of California at Santa Barbara, Linda had begun making earthenware figurines and giving them to her friends as Christmas presents. With 8 new jobs ready to go on the following Monday, Linda worked all weekend analyzing scheduling strategies and coming up with a schedule to get the jobs through the process as quickly as possible. She was feeling exhausted but pleased with her results. “Well, we currently take a sample of 50 items from each job and inspect them very carefully. “I know that the material cost of each job can vary quite a bit, but what are our current figures for labor and overhead?” Linda asked. Based on your analysis, what recommendations would you make regarding Clayboy’s quality control strategy for all their jobs? Are there other elements of a quality program that they should consider which are not as quantifiable?

RESULTS AND DISCUSSION
Expected cost
CONCLUSION
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