ABC Ltd is manufacturing auto spare parts on large scale. The company policy is that 396 of the daily production could be defective.
Over the last two months, it is being observed that about 10-12% of production is defective.
(i) What steps should be taken to correct above case?
(ii) Which value is missing in the above case?
Since the standards set for permissible limits of defects was 3%, but defects are much higher than the permissible limits i.e. 10-12% , it calls for urgent need for taking corrective actions. Following steps should be taken to correct the defect:
(a) Find out the causes of deviations as defective percentage rise from 3 to 12%. The causes may be poor quality of raw material, lack of skilled labour, lack of motivation, etc.
(b) Take corrective measures to control the deviations.
(ii) Values missing in the above case are:
(a) Efficiency.
(b) Proper control over operations.