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Instruction: Read and analyze the case study below. Write your answers on the spaces provided.
In the Interesting box, write down how each approach would contribute to achieving the
objective of the power plant. In the My Decision box, write down your recommendation on how
Lexus Power Plant will achieve their main objective using one (1) between the two (2)
approaches being compared.
Lexus Power Plant is a large electrical manufacturer based in northern part of India. The company
employs around 12,000 people and is one of India’s leading public sector companies. The company
manufactures large turbines, transformers, etc. which are used in power stations for their clients that
are based in India and abroad. The main objective of the power plant is to establish quality standards
that ensures lower rate of defects in order to minimize the production expenses of the company.
MY DECISION
The main goal of the power plant is to establish quality standards that guarantee a decreased incidence of
errors, hence reducing the company's manufacturing expenses. According to Management 9Operations
management, I strongly recommend that Lexus Power Plant employ the Six Sigma methodology. A quality
standard known as six sigma lowers errors by 3.4% per million products. This equals a 99.9% perfection
rate, showing that the Lexus power plant was required to establish quality standards and get rid of flaws.
In today's fiercely competitive global market, six sigma is a common quality benchmark for most, if not all,
major competitors