BM1708

Name: Von Marvic M. Ponce Section : BSBA 301 Date: 15/11/2023

P-M-I CHART

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 in 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.

Case Study: Electrical Manufacturing Company

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.

Response 1: Six Sigma Approach Response 2: DMAIC Approach

Plus (Advantages) Minus (Disadvantages) Plus (Advantages) Minus (Disadvantages)

• It can identify the • Changing the method or • Information gathering • This plan does not give
upper bound on design of the product is may be done to assess priority to customer
tolerance for each not a good way to the current performance desire, which is
category attribute and establish quality of a business, monitor something that every
rank characters standards. While it is and understand the firm should be doing.
according to how planned, it may damage process, and assess the The DMAIC method
important they are. the power plant, and risk of process inputs. It places a strong focus on
• By concentrating even if it concentrates on makes sure that activities management or
solely on the issue, corporate expansion, it are accomplished in organizational
they could reduce also tries to exceed compliance with performance.
manufacturing costs customer expectations, specified rules and
due to the strategy's so it would be fantastic if enhances the design
comprehensiveness. they adjusted the process by solving
existing method to give difficulties and
better services. supervising the creation,
Interesting documentation, and
implementation of a
• The accuracy of the six-sigma approach makes it continuous monitoring
appealing. It might help Lexus Power Plant set quality plan.
standards that ensure a lower error rate, which would
lower production costs. Interesting
• Due to its emphasis on meeting the quality criteria of the
Lexus power plant, the DMAIC model is an interesting
instrument for growth control.
My Decision

The primary objective of the power plant is to set quality standards that ensure a lower rate of errors, hence lowering
the company's manufacturing expenses. Management 9. Operations management says, "I fervently urge Lexus Power
Plant to apply the Six Sigma technique." Six Sigma is a quality standard that aims to reduce faults by 3.4 percent per
million items. This corresponds to an accuracy rate of 99.9 percent, meaning that the Lexus power plant must set
standards for quality and get rid of defects. Most, if not all, of the main competitors use Six Sigma as a common quality
benchmark in today's fiercely competitive global market.
09 Quiz 1 *Property of STI
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