Professional Documents
Culture Documents
Exercise 3.1
I. SIPOC
a. Draw a high-level SIPOC map of this process
b. Suggest a set of Critical-to-Quality (CTQs) for Legal Sea Food customers
Legal Sea Foods operates several restaurants and fish markets in the Boston area and
other East Coast locations. The companys standards of excellence mandate that it
serves only the freshest, highest quality seafood. It guarantees the quality by buying only
the top of the catch fish daily. Although Legal Sea Foods tries to make available the
widest variety every day, certain species of fish are subject to migratory patterns and are
not always present in New England waters. Weather conditions may also prevent local
fishermen from fishing in certain areas. Freshly caught fish are rushed to the companys
quality control center where they are cut and filleted in an environmentally controlled
state-of-the-art facility. All shellfish come from government certified beds and are tested
in an in-house microbiology laboratory for wholesomeness and purity. There are even
special lobster storage tanks so all lobsters are held under optimum conditions in clean,
pollution-free water. Every seafood item is inspected for quality eight separate times
before it reaches the table. At Legal Sea Foods restaurants, each meal is cooked to
order. Even though servers make every effort to deliver all meals within minutes of each
other, they will not jeopardize the quality of an item by holding it beneath a heat lamp
until the entire order is ready. The service staff is trained to work as a team for better
service. Frequently, more than one service person delivers food to a table. When any
item is ready, the closest available person serves it. Customer questions can be directed
to any employee, not just the person who took the initial order.
Option 1
Option 2
Amount (Php)
40,000
30,000
150,000
90,000
30,000
300,000
250,000
140,000
20,000
60,000
100,000
2.a
Type of Cost
Amount
(Php)
Type
40,000
90,000
250,000
30,000
Appraisal
Appraisal
Appraisal
External
300,000
External
100,000
150,000
140,000
External
Internal
Internal
60,000
Internal
30,000
20,000
Prevention
Prevention
2.b to 2.d
CoQ
Amount
External
430,000
36%
Appraisal
380,000
31%
Internal
350,000
29%
Prevention
50,000
4%
Total
1,210,000
100%
3. A manufacturing company wants to determine the effect after they implement Lean
Six Sigma.
a) Classify each of the costs below as prevention, appraisal, internal failure or external
failure.
b) Determine savings after implementing LSS. Identify the ff:
total savings:1,211,000
3 areas with highest savings: Field Service, Warranty Repairs, Product
recalls
Category of COQ with the highest savings: External Failure 420,000
savings
Area
Quality Manual
Testing
Rework prior to delivery
Disposal of defective
units
Product recalls
Field Service
Reengineering
Supervision
Downtime
Continuous
improvement
Testing of incoming
materials
Warranty repairs
Total
Type
Amount
Before
Savings
LSS
10,000
1,000
80,000
20,000
150,000
100,000
75,000
55,000
Prevention
Appraisal
Internal failure
Internal failure
After
LSS
9,000
60,000
50,000
20,000
External failure
External failure
Prevention
Appraisal
Internal failure
Prevention
50,000
250,000
150,000
150,000
50,000
50,000
220,000
500,000
200,000
250,000
200,000
100,000
170,000
250,000
50,000
100,000
150,000
50,000
75,000
150,000
75,000
Appraisal
Appraisal
CoQ
Cost
External failure
420,000
Appraisal
385,000
Internal failure
305,000
Prevention
101,000
50,000
240,000
190,000
964,000 2,175,000 1,211,000
c) Use Pareto analysis to investigate and suggest which items to prioritize for next LSS
projects.