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Authors:
Jitendra Sharma (Institute of Management Technology - Nagpur (IMT)); Srinivasan Maheswaran (Institute of Management Technology - Nagpur (IMT))
Published in:
2013
Length:
8 pages
Data source:
Field research

Abstract

The case describes the situation faced by ABC Locomotive Works, located in the eastern part of India. Mr Thomas, Director, Material Procurement and Purchase department is concerned about the non-stock items order processing as the Director, Production department has recently communicated to him the delay in order processing which results in excessive delay in production process and completion of the project. In this regard, Mr Thomas revisited and collected the data related to order processing activities of ten frequently dealt-with companies. Data was gathered from the four most recently placed orders of the selected companies. The case demonstrates the basics of the order processing activity and how the concept of quality control tools, control charts, may be used to identify the activities which are not under control. Through this case, students may be orientated with how to construct control charts and may be encouraged to participate in the discussion to identify the reasons for the activities, if any, which are not under control. Also, in the process students may be given an opportunity to understand the difference between chance and assignable causes of variation in the process.

Topics

Operations management; Manufacturing; Procurement process; Non-stock items; SQC; Control charts; Causes of variation; Control limits
Location:
Industry:
Size:
Above 500 employees
Other setting(s):
April 2011 to March 2012

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