CASES

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Case 1Chick-n-Gravy Dinner Line

The operations manager of a firm that produces frozen dinners had received numerous complaints from supermarkets about the firm’s Chick-n-Gravy dinners. The manager then asked her assistant, Ann, to investigate the matter and to report her recommendations.

Ann’s first task was to determine what problems were generating the complaints. The majority of complaints centered on five defects: underfilled packages, a missing label, spills/mixed items, unacceptable taste, and improperly sealed packages.

Next, she took samples of dinners from the two production lines and examined each sample, making note of any defects that she found. A summary of those results is shown in the table.

The data resulted from inspecting approximately 800 frozen dinners.

Defect Observed

Date Time Line Underfilled Missing Label

Spill/Mixed Unacceptable Taste

Improperly Sealed

5/12 0900 1 ✓✓ ✓ ✓✓✓

5/12 1330 2 ✓✓ ✓✓

5/13 1000 2 ✓ ✓✓✓

5/13 1345 1 ✓✓ ✓✓

5/13 1530 2 ✓✓ ✓✓✓ ✓

5/14 0830 1 ✓✓✓ ✓✓✓

5/14 1100 2 ✓ ✓ ✓✓

5/14 1400 1 ✓ ✓

5/15 1030 1 ✓✓✓ ✓✓✓✓✓

5/15 1145 2 ✓ ✓✓

5/15 1500 1 ✓ ✓

5/16 0845 2 ✓✓ ✓✓

5/16 1030 1 ✓✓✓ ✓ ✓✓✓

5/16 1400 1

5/16 1545 2 ✓ ✓✓✓✓ ✓ ✓ ✓✓

Questions

1. What solution would you offer to the supermarkets that retailed the Chick-n-Gravy frozen dinners, if you were the operations manager?

2. What should Ann recommend to the manager?

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Case 2Tip Top Markets

Tip Top Markets is a regional chain of supermarkets located in the southeastern United States. Karen Martin, manager of one of the stores, was disturbed by the large number of complaints from customers at her store, particularly on Tuesdays, so she obtained complaint records from the store’s customer service desk for the last nine Tuesdays.

Assume you have been asked to help analyze the data and to make recommendations for improvement. Analyze the data using a check sheet, a Pareto diagram, and run charts. Then construct a cause-and-effect diagram for the leading category on your Pareto diagram.

On July 15, changes were implemented to reduce out-of-stock complaints, improve store maintenance, and reduce checkout lines/pricing problems.

June 1out of orange yogurt produce not fresh

bread stale lemon yogurt past sell date

checkout lines too long couldn’t find rice

overcharged milk past sell date

double charged stock clerk rude

meat smelled strange cashier not friendly

charged for item not purchased out of maple walnut ice cream

couldn’t find the sponges something green in meat

meat tasted strange didn’t like music

store too cold checkout lines too slow

light out in parking lot

June 8

fish smelled funny undercharged

out of diet bread out of roses

dented can meat spoiled

out of hamburger rolls overcharged on two items

fish not fresh store too warm

cashier not helpful out of ice

meat tasted bad telephone out of order

ATM ate card overcharged

slippery floor rolls stale

music too loud bread past sale date

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June 15wanted smaller size overcharged on special

too cold in store couldn’t find aspirin

out of Wheaties undercharged

out of Minute Rice checkout lines too long

cashier rude out of diet cola

fish tasted fishy meat smelled bad

ice cream thawed overcharged on eggs

double charged on hard rolls bread not fresh

long wait at checkout didn’t like music

wrong price on item lost wallet

overcharged overcharged on bread

fish didn’t smell right

June 22milk past sales date couldn’t find oatmeal

store too warm out of Bounty paper towels

foreign object in meat overcharged on orange juice

store too cold lines too long at checkout

eggs cracked couldn’t find shoelaces

couldn’t find lard out of Smucker’s strawberry jam

out of 42 oz. Tide out of Frosty Flakes cereal

fish really bad out of Thomas’ English Muffins

windows dirty

June 29checkout line too long restroom not clean

out of Dove soap couldn’t find sponges

out of Bisquick checkout lines slow

eggs cracked out of 18 oz. Tide

store not clean out of Campbell’s turkey soup

store too cold out of pepperoni sticks

cashier too slow checkout lines too long

out of skim milk meat not fresh

charged wrong price overcharged on melon

July 6

out of straws store too warm

out of bird food price not as advertised

overcharged on butter need to open more checkouts

out of masking tape shopping carts hard to steer

stockboy was not helpful debris in aisles

lost child out of Drano

meat looked bad out of Chinese cabbage

overcharged on butter store too warm

out of Swiss chard floors dirty and sticky

too many people in store out of Diamond chopped walnuts

out of bubble bath

out of Dial soap

4 Industrial Relations and Industrial Labour Laws

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July 13

wrong price on spaghetti undercharged

water on floor out of brown rice

store looked messy out of mushrooms

store too warm overcharged

checkout lines too long checkout wait too long

cashier not friendly shopping cart broken

out of Cheese Doodles couldn’t find aspirin

triple charged out of Tip Top lunch bags

out of Saran Wrap out of Tip Top straws

out of Dove Bars

July 20

out of cucumbers out of Tip Top toilet paper

checkout lines too slow out of red peppers

found keys in parking lot out of Tip Top napkins

lost keys out of apricots

wrong price on sale item telephone out of order

overcharged on corn out of cocktail sauce

wrong price on baby food water on floor

out of 18 oz. Tide out of onions

out of Tip Top tissues out of squash

checkout lines too long out of iceberg lettuce

out of romaine lettuce out of Tip Top paper towels

July 27

out of bananas wanted to know who won the lottery

reported accident in parking lot store too warm

wrong price on cranapple juice oatmeal spilled in bulk section

out of carrots telephone out of order

out of fresh figs out of Tip Top tissues

out of Tip Top napkins water on floor

out of Tip Top straws out of Tip Top paper towels

windows dirty out of Tip Top toilet paper

out of iceberg lettuce spaghetti sauce on floor

dislike store decorations out of Peter Pan crunchy peanut butter

out of Tip Top lunch bags

out of vanilla soy milk

Questions

1. Do the results of the last two weeks reflect improvement? 2. On the basis of your analysis, prepare a list of recommendations that will address customer complaints.

Case 2: Tip Top Markets 5

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Case 3Eight Glasses a Day (EGAD)

The EGAD Bottling Company has decided to introduce a new line of premium bottled water that will include several “designer” flavors. Marketing manager Georgianna Mercer is predicting an upturn in demand based on the new offerings and the increased public awareness of the health benefits of drinking more water. She has prepared aggregate forecasts for the next six months, as shown in the following table (quantities are in tankloads):

Month May Jun Jul Aug Sept Oct Total

Forecast 50 60 70 90 80 70 420

Production manager Mark Mercer (no relation to Georgianna) has developed the following information. (Costs are in thousands of dollars.)

Regular production cost $1 per tankload

Regular production capacity 60 tankloads

Overtime production cost $1.6 per tankload

Subcontracting cost $1.8 per tankload

Holding cost $2 per tankload per month

Backordering cost Backlogs are not allowed

Beginning inventory 0 tankloads

Among the strategies being considered are the following: 1. Level production supplemented by up to 10 tankloads a month from overtime. 2. A combination of overtime, inventory, and subcontracting. Regular production should be the same each month. 3. Using overtime for up to 15 tankloads a month, along with inventory to handle variations. Regular production should be

the same each month.

Questions

1. The objective is to choose the plan that has the lowest cost. Which plan would you recommend? 2. Presumably, information about the new line has been shared with supply chain partners. Explain what information should

be shared with various partners, and why sharing that information is important.

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