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Help Identifying the Current State

Six Sigma – iSixSigma Forums General Forums Tools & Templates Help Identifying the Current State

This topic contains 2 replies, has 3 voices, and was last updated by  Mike Carnell 4 months, 3 weeks ago.

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  • #56050

    Luther Brown
    Participant

    Can anyone provide some guidance to this question below? It’s a question in my black belt course I’m taking. Thanks

    Johnson Industries is experiencing difficulties managing their cash flow. They believe their procurement department members are not effectively following corporate guidelines in terms of processing invoices and that many staff are unaware of the impact of their actions on cash flow. Since contracts have different terms (requirements in terms of number of days), the company tracks ‘relative days’ (Excel: “Relative Days” = Last Proc Days – Contract Term Days).

    To improve working capital, they would like to pay contracts either on their due date (USL = 0 days) OR no sooner than 7 days prior to the contract terms (Relative Days LSL = -7 days).

    Based on the process output variable, ‘relative days’, which of the following best reflects the current state of this process? Assume USL = 0 days; LSL = -7 day.

    #202850

    Katie Barry
    Keymaster

    @luther1980brown How did you try to solve the problem? What worked and what didn’t? Why? The iSixSigma audience is extremely helpful but they like to see that someone has put in a good-faith effort to solve their problem.

    #202851

    Mike Carnell
    Participant

    @luther 1980Brown you stated “which of the following best reflects the current state of this process?” What are the choices?

    Actually it would probably do you good to consider, without looking at their choices, how you would convey their performance relative to the specification of 0 to -7?

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