QM3345 Troy University Statistical Process Control Frito Lay Case Paper

Case Study Topic: Chapter 6S Statistical Process Control• Read the case description below, watch the 2 videos above that accompany thecase (links to these are posted in Module 5).• Then, answer the questions listed at the end of the case.Case DescriptionFrito-Lay, the multi-billion-dollar snack food giant, produces billions of pounds of productevery year at its dozens of U.S. and Canadian plants. From the farming of potatoes-inFlorida, North Carolina, and Michigan-to factory and to retail stores, the ingredients andfinal product of Lay’s chips, for example, are inspected at least 11 times: in the field,before unloading at the plant, after washing and peeling, at the sizing station, at thefryer, after seasoning when bagged (for weight), at carton filling, in the warehouse, andas they are placed on the store shelf by Frito-Lay personnel. Similar inspections takeplace for its other famous products, including Cheetos, Fritos, Ruffles, and Tostitos.In addition to these employee inspections, the firm uses proprietary vision systems tolook for defective potato chips. Chips are pulled off the high-speed line and checkedtwice if the vision system senses them to be too brown.The company follows the very strict standards of the American Institute of Baking (AIB),standards that are much tougher than those of the U.S Food and Drug Administration.Two unannounced AIB site visits per year keep Frito-Lay’s plant on their toes. Scores,consistently in the “excellent” range, are posted, and every employee knows exactlyhow the plant is doing.There are two key metrics in Frito-Lay’s continuous improvement quality program: (1)total customer complaints (measured on a complaints per million bag basis and (2)hourly or daily statistical process control scores (for oil, moisture, seasoning, and saltcontent, for chip thickness, for fryer temperature, and for weight).In the Florida plant, Angela McCormack, who holds engineering and MBA degrees,oversees a 15-member quality assurance staff. They watch all aspects of quality,including training employees on the factory floor, monitoring automated processingequipment, and developing and updating statistical process control (SPC) charts. Theupper and lower control limits for one check point, salt content in Lay’s chip, are 2.22%and 1.98%, respectively. To see exactly how the limits are created using SPC, watchthe Frito Lay Control Charts video above that accompanies this case. To learn how tocreate a basic control chart in Excel, watch the “Create a Basic Control Chart video thatis posted in Module 5.Obtain the Excel spreadsheet posted in Module 5 for this assignment. You willuse this file to answer the discussion questions below and to create your controlchart. Save your completed file, adding your full name where indicated so thateach uploaded file has a unique filename.Angela is now going to evaluate a new salt process delivery system and wants to knowif the upper and lower control limits at 3 standard deviations for the new system willmeet the upper and lower controls specifications for the existing system. The processstandard deviation is assumed to be the same as the existing process. The data (inpercent) from the initial trial samples are:
Discussion Questions to Answer1. Angela has asked you to evaluate the sample data and provide your findings to her.Do not simply give final answers! You must show how you derived your answers andexplain what the results mean. Does the new salt delivery system process meetspecifications? Why or why not?2. Create control charts in Excel from this data using the techniques shown in the”Create a basic control chart” video. Put your control charts in the worksheetprovided. Hint: The Excel video only shows an x-bar chart. Is this the only type youshould do?3. What are the advantages and disadvantages of Frito-Lay drivers stocking theircustomers’ shelves?4. Why is quality a critical function at Frito-Lay?

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