The Bayfield Mud Company has had some problems with their 50-pound bags of treating agents. They sent shipped some bags to Wet-Land Drilling, Inc. that were found to be short-weight by approximately 5%. Wet-Land first did their own study on how many bags were short and by how much. They randomly sampled 50 bags and found the average net weight to be 47.51 pounds. Wet-Land then contacted Bayfield Mud about the situation. Bayfield gave a 5% credit to Wet-Land for the mistakes. Wet-Land was not completely satisfied with the credit because the errors in the weight of the bags could have hurt their operations. Wet-Land informed Bayfield Mud that if something like this happened again, they would take their business elsewhere.
Bayfield's response to all this was to expand from a one-shift to a two-shift operation. Then, they had to expand to a three-shift operation. The additional night-shift bagging crew consisted of all new employees.
The most emphasis was placed on increasing output. It was very likely that only occasionally were bags double checked on their weight. This is where the statistical control has come into place.
The problems that Bayfield Mud faces include the possibility of losing a customer in Wet-Land, Inc. Another problem is putting out a product that is not acceptable. This problem could lead to more than just the loss of one customer, but perhaps an even greater amount.
Based on the information given in the following charts and numbers, especially the control chart, it is obvious that the bag problem is out of control. Out of the 72 times that samples were taken, 14 were out of control. That is unacceptable for a company who intends on satisfying the customer and maintaining business. Something must be done in this company to correct the problem...