Lindsay Electric Company: operations and services

Lindsay Electric Company Case Study

Lindsay Electric Company is a company that focuses on the distribution of electrical automation and power transmission products. The firm recently started to implement a total quality management process through which the manager commenced a process of data collection regarding its receiving procedure. This process was initiated by the manager because of the recent decline in the company's on-time deliveries. While an analysis in the purchase department showed that the data entry person was doing an excellent job, the firm experienced significant delays in handling packages designed for branch operations and error data in packaging. These issues can be resolved through analysis of the error data and utilizing findings to develop appropriate strategies for operations management.

Control Chart

Based on this chart, the satisfaction levels are very low. In the first week, the handling of packages had minimal error and was nearly within the satisfaction level. However, the subsequent weeks were characterized with low levels of satisfaction, which could have tremendous impact on the firm's operations if the errors continued in a similar manner. The errors could have worsened in the other packaging slips because of wrong destination designation and significant delays. Therefore, there is need for the company to streamline its operations in order to lessen the errors and improve productivity.

Pareto analysis is a concept that is based on the 80:20 principle rule that enables organizational departments to prioritize operations in order to improve efficiency, effectiveness, and productivity. The general rule within the principle is that 20% of processes generate nearly 80% of results ("Pareto Analysis," n.d). The use of Pareto analysis in this process enables Lindsay Electric Company to identify 20% process in the packaging and handling department that creates 80% of the results. The company may use this information to identify problem areas that contribute to wrong destination designation, considerable delays, and multiple errors. According to O'Farrell (2014), the company may use the information to diagnose problems related to production satisfaction in service processes.