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MGT 3332 SPC case analysis: Americo Drilling Supplies� Fall 2015

This assignment provides an SPC case analysis for Americo Drilling Supplies, covering quality control methods.

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1SPCCASEANALYSIS:AMERICO DRILLINGSUPPLIESMGT 3332–Fall 2015Dr. NayebpourInNovember2013,JohnAdams,acustomerservicerepresentativeofAmericoDrillingSupplies(ADS),wassummonedtotheHoustonwarehouseofDrillingContractors, Inc.(DCI), to inspect three boxcars of mud-treating agents thatADShad shipped to the Houston firm.DCIhad filed a complaint that the 50 Pound bagsoftreatingagentsthatithadjustreceivedfromADSwereshort-weightbyapproximately 5%.The light-weight bags were initially detected by one of DCI’sreceiving clerks, whonoticed that the rail road side scale tickets indicated that the net weights weresignificantlylessonallthreeoftheboxcarsthanthoseofidenticalshipmentsreceived on October 25, 2013.ADS’s traffic department was called to determine iflighter-weight dunnage or pallets were used on the shipments. (This might explainthe lighter weights.)ADSindicated, however, that no changes had been made in theloading or palletizing procedures. Hence,DCIrandomly checked 50 of the bags anddiscovered that the average net weight was 47.51 pounds. They noted from pastshipmentsthatthebagnetweightsaveragedexactly50.0pounds,withanacceptable standard deviation of 1.2 pounds.Consequently, they concluded that thesample indicated a significance short-weight.ADS, was then contacted, and Adamswas sent to investigate the complaint and to issuea 5% credit to DCI.DCI, however, was not completely satisfied with only the issuance of credit for theshort shipment. Thecharts followed by their mud engineers on the drilling platformswere based on 50-pound bags of treating agents. Lighter-weight bags might result inpoor chemical control during the drilling operation and might adversely affect drillingefficiency.(Mud-treatingagentsareusedtocontrolthepHandotherchemicalproperties of the open during drilling operations.)This could cause severe economicconsequences because of the extremely high cost of oil and natural gas well-drillingoperations. Consequently, special use instructions had to accompany the delivery ofthese shipments to the drilling platforms. Moreover, the light-weight shipmentshad

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Document Details

University
University of Houston
Course
MGT 3332
Subject
Business Management

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