Amgis A Flavors And Food Additives Case Study

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Amgis, a flavors and food additives company has a sudden surge in production due to increase in sales and transfer of production from an affiliate. The company requires additional labor to cope with the sudden increase in production. However, strict labor laws have limited the company to hire permanent employees, and overtime employees and forced them to engage temporary labor to keep the process flowing. The company then had to make arrangements with a third party labor provider and the arrangement made between the third party labor provider and the Amigs "was supposed to help maintain the cost-effective use of casual labor by the company. Instead, Amigs was seeing an unreasonably high increase in casual labor cost." Hence, the finance and …show more content…
A good amount of time must be dedicated at the define phase with a total duration of 2 to 3 weeks. A good way to begin the define phase is by identifying the project leader, coach, and a champion, then interview the customer and identify their needs and project expectations through voc, ctq and kano model. Additionally, it is important to identify and select cross functional teams consisting of financial controller, operators, engineers, supply chain, management, and other team members associated with the project. Finally, one has to complete the project charter and gain acceptance from upper management to move to the measure phase. With the complete define phase described, let 's focus on the case. In the define phase of the case, the team including internal stakeholders and external stake holders like project managers, ops team leaders, liquids operations managers, and vendors and developed a high level process map to show the temporary labor hiring …show more content…
Key steps to remember in improve phase are: "develop potential solutions, evaluate, select, and optimize best solutions, develop and implement pilot solutions, confirm attainment of project goals, develop and execute full-scale implementation plan, and prepare for improve gate review." Referred from Lean Six Sigma Pocket Toolbook. In this case, improvements were made based on the primary root causes. Statistical analysis tool like t-test was used to confirm improvements. A T-test is a hypothesis testing tool where a significance level, α, the probability of making a Type I error is set to be small — 0.01, 0.05, or 0.10. Comparing the P-value to α. If the P-value is less than (or equal to) α, the null hypothesis is rejected in favor of the alternative hypothesis. If the P-value is greater than α, null hypothesis is not rejected". For example, in Amigs case, as shown in the below figure, P-value is 0.00016 which is lower than 0.05, hence the null hypothesis is rejected to conclude that the improved process is significantly different than

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