Suppose you were presented with the following:
“You have been hired to help a fast food franchise, a market leader in the South West Region of the U.S.Â This franchise collects and reports on a metric they call “scrap rate“.Â Scrap Rate has been increasing for the previous 3 quarters for this 60 store franchise.Â This problem was costing this franchise ~ $35K/month.
Using Lean and/or the DMAIC framework, please help this firm solve the “Scrap Rate” problem.Â Feel free to use paper, calculator, whiteboard, and to ask me questions.Â What’s going on with Scrap Rate?”
This was a real engagement that I was engaged in several years ago.Â Here are a few hints:
- The root cause is absolutely not obvious, but surprisingly trivial.
- The solution eliminated the root cause 100%.
- The solution cost less than $2.00 US Dollars.
How would you go about solving this problem?