Lovell levelers, inc. is a major provider of specialized parts 49444

[removed]Lovell Levelers, Inc. is a major provider of specialized parts
for the automotive industry. LLI’s biggest customer, Specific Motors
was not a delighted customer this month. In fact, last
Monday, the executive vice president of Specific Motors headquarters,
Phyllis Kendall was diverted from a return trip from Singapore
to drop in unexpectedly at the LLI plant. There was nothing
routine about this visit. She made it explicitly clear that
Specific Motors was disappointed with the level of quality relative
to the leveler plates. In particular, she was disappointed with the
current average of rejects at the rate of 1,350 defects per million
opportunities (DPMO) at a cost of poor quality of just over $256,000
per quarter. She said the industry standard is less than 50 DPMO and
if we do not get the level of quality to the industry standard (as a
minimum) within the next six months, LLI should not expect
to keep the business next year.