Quality Management - Report

This assignment is worth 20% of your final mark. Due date: 24 November 2016 Word count: no more than 3000 words. Text book: The set text required for this course is: Dale, B.G., van der Wiele, T. & van Iwaarden, J. (2007). Managing Quality (5th ed.). United Kingdom: Wiley-Blackwell. Instructions 1. You should be able to complete this assignment in no more than 3000 words. A 10% variance on this word count is acceptable. 2. Where you are directly using ideas from other sources or quoting, you should appropriately acknowledge this with citations and references using APA referencing. Case Study: Krayoz Services Ltd is considering introducing a quality management system into its organisation. The business was started by Ozzie Krayski and has been in existence for about five years, growing from a single home service provider into a large franchise with twenty providers in New Zealand. While still involved in his own service provision organisation, Ozzie is not part of the current franchise management team. However, his son Sergei is on the board, and his granddaughter Natalia has just been appointed as Quality Manager for the overall franchise. They often meet as a family, and Ozzie keeps in touch with the whole organisation. Ozzie loved his work from the earliest days and his first employees also found great fulfilment in providing their home services to people. The main focus of the franchise group is providing quality home-based services, including housework and gardening. Since the concept has been franchised, the organisation now has one hundred owners and employees scattered around the country. Most of the employees are part-time, but there are also full-time service providers and administrators among them. Each of the franchise holders provides home services to their clients. The overall group is very successful with this, and there are also a number of the group members who have good contacts within the service community. For example, Ozzie’s group works with local health providers to ensure quality service provision for recovering surgical patients. The steps in the business process begin with keeping in touch with local clients or customers. The next steps are to contact individual prospects or lodge proposals, locate service employees, make timetables for service, undertake the service and evaluate the provision. At any time, the quality of the interaction between staff and stakeholders is important. In fact, one of the most important areas overall is managing relationships. The local franchise holders keep in touch with others in the service area and rely on good information to obtain customers. Service providers also need to make sure that the clients are satisfied with the work and the interactions involved in providing good home services. Recently, Natalia sent out an email to all the franchise holders about improving the overall management of quality. She highlighted some issues she had identified and also possible improvements and her email reflected her enthusiasm about quality. However, some of the recipients were not so receptive – indeed, one of Ozzie’s old friends (Charlie) has contacted him with some problems. He has a number of questions about what this new system will mean for his business, particularly as some of the employees are not happy – they are concerned that such a process change will increase their workload without any increase in reward. Your task Ozzie has contacted Natalia, and she wants to provide a simple explanation of quality systems to him. She has asked you to assist with this. Using the information available, your brief is to present an analysis that includes the following. 1. 1. Quality management a) Provide a simple definition of quality management as it could relate to Krayoz Services Ltd (10 marks) b) Consider how the introduction of a quality management system might affect the following three groups at Krayoz Services Ltd. (15 arks) • External customers. • Franchise owners. • Part-time employees. 2. 2. Creating or adopting a quality culture a) Discuss the requirements of adopting a quality culture. (10 marks) b) Analyse how adopting quality management can have both costs and benefits. Your analysis should include a discussion of two costs and two benefits that relate to Krayoz Services Ltd. (20 marks) 3. 3. Identification of ways to improve quality a) Explain each step in the overall business process at Krayoz Services Ltd and: - highlight any two areas that you consider to be a value add opportunity - identify two moments of truth (15 marks) b) Briefly discuss how understanding the importance of value add opportunities and moments of truth might contribute to quality improvement (10 marks) 4. 4. Recommendation In the light of the available information, recommend and explain two steps that the management at Krayoz Services Ltd can take to begin their quality journey (10 marks) Marks will also be awarded for presentation • Overall presentation includes introduction, any appendices (as required), appropriate referencing, structure, clarity, and length. • Note that while you may use any appropriate format for your analysis, please use the four identified topic areas as main headings. (10 marks) [Total: 100 marks ] Module 1 We will be spending quite a bit of time in this course looking at Module 1. In fact, the Study Plan puts aside three weeks for the study of this section. A number of topics are covered in Module 1. These include: o What is quality and who determines quality? o The cost of quality, customers and moments of truth o Total Quality Management. You may have head of some of these topics before, or even thought about aspects of them. For example, you probably have some idea about what you think quality is. However, in this study will will go into some more depth about quality itself, and what affects quality management. In the Learning Guide, there are some activities to help you focus your study. For example, the first activity looks at the definition of quality, and then you are asked to think about different perspectives on quality. There are other activities which you might like to try as you work through the Module. 12 Analytics Assignment Business Management 2321– Individual Practical Exercise#3 Due at the beginning of class #7 Version 9 • Replace the bracketed information above by typing your last name, first name, student number, recitation day, and recitation time. Do not print the brackets. • Use your last name and first name as specified on Carmen. • Your last name is the name on your OSU e-mail account. • Your student number is a 9-digit number on your Buck-ID and the Student Information System. • DO NOT MODIFY this cover sheet. This includes erasing text, changing font, etc. • This cover sheet must be filled in (typed) completely and signed to be accepted. • All individual practical exercise material must be stapled to this cover page. By signing below, Iattest that I have performed this analysis. I understand that any violation of this statement by handing in another student’s work as my own will result in a suspected case of academic misconduct. Signature: ______________________________________________ Date: __________________ Business Management 2321– Individual Practical Exercise#3 Due at the beginning of class #7 Version 9 Problem #1 Calculate the following sensitivity analysis values. Round your answers to 2 decimal places. a. What is the shadow price for constraint #1? b. What is the shadow price for constraint #2? c. How much can the objective function coefficient for X1 increase without changing the optimal solution? d. How much can the objective function coefficient for X1 decrease without changing the optimal solution? e. How much can the objective function coefficient for X2 increase without changing the optimal solution? f. How much can the objective function coefficient for X2 decrease without changing the optimal solution? Maximize 5X1 + 3X2 Subject to 4X1 + 2X2 = 20 2X1 + 2X2 = 14 All decision variables > 0 (0,0) Optimal solution is X1 = 3, X2 = 4 Note: In the past, students have simply run Solver and generated a sensitivity analysis report to answer the questions. I highly recommend for the students to do this to check their answers but only after they manually calculate the answers. There will be questions regarding sensitivity analysis on the exams and students will not be given the sensitivity analysis report to answer the questions. Business Management 2321– Individual Practical Exercise#3 Due at the beginning of class #7 Version 9 Problem #2 Minnesota Fabrics produces three sizes (full, queen, and king) of quilted comforters. The company must produce at least 100 of each size of comforter daily. Each day, the company can obtain up to 2,700 pounds of stuffing and 48,000 square feet of quilted fabric from its suppliers. Minnesota Fabrics has 50 hours (3,000 minutes) of cutting time and 60 hours (3,600 minutes) of sewing time daily. A B C D E F G 1 Full Queen King 2 Solution LHS 3 Maximize Revenue $6.50 $9.00 $10.00 Sign RHS 4 Stuffing 3 4 6 = 2,700 5 Quilted Fabric 55 75 95 = 48,000 6 Cutting (Minutes) 4 6 7 = 3,000 7 Sewing (Minutes) 4 5 7 = 3,600 8 Demand (Full) 1 = 100 9 Demand (Queen) 1 = 100 10 Demand (King) 1 = 100 Input the formulation above into EXCEL and use Solver to find the optimum answer. Generate a sensitivity analysis report and use the report to answer the questions on the following page. Note: In the past, students have simply modified the linear programming formulation and rerun Solver to answer the questions. I highly recommend for the students to do this to check their answersbut only after they use the sensitivity report to obtain the answers. It is important to understand how to analyze changes in the model using the sensitivity report. There will be questions regarding sensitivity analysis on the exams and students will only have the sensitivity report available to them to answer the questions. Business Management 2321– Individual Practical Exercise#3 Due at the beginning of class #7 Version 9 Note: Round all answers to a maximum of 2 decimal places a) How many comforters of each type should be manufactured? Comforters Quantity Full Queen King b) What revenue will be obtained if the optimal solution is implemented? c) What is the maximum amount the RHS values could change from their original values without changing the set of non-zero decision variables (basis)? Negative Change Positive Change Stuffing Quilted Fabric Cutting (Minutes) Sewing (Minutes) Demand (Full) Demand (Queen) Demand (King) d) What is the lowest revenue for queen comforters that Minnesota Fabrics could realize while maintaining the optimal production schedule? e) How much could the objective function coefficients change from their original values without changing the optimal solution? Negative Change Positive Change Full Queen King f) Suppose Minnesota Fabrics could obtain additional resources: What is the most it would be willing to pay for an extra pound of stuffing? What is the most it would be willing to pay for an extra square foot of quilting material? What is the most it would be willing to pay for an extra hour of cutting? What is the most it would be willing to pay for an extra hour of sewing? g) Suppose that the requirement to produce at least 100 king size comforters was removed. How many king size comforters would be made? What would be the new objective function value? Individual Practical Exercise #3 Requirements Report (handed in at the beginning of the class) Cover page (First page of this document) 1 page portrait Problem #1 Completed sensitivity analysis answers (must be typed!) – Page 2 of this document 1 page portrait Problem #2 Completed sensitivity analysis answers (must be typed!) – Page 4 of this document 1 page portrait EXCEL Spreadsheets Problem #2 Linear programming formulation showing optimum answer 1 page landscapewith 0.25 margins centered horizontally and vertically on the page. Sensitivity analysis report. 1 page landscapewith 0.25 margins centered horizontally and vertically on the page. Points will be deducted for professionalism! The exercise cover page and all decision analysis must be typed! The exercise cover page should have the student’s last name and first name as specified on Carmen (your last name is the name on your OSU e-mail account). The exercise cover page should have the brackets removed around the last name, first name, and student number. The exercise must be printed in black/white with no color, shading, or highlighting The format of the report (cell widths, cell heights, and fonts) should not be modified. The exercise output cannot extend off the side or bottom of page The exercise should not include excess output (this individual practical exercise is 5 pages) The exercise should not be printed on both sides of the sheet of paper (duplex printed). The exercise should not be stapled incorrectly (see file regarding stapling on Carmen) The exercise should not be printed on “used” paper (excess printing on the front and/or back of the report) The exercise should be the correct version as determined by your student number The exercise must be stapled and should not have a physical (i.e. plastic) report cover or be bound. No late submissions will be accepted! Individual practical exercise can be submitted early to Dr. Mark, Professor Klinker, or to the Management Sciences office (600 Fisher). The individual practical exercises submitted to the Management Sciences office will be date/time stamped upon receipt. No individual practical exercises will be accepted by the TAs. No electronic submissions via e-mail. Have your individual practical exercise completed and printed the day before it is due to allow for “unforeseen” problems (i.e. printer breakdown, loss of computer file, etc.) DO NOT PROCRASTINATE IN WORKING ON YOUR INDIVIDUAL PRACTICAL EXERCISE! No unsigned individual practical exercises will be accepted! Do not type your name on the signature line or the date line of the cover sheet.