PIP Project

Module Objectives

Upon completion of this module, you will be able to:

● Identify and demonstrate understanding of the concepts and tools associated with process
improvement
● Discuss the Process Improvement Project
● Write a description of the Process Improvement Project.
Chapter 1: Introduction to Operations and Supply Chain Management
Overview & Objectives
Chapter 1 introduces the operations function and the evolution of operations
management and global supply chain. Concepts that will be discussed and examined
include globalization; productivity and competitiveness; and strategy relative to
operations.

Chapter Objectives

Upon completion of this Chapter you will be able to:

● Identify the concepts and tools associated with the introduction to Operations
management.
● Solve problems relative to productivity
● Discuss the meaning behind the statement, “The Last thing we need is
Vision”
● Explain the two most significant stages of the Industrial Revolution and
defend your position
Chapter 1 Homework
1.1. Tried and True Clothing has opened four new stores in college towns across the
state. Data on monthly sales volume and labor hours are given below. Which store
location has the highest labor productivity? From calculations shown on the chart below,
Blacksburg has the highest efficiency for volume/hour.

Store Annandale Blacksburg Charlottesville Danville

Sales volume $40,000 $12,000 $60,000 $25,000
Labor hours 250 60 500 200
Efficiency 160.00 200.00 120.00 125.00

1.3. At last year’s bass tournament, Jim caught 12 bass in a four-hour period. This year
he caught 15 in a six-hour period.

Year Last Current

Bass caught 12 15
Hours 4 6
Efficiency 3.00 2.50
Pound per fish 20 25
Pounds per
year 240 375
Pound per hour 60 62.5

a. In which year was he most productive? Last year was a more productive year than
this year for number of fish caught in the hours he was fishing.

b. If the average size of the bass last year was 20 lb and the average size this year was
25 lb, would your decision change? Efficiency based on pounds would suggest that this
year was a more productive fishing than last year.
Chapter 2: Quality Management Overview & Objectives
Module 2 Discusses the definition of quality from a variety of perspectives and
specifically defines the Quality Management System, the tools and philosophies
associated with quality management and its progression within the framework of
production and services

Module 2 Objectives

Upon completion of this module you will be able to:

● Identify the stages of Quality Management evolution beginning with the

Industrial Revolution
● Solve problems relative to the cost of quality, productivity, and yield
● Synthesize and defend if "Six Sigma is more effective in healthcare
operations than Total Quality Management (TQM) (debater)
● Discuss how "Six Sigma" is more effective in healthcare operations than TQM
(non-debater)
● Summarize your conclusion from the debate and why you feel that way
(non-debater)
Total Quality Management (TQM): Customer-oriented, leadership, strategic planning,
employee responsibility, continuous improvement, cooperation, statistical methods, and
training and education.

Quality can and must be managed.

The customer defines quality, and customer satisfaction is the top goal; it is a
requirement and is not negotiable.
Management must be involved and provide leadership.
Continuous quality improvement is “the” strategic goal, which requires planning and
organization.
Quality improvement is the responsibility of every employee; all employees must be
trained and educated to achieve quality improvement.
Quality problems are found in processes, and problems must be prevented, not solved.
The quality standard is “no defects.”
Quality must be measured; improvement requires the use of quality tools, and
especially statistical process control.

Dimensions of Quality for Manufactured Products

The dimensions of quality for manufactured products that a consumer looks for include
the following:1

Performance: The basic operating characteristics of a product; for example, how well a
car handles or its gas mileage.
Features: The “extra” items added to the basic features, such as a stereo CD or a
leather interior in a car.
Reliability: The probability that a product will operate properly within an expected time
frame; that is, that a TV will work without repair for about seven years.
Conformance: The degree to which a product meets pre established standards.
Durability: How long the product lasts; its life span before replacement. A pair of L.L.
Bean boots, with care, might be expected to last a lifetime.
Serviceability: The ease of getting repairs, the speed of repairs, and the courtesy and
competence of the repair person.
Aesthetics: How a product looks, feels, sounds, smells, or tastes.
Safety: Assurance that the customer will not suffer injury or harm from a product; an
especially important consideration for automobiles.
Other perceptions: Subjective perceptions based on brand name, advertising, and the
like.
DMAIC
Define: The problem is defined, including who the customers are and what they want, to
determine what needs to improve. It is important to know which quality attributes are
most important to the customer, what the defects are, and what the improved process
can deliver.
Measure: The process is measured; data are collected and compared to the desired
state.
Analyze: The data are analyzed in order to determine the cause of the problem.
Improve: The team brainstorms to develop solutions to problems; changes are made to
the process, and the results are measured to see if the problems have been eliminated.
If not, more changes may be necessary.
Control: If the process is operating at the desired level of performance, it is monitored
to make sure the improvement is sustained and no unexpected and undesirable
changes occur.

Quiz
● The training and education of all employees on quality improvement is a basic
principle of total quality management (TQM). Six sigma combines training and
education with project work and coaching.
● The courtesy and competence of the repair person can be one aspect of
serviceability.
● The focus of quality management began to change consumers’ attitudes toward
quality in the 1950s.
● Companies that satisfy its customer quality requirements often require the
commitment of their suppliers.
● Six Sigma quality is a statistical measure that equates to only 3.4 defects per
million.
● The cost of measuring, testing, and analyzing are collectively known as appraisal
costs.
● Quality of design Involves designing quality characteristics into a product or
service.
● Fitness for use is how well the product or service does what it is intended to.
● TQM is a recognized quality program based strictly on statistical process control.
● Today TQM has been displaced by QMS.
● McDonald’s has a reputation for high-quality service resulting from the
application of QM principles.
● The probability that a product will operate properly with an expected time frame is
the dimension of quality known as reliability.
● One principle of TQM is that management is responsible for providing the
leadership for quality to employees.
● Quality of performance relates to the basic operating characteristics of a product.
● Scatter diagram is a quality tool that displays the relationship between two
variables on a graph.
● Quality characteristics included in the product’s design must be balanced against
production costs.
● The degree to which a product meets preestablished standards is known as a
quality of conformance.
● From the producer’s perspective, quality refers to the value that is achieved by
producing and selling a quality product or service and making the highest
possible profit.
● From the consumer's perspective quality is determined by what the consumer
wants and is willing to pay for.
● A product should be designed with considerations as to how it will be produced.
● Deming Wheel is also known as the PDCA cycle.
● The ISO 9000 family of standards addresses various aspects of quality
management and are the best-known ISO standards.
● A relationship between a firm and its supplier where the supplier agrees to meet
the firms’ quality standards and the firm enters into a long-term purchasing
agreement with the supplier is known as partnering.
● Deming believed that management and employees are responsible for improving
quality.
● According to Revere and Black (2003) article, Six Sigma is a new management
philosophy that extends TQM efforts by using detailed metrics to identify and
eliminate process variation. Integrating Six Sigma into the existing total quality
management program facilitates process improvement through detailed data
analysis.
● According to Revere and Black (2003) article, Six Sigma is superior to traditional
TQM program because it relies on root cause analysis, detailed data collection
and statistical analysis.
Students in non debating teams (EACH student): Read the Team 1 and Team 8
summaries. Comment on the team posts, and discuss this issue with others (see rubric
for more specific instructions.) On which issues do you agree or disagree? Why? What
questions do you have for the team? Pay particular attention to the rubric as it details
participation, reference requirements and a required summation that includes your
"takeaway" from this debate/discussion. While there is no word count requirement for
your posts while participating in this discussion, there is a word count for your summary
statement.

Debate criteria
● Students will demonstrate their ability to write an opinion related to the topic assigned. 1)
Submit to the discussion board an organized, concise statement that describes the
opinion.(no more than 120 words) that demonstrates an understanding of the topic and
 its relevance to the course. 2) Provide at least 2 references that supports your opinion.
(reference lists do not count in your word requirement.)
● Students will demonstrate their understanding of OM and Globalization. 1. Cite at least
two additional references that support or refute the topic’s impact on business cultures,
globalization, and the economy; 2. Give examples that demonstrates an understanding
of cultural differences in the topics;
● Students will demonstrate how cultural differences impact business performance. 1.
Posts to at least four other posts 2. provides an understandable and reasonable
discussion of business performance issues with a clear explanation of both your concern
and /or support of their position while comparing it to your position;
Homework
2.1. Backwoods American, Inc., produces expensive water-repellent, down-filled parkas. The
company implemented a total quality-management program in 2014. Following are
quality-related accounting data that have been accumulated for the five-year period after the
program’s start.

a. Compute the company’s total failure costs as a percentage of total quality costs for each of
the five years. Does there appear to be a trend to this result? If so, speculate on what might
have caused the trend.

b. Compute prevention costs and appraisal costs, each as a percentage of total costs, during
each of the five years. Speculate on what the company’s quality strategy appears to be.

c. Compute quality-sales indices and quality-cost indices for each of the five years. Is it possible
to assess the effectiveness of the company’s quality-management program from these index
values?

d. List several examples of each quality-related cost—that is, prevention, appraisal, and internal
and external failure—that might result from the production of parkas.