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Quiz 7 :

Process Improvement

Quiz 7 :

Process Improvement

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Prepare a run chart on each of the incident categories. Does she have reason to be concerned about Burglaries? What variable might you plot against Burglaries to create a scatter diagram to determine a possible explanation ?
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A major city of Country SE, SA has a population of 150,000 approx. It has a student population of 12,000 approx. SH maintains a monthly record of her law department and finds recent increase with the readings of this year.
Run charts are used to record changes in a process variable with respective to time. They are used to determine trends, cycles or performance of any process either to interpret trends or to compare present and future trends of a solution.
Using run charts, determine the trends of law department as shown below:
Construct run chart on each incident categories as follows:
img From the above constructed run chart, it can be found that there exists a significant increase in the incident of burglaries from the month of August to December. This drastic increase might would illustrate that burglaries are attempted by gangs. In order to interpret the trend of illegal activities, SH has considered the increase in burglaries.
Scatter diagram visually represents the relationship between two variables. Plotting possible-cause variables against the present problem variables will help to identify the correlation that exists between the variables. In the present case, possible variables that can be plotted against burglaries would be the previous or next year's data of other gang activities of the respective months.

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Explain how the application of the PDCA cycle can support a competitive strategy of low cost leadership.
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The PDCA cycle is a process of continuous improvement of processes and products. The PDCA cycle consists of four wheels Plan, Do, Check, and Act. As a competitive strategy, the low cost leadership helps to reduce cost of manufacturing goods and gain market share. The main objective of low cost leadership is to produce a qualitative product at a minimum cost.
Through step by step analysis, the PDCA cycle helps to set a competitive strategy of low cost leadership as discussed below:
PLAN : Planning refers to the recognition of problem, analyzing the possible causes, and develop an action plan. For low cost leadership strategy, the main objective is to manufacture at a minimum cost. The various alternatives to minimize the cost need to be analyzed to find the best alternative. An action plan need to be developed to implement the chosen alternative. Thus, planning helps to define an optimal strategy for low cost leadership.
DO : The solution need to be implemented at this step. The strategy chosen at the first step need to be implemented and monitored. Monitoring the progress helps to find whether the strategy has been implemented as planned.
CHECK : At this step, the results of new plan are reviewed and evaluated. The progress of the new strategy need to be evaluated to find whether it has bought any positive change. This helps to note the unpredicted consequences that arise and minimize them.
ACT : At this step, the progressive changes are standardized if they are profitable and beneficial. The low cost leadership strategy that is progressive should be communicated to all workers with enough training if needed. This helps to keep all the workers aware of the new strategy implemented and work according to the new strategy to achieve objectives.
Thus, by the application of the structural PDCA cycle, a low cost leadership strategy helps to give a tough competition among rivals in an industry.

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Discuss any shortcomings in the application of DEA to Mid Atlantic Bus Lines.
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Data Envelopment Analysis measures the efficiency and productivity rate of an organization with respect to multiple output and inputs used in the production process.
Some of the weaknesses of DEA are as follows:
• Measurement of error can be problematic.
• DEA does not measure the exact or absolute efficiency.
• DEA method fails to solve complex problem.
• DEA method is complex and difficult to understand especially when the problem consists of number of variables.

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Discuss why Deming's 14-point program was rejected by U.S. firms but embraced by the Japanese following World War II.
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For the Burger Palace example, what is the effect of removing an inefficient unit from the analysis (e.g., S 2 )?
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What are the limitations of "benchmarking?
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How is the SSM different from Deming's PDCA cycle ?
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Use DEA to identify the efficient and inefficient terminal operations. Formulate the problem as a linear programming model, and solve using computer software such as Excel Solver that permits input file editing between runs.
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Prepare a cause-and-effect or fishbone diagram for a problem such as "Why customers have long waits for coffee." Your fishbone diagram should be similar to that in Figure 18.17, using the main sources of cause: policy, procedure, people, and physical environment.
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For the Burger Palace example, perform a complete analysis of efficiency improvement alternatives for unit S 2, including determination of a composite reference unit.
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Would you recommend preparing control charts for Assault and Theft incidents ? Why or why not?
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Articulate a process in which DEA can be used to improve the performance of an elementary school district.
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What recommendations would you have for the one seriously inefficient terminal in regard to increasing its outputs ?
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Using the appropriate reference set of efficient terminals, make recommendations for changes in resource inputs for each inefficient terminal.
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For the Burger Palace example, what is the effect of removing an efficient unit from the analysis (e.g., S 6 )?
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For the Burger Palace example, perform a complete analysis of efficiency improvement alternatives for unit S 5, including determination of a composite reference unit.
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What is unusual about the pattern of reported Disorderly and DWI incidents by month? What could be an explanation for this behavior? How could the sheriff address this pattern and reduce the number of incidents?
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Prepare a Pareto Chart based on the total of last year's incidents. Why might the sheriff not prioritize efforts on incident reduction according to the results of the Pareto Chart ?
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3. How would you resolve the difficulties that study teams have experienced when applying SSM ?
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