CH-14-15 Managing Quality Improvement Teams and Projects – Managing Quality: Integrating the Supply Chain : Book Guide

This Document Contains Chapters 14 to 15 Chapter 14: Managing Quality Improvement Teams and Projects Chapter Outline •Leading Teams for Quality Improvement •Types of Teams •Implementing Teams •Managing and Controlling Projects •Force-field Analysis Overview This chapter covers three topics: 1. Today’s business environment has changed business’s focus from command and control (or reacting to problems) to an environment based on what the text calls knowledge work. The increased complexity of running a successful business is driving that change. 2. Leading teams has become a major part of a successful product implementation. The well-lead team offers a work environment that is conducive to success. 3. Managing projects has increased in importance. Most development or modification efforts are done via a project. These projects have a defined life; they start and they end. The period of time between the start and end must be managed correctly. This chapter discusses tools and methodologies that will aid in making a project successful. As stated in the introductory section of this chapter, Joseph Juran has long emphasized the importance of teams and projects in the improvement of quality. He stated that the improvement of quality should be approached on a “project-by-project basis, and in no other way.” Teams are a fundamental part of projects. Discussion Questions 1. Why has increased complexity in the workplace resulted in an increased emphasis on employee participation and teamwork? As complexity increases, the ability of a single person to be effective diminishes. As identified in the introduction, knowledge work places a new set of necessities on the line worker. More time must be spent organizing, communicating and researching. Teamwork simplifies this endeavor. 2. What is the difference between routine work and knowledge work? Provide examples of each type of work. The figure below explains the concept. Routine work is work that has been structured. While the work might be manual, it also can be what might be considered desk work, such as bookkeeping. Knowledge work implies that the employee enjoys a degree of freedom in his or her actions. Imagination and actual knowledge of the environment come into play. An engineer would be an example of a knowledge worker. 3. What is meant by employee empowerment? What is the relationship between employee empowerment and teamwork? One of the prevailing concepts in management today is the idea of making decisions at the lowest level possible. Empowerment is done when a worker has the freedom to make decisions. On page 373, the text provides a list of the promises to employees that identify employee empowerment. •You will have greater control over your own work. •You will not be penalized for making decisions that don’t pan out. •Management is changing and becoming more contemporary. •Management is committed to quality improvement over the long haul. •Management will concede more control over company systems to you. •Management values your ideas and opinions and will give them serious consideration. •Management trusts you and is worthy of trust in return. •You will be rewarded for making decisions that benefit the company. •Labor is capable of decision making concerning its own jobs and company processes. 4. In what ways can employee empowerment facilitate and contribute to organizational learning? Employee empowerment is usually accompanied by a change in the corporate culture. This new culture involves granting freedom to the employee to learn, question, and take intelligent risks without fear of recrimination. All of this activity expands organizational learning. It also provides a methodology for expanding organizational learning. 5. What are the major disadvantages of multiple layers of management in a business organization? Is teamwork typically implemented in organizations that have multiple layers of management or organizations that have fairly flat hierarchies? Explain your answer. Reducing levels of management or flattening hierarchies immediately improves communication. The text discusses the efforts led by consultants such as Tom Peters and others. The discussion on page 375 presents the advantages. Reducing levels of management gives the worker more visibility to management and allows the employee access to information so that the empowered employee can make the appropriate decisions required by the job. In a team environment, the mix of skills and experience allows decision making at the team level. This increases the effectiveness of the organization. On page 375, the text describes an example in which a corporation spent six months deciding on the standard colors for telephones. One side effect of the multi-tiered hierarchy is the reluctance of people to make simple decisions. If the team reports to a director as opposed to a supervisor, the team will be more inclined to make these simple decisions in a more cost-effective manner. 6. Describe the principal attributes of Hersey and Blanchard’s situational leadership model. Is this model of leadership appropriate for a quality-minded company? Hersey and Blanchard looked at two key qualities of management – guidance and emotional support – and constructed the matrix in Figure 14-1, shown below. This simple chart expresses the view that the optimal leadership style is low guidance and high emotional support, yielding a participating management style. This loose structure and strong level of consideration enables the empowered employee. 7. What does readiness refer to in a leadership context? What are the two variables that an employee’s level of readiness is a function of? Used in a leadership context, readiness refers to the extent to which a follower has the ability and willingness to accomplish a specific task. Readiness is a function of two variables: ability and technical skills (job maturity), and self-confidence in one’s abilities (psychological maturity). 8. In general, do employees enjoy working in teams? Why or why not? Page 373 of the text states that employees enjoy working on teams in environments in which expectations are known and the employee is empowered, The text goes on to list five motivators that empowered employees enjoy: •Mutuality •Recognition for personal achievement •Belonging •Bounded power •Creative autonomy While it is unstated, the common denominator in this discussion is respect; both respect for the employee and earned respect for management. 9. Briefly describe the five stages of the life cycle of a team. Is it important for a team to pass through each of these stages? Why or why not? On page 377, the text discusses the five stages that a team goes through during its existence. Figure 14-2, shown below, presents these stages: forming, storming, norming, performing, and mourning. Each stage is dependent upon the previous stage, therefore each stage is needed. For example, the storming stage is described as the stage in which the members begin to know each other and the internal communications have not been established. The next stage, norming, is the period in which the team is functioning as a unit. At this stage, all communications are in place and the team is functional. Without the trial and error of the storming stage, the effectiveness of the norming stage will not happen. 10. What is the purpose of a process improvement team? Provide an example of a process improvement team for a business organization. Process improvement teams exist to shepherd the continuous quality improvement process. While these teams may be management or self-directed, they oversee the quality improvement methodology. On page 379, their tasks are defined as: identifying opportunities for improvement, prioritizing opportunities, selecting projects, gathering data, analyzing data, making recommendations, implementing change, and conducting post-implementation reviews. An example of a process improvement team is a safety team that continually looks for ways to improve the safety of a manufacturing facility and makes recommendations to management on safety-related issues. 11. What is meant by a self-directed work team? In your judgment, are self-directed work teams a good idea? Explain your answer. The phrase self-directed is self-explanatory. The text discusses “little s” or “big S” teams. A “little s” team is one that is empowered to be self-directed in matters that are within their designated function. A “big S” team identifies projects that affect different functions within a company. A “big S” team operates without traditional management structure. The success of a self-directed team is tied directly to the level of employee empowerment that exists within the company. Employees who feel that they have full support of management will take the risks that they deem necessary. 12. Describe the role of the facilitator of a team. Is the role of the facilitator important, or is it primarily ceremonial in nature? A facilitator is essentially a “traffic cop.” A facilitator is not a project leader or manager. The facilitator’s role is to insure that the team is focused on the task at hand. Facilitators maximize the success of the individual members of the team. Facilitators frequently manage meetings so as to minimize side discussions and insure that the conversation stays on track. Many of today’s development methodologies make use of the facilitator role. Specifically, a facilitator enables the team (or meeting) to: •Know where it is going •Know why it wants to get there •Know how to get there •Know what they're going to do next 13. What is meant by team building? Is team building a concept from which all teams can benefit? Twenty years ago, team building involved off-site challenge courses or activities. Today, according to the text, the roles of team building have become quite specific. They include: •Identifying the team members’ roles •Help them become competent at these roles •Handle conflict resolution In the five stages discussed in question 9, team building occurs during forming, storming, and norming. 14. In a meeting management context, to what does parking lot refer? One of the problems with any meeting is the fact that people frequently bring their own personal agenda items into a meeting. Frequently, these items are not on the meeting agenda. One method of keeping the meeting focused is by using a “parking lot” – a list where items that need resolution but are not part of the topic under discussion are held for later. At the end of the meeting, these items are either assigned to people or scheduled for discussion at a later date. 15. What are the primary sources of conflict in work teams? What are some of the methods for resolving team conflict? People come from various backgrounds and have different attitudes. Conflict is unavoidable. When handled correctly, conflict can be quite healthy. When handled poorly, conflict can destroy a project. On page 383, the text defines four stages of conflict: •Frustration. People are at odds, and competition or aggression ensues. •Conceptualization and orientation. Opponents identify the issues that need •to be resolved. •Interaction. Team members discuss and air the problems. •Outcome. The problem is resolved. If communications are free and open and an environment of mutual respect exists, conflict can become a normal and healthy manner of resolving conflict. Fostering this environment of mutual respect is the task of the team leader. 16. Describe what is meant by virtual teams. Provide an example of a virtual team in a business organization. Electronic communications have enabled team processes. Distance is no longer a problem for working together. A virtual team is one that utilizes today’s high-tech environment to function despite location. Teleconferencing, email, and instant messaging all provide the same ease of communications that proximity used to. A Closer Look At Quality 14-2 demonstrates this concept. 17. How does a project charter help a team identify issues relevant to team success? The project charter is a document that defines objectives, participants, and expected benefits from the charter. Figure 14-5, on page 388, contains an example of a project charter. Essentially, the charter is the “permission slip” for the project to start. 18. Describe the critical path method for organizing work projects. When is the use of this method appropriate? Almost all non-trivial projects are composed of sets of tasks. There are usually interrelationships between these tasks. Some tasks cannot start before another task has completed. The critical path method (CPM) is a method of charting these tasks and showing their relationships. The critical path is the longest distinct path. It is critical because it defines the total length of the project. If this set of tasks is delayed, the project is delayed. CPM identifies those tasks that affect the overall schedule the most. Gantt charting and PERT charting are similar techniques that can be used to determine a critical path. 19. Describe the difference between critical tasks and a critical path. A critical task is a task with no slack. Slack is the amount of time an activity in a project can be delayed without delaying the entire project. A series of critical tasks is called a critical path. Figure 14-12 presents the output from a program called Microsoft Project. This PERT chart presents a series of tasks and their interrelationships. PERT is an acronym for Project Evaluation and Review Technique. 20. Describe an experience you have had working in a team (in a work setting or in a college class). Describe how your experience either confirms or refutes one of the principles of teamwork described in this chapter There are as many correct answers to this question as there are participants in the discussion. Every student should be able to present examples of both positive and negative experiences with teams. It might be interesting to collect the negative experiences and see if there is any commonality. To address this question, I'll provide an example of teamwork that could either confirm or refute one of the common principles of teamwork, such as the importance of clear communication, mutual respect, shared goals, or accountability. Example: During a college project in a sociology class, I worked with three other students to create a presentation on social stratification. At the beginning, we divided the tasks based on each person's strengths, with one person focusing on research, another on data visualization, another on writing, and myself managing the overall structure and presentation. One key principle of teamwork that was tested during this project was clear communication. Initially, we set a group chat to discuss progress and check on deadlines. However, as the project progressed, one team member became unresponsive, leading to confusion about the status of their part of the project. This lack of communication delayed our progress, and we had to meet twice as often to cover the missing pieces. In the end, we pulled together a solid presentation, but it required extra effort from the other team members. This experience confirmed the principle that effective communication is essential for successful teamwork. When communication broke down, it not only affected individual responsibilities but also created a ripple effect that disrupted the entire group's progress. In future team projects, I realized the importance of scheduling regular updates and ensuring that everyone feels comfortable addressing concerns early on to avoid miscommunication and delays. Case 14-1: Whole Foods Market: Using Teamwork as a Recipe for Success Discussion Questions 1. Do you believe that Whole Foods’ emphasis on teamwork is appropriate for the grocery store industry? Why or why not? Because the supermarket industry is aging and is not known for innovative management techniques, most students will probably argue that teamwork (which represents a fresh approach) is a good choice for the grocery store industry. Also, the potential benefits of teamwork in a grocery store context (e.g., promoting cooperation among a store's employees, and increasing the competitive spirit of a store's employees) sound encouraging. From a pragmatic standpoint, a grocery store also provides a convenient format to establish teams because a grocery store has obvious departments (e.g., produce, canned goods, a bakery, a deli, etc.) around which teams can organize. It would be interesting to ask if any students have direct experience with Whole Foods or a similar company. Ask them to compare the shopping experience at Whole Foods with the experience at more traditional stores. Another interesting question for the discussion is whether the Whole Foods shopping experience is more reminiscent of the small family run grocery store. Whole Foods’ emphasis on teamwork is highly appropriate for the grocery store industry for several reasons: 1. Customer-Centric Service: In a grocery store, customer interactions are frequent and varied. Teamwork fosters better communication between employees, allowing them to collaborate effectively to solve customer issues, provide product recommendations, or manage long lines during peak hours. This ensures a seamless customer experience, which is crucial in the competitive grocery industry. 2. Efficient Operations: Grocery stores rely heavily on efficient stock management, product display, and inventory control. Teamwork allows employees to divide responsibilities, share workload, and support each other in maintaining order and efficiency on the sales floor. Whole Foods’ team-based structure enhances productivity by encouraging collaboration and accountability among workers. 3. Employee Empowerment and Motivation: Whole Foods emphasizes a decentralized, team-based approach where decisions are made collaboratively within teams. This fosters a sense of ownership and autonomy among employees, which can increase job satisfaction and motivation. For an industry that often faces high turnover rates, this can lead to greater employee retention and a more motivated workforce. 4. Innovation and Adaptability: The grocery store industry, including Whole Foods, faces constant changes in customer preferences, product trends, and sustainability initiatives. A team-oriented environment promotes the sharing of ideas and encourages innovation. Teams are more likely to experiment with new processes, display methods, or product offerings, making the store more adaptable to change. In conclusion, Whole Foods’ emphasis on teamwork aligns well with the grocery store industry's need for efficiency, customer service, and adaptability. It also contributes to a positive work culture, which is essential in an industry where employee engagement can directly impact the customer experience. 2. What is your opinion of Whole Foods’ practice of sharing team performance data with all company employees? Do you believe that this practice risks creating “too competitive” a spirit among the firm’s teams and employees? Explain your answer. There are pluses and minuses to sharing team performance data among employees. On the plus side, the sharing of performance data with all employees facilitates an "open atmosphere" in an organization. This helps build trust between upper management and rank-and-file employees. In addition, the sharing of data provides team information on what it will take to beat another team in the spirit of healthy competition and fun. On the minus side, sometimes the sharing of data can lead to unhealthy competition and can cause divisions rather than the building of cooperation among employees. Do other factors affect the performance of the teams, such as price fluctuations, holidays, weather? 3. Would you enjoy working on a team at Whole Foods? Why or why not? Answers will vary. It might be interesting to post a list of the pros and cons, and challenge each student to contribute to both sides of the discussion. I believe working on a team at Whole Foods could be enjoyable for several reasons: 1. Collaborative Environment: Whole Foods fosters a culture of teamwork and collaboration, where decisions are often made collectively within teams. Being part of such an environment can be rewarding, as it encourages open communication, sharing ideas, and learning from colleagues. This sense of community would make work more engaging and less isolating. 2. Empowerment and Autonomy: Whole Foods emphasizes employee empowerment, allowing team members to take ownership of their roles and make decisions. Having this level of autonomy can lead to greater job satisfaction, as it promotes personal growth and gives a sense of purpose in the work. 3. Focus on Values: Whole Foods has a strong commitment to sustainability, healthy living, and ethical sourcing. Working in an organization that aligns with these values would provide an opportunity to be part of a mission-driven team that makes a positive impact on customers and the environment. This shared purpose among team members can create a motivating and inspiring atmosphere. 4. Growth Opportunities: Whole Foods promotes from within and offers opportunities for employees to advance within the company. Working in a team-oriented environment can provide exposure to various roles and responsibilities, enhancing both professional development and career growth. That being said, it could also present challenges, such as coordinating with team members who may have differing work styles or maintaining consistent communication in a busy retail environment. However, overall, the collaborative, mission-driven culture at Whole Foods would likely make the team experience positive and fulfilling. Suggested Answers to End of Chapter Problems 1. Perform a cost benefit analysis with payback period for a project where indirect costs are $50,000, direct costs are $25,000, and annualized benefits are $60,000. Using formula 14.2: PP = Ct/Ba = (25,000+50,000)/60,000 = 1.25 years 2. Perform a cost benefit analysis using the following data: Direct Costs: 10 laptops - $2,000 ea. A server - $2,000 Network Installation - $15,000 Software – $20,000 Indirect Costs: Training - $15,000 Annualized Benefits Increased Capacity - $100,000 We will compute the payback period as part of our CBA. The formula is: PP = Ct/Ba = ($57,000+$15,000)/$100,000 = .72 years .72*365 = 263 day payback period. The payback is less than 1 year. 3. Following are activities, precedence relationships, and task times (days) for a number of tasks. a. Construct a precedence diagram. b. c. Compute early and late times. See the above diagram. d. Compute the slack for each task. Use formula 14.7, late start – early start: A = 0 – 0 = 0 B = 5 – 5 = 0 C = 9 – 5 = 4 D = 7 – 7 = 0 E = 13 – 9 = 4 F = 12 – 12 = 0 G = 19 – 15 = 4 H = 21 – 12 = 9 I = 18 – 13 = 5 J = 26 –26 = 0, K = 23 – 23 = 0 L = 26 – 26 = 0 M = 33 – 33 = 0 e. Which tasks could the project manager delegate? Managers will tend to delegate non-critical tasks. f. Find the critical path. Critical path = A – B – D – F – J – K – L – M g. Which tasks would you shorten first to shorten the project completion time? Shorten critical tasks that cost the least to expedite. h. What is the expected project completion time? 37 days i. What is the probability of completing the project in the time identified in G? 50%. This is an important concept for students to understand. 4. Following are activities, precedence relationships, and task times (days) for a number of tasks. a. Construct a precedence diagram. b. Compute early and late times. See the above diagram. c. Compute the slack for each task. d. Which tasks could the project manager delegate? Delegate non-critical tasks with larger slacks – start with B. e. Find the critical path. Critical path = C – F – I – J – L f. Which tasks would you shorten first to shorten the project completion time? Shorten the critical task with the lowest cost to expedite. g. What is the expected project completion time? 282 days (50% completion probability) 5. For the data presented in the text (see also below): a. Draw an AON diagram. b. Compute expected completion for each task. See table above. c. Compute slacks for all tasks. See table above. d. Identify the critical path and the expected completion time. ADJNO 42.9 e. Your project manager wishes for you to compute a completion time (in days that gives you a 95% chance of success. He will use this time estimate in negotiating a completion date for the project. To solve this problem, we need to determine the Z Scores for 95%. We are looking for the area under the bell curve, which represents 95%. Using Table A-2 and looking up .45 (.95 - .50), we get a Z score of approximately 1.7. Using the critical path expected time and standard deviation we get 42.9 + (1.7 x 6.41) = 42.9 + 10.9 = 53.8. Project std = 6.41 Critical path = 4 Expected time = 42.9 95 = 50 + 45 - 1.7 45% = 1.7-2 6. For the following data: a. Draw a PERT diagram. b. Compute expected completion times for all tasks. See the above diagram. c. Find the critical path. B– F–J–K is the path with no slack. d. What is the completion time that gives you a 75% chance of success. P=.75 yields z=.68 from the z Table. Sum the variances for critical tasks from the above table, using the beta distribution estimates. Project variance = 1 + 6.25 + 1.78 + 0 = 9.03 Project standard deviation = SQRT (9.03) = 3.005 Therefore, the 75% completion time is 29.1 + .68(3.005) = 31.14 days. 7. (Team Project) Develop a project plan for buying a house. Use the following steps: a. Use a work breakdown structure (tree diagram - Chapter 10) to identify tasks for completing the project. Be complete (at least 50 tasks) and use sticky notes. b. Laying out your sticky notes, identify the precedence relationships for each task. c. Brainstorm optimistic time, most likely time, and pessimistic time for each task. d. Compute expected completion time for each task. e. Draw your network diagram, compute early and late times, and find the critical path. f. Compute the 90% completion time for your project. Answers will vary for this. This is a good project to help students go through the steps involved in planning a real project. It also requires them to interview a real estate sales person to get the information they need. Project Plan for Buying a House This project plan will be organized into six steps, each following the guidelines you provided. For simplicity, we'll break down the tasks into phases and go through the critical elements, including time estimates and diagrams. a. Work Breakdown Structure (WBS) The Work Breakdown Structure (WBS) outlines the key tasks involved in buying a house. For clarity, here’s a breakdown of tasks, which can be represented as a tree diagram in real-life applications using sticky notes. Phase 1: Preparation 1. Define budget. 2. Check credit score. 3. Get mortgage pre-approval. 4. Hire a real estate agent. 5. Research neighborhoods. 6. List housing preferences (size, location, etc.). 7. Review housing market trends. Phase 2: House Search 8. Search for houses online. 9. Visit open houses. 10. Schedule private showings. 11. Evaluate houses visited. 12. Shortlist top houses. 13. Verify school districts (if needed). 14. Check commute distances to work. 15. Consider neighborhood amenities. Phase 3: Negotiation 16. Obtain house inspection. 17. Analyze inspection results. 18. Get a house appraisal. 19. Review appraisal results. 20. Compare offers. 21. Submit a formal offer. 22. Negotiate offer (counteroffers). 23. Finalize purchase agreement. Phase 4: Mortgage Process 24. Choose a mortgage lender. 25. Submit a loan application. 26. Provide income and financial documents. 27. Wait for mortgage approval. 28. Review terms and conditions. 29. Lock in interest rates. 30. Schedule mortgage closing. Phase 5: Closing Process 31. Review closing documents. 32. Pay down payment. 33. Arrange homeowner’s insurance. 34. Arrange for a home warranty (if desired). 35. Schedule final walkthrough. 36. Sign documents. 37. Pay closing costs. Phase 6: Post-Purchase 38. Set up utilities. 39. Change address with post office. 40. Set up trash and recycling services. 41. Plan move-in logistics. 42. Hire movers (if necessary). 43. Move personal items. 44. Unpack belongings. 45. Settle into the new home. Phase 7: Follow-Up 46. Review any warranty documents. 47. Set up mortgage payment system. 48. Schedule maintenance checks. 49. Review homeowners’ association rules (if any). 50. Start routine maintenance schedule. b. Precedence Relationships Laying out precedence relationships: • Budgeting comes before searching for houses. • Mortgage pre-approval and real estate agent hiring must be completed before house visits. • House inspection precedes negotiating the final offer. • Mortgage approval is needed before the closing process can begin. • Final walkthrough happens before signing the documents. c. Time Estimates (Three-Point Estimation) For each task, the following time estimates will be used: • Optimistic time (O): Best-case scenario where everything goes smoothly. • Most likely time (M): Most probable time under normal circumstances. • Pessimistic time (P): Worst-case scenario with delays and issues. We'll calculate the expected time (ET) using the formula: d. Compute Expected Completion Time By calculating the expected time for each task using the three-point estimates (optimistic, most likely, pessimistic), we can estimate how long each phase of the project will take. This would include each of the 50 tasks from the WBS. e. Network Diagram and Critical Path Based on the expected times, we can draw a network diagram to visualize task dependencies. Here are the basic steps: 1. List all tasks and their dependencies. 2. Identify the critical path, which is the sequence of tasks that determines the minimum project completion time. The critical path will include tasks with zero slack (i.e., tasks that cannot be delayed without delaying the project). Example Critical Path: 1. Define budget → 2. Get mortgage pre-approval → 3. Search for houses → 4. House inspection → 5. Submit offer → 6. Mortgage approval → 7. Closing. The network diagram visually connects tasks, showing both critical and non-critical paths. You can use project management software (e.g., Microsoft Project) to generate the network diagram, or sketch it manually. f. Compute the 90% Completion Time To compute the 90% completion time, we'll use the Program Evaluation and Review Technique (PERT) approach. The formula for calculating the 90% confidence interval is: Where: •TExpected is the sum of the expected times on the critical path. • Z is the Z-score for 90% confidence, which is 1.28. • σ is the standard deviation for the critical path, calculated as the sum of variances (from the three-point estimates). This gives an estimated time that accounts for uncertainties in the project, providing a 90% chance of completing the project by that time. 8. Team Project) Complete the steps in problem 7 for the following project: Completing a university degree program (choose any major). Answers will vary for this. This is a good project to help students go through the steps involved in planning a real project. This is something with which the students are familiar. 1. Work Breakdown Structure (WBS): Identify tasks such as enrolling in courses, completing general education requirements, passing major-specific courses, conducting research or internships, preparing for exams, and submitting a thesis (if applicable). 2. Precedence Relationships: Courses must be taken in sequence (prerequisites), exams follow course completion, internships or research occur in upper years, and thesis submission happens after core courses. 3. Time Estimates: Assign optimistic, most likely, and pessimistic time estimates for each task (e.g., 3-5 years to complete the program). 4. Network Diagram & Critical Path: Map tasks, compute early/late start times, and find the critical path (e.g., coursework, internships, thesis). 5. 90% Completion Time: Use PERT to estimate a 90% completion time, factoring in uncertainties, and plan for contingencies like retaking courses or additional internships. 9. (Team Project) Develop a Gantt chart for welcoming a new baby into the world (conception has already occurred). Remember you only have 9 months to complete the project. There is a lot of work that goes into preparing for birth. The students may want to think through this. 10. Complete a cost benefit analysis for a college degree at your university. Be sure to include all direct and indirect costs. Tale into account the time value of money for future income. Often, IRR or NPV calculations are required for CBAs. Ask the students to use these in this analysis. The payback period calculations in the text are limited in that they don’t account for the time value of money. 11. Complete a cost benefit analysis for a marriage. Be sure to include both the benefits and costs in your model. Model the marriage given two scenarios – a strong marriage and a poor marriage. (Hint: You should find that the benefits for a strong marriage approach infinity and the benefits of a poor marriage approach zero.) Payback models don’t work for this if they model it using NPV models from a finance text book. They will find that, theoretically, the benefits of a good marriage are infinite and the benefits of a poor marriage are zero. 12. Meet with a favorite professor to perform a force-field analysis relating to adding a new course to your major in the university. Would you recommend this project? Below is an example answer. Students often don’t understand the difficult process of making curricular changes. A force-field analysis is used to weigh the driving forces (factors supporting the change) against the restraining forces (factors resisting the change) for adding a new course to your major. Driving Forces (Supporting the new course): 1. Student demand: Many students express interest in the new topic. 2. Industry relevance: The new course could align with emerging trends in the field and improve employability. 3. Faculty expertise: Professors with relevant expertise are available to teach the course. 4. Competitive advantage: The new course could set the program apart from similar majors at other universities. Restraining Forces (Resisting the new course): 1. Curriculum overload: Adding the course may overload students or extend the time to graduation. 2. Budget constraints: The department may lack funding for additional faculty or resources. 3. Scheduling conflicts: Finding space in the schedule for a new course could be difficult. 4. Faculty workload: Current professors may have limited capacity to teach the new course. Recommendation: If the driving forces significantly outweigh the restraining forces, particularly if student demand and industry relevance are high, I would recommend the project. Addressing the restraining forces—such as adjusting the schedule or securing funding—could make the new course a valuable addition to the major. Chapter 15: Implementing and Validating the Quality System Chapter Outline •Building Blocks for the System of Quality Improvement •Internal Validation: Documenting And Assessing the Quality System •Quality Audits •Validating the Quality System • Overview Now that the text has defined all of the facets of being best-in-class or best-in-the-world, how do you implement the plans and procedures to achieve that status? How does a company assess where it is in achieving this goal? How does it move to the next level? This chapter provides the tools to evaluate your position and move to the next level. Companies also should recognize that these approaches are not short-term fixes. They require long-term commitment and support that are probably going to be more obvious in firms that have established quality programs. Discussion Questions 1. The model in Figure 15-1 shows people as the basis of the quality system. Do you agree with this assertion? Why or why not? The base of the entire system in Figure 15-1 is people. A theme of this text has been empowering people so that continuing quality improvement is a part of the job. On page 403, the text states, “People represent the core of a firm’s capabilities because they provide the intellect, empathy, and ability that are required to provide outstanding customer service.” 2. There are regions where the three spheres of quality overlap. What are some of the overlaps between management, assurance, and control? Why are they important? The overlaps are really quite obvious. None of the three spheres are independent. Chapter 1 presents a simpler view of the three spheres of quality on page 17, in which an overview of the tasks for these spheres can be identified as: •Quality control: monitoring, measuring, and optimizing •Quality assurance: design, engineering, and process improvement •Quality management: planning, leading, and facilitating The relationships are obvious. 3. Review the concept of enterprise capabilities. Pick a firm and determine what you think is the enterprise capability for that firm. On page 406, enterprise capabilities are defined as the “capabilities firms have that make them unique and attractive to customers.” In any industry, there are facets of some firms that differentiate them from the competition. One might ask, “What is the difference between a Chevrolet and a Cadillac?” An interesting classroom discussion might be to have the class identify products within an industry and list the facets that differentiate them from each other. 4. Why is internal assessment a necessary tool for outstanding companies? Internal assessments provide a cadre of trained people who can continuously monitor the internal systems. An external audit, while potentially delivering valuable information, is a single event. An internal auditor can regularly view the process and any improvement accomplishment. With a proper system of internal assessments, the external audit can be even more valuable. 5. At what stage do you believe a company would be ready for internal assessment? Chapter 5 discusses gap analysis. Figures 5-3 and 5-4 (shown below) on pages 112 and 113 define the context of the analysis. Correction of these gaps, or a procedure in place to eliminate them, is the first element for being prepared for internal assessment. If many gaps exist, the internal assessment would be self-defeating. 6. At what stage does a company become ready for Baldrige-based internal assessment? Ideally, a mature process would be appropriate for Baldrige-based assessment. Figure 15-2 on page 409 (shown below) presents an overview of the stages for a Baldrige-based internal audit. This is one example of a tool that can be used in improving quality. A good class exercise involves teams performing this assessment and reporting their results. 7. Define the different types of audits. Pick a company and define which type would be best for it. Support your answer. The textbook goes into detail on the various types of quality audit. They include: •Supplier audits •Operational audits •Performance audits •Certification audits •Award audits •Consultant audits Each audit has a different goal and potential outcomes. A class discussion will be very useful here. 8. The Boise City Leadership model is an interesting model for a governmental entity. Is this model different from a model that would be used for a for-profit firm? Why or why not? In the Boise City Audit, a model was built, shown here: Based on this model, the variables that needed analysis were isolated. This is a straightforward technique that can be applied to any situation. The emphasis is placed upon defining the situation and identifying problems before any analysis can be effectively done. 9. What are the enablers for quality improvement in a school? What are they in a firm where you have worked (see Fig. 15-4)? Figure 15-4 identifies the generic auditing steps. The answer is probably related to the culture at the school or firm. In class discussion, list the steps and identify people or positions that fall under these categories. After this has been done, students can perform the exercise either in teams or individually. Enablers for Quality Improvement in a School: 1. Leadership Commitment: School leaders, such as the principal and department heads, must actively support and prioritize quality improvement initiatives. 2. Teacher Professional Development: Continuous training and development programs for teachers to enhance their skills and adopt new teaching methodologies. 3. Student Engagement: Encouraging student feedback and participation in the improvement process. 4. Curriculum Relevance: Regularly updating the curriculum to reflect current knowledge, skills, and industry trends. 5. Data-Driven Decisions: Using data, such as test scores and student evaluations, to inform teaching strategies and school improvements. 6. Collaboration: Fostering teamwork among teachers, administrators, and students to work toward shared goals. Enablers for Quality Improvement in a Firm (where you have worked): 1. Leadership Involvement: Leaders who actively support and drive quality initiatives, setting clear goals for improvement. 2. Employee Training: Ongoing skill development programs for employees to stay updated on best practices. 3. Customer Feedback: Using customer input to identify areas for improvement in products or services. 4. Process Standardization: Implementing standard operating procedures to reduce variation and improve efficiency. 5. Cross-Functional Teams: Encouraging collaboration across departments to solve problems and innovate. 6. Continuous Monitoring: Tracking key performance indicators (KPIs) and regularly reviewing processes for optimization. These enablers create a foundation for both schools and firms to continuously improve quality and achieve long-term success. Case 15-1: Setting Priorities Using the Baldrige Criteria Discussion Questions 1. How did you select particular projects from the feedback report? Selecting Projects from the Feedback Report: Projects were selected based on areas of improvement highlighted in the Baldrige feedback report, focusing on gaps in performance, customer satisfaction, and operational efficiency. 2. What are some of the weaknesses of this approach? Weaknesses of this Approach: It can lead to a narrow focus on immediate issues rather than strategic, long-term goals. There is also a risk of bias if feedback is interpreted subjectively. 3. Why would it be good to use a mix of internal and external examiners as are recommended in the chapter? Mix of Internal and External Examiners: Internal examiners bring organizational knowledge, while external examiners offer fresh perspectives and objectivity, making evaluations more comprehensive and balanced. 4. How did you prioritize projects for improvement? Prioritizing Projects for Improvement: Projects were prioritized based on urgency, alignment with strategic goals, impact on customer satisfaction, and resource availability. 5. Was all of the feedback meaningful? What are some of the attributes of useful feedback? Feedback Meaningfulness: Not all feedback was equally useful. Meaningful feedback is specific, actionable, aligned with strategic goals, and provides a clear path for improvement. This case study is the final case study in the text. It is also a fitting case to summarize the entire text. It would be non-productive to supply short answers to each of these questions. This would be an excellent project for team presentations. It could also be either a term paper or a take-home final. Suggested Answers to End of Chapter Problems 1. Administer the survey instrument in “A Closer Look at Quality 15-1” to a local business owner and report your findings. Results will vary. The findings can be presented in writing or orally. To complete the task of administering the survey instrument in "A Closer Look at Quality 15-1," you would follow these steps: 1. Identify a Local Business Owner: Find a business owner willing to participate in the survey. This could be a local retailer, service provider, or another small business owner in your community. 2. Administer the Survey: Use the survey provided in "A Closer Look at Quality 15-1," which likely assesses the business's quality management practices, customer satisfaction, process improvements, and other related factors. 3. Analyze Responses: After gathering the responses from the business owner, review the data to identify key strengths and weaknesses in the business's quality processes. 4. Report Findings: Summarize the results. For example, you might find that the business excels in customer service but lacks formal quality control procedures. Highlight areas where the business can improve, such as implementing a more structured feedback system or training employees on quality management principles. 5. Provide Recommendations: Based on the findings, suggest steps the business owner can take to enhance quality, such as adopting continuous improvement practices, setting performance benchmarks, or seeking external customer feedback. Would you like help preparing the survey or organizing your findings? 2. Administer the survey instrument in “A Closer Look at Quality 15-1” to the employees of the business from Problem 1 above. Compare the employees’ and owner’s responses to see where they differ significantly. Results will vary. This is an interesting team project to point out that owners and employees have differing perceptions relative to company performance. To complete this task, you would follow these steps: 1. Administer the Survey to Employees: Use the same survey instrument from "A Closer Look at Quality 15-1" and distribute it to several employees of the business. Ensure a good sample of employees across various roles (e.g., front-line workers, managers, etc.) to get diverse perspectives. 2. Analyze Employee Responses: Gather and review the employees' feedback on the same quality-related factors (customer service, process improvement, training, etc.) you assessed with the owner. 3. Compare Owner and Employee Responses: Look for significant differences between the responses. Some areas to compare might include: • Perception of customer satisfaction: The owner may think customers are very satisfied, but employees could have a different view based on daily interactions. • Process improvements: The owner might believe the processes are efficient, while employees could see areas of inefficiency or bottlenecks. • Training and support: The owner may feel that adequate training is provided, but employees might report needing more guidance or resources. 4. Identify Significant Gaps: Highlight areas where there is a large disparity in views. For example, if employees rate internal communication as poor but the owner believes it is excellent, this indicates a communication gap that could affect quality. 5. Discuss and Recommend Improvements: Based on the differences, suggest recommendations for alignment. For example, if employees feel under-supported in their roles, the owner might consider investing in better training or improving communication channels. Solution Manual for Managing Quality: Integrating the Supply Chain Thomas S. Foster 9780133798258