Te Hoe Pakihi Department of Business Bachelor of Applied Management New Zealand Diploma in Business Assessment Two: Case Study Operations Management AMOM632 Operations Management NZDB632 / DAB632 Semester One 2017 Due date: Tuesday 25 April 2017 Time: 11:59 pm Instructions: See page 2. This is an individual report. TASK TOPIC MARKS 1, 2 Context 05 3 Process Selection LO3 (c) 16 4 Location Selection LO3 (a) 16 5 Facility Layout LO3 (d) 16 6 Quality Management LO2 (a) 20 7 Multi-disciplinary approach LO3 (b) 16 8 Project Management LO3 (e) 16  Formatting and presentation 05 TOTAL MARKS: 110 Student Name/ID ................................................................................................ Ara Institute of Canterbury and its division members reserve the right to use electronic means to detect and help prevent plagiarism. Students agree that when submitting this assignment, it may be subject to submission for textual similarity review to Turnitin.com. All assessments must be completed by the scheduled date unless alternative arrangements have been made with your lecturer. No late submissions will be accepted by the lecturer unless by prior arrangement. Any late submissions must be submitted by means of application to the Academic Manager for consideration and must include a letter of explanation as to why the assessment is late. Late penalties may apply. This assessment is worth 25% of the total marks for this course. This paper has eleven (11) pages including the cover sheet.Education and Applied Research Division Department of Business AMOM632 NZDB632 DAB632 Assess 2 Sem 1 2017.docx 29/03/2017 Page 2 © Ara Institute of Canterbury LEARNING OUTCOMES PURPOSE (Assessment Learning Outcomes 2 & 3) The purpose of this assessment is for you to: (a) Demonstrate your ability to explain quality management and apply quality management techniques in a given situation. (b) Demonstrate your ability to discuss the role of project management and apply appropriate project management techniques in a given situation. ASSESSMENT INSTRUCTIONS 1 This is an individual assignment. You are to submit your own work in your own words. 2 All assessments must be completed by the scheduled date and time unless alternative arrangements have been made with your lecturer. No late submissions will be accepted by the lecturer unless by prior arrangement. Any late submissions must be submitted by means of application to the Academic Managers for consideration and must include a letter of explanation as to why the assessment is late. Late penalties may apply. 3 Applications for extension will only be considered where it can be demonstrated that the reasons for the extension could not reasonably have been anticipated. High work load (including employment and study), unexpected loss of data or lack of preparation will not be accepted as valid reasons for applying for an extension as you are expected to manage your time appropriately. Unexpected circumstances such as Illness or compassionate reasons need to be backed up by appropriate documentation such as a letter from a medical practitioner. 4 You are to select a production company that “transforms inputs into completed outputs and services” and then use appropriate secondary information sources about the selected company together with the theory of Operations Management to complete the required assessment tasks. 5 Please note that the company you select must be unique and may not be the same as that used by any other student nor one that is listed in Appendix A. Furthermore, the lecturer reserves the right to reject any company proposed if they feel there might be reason why that company would present the student with an unfair advantage or disadvantage. 6 In order to ensure that your company is unique and appropriate, you are required to register your proposed company with your lecturer as soon as possible. Your lecturer will advise if your proposed company is acceptable or not. Companies will be allocated on a first come, first served basis. Assignments submitted without the appropriate approval process will be rejected, unmarked and the approval process will still be required before the assignment will be marked. Late submission penalties will be applied as normal. 7 The selected company may be located anywhere in the world, however it must have an English website and you must use this web-site for your references (that is, you may not reference non-English web sites).Education and Applied Research Division Department of Business AMOM632 NZDB632 DAB632 Assess 2 Sem 1 2017.docx 29/03/2017 Page 3 © Ara Institute of Canterbury 8 You are not to directly approach or contact any of the firms analysed in this assessment. 9 You should use only secondary data sources to inform your assessment. All secondary data must be referenced using appropriate 6th edition APA referencing (see http://tekete.ara.ac.nz/file/c667c626-c8a6-4f94-ab4ecb46bc55bab2/1/APA_6th_Edition.pdf on how to reference). Failure to reference secondary data will be viewed as plagiarism and may be referred to an Academic Manager for appropriate disciplinary action. No more than 10% of referenced information should be a direct quotation. Do not copy and paste information directly off the company’s website or promotional material. Instead, paraphrase this information in your own words. At least 90% of referenced information should be paraphrased in your own words. 10 Each individual student should submit a soft-copy only (in MS Word format), to the appropriate turn-it-in drop box provided on the course Moodle website. A hard-copy submission will not be accepted. 11 Should you struggle to submit your softcopy on Moodle, please contact the lecturer for assistance before the due date of the assessment. Please do not email a copy of the assessment to the lecturer as this will not be accepted as the time for your submission.Education and Applied Research Division Department of Business AMOM632 NZDB632 DAB632 Assess 2 Sem 1 2017.docx 29/03/2017 Page 4 © Ara Institute of Canterbury REQUIRED: Using appropriate APA referenced secondary sources for your information, complete the following tasks: 1 Identify your selected company and briefly describe their primary operations’ function and the industry within which it operates. (2.5 marks) Hints: Select a company that has all the information that you need to complete this assignment publically available on the internet. If you would like to use a company that you have worked for or are working for now, then the information you present must still be appropriately referenced – feel free to discuss this with your lecturer. Identify your selected company by providing the registered or trading name of your company and the address where production takes place. Reference this information from their website. Describe the primary function of your company by generically describing the completed goods and services that this company transforms from inputs into outputs. 2 Identify and briefly describe one (1) product and service offered as part of your selected companies’ primary function. (2.5 marks) Hints: Pick a specific product and service that will be easy for you to work with for the remainder of this assignment. Note that you MUST specify BOTH a product produced AND a service delivered by your company. Also note that it should be just one (1) product and one (1) service. 3 Relate how well the manufacturing process of the product and service from your company fits the theory of process selection. [LO 3 (c)] (16 marks) Hints: Justify the relative volume and variety of the product and service being offered by your company and then match the information you get from their website with the theory of process selection. 4 Assume that your company wants to invest in a new manufacturing facility. Discuss the strategic importance of location selection specifically for your company, and then suggest a location selection technique that your company might use to help them find a suitable location. [LO 3 (a)] (16 marks) Hints: Look at where your company currently has manufacturing facilities. Identify their primary suppliers, customers and other factors.Education and Applied Research Division Department of Business AMOM632 NZDB632 DAB632 Assess 2 Sem 1 2017.docx 29/03/2017 Page 5 © Ara Institute of Canterbury 5 Assume that your company has now selected a location for their new manufacturing facility. Discuss the strategic importance of layout selection specifically for your company, and then suggest a layout design type that your company might use. [LO 3 (d)] (16 marks) Hints: Use the theory of layout considerations to help advise on the factors to consider and factors to trade-off. Suggest specific tradeoffs. 6 Discuss quality management in terms of fitness for purpose, compliance and customer value and the importance and effect that quality management has on costs, customer benefits and productivity within the context of the production of the primary product and service of your selected company as identified by you in your response to task 2 on previous page. [LO2 (a)] (20 marks) Hints: Define quality for your company in terms of specific details of fitness for purpose, compliance and customer value. Then discuss specific details on the importance that this has on its costs, productivity and what benefits the customer will receive. 7 Using your own personal preferences nominate the relative importance of five (5) key customer needs. Nominate five (5) key features of the product and service that would meet the customer needs in one way or another. Now Apply the House of Quality (HoQ) to recommend the improvement of the most important product or service feature. Recommend the scale of the improvement that would be required to put your company ahead of one (1) direct competitor. Discuss how the HoQ implies a Multidisciplinary Approach to Goods and Services development. [LO 3 (b)] (16 marks) Hints: Use the template for the House of Quality (HoQ) on Moodle. Nominate a set of five (5) customer needs and rate their relative importance based on your own personal preferences (pretend that you are their ‘most important customer’). Select five (5) key product and service features that have been designed to meet the nominated customer needs. Ensure that you have clearly differentiate between customers’ needs and product or service features by checking that the needs are not features and features and not needs. Identify a logical relationship between the needs and the features using the principles of the HoQ. Calculate the relative importance weighting of each feature. Identify measurement parameters for each feature and specify referenced industry benchmark values for each feature within the context of similarly priced products and services currently available in the market. Research and relate how well your company does with respect to the benchmark values of these features and also how one (1) primary competitor performs against your product and service features. Recommend a quantified improvement for the most important feature(s) that would put your company ahead of their primary competitor for their ‘most important customer’ (i.e. you). Relate this improvement suggestion to a Multidisciplinary Approach to Goods and Services development.Education and Applied Research Division Department of Business AMOM632 NZDB632 DAB632 Assess 2 Sem 1 2017.docx 29/03/2017 Page 6 © Ara Institute of Canterbury 8 You are to assume that your company is going to run a project to improve its product or service according to your recommendation from task 6. [LO 3 (e)]. (a) Outline an appropriate high-level WBS for the project execution phase for your company to improve their product or service as per your recommendation in the previous task. Limit your lowest level WBS tasks to be between 8 to 12 items. (5 marks) (b) You have been advised that time to market is of the essence. Estimate time frames for each activity in your WBS and define appropriate task dependencies. (5 marks) (c) Using a PERT Chart, show and calculate the critical path for your project. (6 marks) Hints: (a) Remember that all the lowest level tasks must be specified in a ‘verb, object’ format. Only include tasks that are directly related to the execution phase of the project, not to initiation, planning, monitoring and controlling or closure. (b) You may use one (1) table for the answer to both tasks 8(a) and (b). Ensure that you use consistent units of time (that is, don’t mix your units). Estimate tasks time scales liberally and use analogous estimating. Document your assumptions or comparisons. Dependencies should make logical sense. (c) Draw a PERT chart of your project and indicate the critical path on the chart. You may submit a photo of a hand drawing of your pert chart. Remember to have single start and end points. Provide a legend for your chart. Remember a critical path without units is useless.Education and Applied Research Division Department of Business AMOM632 NZDB632 DAB632 Assess 2 Sem 1 2017.docx 29/03/2017 Page 7 © Ara Institute of Canterbury FORMATTING AND PRESENTATION Your document should be formally formatted and professionally presented. (5 marks) Hints: (a) The format of this assessment should be structured as follows: Title Page Table of Contents 1 Quality Management 2 Project Management Reference list Marking Schedule The Title Page must indicate the subject, assessment title, submission date, the lecturer’s name, the selling firm, the selling product or service, the student name (together with your ID number). Please note that the cover page of this assessment is not suitable as a Title Page for your assessment and should not be used. The Table of Contents should include the page numbers of each section of your assignment. Each numbered task must start on a new page and should have a heading which specifies the Task number and the associated Task Title written in an appropriate bold Heading format. These sections should be written as short passages, using tables, bullet points and figures as appropriate. Where tables straddle pages, the table on the new page must have appropriate column headings. Number and title every figure and table. (b) Please see http://www.ara.ac.nz/external-links/formatting-your-assignment for Step-by-step instructions for formatting your assignment using Microsoft Word 2010/2007. (c) A word count guide of between 2,000 to 3,000 words (about 7 to 10 pages) is advised for this assignment. This word count excludes the title page, table of contents and the reference list. (d) New Zealand English spelling and grammar should be used. Sentences with appropriate punctuation should be used to convey single concepts. Paragraphing should be used to separate out different concepts. Please see http://tekete.ara.ac.nz/file/9b7496a3-72f7-416c-912c- 08ebfb8b1c37/1/Assignment_Writing_Steps.pdf for writing skills and http://tekete.ara.ac.nz/file/12d20b38-6c8a-4057-99e8- 0df3a4727d97/2/Paragraphs.pdf for constructing sentences and paragraphs.Education and Applied Research Division Department of Business AMOM632 NZDB632 DAB632 Assess 2 Sem 1 2017.docx 29/03/2017 Page 8 © Ara Institute of Canterbury APPENDIX A: Companies that may NOT BE USED for your assignment. The following is a list of companies that are in the text and will therefore provide an unfair advantage to students. These companies may therefore not be used in your assignment: 1 Alaska Airlines 2 ALDI 3 AliExpress 4 Amway 5 Ara 6 Arnold Palmer Hospital 7 Boeing 8 Cecil Rice Export 9 Coca Cola 10 Darden Restaurant 11 De Mar 12 Frito-Lay 13 Hard Rock Café 14 Jackson Manufacturing Company 15 McDonald’s 16 Nissan 17 Norwegian Salmon Processing Facility 18 Orlando Magic basketball Games 19 Pepsi Co. 20 Rapid-Lube 21 Red Lobster Restaurant 22 Reebok Royal CL 23 Regal Marine 24 Ritz-Carlton Hotel Company 25 Rochester 26 Southwestern University 27 Toyota 28 Uber technologies 29 Wheeled CoachEducation and Applied Research Division Department of Business AMOM632 NZDB632 DAB632 Assess 2 Sem 1 2017.docx 29/03/2017 Page 9 © Ara Institute of Canterbury MARKING SCHEDULE: Score Weighting Task Criteria 0 1 2 3 4 5 1 Company A company has been identified, their registered or trading name has been provided and a valid physical address of the manufacturing facility has been provided. The industry that this company operates in has been appropriately identified and briefly described. Their English website is referenced using correct APA referencing. The primary function of the company has been correctly and appropriately described. Not included 4 or more criteria incorrect 3 criteria incorrect 2 criteria incorrect 1 criterion incorrect All criteria correct 2.5 2 Product A valid and specific product and services has been identified and described. The product and service both contribute to the primary function of the company. Not included 4 or more criteria incorrect 3 criteria incorrect 2 criteria incorrect 1 criterion incorrect All criteria correct 2.5 3 Process Selection A valid manufacturing process has been related to the relative volume and variety of products and services within this industry. Operator skill, job instructions, inventory levels, the driving force on finished goods, scheduling complexity and relative fixed and variable costs have been used to relate this product and service to the nominated process strategy. Not included 4 or more criteria incorrect 3 criteria incorrect 2 criteria incorrect 1 criterion incorrect All criteria correct 16 4 Location Selection The strategic importance of location selection has been discussed within the context of the product and service provided. An appropriate location selection technique has been suggested and justified within the context of specific customers, suppliers and other relevant factors. Not included 4 or more criteria incorrect 3 criteria incorrect 2 criteria incorrect 1 criterion incorrect All criteria correct 16Education and Applied Research Division Department of Business AMOM632 NZDB632 DAB632 Assess 2 Sem 1 2017.docx 29/03/2017 Page 10 © Ara Institute of Canterbury MARKING SCHEDULE: Score Weighting Task Criteria 0 1 2 3 4 5 5 Layout strategy The strategic importance of a good layout design has been discussed within the context of the product and service provided. Improved employee morale, customer/client interaction and flexibility have been considered in relation to the product and service being provided. An appropriate tradeoff between the utilization of space, equipment and people has been suggested and an appropriate tradeoff between the improved flow of information, materials and people has been made. Not included 4 or more criteria incorrect 3 criteria incorrect 2 criteria incorrect 1 criterion incorrect All criteria correct 16 6 Quality management Quality management has been discussed in terms of fitness for purpose, and customer value. The effect that Quality Management has on costs, customer benefits and productivity has been discussed within the context of the selected product or service. Not included 4 or more criteria incorrect 3 criteria incorrect 2 criteria incorrect 1 criterion incorrect All criteria correct 20 7 Multidisciplinary approach to Goods and Services development Reasonable customer needs have been identified and their relative importance documented. Appropriate product and service features that satisfy the nominated customer needs have been identified. A logical relationship matrix has been proposed with appropriate relationship values allocated. The feature Importance ratings have been calculated correctly. Appropriate and measurable target values have been identified for each product feature. The performance values of the selected product has been compared to one competitor and an appropriate and specific improvement recommendation based on the findings has been made. Potential feature trade-offs have been correctly identified. Not included 4 or more criteria incorrect 3 criteria incorrect 2 criteria incorrect 1 criterion incorrect All criteria correct 16Education and Applied Research Division Department of Business AMOM632 NZDB632 DAB632 Assess 2 Sem 1 2017.docx 29/03/2017 Page 11 © Ara Institute of Canterbury MARKING SCHEDULE: Score Weighting Task Criteria 0 1 2 3 4 5 8 Project Management An appropriate WBS with 8 to 12 lowest level activities has been outlined. The WBS is clearly for a project (i.e. the project is temporary, planned, unique piece of work that has a clear start and end date with a clearly defined deliverable). All lowest level activities are in a ‘verb noun’ form. Reasonable time estimates (with appropriate units) have been made for each activity using analogous estimation with documented assumptions or comparisons. Task dependencies are logical and defined to minimise the project time. An accurate PERT chart has been drawn and the critical path has been clearly shown on the PERT chart. The duration of the project has been correctly calculated. Not included 4 or more criteria incorrect 3 criteria incorrect 2 criteria incorrect 1 criterion incorrect All criteria correct 16  Formatting and presentation A professional layout which includes a table of contents, paragraph headings, page headings and page numbers has been presented. Correct New Zealand spelling and grammar suitable for a business report has been used, and correct and appropriate APA referencing has been applied. Not included 4 or more criteria incorrect 3 criteria incorrect 2 criteria incorrect 1 criterion incorrect All criteria correct 5 TOTAL 110