1 Assignment #1: MBA 505 S2017 – Case Study Part 1 – "Exploration" Introduction: In Part 1 of the ongoing CES case study you are given qualified information regarding a business process that requires further analysis using three of the seven basic quality tools as espoused by Professor Ishikawa and the Project Management Institute. The tools include process mapping, causeand-effect diagrams, and check sheets. Your task is to apply the tools to given the information provided below. The assignment breakdown in terms of length is as follows: Process Maps (includes diagrams and activity report 3-4 pages); Dispersion Diagrams (1 page) and Check Sheets (3 pages); for a total of 7 or 8 pages. Submit to D2L only one submissions per group; in one pdf file (named Assignment 1). Include the full names of all group members in the D2L submission comments. "Obtain Material" Process Scenario: Scientists, researchers, engineers, and others whom work at regional Canadian Environmental Services Stations (CES - a Federal government department) throughout Canada, incur the following activities when a need to obtain an item over $1K. Items under $1K are purchased directly from the trade by the departmental material coordinator (MC) using a purchasing card (credit card). For items over $1K, the process is regulated by the policies contained in the CES Material Management Manual (CES MMM) and by the Station Procurement Budget (SPB) that is managed by the CES Station Comptroller Department. The client (the person who identifies the need) will contact (normally via email or a F2F meeting) their department material coordinator (MC) with the request. The duties of MC are secondary to their main role in the organization. The MC will fill out forms CES 100 (material authorization request – with 17 distinct/mandatory fields); CES 101 (material demand – with 10 distinct/mandatory fields) plus demand a written substantiation (memo format) as to the need for the item (signed by the requesting manager). Depending on the item/dollar value (usually an item over $3K or a controlled item such as environmental instruments, software, computers, mobile devices, etc.) the MC's departmental manager will need to authorize the request. If the manager rejects the request, the process is terminated by notifying the requester (via a "Cancelled" notice written on the original CES 100 form) that the request is not approved. However, more than 90% of the requests are approved. Once a week the MC gathers all the approved outstanding requests (normally 2-3) and heads over to the CES Comptroller Department (located in the main administration building - about 200 meters away). The MC takes the three documents (CES 100, CES 101, and the approval memo), to discuss the requirements with one of the customer service agents (CSA). The CSA will review the documents with the MC, check existing local/regional/national regulations and policy manuals (collectively referred to as Material Controls) for restrictions and/or exemptions. As well there may be a spending freeze or extra scrutiny placed on material requests due to limitations placed on the Station's Procurement Budget (SPB). At this point the request may be rejected, requires correction/ additions/ clarity (CAC), or approved in principal (but requires further screening and approval), including CES Comptroller, or CES regional/national approval in some cases. Requests that require further CAC are given back to the MC for further action. The MC will return to their department and attempt to obtain the required information from departmental personal. Requests that require Comptroller, regional/national approval can be either approved or rejected. Material requests requiring further authorization (beyond the station comptroller) are sent via the inter-departmental mail system once a week. The regional office is located in Winnipeg and the national office is in Ottawa. When the request is approved or rejected; the request is sent back via the departmental mail system to the originating CSA2 for further action (initiating procurement or processing the rejection). Requests that are rejected by the Comptroller or Regional/National HQ for lack of substantiation/funding are sent back to the originating CSA who will contact the requesting MC for follow up action. Wherein the MC attempts to provide additional details and re-submits the request to the original CSA. Once a material request is approved the transaction data as per the CES 100 and 101, is entered by the CSA into the CES Inventory Management and Tracking System (IMTS). If the request is approved the CSA will forward it to the station's purchasing agent for procurement action; notify the MC that the requested material is being purchased and an estimated delivery date. Incoming shipments are delivered directly to the requesting MC's location. Prior to delivery, the vendor will contact the MC to coordinate a location and time. Once the item is received, the MC will sign a CES 102 form (material receipt), input the data from the CES 102 form in the IMTS, and notify (via email) the original requester that the item is ready for pick-up. Assignment 1: Quality Tool #1 Process Mapping: Student Deliverable: Using the IDEF0 protocol, map the process described scenario above(called the "Obtain Material" process); create one IDEF0 Level A-0 and decompose the A-0 context diagram to a Level A0 process diagram with 4-6 sub-processes (ideally 4) . Identify, and label all process inputs, controls, outputs (both positive and negative), and enablers (ICOEs). The Level A-0 process diagram should also have the Viewpoint, Scope and Purpose listed in the upper-portion of the diagram. Scope (use scenario information to create an appropriate scope), Viewpoint (as per the scenario), Purpose ("To map the current As-Is Obtain Material Process at CES"), Source (CES Process Improvement Team). Ensure your diagrams have the IDEF0 model template and you have entered the following information to complete the header of the template: USED AT: CES, AUTHOR: you, PROJECT: MBA 505 S17 Assignment 1, DATE: use due date; last Revision Date (date of your last revision to the process diagram/definitions); DRAFT; READER: leave blank; CONTEXT: TOP. Use the following information to complete the footer of the template: NODE: A-0, TITLE: OBTAIN MATERIAL, Pg 1 (Level A-0 diagram) and Pg 2 (Level A0 diagram). Create suitable definitions (1-2 lines) for the Level A0 process, the Level A-0 sub-processes and the ICOEs (this information will be in the Model - Activity Report). Print the Level A0 and Level A-0 Process Diagrams (landscape layout) followed by the Model - Activity Report (portrait layout). The structure of the Model - Activity report is as follows (use underlined text as report headings): title: Model - Activity Report – Obtain Material - list the Purpose, Scope, and Viewpoint; followed by the Processes {starting with the leftmost process and include the Level A0 Process Obtain Material as the first process) name & definition, Inputs name & definition (listed alphabetically), Outputs name & definition (listed alphabetically), Controls name & definition (listed alphabetically), Enablers name & definition (listed alphabetically). The model should reflect the activities from the Departmental MC's perspective. Organizational charts for the affected agencies are denoted as Figures 1-4 (below). Note this model is to be focused on "Obtaining Material" only; the detailed purchasing activities and the Comptroller, regional/national request screening processes is beyond the scope of this model. The Level A0 map should have suitable activities/sub-processes (verb/noun) and appropriate ICOEs. The following additional information is provided below: 1. CES 100 blank form; 2. CES 101 blank form; 3. Requesting Memo; 4. CES 102 blank form; 5. CES Organizational charts.3 CES 100 Form Fields 1. Accountability code: 2. Authorization Scale: 3. Budget Account: 4. Customer Control Number: 5. Transaction Code: 6. Supply Customer Account: 7. Delivery Location: 8. Date Required: 9. Special Instructions: 10. Quantity: 11. Unit of Measure: 12. Stock code/part number: 13. Description: 14. Originator, Telephone and Date: 15. Received By: 16. Location Code: 17. Requisition Number: Partial CES 100 Form4 CES 101 Form Fields 1. Authorization Scale: 2. Budget Code: 3. Customer Account: 4. Description: 5. Authorization Signature: 6. Delivery Location: 7. Date Required: 8. Special Instructions: 9. Tracking Number: 10. Originator, Telephone and Date5 Authorizing Memo Jan 11, 2017 File No: 2344 To: Departmental Material Coordinator Subject: Request for Radon Sniffer Environmental Service was recently tasked by the Federal Government with providing radon detection services for the local authorities. As such, a commercial grade radon sniffer/detecting device is required. North American Technical Services and Durrage Industries have compatible instruments that sell for approximately $4000. Attached to this memo are the detailed technical specifications. More information can be obtained by contacting CES Radon Project Coordinator Bob Jones ([email protected]) at local 2350. I appreciate your cooperation. Dr. Bill Nye Chief Scientist CES Station Victoria, BC6 CES 102 form (material receipt)7 Figure 1: Typical CES Departmental Organizational Chart Figure 2: Typical CES Comptroller Organization Dept Manager Air Science Land Science Water/Sea Science MC CES Comptroller Fin Mgr HR Mgr Technology Mgr Facilities Mgr Logistics Support Mgr Chief of Staff8 Figure 3: Regional Organizational Chart Figure 4: National Headquarters Organizational Structure Regional Mgr Operations Logistics Fin and Admin Projects Infrastructure National Director Grants Legal Operations Logistics Fin and Admin Infrastructure Projects Special9 (this assignment element will be evaluated based on the following criteria) MBA 505 S17 Assignment 1 – Process Mapping Marking Notes 1. IDEF0 template is required. 2. IDEF0 template is not completed as required (both Header and Footer). 3. All processes shall be named using the verb/noun convention. 4. Integrated Definition (IDEF0) processes diagrams must have at least one input and one output per process; inputs to a process enter on the left-side and outputs exit on the right side. 5. All Inputs (external) should be aligned to the left border and outputs (external) should be aligned to the right border. 6. Business Rules/Controls/Guides should be aligned to the top border. 7. Enablers should be aligned to the bottom border. 8. All process inputs/outputs must have a suitable adjective/noun two-word label. 9. Reverse/negative process flow is not represented. 10. Not all ICOE are identified and/or are incorrectly positioned. 11. Incorrect printing format and/or .5" margins (top/bottom/left/right) required. 12. Assignment 1 lacks professional form or IDEF0 Level A0 "as-is" process diagrams lack professional form (i.e. Template, model sequence, model format, missing information, etc.). 13. Level A-0/A0 inputs/outputs are not consistent ("tunnels" – with ICOEs). 14. Model, Processes, or ICOE definitions are not suitable and/or the documentation is incomplete. 15. Viewpoint, Scope, and Purpose are required Level A-0 elements. 16. Assignment elements are missing (Level A-0 diagram, Level A0 diagram, and/or Model - Activity Report). 17. Late submission.10 Assignment 1: Quality Tool #2: Cause-and-Effect Diagram – Student Deliverable: Using the process mapping scenario plus the additional information proved below (further details related to the MC activity); create a Process Dispersion Analysis and a Cause-(4Ps of a service process) Dispersion Analysis from the MC's viewpoint (fit the two diagrams to one page in portrait layout). Diagrams shall have appropriate titles. Clients and MCs have complained to their departmental managers that process to obtain material that is above $3K in value or is a controlled item; takes too long, requires too much "paperwork" and is time intensive (these are symptoms of the "effect" to be investigated). In many cases the MCs circumvent the authorized purchasing process by using the departmental credit card to make purchases as required. The downside to this is a lack of material accountability and tracking for expensive items such as scientific instruments, computer systems, etc. Plus, government purchasing requires a separation between those who can commit funds, purchase items, and certify the receipt of items (referred to as the "principle of separation of duties"). The MC is required to physically deliver the material documentation to the CSA counter (located in another building); often all CSA's are occupied and the CSA is required to wait until a CSA is available. First-come-first-served is the queuing protocol however if one of the station senior managers is waiting; they are moved to the front of the queue. The CSA will review with the MC, both the CES 100 and CES 101 form to ensure that they are correctly filled in. If the forms are incorrectly filled-in and/or lack the appropriate approving signature, the MC will return to the workplace, and redo the documentation ensuring completeness. If the documents are complete, the CSA checks the material authorization online manuals (Material Controls) to determine if there any restrictions, specials instructions, etc. related the required item (s). It is normally at this point where the material request will be rejected due to restrictions placed on the item by the CES national head office. If there are no restrictions the CSA informs the MC that the request is approved pending budget review and that delivery should take place in the next two weeks. The MC is given a copy of the CES 100/101 forms for record keeping purposes. The MC then returns to their workplace to await a delivery notice from the vendor. Often suppliers complain that it takes too long to delivery an item to the station in that the building number on the purchase document is incorrect, the appropriate MC is not around to sign for the item, and/or the MC cannot locate the original paperwork to ensure that the shipment is correct. A number of the CES MCs met to discuss common concerns, and through a brainstorming session the following list of issues was created: Lack of training on the IMTS system and/or CES material management manual; we don't have time to take the IMTS training. MCs are expected to manage department material requests in their spare time; conflicting material authorization policies; no online resources to assist in the preparation of the material request documents; material authorization policies11 constantly changing; CSAs are constantly changing; newly hired CSAs do not appreciate the MC departmental requirements; the physical distance between the MC's location and the CSA office; the wait time at the CSA counter; the long lead time the entire process takes; departmental purchasing cards are underutilized due to restrictions place on many common use items; little or no rational is provided when higher authority is required to obtain the required material; too many forms need to be completed, some of the CSAs have "attitude"; MC are not allowed to deal directly with the vendors; too much paperwork; and no notice is provided related to upcoming deliveries. Assignment 1 Quality Tool #3: Check Sheets: List all the issues/problems MCs encounter in the Obtain Material Process. Use a table to list the problems and indicate one or more of the following categories: Quantifiable; Non-Quantifiable; or Business Rule. Create an appropriate Check Sheet to gather quantifiable data related to the 6-8 of the most important problems/issues experienced by the station MCs during the entire "Obtain Material" process. Use a legend key to simplify the data capture; limited the unique problems/issues to eight. Create another Check Sheet to gather data related to the cycle time of each of the sub-process (as identified in the Level A0 process diagram). The heading section for the two check sheets should contain the following information: Project: CES Process Review; Location: CES Victoria Station; Name: Yours; Date: any 30-day range; and Purpose: use your own discretion. Ensure that the Check Sheets are capable of capturing at least 25 unique data points. Total three pages – one for the Problem Table, one for the Problem Check Sheet, and one for the Cycle Time Check Sheet. (this assignment element will be evaluated based on the following criteria) Assignment 1 Quality Tool #2: C/E Diagram and Quality Tool #3: Check Sheets: Marking Notes 1. Effect is not clearly stated (adjective/noun) or is incorrect. 2. Diagram structures are incorrect. 3. Diagram branches incorrectly labeled. 4. Not all causes are identified and/or incorrectly situated on the diagrams. 5. Process Dispersion Analysis and Cause Dispersion Analysis lack consistency. 6. Print C/E Diagrams and Check Sheets in portrait layout. 7. Print C/E Diagrams on one legible portrait layout. 8. Problem table is incomplete. 9. Data gathering Check sheets are structured incorrectly or header information is lacking. 10. Problem Check Sheet does not contain an appropriate legend. 11. Cheek sheets do not capture the correct data. 12. Cycle Time Check Sheets do not capture row/column totals. 13. Check sheets do not capture twenty-five or more unique data points. 14. Increase/decrease font size required. 15. Assignment lacks professional form.