Project #54441 - MGM375-1501A-02 Quality and Supply Chain Management IP3 AND 4

MGM375-1501A-02 Quality and Supply Chain Management
Task Name: Phase 3 Individual Project
Deliverable Length: 12–15 PowerPoint slides with notes (150–200 words)
Details:

Weekly tasks or assignments (Individual or Group Projects) will be due by Monday and late submissions will be assigned a late penalty in accordance with the late penalty policy found in the syllabus. NOTE: All submission posting times are based on midnight Central Time.

Put together a PowerPoint presentation with 1215 slides that can be used for both internal purposes and when you meet with all of your vendors to kick off a vendor certification program. To earn full credit on the PowerPoint, you must use colored slides, clip art or charts, or photos on each slide to make them eye-appealing, along with 150200 words of speaker notes for each slide, explaining the slide's content. Slides must not be covered with commentary; that is what the speaker notes are for.
Assume the following information about a company: 
  • The company is currently assessing a make versus buy decision.
  • The company currently makes product line "A" using proprietary technology. Its variable cost/unit is $10, and its fixed cost allocation of overhead based on producing 10,000/yr is $20/unit, for a total standard cost of $30/unit.
  • The company also makes 3 other completely different and separate product lines on different equipment.
  • The company has a quote from an outside vendor for this product A, for $18/unit.

Assignment:

  • Given the data presented, what criteria would you use to evaluate the make versus buy decision that faces you? 
  • As a company’s managers create the optimum supply chain, there are many criteria that must be weighed, and in some cases, trade-offs are made. List at least 5 trade-off type decisions that the firm's managers would have to make to establish the optimum supply chain. Include why it is a trade-off and the added information that you would need to actually make the best choice. 

The following is an example of a trade-off:

  • Should the manufacturing plant be located closer to its raw material vendors or its customer base? Why?
  • Make up a checklist that a company’s vendor certification team should fill out when it visits a vendor prior to certifying them. What are the pros and cons of installing a vendor certification program? 

Please submit your assignment.

For assistance with your assignment, please use your text, Web resources, and all course materials.

Course Materials

Course Materials

Points Possible: 100
Date Due: Monday, Jan 26, 2015
Objective:
  • Conduct a work process improvement analysis and make recommendations for improvement in various areas of the supply chain.
Submitted Files: Submit Task
Score:

MGM375-1501A-02 Quality and Supply Chain Management
Task Name: Phase 4 Individual Project
Deliverable Length: 2,000–2,500 words including chart form section 1
Details:

Weekly tasks or assignments (Individual or Group Projects) will be due by Monday and late submissions will be assigned a late penalty in accordance with the late penalty policy found in the syllabus. NOTE: All submission posting times are based on midnight Central Time.

You have just been hired as the director of process improvement, a new position, by the VP of Operations for the ABC Manufacturing Company. ABC has been plagued by both internal and external vendor issues; the vendor issues involved repeated late deliveries and poor quality, while internally poor deliveries to customers resulted from both vendor issues, as well as quality and scheduling issues. The CEO’s instinct is that the factory could benefit from some wide-reaching process improvements.

The VP of Operations has decided that a far greater focus on vendor quality and internal process improvements must be taken. The VP of Procurement, prior to your coming on board, had already met with the CEO’s of ABC’s 4 major vendors and alerted them that he expected them to begin turning around their quality performance. About a month prior, he had sent each a letter suggesting several formal overall quality programs that they may embark upon, which included the following:

  • TQM
  • Juran's Trilogy
  • Crosby's program 
  • Deming's program  
  • Six Sigma 

The VP has already received the following responses from each of the main vendors, and he asked you, in coming months, to work with each vendor as they implement their quality initiatives.

  • Company A had written back that it was planning to implement the Juran program but had not yet begun, hoping you could visit and shed some light on the overall concept, methodology, pros, and cons.
  • Company B had written back that it was planning to implement the Crosby program but had not yet begun, hoping you could visit and shed some light on the overall concept, methodology, pros, and cons. 
  • Company C had written back that it was planning to implement the Deming program but had not yet begun, hoping you could visit and shed some light on the overall concept, methodology, pros, and cons. 
  • Company D had written back that it was planning to implement a TQM program but had not yet begun, hoping you could visit and shed some light on the overall concept, methodology, pros, and cons. 
  • Company E had written back that it was planning to implement the Six Sigma program but had not yet begun, hoping you could visit and shed some light on the overall concept, methodology, pros, and cons.

 In addition, you know that as far as internal processes and overall supply chain management goes, that there may be opportunities for improvement. Currently, the following internal opportunities exist for possible process improvement:

  •  Supply Chain Management    
    • The company communicates separately with each vendor; usually when a forecast or production change is made, not every vendor finds out the same day. This leads to confusion, excess inventories, and stock outs. 
  • Demand Planning    
    • The primary method to establish the master production schedule is to use a forecast that is created prior to the beginning of the year and updated monthly using salesmen’s inputs. Invariably, the company ends up producing too much of the wrong items (not demanded) and too few of what is in demand (real customer orders). 
  • Multistage Inventory 
    • To create ABC’s final finished product requires a multiple-step supply chain, which looks something like the following: 
      • Raw material to vendors factory
      • Vendor processes raw materials to make their parts
      • Those parts are shipped to ABC’s factory
      • ABC processes purchased parts through a succession of departments, each one adding more and more vale
      • Finally, all finished components are assembled into a finished product.
    • Currently, every step in this entire supply chain is scheduled, monitored through some kind of MRP system, reported throughout the day, and seems to take an inordinate amount of system updating.
  • Transportation Planning 
    • ABC continues to use its own fleet to deliver finished goods all over the country and to have common carriers deliver parts from its vendors, also located all over the country.   
  • Process Control, Performance, and Variability    
    • ABC’s own internal process seem to all of a sudden go in and out of quality specifications; the company always seems to find out too late to avoid massive amounts of scrap, rejected parts, or labor costs to rework parts.   
  • Negative and Positive Cash Flow 
    • The company goes through frequent swings from positive to negative cash flows as inventory purchases for large lots create negative cash flows, but then using up these materials occur at a slower rate, and with less outgoing, cash flow becomes positive. The CFO really struggles with managing these cash flow swings.

Before you begin to put together a vendor visitation schedule, your boss, the VP of Procurement, advised you that the CEO expects a comprehensive report, in about a month, covering the following specific topics:

  • The key characteristics and requirements and the pros and cons of each of the following overarching quality programs should be put into a chart format. The chart should have columns for an overall 1-sentence description of each program, its pros, and its cons. 
    • TQM
    • Juran's Trilogy
    • Deming
    • Crosby
    • Six Sigma
  • Provide your view on how a formal process improvement program could help at both vendor locations and inside ABC’s own factory.
  • Specifically, in the areas of vendor quality and delivery performance, what are the benefits of creating a vendor certification program, and what does it involve?
  • Specifically, in the area of ABC’s own internal workings, what opportunities for continuous improvement exist, and what exactly would you do?
  • How do you get ABC itself to adopt a more continuous improvement mentality? 
Finally, and most importantly, all these operational improvements could create a strategic advantage for ABC because most of its competitors have similar internal and vendor quality challenges, as well as internal operational challenges. 

Please submit your assignment.

For assistance with your assignment, please use your text, Web resources, and all course materials.

Course Materials (1)

Course Materials (1)

Course Materials (2)

Course Materials (2)

Points Possible: 150
Date Due: Monday, Feb 02, 2015
Objective:
  • Discuss the role of the organizations leadership, communications, policies, and culture in implementing and sustaining a quality initiative.
  • Use effective communication techniques.
  • Use team and problem-solving skills to collaborate on a project.
Submitted Files: Submit Task
Score: N/A
Instructor Comments: No comments have been made

Subject Business
Due By (Pacific Time) 01/25/2015 12:00 am
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