...Andrew try to convinced for less number of profitable distributors instead of more in overhead supporting distributers. Due to they measured success by quantity, owners may engage in an ego issue. Small business owners compared their distributions to competitors for success and achievement. Due to such attitude, they always want to grow and expand distribution channels. He applied Pareto’s principle i.e. 80-20 rule to these distributors. It helps to realize that the majority of profit generate from minority of distribution channels. In other words, 80 percentages of profits generate from only 20 percent of distribution channels. It reminds to focus on the 20 percent that matters. Midwest company has around 800 distributors, if we applied Pareto principle only 160 distributors are profitable or might be less. Andrew’s arguments related to OM Quality Management concept. The Pareto principle applied is consistent with OM theory. Here it is applied for finding a profitable distribution channels whereas in OM, it is used for finding defects result from top categories. Basic concept of Pareto principle remains same. Small businesses have been heavily depends on a number of relationships to bring their goods and services to the market. Core network selection of a distribution channels is toughest challenge faced by small businesses over the last couple of years. Andrew focuses on structural and proper management of distribution channels also assessment of these channels to profitable...
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...WORK LIFE TIME MANAGEMENT POST TRAINING ASSIGNMENT 1. What are the areas of learning that you acquired from the training? 2. Provide some recommendations on how you can apply the learning to your workplace. Elaborate. The area of learning that I acquired from the training is Pareto Principle – “80% percent of the value comes from 20% of the items.” Of the things we do during the day, only 20% really matters, therefore at work, I should prioritize the main items to be done everyday and avoid wasting time on the 80% that are not important. For example, fillings of unimportant documents do not need to be done straight away. It can be done during tea break and utilized the normal working time to complete other more important tasks. Another area of learning from the training is Murphy’s law – “If things can go wrong, they will go wrong.” There are areas that are beyond our control therefore for any occasion, we would need to perceive that there will be uncertainty in life and estimate more time for completion. For example, when work assigned need to be completed within the day, I should complete as much as I can in the morning because there might be disruptions during the day or new assignment that is urgent to be completed first but still cannot delay the proposed tasks. The last area of learning is to understand on task values. One should aim to schedule 60% of your time for proactive tasks, leaving the other 40% for reactive and maintenance tasks. One should...
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...Table of Contents 1.0 Introduction 2 1.1 Total Quality Management 2 1.2 Quality Improvement Strategy 2 1.3 Key Tools for Quality Improvement 2 1.4 Problem Statement 2 1.5 The main Objective 2 1.6 Specific Objectives 2 2.0 Literature Review 2 2.1 Pareto Analysis 2 3.0 Methodology 2 3.1 Data Collection 2 4.0 Results and Findings 2 5.0 Recommendations 2 5.1 Response 2 5.2 Limitations 2 5.3 Conclusion 2 References: 2 CHAPTER ONE 1.0 Introduction This paper aims at demonstrating the use of total quality management Pareto Analysis technique tool at Customs Department in Tanzania Revenue Authority to improve the process of clearing imported cargo through the Dar es salaam Port. One of the focal points in international trade is the country’s borders and the performance of customs and other border agencies, in particular their efficiency in clearing goods. In the modern business environment of just-in-time production and delivery it has become ever more important for traders to be guaranteed fast and predictable release of imported goods. 1.1 Total Quality Management TQM stands for Total Quality management. It is one of the most effective and least understood corporate strategies. It can affect every level, procedure and every person in a company. It is a most comprehensive process that can bring a company to the forefront of the global market. TQM has been defined in many ways by various authors. Some of them are being...
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...Although aspects of quality in the manufacturing environment have been around from the early 1900s, what one has come to know about quality today is that it was achieved through a process of evolution or continual improvement. Quality has always been driven by what the consumer wants or needs, but that provides a wide berth of true meanings. This paper will review some of the meanings, elements of quality and one of the pioneers in this area. As mentioned quality is based on one’s demands on the manufacturer or service provider that then takes into account the quality of the manufacturer’s employees, the processes to manufacture, and the environment in which products are produced. The goal of quality is to ensure that the manufacturer is producing a product that meets or exceeds its customer expectations and the ability to keep the customer for the long term. At the same time quality-driven practices help the company reduce productivity errors by empowering the employees, reduce their costs by requiring suppliers to do the same, and deliver the product on time based on a strategic plan. Of course, quality standards in the United States may and are different from other parts of the world. The origins of quality in the United States took much of its shape from Japan in the mid-1900s when it was realized that most consumers referred to Japanese made products as poor quality; by taking charge of their manufacturing destiny quality in Japan turned a 180 degrees....
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...Problem1. No breakfast in the morning There is no breakfast provided during the morning time in the restaurant. According to the manager, the chef only works from 10:00 am to11:00 pm in the daytime. Considering that hiring extra staff to cook in the morning will increase the restaurant’s operating cost, they mainly focus on lunch and dinner, which could result in a loss of potential customers. The restaurant should seize every possible opportunity to expose itself to business and interact with the customers to enhance its promotion, especially for it has just opened recently. People who pass the restaurant in the morning and find it not operating may leave an impression that it is closed for the whole day and probably will not come for lunch or dinner. This causes a negative impact on their promotion. Therefore providing breakfast is important for impressing its potential customers and maintaining customer relationship. Solution The placement of the restaurant locates near the student hall of the Hong Kong Polytechnic University (PolyU). So many students may pass by the restaurant in the morning to the PolyU campus. Usually students do not stay in the restaurant to have breakfast as they are in a hurry for classes. Instead, they buy the take-out to eat in school. So the restaurant does not need a chef to cook special breakfast. They can have their normal staff to make simple sandwiches and soya-bean milk for people to buy as a take-out. This not only increases their revenue...
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...Quality Management and Excellence Taquenia Brown MGT/449 5/7/2012 Timothy Peters Quality Management What is quality? Quality can be defined as many different meanings. In business quality is defined as a state of being free from defects and deficiencies brought by consisted adhering to variable standards to achieve output that satisfies the customer (Business dictionary, 2011). Others may define quality as a measurement of standards and excellence any feature that makes something what it is: (your dictionary.com 1996). Regardless of the variations in definitions the main elements remain consistence. Quality is associated with specifications, standards, customers’ expectations, and the level of satisfaction. Quality is a concern that customers interpret when a positive or negative outlook about a service, knowledge, or product. Many elements can identify and determine quality for companies. Companies without superior expectations of quality will have unfavorable goods, service and products. Quality has been described as an issue that is involved in our everyday lives (Goetsch & David, 2010). Without quality individuals will be willing to accept or settle for anything in any condition. Standards would not be a factor because there would be none to adhere by. The highest quality is essential to achieve success in any business. To approach total quality companies need to enhance the competiveness by functioning to advance the quality of merchandise...
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...recommend? * EBQ- economic batch quantities * * * How long will each batch take to produce: * 8571/90 * = 95,23 hours * + 3 hours * = 98,23 hours How many batches per year will be made? * 50.000/8.571 * = 5,833 * 6 batches per year What happens if the costs decreases by 50% and the holding costs increases by 40%? What internal problems result from the current planning and control policies? Analyse stock turns and availability e.g. high and low levels * From the table we can tell that the physical inventory is less that the re order quantity Would the Pareto analysis be useful for categorizing and controlling? * Pareto analysis is a statistical technique in decision making used for the selection of al imited number of tasks that produce significant overall effect. It uses the pareto principle – also known as the 80/20 rules – the idea that by doing 20% of the work you can generate 80% of the benefit of doing the entire job * In terms of quality improvement, a large majority of problems 80% are produced by a few causes 20%. Aka as vital few and trivial many * It is used essentially for the measurement of quality control * It is used to guide corrective action and to...
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...Marketing Operations = creation of goods/services Finance = Providing funds ($) for operations/marketing Marketing = Promoting and/or selling goods and services POM decisions characterized by tools Scope of POM = System desing and system operation System desigin = before production can begin (layout, design) System operation = production itself (scheduling) Classify production systems = Volume and variety Volume = dictated by number of production and may vary Variety = examples (tires, tv’s, eyeglasses, dental work) Recent trends = managers must pay attention and keep up with technology Agility = ability to respond quickly to demands and opportunities. Systems approach = “whole is greater than the sum of the individual parts” Pareto principle (80-20 Rule) = few (20%) items, factors account for the share (80%) of the problems. All things not equally important, identify key factors. Ch 2 7 ways to be competitive: Price, quality, special features, flexability, delivery time, service, location. Mission statement: a clear statement of companies purpose Strategy: need to be competitive and satisfy customers. Strategy Formulation: Distinctive competencies, environmental scanning Distic competencies: special abilities that give comp edge. (ex. Price, location) Environment scanning: consider events and trends that present threats and opportunities for the organization. New stratieges: Quality based strategy, time based strategy = lean product sys Productivitity: output...
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...Part Two: 1. The Kano model is a tool that can be used to prioritize the Critical to Quality characteristics, as defined by the Voice of the Customer The three categories identified by the Kano model are: Must Be: The quailty characteristic must be present or the customer will go elsewhere. Performance: The better we are at meeting these needs, the happier the customer is. Delighter: Those qualities that the customer was not expecting but received as a bonus The First Step for Creating the Kano Model: Identifying the Voice of the Customer The first step for creating the Kano model is to identify the quality characteristics that are typically fuzzy, vague and nebulous. These quality characteristics are referred to as the Voice of the Customer (VOC). Once the Voice of the Customer is understood, we can attempt to translate it into quantitative terms known as critical to quality (CTQ) characteristics. This should not be a new concept for those familiar with the Six Sigma methodology. What happens from here, though, can sometimes go astray if we are not careful and try to put our own spin on the needs of the customer. This may be the result of trying to make things more easily obtainable for us—a formula for failure. Use the Kano Model to Prioritize the Critical to Quality Characteristics So, now that we have identified what is important to the customer in workable terms, we can go to the second step. Always keeping the customer in mind, we can apply the concepts outlined in the...
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...The first edition of Juran's Quality Control Handbook in 1951 attracted the attention of the Japanese Union of Scientists and Engineers (JUSE), which invited him to Japan in 1952. When he finally arrived in Japan in 1954, Juran met with ten manufacturing companies, notably Showa Denko, Nippon Kōgaku, Noritake, and Takeda Pharmaceutical Company.[8] He also lectured at Hakone, Waseda University, Ōsaka, and Kōyasan. The use of statistical process control such as Pareto principle Juran—who focused on managing for quality—went to Japan and started courses (1954) in quality management. The training started with top and middle management. The idea that top and middle managementneeded training had found resistance in the United States. For Japan, it would take some 20 years for the training to pay off.[improper synthesis?] In the 1970s, Japanese products began to be seen as the leaders in quality. This sparked a crisis in the United States due to quality issues in the 1980s Post WWII many Japanese firms, learning from American companies in terms of technology and production process, started improving their product offerings. This was most evident in automobile and technology sector and in shorter duration companies like Toyota, Honda, Nissan and Mitsubishi emerged from Japan and competed with the best in the world. Japan lacked natural resources especially in terms of raw material and thus it always hunted aggressively for the same across the world. They processed the material and...
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...The Quality Contributions of Joseph Juran Team 6 October 13, 2015 This report will cover a short biography of Joseph Juran, as well as his principles and quality contributions. These will include the ideology behind the Juran Trilogy, publications, and his present day impact on quality practices. Executive Summary Joseph Juran is one of the leading contributors to quality theory. He established “The Juran Trilogy” to identify the three main components of quality improvement: planning, control, and improvement, as well as writing multiple books, and “Juran’s Quality Handbook.” His concepts have helped define quality analysis to reduce waste caused by quality inefficiencies, and are still used in quality improvement models today. The Juran Handbook is a compilation of Juran’s theories as well as other quality professionals to establish an overall explanation of quality concepts, and areas of improvement. This handbook elaborates on concepts such as strategic deployment, total quality management, and how to train for quality improvements. Published in 1998 by McGraw-Hill, Juran’s Handbook is used as an excellent tool to describe and implement quality improvements in any organizational function. Joseph Juran featured writings add the human dimension to quality, they clarify processes, theories, and models to individuals and firms. The writing listed in the Joseph Juan publication sections are just a few of the many writing in his life, but each brought an extraordinary...
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...Secrets of Successful Learning Top of Form |[pic] |[pic] | Bottom of Form TUESDAY, APRIL 3, 2012 Time Management "Don't wait. The time will never be just right. " One always has time enough, if one will apply it well. Many students discover the need to develop their time management skills when they arrive at college. Unlike high school where teachers frequently structured the assignments and classes filled the day, in college, students will have less in-class time, more outside of class work, and a great deal of freedom and flexibility. Keys to successful time management include: • Self knowledge and goals • Developing and maintaining a personal, flexible schedule |[pic] | |Quantumlearn (2012) | Class Activity Assessing Your Time Management Skills 1. I like my watch to be set a few minutes ahead of the correct time. 1. I tend to arrive at most functions at least 5 minutes early. 1. In the course of my daily activities I tend to take my time. 1. In high school I almost always completed my daily assignments. 2. I sometimes spend more than 15 minutes at a time on the telephone. 2. I like to finish assignments and reports exactly on their due dates. 1. I rarely spend more than an hour eating a meal. 1. I never watch more than 1 1/2 hours of TV on a weeknight. 2. I...
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...Q1. Using at least two different tools, analyze the data and present your conclusions. Using the Pareto Chart, the number of times all items were graded with the lowest rating “F” was plotted. Based on this chart and on the 80-20 principle, the top 3 items namely Speed of service, Print Program, and Seating were causing the rest of the complaints on the rest of the items. Cumulative Frequency Speed of Service Printed Program Seating Entertainment Traffic Pricing Parking Prices Season Ticket Plans Selection of Foods Subtotal 0 182 182 100% 0 182 100% 76 30 25 19 15 10 5 2 Frequency 76 106 131 150 165 175 180 182 Percentage 42% 58% 72% 82% 91% 96% 99% 100% Q2. How could the survey have been more useful? Since the survey was supposed to address complains, it could have been more useful if the tools was designed to determine “failure” instead of grading items on a scale. Out of the 10 items, the management could focus on identified aspect with a failed rating and the surge of overwhelming data would be avoided. Q3. What is the next step? Following the Pareto principle, management should address the complaints on Speed of service, Printed Program, and Seating as they are causing 80% of the complaints. Reaction: A qualitative data collected backed up with quantitative tools is an effective way of addressing issues that affect quality. In order to avoid being overwhelmed, it is important to establish the goals first before setting out to gather data. There are three things...
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...Based on our findings, we recommended the following: * Replenish all inventories at picking locations at the end of every night shift. * Use continual off-line replenishment of picking location stock throughout the night. * Implement "inventory-by-location" at receiving, warehouse and shipping operations * Move transactional processing and posting receipts, issues, and inventory balance updates from the office to the functional locations at receiving, warehouse, and shipping. * Implement bar coding applications within receiving, warehouse, and shipping. * Begin cycle counting during downtime to increase balance accuracy to 98% * Develop written operating policies, procedures, job instructions, and job descriptions for warehouse operations to stabilize operations, provide sustainability, and to be used to train workers. * Convert the job of the person in the office posting transactions to a full time inventory auditor * Use a separate audit team during monthly physical inventories checking 10% of counts, and requiring a recount when physical count discrepancies are found * Program the current system to automatically produce shipping/delivery invoices * Program the current system to include manual transactions such as pick-up and reship memos, and to sort them with picking lists. The results from the implementation of our recommendations were: * Productivity improvements of 20-30% in warehouse receiving, picking, and...
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...The Pareto principle, also known as the 80/20 rule, is a theory maintaining that 80 percent of the output from a given situation or system is determined by 20 percent of the input (Bunkley, Nick. 2008) In Pareto's case, he found that roughly 20 percent of the people in his country dominated with 80 percent of the wealth. The principle doesn’t stipulate that all situations will demonstrate that precise ratio – it refers to a typical distribution. More generally, the principle can be interpreted to say that a minority of inputs results in the majority of outputs. Here are a few examples of the Pareto principle in action (Richard Koch): • 20 percent of employees produce 80 percent of a company’s results. • 20 percent of a given employee’s time yields 80 percent of their output. • 20 percent of a company’s investments produce 80 percent of its investment profits Pareto's Principle should serve as a reminder to us to stay focused on investing 80 percent of our time and energy on the 20 percent of work that’s really important. It’s not just important to “work hard” and “work smart”, but also to work smart on the right things. In this point I think it is also can link to the knowledge retention. In an organization, much of vital knowledge can be held by single people. A single subject matter expert may hold vital operational knowledge in his or her head, representing a “single point of failure” for the organization. (In here, we can say this is the 20% of employees produce...
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