Date: 10/31/14
Student Name: Jay Donald Sorensen
Student ID Number: 63826
Student WGU Email: Jaysoren@wgu.edu
Mentor: Terry Love
Course JGT Task 3

Jay Sorensen
WGU
JGT Task 3

SUBDOMAIN 326.3 - EVALUATING ECONOMICS OF MANAGEMENT DECISIONS
SUBDOMAIN 327.3 - DEVELOPING & MAINTAINING QUALITY
SUBDOMAIN 329.5 - USING INFORMATION SYSTEMS FOR COMPETITIVE ADVANTAGE

Competencies:
326.3.1: Decision Analysis - The graduate analyzes risks and values and uses a variety of decision analysis tools and decision theory to evaluate alternatives during decision-making processes.
326.3.3: Decision Strategies - The graduate evaluates decision methods and develops strategies for organizational decision processes.
327.3.2: Metrics and Tools - The graduate …show more content…
This particular tool was chosen because it keeps track of both production options as well as cost types. The breakeven analysis tool allows fixed costs as well as production options to be compared. The breakeven analysis tool helps to show the advantages and disadvantages of each option as well as comparing all options together. Based on looking at the numbers outsourcing appears to be more affordable based on lack of fixed costs. However, is easy to see that with volume under 25 units the lease costs is with outsources. The 25 unit line however shows that once it is over the least costing method remains until you get to 300 units. Based on this factor new equipment purchase becomes the most efficient production method. Based on the analysis all three of the options, using the same volume option, option three appears to be the most costly. The analysis tool has its advantages as it creates a visual aid in determining the best option. The tool shows both mathematical equations as well as the graph which makes it clear the most efficient way for the production to …show more content…
Control charts are used to identify variations in production and demonstrate via a graphic, the control process and any possible variants. There are two variants that shows world one to determine; assignable and natural. Assignable variants are caused by failure and equipment and employee fatigue, which has a direct impact in production quality is turned assignable because it is assigned to an employee or an object that has a direct impact on production. Natural means there is a variation caused by something expected. The natural variant is acceptable as long as production is kept under control and the parameters are within normal limits for the production set. The control chart is produced by random sampling of shoes off the production line and inspecting the shoes to see if any variants could possibly exist. Over time certain patterns are seen thus benchmarks are set. Once the benchmarks are set any variants are determined to be natural or assignable. Once the metrics have been established, the random line is then compared to see if production is within standard deviation or not. If the metric proves to be out of compliance than corrections can be made to fix the issue. Another useful way that a control chart may be used is to determine if sales forecasting is on point. Sales forecasting needs to be accurate and thus changes need to be tracked. Possible changes in the sales