Statistics to Measure Quality Characteristics of a Business - Research Paper Example

Statistics to Measure Quality Characteristic of a Business Project Every business established in today’s world aims at ensuring that it succeeds in maximizing its returns by supplying and offering quality products and services. Customers are likely to be attracted to a business that is showing characteristics of high quality products than a business that has exhibited characteristics of poor performance (Naidu, Babu & Rajendra, 10). The location of the business also determines its future performance since; some of the locations will not attract sufficient customers for the business. A business should also plan its overall capacity in order to avoid instances of over or under production. This will ensure that it produces an amount that exactly satisfies the customers’ demands. Statistics employed to measure the quality characteristic in the business Quality in the business is majorly measured by the performance of the business (Venkatraman & Ramanujam, 805). A business is said to have a high quality characteristic when it attracts a large number of customers as compared to its competitors. This is because when the business attracts a large number of customers, then it will imply that the print business is offering quality services. On the other hand, quality of operations will also be determined by the usage of resources and materials. When materials are not economically managed, then the quality characteristic of the business will be assessed as poor (Venkatraman & Ramanujam, 810). Materials need to be handled carefully in order to reduce the costs of operation while maximizing the benefits. Effective communication also determines the quality characteristic of the business. This is because when the employees and the management communicate effectively, then it will imply that the flow of work in my print business will be effective too (Naidu, Babu & Rajendra, 30). Key concepts of capacity planning and facility location Capacity planning refers to the ability of the business to produce or deliver services over a specified time interval. Businesses need to plan the amount that is sufficient to produce, sell and store. Therefore, capacity planning helps to ensure maintenance of an effective capacity in the market while avoiding excess or low capacity (Stevenson, 17). In my print business, one of the key concepts that I will need to address in order to ensure effective capacity is the human factor. Employees need to be well trained, highly skilled and well experienced in order to ensure that they perform their jobs effectively to meet the potential output. Operational factors are also concepts that will determine the effective capacity of the firm (Stevenson, 19). This will involve factors such as inventory management, scheduling of activities, and meeting purchasing requirements effectively. These are factors that will ensure that the firm does not hold excess stocks in the business. This is because; excess stocks result from poor capacity planning and normally lead to excess capacity (Stevenson, 20). Facility factors such as location factors also affect the business considerably. Therefore, when choosing the location of my print business i will have to consider the transport costs. If the area is far from the market, then it will imply that the transport costs will be very high and delivery might delay at times thus, affecting the capacity planning of the business. In addition, I will also consider the labour supply in the area, and effective supply of resources such as water and electricity. Aggregate plan to maintain a competitive advantage To maintain a competitive advantage in the market, the business will have to market its products and services effectively in order to increase awareness and attract more customers. Secondly, the plan will involve proper determination of the prices to be charged. This is because; the business will only be highly competitive when its prices are more competitive compared to the market prices (Naidu, Babu & Rajendra, 35). The third step in the plan will be to ensure effective supply of products in the market. Customers need to feel satisfied in order to increase their loyalty to the business. However, if the customers are not well satisfied, then it will imply that the business is not competitive and thus, the customers will shift to other businesses. Finally, the business will have to address its costs and benefits. This is because; when the costs in a business are more than the benefits, the overall operations will be jeopardized thus, making the business less competitive (Naidu, Babu & Rajendra, 40). The rationale of developing this plan is mainly quality. This is because when the business develops a high quality characteristic, then it will definitely have a high competitive advantage as compared to other businesses in the market. Project Life Cycle of my Business Project initiation is the first stage of the life cycle of a project and, it mainly involves setting the goals and objectives of the project. In addition, at this stage the business also assesses the budget of the project depending on the resources required and the benefits likely to be derived. Therefore, the key element examined at this point is information availability. Information is very crucial in order to ensure that the management sets the right goals and objectives. The second stage of the lifecycle is project planning. At this stage, the management creates a plan that will guide the project team throughout the project period. The plan outlines the technology available, and the direction to be followed in the implementation. The third stage involves execution of the project. This is where by I will ensure that there is efficient monitoring and control in my project. Factors to be considered under this stage include; effective time management, cost management, risk management and effective communication among the employees. Therefore, the key elements assessed are the participants of the project. The management should ensure that quality is also maintained throughout the whole project. The fourth stage of the project lifecycle is implementation. At this stage, i will present the final products of my print business to the customer and evaluate the acceptance. If the customers accept my product, then the product will be ready for full implementation. On the other hand, if the customers reject the product, then it will imply that some changes will have to be made before release of the product to the market. The final stage of the project life cycle is project closure. Once the customers have accepted the product, the final brand is then released to the market. It is also at this stage that a review of the project is done to assess whether the set objectives have been accomplished. Key concepts related to inventory planning and management Inventory planning mainly involves maintenance of an acute control of the total inventories in the business (Stevenson, 25). Therefore, inventory planning refers to determining the optimal stocks that should be kept in accordance with the sales volume of the business. In my business, i will apply the concept of just-in-time inventory management system to ensure effective inventory planning and control. This will greatly help to avoid shortages or surpluses in the production. Printing materials will only be used when the business has identified a particular demand in the market. This will greatly aid to reduce wastage of materials that might be used to produce products without a ready market. This system will assist the company significantly in ensuring that the key objectives of inventory planning are met (Stevenson, 27). Inventory planning and management helps the business to be able to forecast its sales effectively and accurately. On the other hand, flexibility in the business is also increased since; the business does not have to operate on a rigid or fixed schedule. Conclusion From the project description of my business venture, it is certain the print business will require effective assessment of the quality characteristics in order to ensure success. The project lifecycle will have to be followed keenly, taking into consideration all the essential workplace elements. This way, the implementation will be beneficial and fruitful. In addition, miscellaneous losses and expenses will also be avoided thus, increasing profitability in the business. Works Cited Naidu, N V. R, K M. Babu, and G. Rajendra. Total Quality Management. New Delhi: New Age International, 2006. Print. Stevenson, William J. Operations Management. Boston: McGraw-Hill/Irwin, 2009. Print. Venkatraman, N, and Vasudevan Ramanujam. "Measurement of Business Performance in Strategy Research: A Comparison of Approaches." The Academy of Management Review 11.4 (2006): 801-814. Print. Read More