Solving Management Problems - Assignment Example

Business Operations Date: Time 2009 INSTRUCTIONS TO CANDIDATES Time allowed for this examination Two hours This paper contains TWO Sections; Section A is compulsory & Four Questions in Section B Candidates are required to answer All Questions in section A & any Two questions from Section B. The allocation of marks is indicated on the paper. This is a closed book examination Case study to be given to the students two weeks before the examination Students can bring into the examination room two sides of normal (12 point) typed notes on the case study. Solutions To Questions SECTION A Questions on the case study Question 1 a) Jefferson Pilot Financial (JPF) decided to use TAKT time to control the pace of their operations, why should TAKT times normally be used with caution in a service environment. (10 marks) TAKT times by definition is the total amount of time that is normally available and divided total work load which will lead to a more balanced work load. Since the work load at Jefferson Pilot Financial (JPF) is consistent, TAKT times can come in handy and thus used. There are a couple of service type companies that try to apply TAKT times but do it wrongly, especially in the case that the work is uneven, which is mostly characteristic of most of service organisations. It is however important to note that TAKT times can still be very useful in the planning of resources, nonetheless. b) To make improvement in any process some form of performance measurement needs to be put in place. i) Discuss the issues that need to be considered when setting up measurement systems in any organisation. (5 Marks) It is paramount that the measurement systems are very close as it is possible to the customer or the activities that are being performed as it is capable of making improvements. The higher levels of metrics can be useless or even meaningless as they focus the individuals to meet the targets as opposed to focusing on the provision of quality service to the customer. ii) Analyse the measurement systems that JPF set up and discuss how these align with the ideal discussed in part a) above. (10 Marks) Jefferson Pilot Financial (JPF) according to the case study fully understood the circumstances surrounding the principles of the ideal, and even though they included higher level metrics, they were derived from lower level measurements. The point that comes out unclear how the management used the high level metrics. This aligns with the ideal discussed in a) which have conclude that the higher levels of metrics can be useless or even meaningless as they focus the individuals to meet the targets as opposed to focusing on the provision of quality service to the customer. c) i) From the analysis of the case study what are the key process steps that JPF carried out in the improvement project. (10 marks) · Linking processes - The Linking of processes aids in the reduction of the throughput times as well as cutting of costs that Jefferson Pilot Financial (JPF) incurs and thus puts the company in a better position to serve the customers more efficiently. · Standardising procedures - The standardisation of procedures is very important in ensuring that the operations at Jefferson Pilot Financial (JPF) are carried it under a legal framework that has been defined and thus ensuring that the procedures are more systematic and organised. · Eliminating loop backs - The elimination of loop backs will ensure that processes that have been carried out do not have to be repeated and thus save on the valuable resources that Jefferson Pilot Financial (JPF) possesses. · Setting common tempo - The setting of a common tempo will ensure that the processes are carried out in a controlled environment and thus they will be more systematic and organised. · Balancing loads - The balancing of loads will ensure that the work load appointed to staff is balanced and thus avoiding the situation where some staff at Jefferson Pilot Financial (JPF) are overworked while other are under worked, thus improving efficiency. · Segregating complexity - the segregation of complexity ensures that the operations taking place at Jefferson Pilot Financial (JPF) are made to be more simple and understandable, and are operated in a manner that is less complex and thus avoiding complexities that come with the complication of activities. · Setting up a pilot - The setting up of a pilot strategy will ensure that it initiates other strategies that can be used in future, and it is also a platform for the testing of other strategies and policies to follow. · Good communications - Good communications within Jefferson Pilot Financial (JPF) ensures that information is passed on to the relevant staff and thus improves efficiency within the organisation. · Commitment from the top - Commitment from the top means that the top most level of management within Jefferson Pilot Financial (JPF) stays committed to the tasks that they have, and this will tend to trickle down the ranks to even the lowest staff within the organisation. ii)The methodology adopted by JPJ was suitable for their processes, why might this approach be unsuitable for other service type organisations? (15 Marks) Within the service sector the manufacturing processes normally tend to be more stable and the demand is also relatively more consistent, but the case changes whenever the demand varies from time to time with a high variety of customer needs arising, thus this tends to push the responsibility that is normally present downstream. This unsuitability to other services is also present due to the fact that Jefferson Pilot Financial (JPF) is unique from other organisations that are in the service sector and thus can not be compared to any of them. The methodology adopted also might no be suitable to other organisations considering that the structural organisation of such firms may not be conducive with the methodologies that Jefferson Pilot Financial (JPF) uses. SECTION B Question 2 PRojects IN Controlled Environments (PRINCE 2) is a de facto standard used extensively by the UK Government and is widely recognised and used in the private sector, both in the UK and internationally. a) Discuss the different roles within the PRINCE 2 environment. 20 marks a) The first role within the PRINCE2 environment is the Executive (Business) Role on Project Board. This enables the organisation of project board meetings and also enables the chairing of such meetings. It also ensures that individuals are appointed to the positions of project manager, business assurance co-ordinator, stage manager, user assurance co-ordinator and technical assurance co-ordinator where the roles and responsibilities can be defined and thus the achievement of the firm’s objectives. There is also the senior user role on the project board where, objectives are agreed upon and a quality criteria is set for the activities that impact on the users for instance the specification of the user requirements, training and the installation. There is also the senior technical role on the project board, where the objectives are agreed upon for the technical activities within the firm such as the design of the system, their development and testing. This role also involves the approval of product descriptions for the technical products. There is also the day to day management role within the PRINCE2 environment. This will involve the project manager who will plan the project and agree with the plans that have been made with the project board. He / she will also liaise with other related projects and ensure that work is not duplicated or even overlooked. The project manager will also attend all the stage assessments and the closure meeting for the project. Finally he will prepare the project evaluation report. Also in the day to day management role within the PRINCE2 environment, there is the stage manager who will define the objectives, responsibilities and the work plans for all the stage teams and the team leaders. Also, he /she will provide guidance for the team leaders whenever it is deemed necessary. Finally, the stage manager will monitor the progress and the utilisation of resources by the stage teams and initiate actions that are aimed at correcting whenever necessary. b) What is the benefit to a company to consider the three views of PRINCE 2 5 Marks The benefit of the Business Assurance Co-ordinator (BAC) on The Project Assurance Team is that they help the project and stage manager to prepare and correlate the resource and the technical plans. The benefit of the Technical Assurance Co-ordinator (TAC) on The Project Assurance Team is that they advice on the most appropriate criteria that is suitable, and on the checklists and the individuals who attend the reviews of the technical products. The benefit of the User Assurance Co-ordinator (UAC) on The Project Assurance Team is that he /she ensures that the user specification if fully understood and agreed by the user. Question 3 a) You are employed by a small company, but realise that they have a single user licence for an office software product, but all the staff are using this software what would be your course of action. 8 Marks According the relevant BCS code, one should make sure that within their professional fields, they have knowledge of the relevant legislation as well as the understanding of these regulations and standards, and they also comply with them. This with relation to the Copyright legislation. With this in mind, it would be wise to sensitize the staff working within the office of the importance of helping in the prevention of the violation of these copyrights, and why they aid these software companies in improving or even developing better software. Another course of action would be to notify the management of the situation and ask the management to ensure that they respect the copyright legislation so as to ensure that the integrity of the firm is maintained. b) You are working for a small firm of web designers, which is employed as consultants to an SME on a short-term contract to develop and implement their websites. The client company has no prior experience of Internet applications. You realize that your firm will satisfy the exact wording of the specifications as expressed in the contract, despite the fact that you realise that the specifications are inadequate and will require a further contract within six months of implementation. You expect your firm will be offered the additional future work on the website. As a new graduate who has studied professional issues what advice would you give to the owner of the business? 17 Marks In accordance to the relevant BCS code – “You shall not misrepresent or withhold information on the performance of products, systems or services, or take advantage of the lack of relevant knowledge or inexperience of others”. Thus, it is important to inform the client of the technicality of the situation in time so as not to contravene the law as well as break the trust of the client. This will help in the mitigation of various future technicalities, and also the client will have the service offered in a timely manner even if it means the extension of the contract, at least the client will be fully aware of the situation way before it gets out of hand. Question 4 RDMAIC is a well known acronym in Six Sigma, what does each of the letters stand for and give an analysis for each term? 25 marks Recognise: this means the recognition of where there are opportunities so as to make improvements. Define: this involves the defining of the problem Measure: this involves the measurement of the magnitude of the problem Analyse: This involves the analysis of the data and finding the causes of the problems Improve: This involves the improvement and the implementation of the solution Control: This will involve the controlling and the sustaining of the result. Question 5 The service sector is playing a more important role in the economy of the UK. However it is the manufacturing sector that still sets the trend for process improvements. One group of tools used to achieve process improvement are the “7 Tools” of quality. The application of these tools has brought significant improvements in manufacturing. The service sector is now beginning to see the benefits of these tools when applied to their business. Identify each of the tools, giving an explanation of its function and a supporting example of how it could be applied in the service sector. Process mapping - this involves the monitoring of the processes involved within the firm with an example being monitoring how customers are attended to or even treated, by the use of a step by step process. Pareto - this is used in the distinguishing of certain issues that are deemed critical and also in making assumptions that may impact on decisions. This may be used when major decisions need to be made that may affect the organisation. Ishawaka - These are cause and effect diagrams that are used to show the causes of certain events. This can be used for instance in the event of a fire within the organisation, to trace the cause. Histograms and Measles chart - these are charts that are used in the measurement of statistical data and could be used to determine the median levels of data for instance the number of median customers attended to in a day, given certain factors. Run diagrams - these are used to show the performance of certain processes over a given period of time. In application, a chart may be drawn showing the attendance of workers over time and the results that are achieved by high rates of attendance. Correlation and stratification - this is used in determining the relationship between different factors within the organisation that may be useful if strafed or merged in a strategic manner. Check sheets and tally charts - these are used to count or keep tally of data such as the number of staff in attendance or even the number of customers attended to. It is important in planning the resources that the firm needs in the future. Read More