Individual Assignment Two
Due Date: 03 June 2014
Case Study 4-1
The popularity of Southwestern University's football program under its new coach, Bo Pitterno, surged in each of the 5 years since his arrival at the Stephenville, Texas, college. With a football stadium close to maxing out at 54,000 seats and a vocal coach pushing for a new stadium, SWU president Joel Wisner faced some difficult decisions. After a phenomenal upset victory over its archrival, the University of Texas, at the homecoming game in the fall, Dr. Wisner was not as happy as one would think. Instead of ecstatic alumni, students, and faculty, all Wisner heard were complaints. “The lines at the concession stands were too long”; “Parking was harder to find and farther away than in the old days” (that is, before the team won regularly); “Seats weren't comfortable”; “Traffic was backed up halfway to Dallas”; and on and on. “A college president just can't win”, muttered Wisner to himself.
At his staff meeting the following Monday, Wisner turned to his VP of administration, Leslie Gardner. “I wish you would take care of these football complaints, Leslie”, he said. “See what the real problems are and let me know how you've resolved them”. Gardner wasn't surprised at the request. “I've already got a handle on it, Joel”, she replied. “We've been randomly surveying 50 fans per game for the past year to see what's on their minds. It's all part of my campus-wide TQM effort. Let me tally things up and I'll get back to you in a week”. When she returned to her office, Gardner pulled out the file her assistant had compiled (see the following table). “There's a lot of information here”, she thought. Questions:
Using at least two different quality tools, analyze the data and present your conclusions.
How could the survey have been more useful?
What is the next step?
Fan Satisfaction Survey Results (N = 250)
Case Study 5-1
Rochester Manufacturing Corporation (RMC) is considering moving some of its production from traditionally numerically control machines to a flexible machining system (FMS). Its numerical control machines have been operating in a high variety, low volume intermittent manner. Machine utilization, as near as it can be determine, is about 10%. The machine tool sales persons and a consulting firm want to put the machines together in a FMS. They believe that a $3,000,000.00 expenditure on machinery and the transfer machines will handle about 30% of RMC’s work. There will, of course, be a transition and start up cost in addition to this.
The firm has not yet entered all its parts into a comprehensive group technology system, but believes that the 30% is a good estimate of products suitable for the FMS. This 30% should fit very nicely a “family”. A reduction, because of higher utilization, should take place in the number of pieces of machinery. The firm should be able to go from 15 to about 4 machines, and personnel should go from 15 to perhaps as low as 3. Similarly, floor space reduction will go from 20,000 square feet to about 6,000. Throughput of order should also improve with this family of parts being processed in 1 to 2 days rather than 7 to 10 days. Inventory reduction is estimated to yield a one-time $750,000 savings and annual labor savings should be in the neighborhood of $300,000.00. Although the projections all look very positive, an analysis of the project’s return on investment showed it to be between 10% and 15% per year. The company has traditionally had an expectation that projects should yield well over 15% and have payback periods of substantially less than 5 years. Questions:
As the production manager for RMC, what would u recommend? And why?
Prepare a case by a conservative plant manager for maintaining the status quo until the returns are more obvious
Prepare the case for an optimistic sales manager that you should move ahead with the FMS now.
Case Study 6-1...
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