MGMT20002 - Managing OperationsSummer Term, 2015

SUGGESTED SOLUTIONS TO TUTORIAL EXERCISES

Tutor : Mr. Chin Yong QuekEmail: cy.quek@unimelb.edu.auOffice: Room 317, Level 3, FBE BuildingConsultation: Please email Chin to make appointments

Lecture-Tutorial Matrix

Lecture Topic Tutorial Question1. Introduction to OM 1. Case Study2. Product and Service Design 2. Case Study3. Quality Management and Control 1 3. Six Sigma4. Quality Management and Control 2 4. Statistical Process Control5. Location Decisions 5a. Case Study

5b. Transportation Model6. Process and Layout Design 6. Assembly Line Balancing7. Forecasting and Inventory Management 1

7a. Case Study7b. Fixed Order Quantity Model

8. Inventory Management 2, Lean Operations and JIT

8a. Quantity Discount Model8b. JIT

9. Aggregate Production Planning and Material Requirements Planning

9a. Aggregate Production Planning9b. Material Requirements Planning

10. Project Management 10. Program Evaluation and Review Technique Method

Solutions:

3. This question is designed to allow you to demonstrate that you can effectively design a Six Sigma DMAIC method for a process improvement project in a service based organization. Identify a process in a hotel, hospital, restaurant, university, or other service that you think might be improved by the Six Sigma DMAIC method. Discuss how you would apply the Six Sigma DMAIC method. Specify the activities and tools to be used in each of the five steps (Define, Measure, Analyze, Improve, Control).

Steps Activities Tools

Define • Collected data from customers during their stay

• Analyzed and identified the key VoC – Speed, Empathy, and Efficiency

• Defined the specific processes that affected performance

• Established the process standard – Employee must take care of service issues during the guest’s stay within 15 minutes of first receiving notice

• Questionnaire• Pareto Analysis• QFD• Benchmarking

Measure • Measured the processes – call logs were established to track speed, empathy of employee handling the call, and efficiency of the staff charged with fixing the problem

• IT monitoring systems; Work measurement

Analyze • Identified all variables that affected the three key VoC

• Investigated and prioritized the causes• Proposed alternative solutions

• Cause and Effect Diagram; Taguchi’s Method

• Pareto Analysis• FMEA

Improve • Implemented the corrective solutions • Kaizen

Control • Monitored the process• Ensured that the improved processes

became part of the property’s culture, and that they were not abandoned after the Six Sigma team’s work was finished

• Educated the rest of the organization about the improvement effort and benefits

• SPC• Documentation;

Training; Staff briefing

• Intranet; Seminar; Workshop

4. Processing new accounts at a bank is intended to average 10 minutes each. Five samples of four observations each have been taken, and the results are listed in Table 4.1. Using factors from Table 4.2, determine upper and lower control limits for mean ( ) and range (R) charts, and decide if the process is in control.

Mean UCL = = 10.42 minutesMean LCL = = 9.66 minutes

Range UCL = = 1.19 minutesRange LCL = = 0 minute

The process is in control because all samples’ and R are within the upper and lower control limits.