Overview
The objective of Application Activity #3 is to complete a quality analysis of a product, service, or process that may be underperforming relative to market leaders or industry standards. The underperformance results in negative customer experiences that impact revenue and/or generates unnecessary expenses for inspection and correction prior to delivery or repair/replacement after customer delivery. The internal analysis requires data on failure and nonconformance and the costs to address these at various stages of production. The external analysis requires information on customer satisfaction and quality rankings, the costs associated with field repairs or recalls, and the loss of future sales or new customer acquisition to offset losses from existing customers who go elsewhere.
Instructions
1. Choose a focus area and two organizations to compare.
a. Select a product, service, or process for your analysis of quality performance. You may choose a focus area that is a component of your capstone project, a different focus area that still comes from your own organization, or a product, service, or process from another organization.
b. Select two organizations for comparison. These can be competitors, suppliers, customers, or exemplars of operational excellence such as a Baldrige award winner or market leader.
c. Explain the rationale for your selections in a. and b.
2. Based on what you have learned in your previous JWMI courses and after reviewing the content in the Weekly Materials, Videos, and Additional Resources modules in this course related to quality, identify three key metrics relevant to evaluating these organizations' competitive strengths.
a. Explain why you have selected these as key metrics.
b. How will you collect the information you need to make a comparison? Consider the following:
i. You will have limited visibility into detailed internal operational performance metrics for organizations other than your own.
ii. Selecting publicly traded companies for comparison will provide greater visibility into some metrics than what is typically available from private companies.
iii. Even without full visibility into an external/competitor organization, you can still complete a meaningful analysis based on publicly available data such as 3rd- party reviews, product pricing, market share, and analyst's reports such as those found on industry-specific websites or Morningstar.com
3. Show me the Data:
Present data on performance levels on relevant metrics. Use data, graphs, and charts to effectively display performance levels showing one or more of the following (as appropriate) for each key metric to make a compelling argument:
a. Trends over time
b. Variation and/or distribution patterns
c. Capability comparisons to targets, specifications and/or industry averages or the competition.
Note: Minitab use is encouraged. Useful Minitab commands: Stat > Basic Statistics >Graphical Summary; Graph > Boxplot, Histogram or Dotplot; Stat > Quality Tools > Pareto; Stat > Control Charts; Stat > Quality Tools > Capability Analysis.
4. Write a brief recommendation for an operational improvement initiative to address the quality challenges faced by the weaker of the two organizations that could strengthen its competitive position.
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