OIP

Overview

In 1–2 pages, define and outline a measurement strategy to be used to measure the effectiveness of an OIP.

Note: You must complete Assessments 1, 2, and 3 before you can begin this assessment.

By successfully completing this assessment, you will demonstrate proficiency in the following course competencies and assessment criteria:

• Competency 2: Apply theories, models, and practices of global operations management to address business problems.
  • Explain two measures to be used to gage the effectiveness of process improvements.
  • Describe how two measurements define and quantify the outcomes of an improved process
• Competency 3: Integrate operations management analyses into general business management planning and decision making.
  • Outline a measurement strategy to be implemented with an operations improvement plan.
• Competency 4: Communicate in a manner that is professional and consistent with expectations for members of the business professions.
  • Communicate in a manner that is professional and consistent with expectations for members of the business professions.

Context

Operating a business, particularly one that is growing rapidly, requires a careful balancing of production and service capacity and a consideration of human resources, capital, inventory, and tracking systems. Balancing the capabilities of these resources can be challenging and is achieved through proper planning techniques and management. Planning entails the use of appropriate forecasting tools and techniques that can provide an accurate estimate of future activity.

What can organizations that depend on uncertain conditions (weather, customer demands, and currency fluctuations, among others) do to minimize downtime and loss of customer goodwill? What would happen to NASA, the New York Yankees, and the airline industry—all organizations that depend on such predictions for their financial well-being—if they could not predict favorable operating conditions? The ramifications would be negative, of course. But the application of sound forecasting and measurement techniques can minimize the likelihood of those negative consequences. In recent years, there has been a proliferation of software programs for forecasting and measurement. You may want to take some time to research online the kinds of resources now available for businesses of all sizes.

Questions to Consider

To deepen your understanding, you are encouraged to consider the questions below and discuss them with a fellow learner, a work associate, an interested friend, or a member of the business community.

• What are the advantages and disadvantages—to the organization and to the consumer—of incremental expansion when aiming to grow capacity? What are the advantages and disadvantages of one-step expansion?
• Deming (1987) states that one of the seven deadly diseases is presenting only visible figures as input for organizational leaders.
  • How do you think this concept could affect your selection of data and measurement strategies?
  • When historical data are not available and the product or service is new, how would you arrive at a reasonable forecast?
  • How does this concept relate to your job or personal experience?

Reference

Deming, W. E. (1987). Transformation of today’s management. Executive Excellence, 4(12), 8.

Resources

Suggested Resources

Toyota Specific Resources

• Gerondeau (2015). How Toyota Recovered from a Huge Crisis. What can be learned from it. Retrieved from: https://thethirdroad.com/?p=280
• Khan, Riz (2010). The Toyota Crisis. Al Jazeera English. Retrieved from https://www.youtube.com/watch?v=EDRFamLGATk
• Toyota Motor Corporation. (n.d.). The origin of the Toyota production system. Retrieved from http://www.toyota-global.com/company/vision_philosophy/toyota_production_system/origin_of_the_toyota_production_system.html
• Trudell, Craig and Yuki Hagiwara (2014). Toyota Recalls More Than 6 Million Vehicles Worldwide. Retrieved from: http://www.bloomberg.com/news/articles/2014-04-09/toyota-recalls-6-76-million-vehicles-worldwide-including-rav4

Additional Resources for Further Exploration

You may use the following optional resources to further explore the Questions to Consider and assessment topics.

Operations Management

The following resources offer a foundational broad view of operations management.

• Deming, W. E. (1987, December). Transformation of today’s management. Executive Excellence, 4(12), 8.
• Foster, S. T., Wallin, C., & Ogden, J. (2011). Towards a better understanding of supply chain quality management practices. International Journal of Production Research, 49(8), 2285–2300.

You may want to search this blog for the following terms: automotive recalls, operations improvement, and strategic planning.

• Harvard Business Publishing. (n.d.). HBR blog network. Retrieved from https://hbrblogs.wordpress.com/
• Imanipour, N., Rahimi, M., & Akhondi, N. (2012). An empirical research on supplier relationship management in automotive industry. International Journal of Business and Management, 7(9), 85–95.
• Jeang, A. (2010). Optimal process capability analysis for process design. International Journal of Production Research, 48(4), 957– 989.
• Beers, Hamerman, Cohen, & Burger. (2015). Managing Your Business through a Crisis: 6 Steps to Success. Retrieved from: http://bhcbcpa.com/managing-your-business-through-a-crisis-6-steps-to-success/
• Value Creation Partners. (n.d.). Analyzing and improving operations. Retrieved from http://www.valuecreationpartners.com/training/analyzing-and-improving-operations/
• van der Aalst, W. M. P. (2011). Process mining: Discovery, conformance and enhancement of business processes. New York, NY: Springer. Available from the bookstore
• Wagner, S. M., Jönke, R., & Eisingerich, A. B. (2012). A strategic framework for spare parts logistics. California Management Review, 54(4), 69–92.

Case Studies

The following case study is recommended for further examination of the topics addressed in this assessment. You may wish to purchase it from Thunderbird School of Global Management.

• Inkpen, A. C. (2011). Southwest Airlines 2011 [Case No. A10-11-0003]. Glendale, AZ: Thunderbird School of Global Management.

• Assessment Instructions

Note: You must complete Assessments 1–3 before beginning this assessment.

As part of your OIP, you will need to propose a measurement strategy. This strategy will be used to measure the effectiveness of the new process you are proposing for use in the Toyota Motor Company circa 2010. Different measurement strategies will define and quantify outcomes in different ways, so you want to be intentional about selecting the right way to measure the efficiencies gained through your improvements.

Preparation

Begin your work by researching potential ways to measure the specific process that is the focus of your OIP. Consult the Resources and conduct your own research in the Capella University Library and online. Be sure to consider both qualitative and quantitative measurements. As you do so, consider the following about the measurement strategies you review:

• What are they measuring?
• What does improvement look like according to that measurement?
• What kind of information and data is needed to effectively employ that measurement?

Instructions

Craft a report detailing the measures you will use to gage the effectiveness of your OIP and your overall strategy for implementing those measures. Your report should include the following:

• An explanation of two quantitative and/or qualitative measures you will employ in your measurement strategy and why you selected them for your particular OIP.
• A brief description of how each measurement will define and quantify the outcomes of your proposed improvements.
• An outline of your proposed measurement strategy for gaging the effectiveness of your OIP. Be sure to include how and when you will gather the data necessary for making these measures. Your measurement strategy should combine and order your selected measures in a meaningful way in order to help you understand the impact of your OIP. In your overall strategy, be sure to address how your measurement strategy will help you determine if the results of your OIP are positive, help you ensure that your process does not have an unanticipated negative impact elsewhere, and help you assess if further process change is needed.

Note: Please review and update cause-and-effect diagram and process flowchart in each assessment.

The work you do for this report should inform your work in future assessments. You will also draw on it for the final, comprehensive OIP that you will submit in Assessment 6.

Additional Requirements

• Length of report: 2–3 typed, double-spaced pages.
• APA formatting: Format resources and citations according to APA style and formatting.
• Font and font size: Times New Roman, 12 point.