Carefully review the simulation’s introductory information and instructions, as well as the information in the OM Simulation Descriptions and Implementation Tips. After completing th
Carefully review the simulation's introductory information and instructions, as well as the information in the OM Simulation Descriptions and Implementation Tips. After completing the simulation, capture a screen image of your final simulation results, including the rubric evaluation metrics (i.e., MAPE), which are to be included in your Critical Thinking Assignment.
- The Operations Quality Management assignment content must include the following:
o 2.1 Introduction: Explain the purpose or thesis of the paper and explain how the body of the paper is arranged to support the purpose of the paper.
- 2.2 Provide a brief definition of operations quality management and identify why it is important in an organization's operations
- 2.3 Provide a brief overview description of the Quality Management Simulation, including the targeted goals of the simulation.
- 2.4 Describe specifics about the model or approach used as the basis for your strategy in performing the Quality Management Simulation; in an appendix, including an illustrated (worked-out) example of a formula, calculation, or technique developed as a central part of your Quality Management Simulation strategy. Clearly describe what your investment priority strategy based on quality considerations was.
- 2.5 Describe at least three operations quality management methods, principles, or techniques experienced in the Quality Management Simulation. These may include benchmarking, employee involvement, customer feedback, PDCA, cause and effect diagram, House of Quality, etc.
- 2.6 Clearly describe your simulation results and indicate how well they met the targeted simulation goals.
- 2.7 Itemize at least three lessons learned from the Quality Management Simulation and describe how this understanding is important for a career in operations management. Here you can describe a relationship of failure rates, internal/external failures, cost of quality, investment priorities and profit; what impacted most for star rating; any surprises; etc.
- 2.8 Conclusion should present a recap of key points and summary of main emphasis without repeating verbatim and exclusive of new information.
- 2.9 References should include at least two current scholarly references (published within the past five years) in addition to the course text.
Your written Operations Quality Management paper must contain the sections outlined in the instructions.
- Don't forget to include a screenshot of your final simulation results.
Submit your Critical Thinking Assignment document(s) in the submission area established for this purpose. Per the assignment rubric, a portion of your evaluation is based on your simulation results
· It should be 3-4 pages in length not including the required cover and references pages.
· It should be with at least 2 peer-reviewed or professionally published sources Use current sources, not older than 5 years.
· Format: APA guidelines
Operations Quality Management
Holly Crosley
Colorado State University Global
OPS510: Operations Management
Dr. Parimal Kopardekar
December 5, 2021
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Operations Quality Management
Quality is a differentiator of a successful business (Heizer, et al., 2020). A company’s
ability to apply a total quality system effectively is how they sustain product and service quality
at a nominal cost (Nugroho & Nurcahyo, 2018). Quality practices begin with organizational
practices, quality principles, employee fulfillment, and customer satisfaction (Heizer, et al.,
2020). Corporate leadership sets the expectations for quality through their mission statement,
operating procedures, and staff training. To maintain and determine how to apply the Total
Quality Management (TQM) is the next step in the process. This involves looking at the different
options for tracking what the company has determined are its quality metrics. Ensuring the
employees are content is the next part of the quality cascade. Ensuring employees see the bigger
picture regarding quality and buy in to supporting the vision of the company is crucial to success.
Employee retention is also important as training employees is an additional cost to a company.
Finally, customer satisfaction is the end of the process, as defined by Heizer, et al. (2020). The
Quality Management simulation in the Pearson MyOMLab provides a real-life scenario with
TQM decisions which need to be made when specific quality concerns arise. This paper will look
at the simulation in depth, the methodologies, the results, and the lessons I learned after
completing the simulation.
Quality Management Simulation
The quality management simulation was a 12-month restaurant operations simulation.
The premise of the simulation was:
You are the manager of Cibare, one of the hottest Italian restaurants in town. You
manage a full service staff and work closely with the Chef and the restaurant owner to
ensure Cibare is providing a high-quality experience for customers. It is your job to make
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sure daily operations are running smoothly and that the investments you make to improve
or maintain quality provides a return that exceeds the cost.
The simulation began with emails, texts, and reviews and ratings from customers. The
owner and staff messages set the scenario and gave a brief look at the current status of the
restaurant. The goal of the simulation was to earn $360,000 in net profits from food and beverage
sales and to not get fired when the year ended.
The simulation required decisions to be made about regarding issues that arose, both
internal and external. For example, an internal problem could be the staff was embarrassed by the
quality of the desserts being offered as documented through emails and texts from staff. External
issues were based on customer complaints as seen in the reviews of the restaurant. Every so often
a new email or text would come in which would detail the current issue. This was usually
accompanied by a change in the number of customer reviews as well as the specifics of the
customer reviews. Choices would then be offered as potential solutions to the problems with
associated costs.
Like the forecasting simulation, I looked at the communications from the staff and looked
at the customer reviews and the current restaurant income and expenditures. The messages varied
major capital outlay issues to minor cleaning issues.
Operational Quality Management
Operational quality management includes TQM, Lean, and Six Sigma methodologies.
These methodologies can stand alone or work together to implement quality processes. Total
Quality Management (TQM) includes the PDCA (Plan, Do, Control, Act) technique to enact
change or make decisions. Quantifying the costs of poor quality is a way to evaluate the benefit
of utilizing TQM methodology. Lean aims to reduce waste within a system or process. Typically,
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reducing defined waste can reduce overall costs. As part of TQM, many choices exist within the
lean methodology techniques, such as value stream processing, which lists every step in a
process to identify where waste can be reduced or eliminated. Six Sigma is another methodology
identified when implementing TQM processes. Six Sigma is more statistical in nature and relies
upon data to determine defect reduction. The DMAIC (Define, Measure, Analyze, Improve,
Control) technique is commonly used to systematically look at process improvement. (Saxena &
Rao, 2019). It is important to note, defects can be an obvious product flaw or mistake, but can
also refer to any deviation from a standard operating procedure.
When approaching the issues that were presented in the QM simulation, I utilized a mix
of the different techniques to make my decisions. Looking at the cost benefit analysis, but also
using a more empathetic view to see what the decision would do to the people involved. This,
like forecasting, enacts an art and science approach to TQM.
Simulation Results
My Quality Management simulation results were a 112.93% profit increase over the
profit goal ($360,000) set by the owner of the restaurant ($406,559 total profit). Customer rating
goal was 3.5 stars and I was able to achieve a 4.5 star rating (see Appendix A). The total cost
breakdowns are shown on Appendix C.
Lessons Learned
Lessons learned are captured when the positive and the negative experiences are
documented (Project Management Institute, 2017). I learned many lessons during this Quality
Management simulation. Some involved major cost choices, some were minor, some were
related to customer comfort, and some were to keep staff content.
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There were two major maintenance choices during the simulation. One was when the
plumbing failed and there was no water and one was when the AC failed. In both cases, I chose
to spend the higher breakdown maintenance cost. In both cases, I agree with Heizer, et al. (2020)
the consequences of the failures need to be considered. Sometimes the cost of the repair, while
more expensive than the preventative maintenance cost of stop gap repairs, is the right choice
from a quality standpoint. Living in Arizona probably caused me to spend the much greater
amount to fix the AC, as our summer temperatures make it so no AC can be catastrophic to
health and well being of staff and customers. Perhaps a business owner residing in San Diego
(more temperate climate) would make the preventative maintenance choices, like setting up fans
or misters, for a while until it became a necessity to repair the HVAC system.
When the plumbing failed, it was a breakdown maintenance cost in my opinion that far
outweighed having the staff plunge toilets regularly. There is health and hygiene issues which
would need to be considered. Even though the plunging was the much cheaper option, hiring the
plumber to completely repair the plumbing system in the restaurant seemed the smarter and
better option for the future.
However, when the restaurant needed to be cleaned, I chose to hire a cleaning crew, when
the better choice was to rotate the staff into a sweeping/mopping schedule. The cleaning crew
cost was a little over 3x the cost of just having current staff clean. The staff would not have been
thrilled, but it would not have likely caused a mass exodus or major discontent.
My decisions about how much to spend on which option was determined by reading the
texts from the staff and the comments from the customers. I did tend toward the choices to keep
the staff happy. I also looked at what my current income was and how close I was to the target
goal of $360.000. I also looked at what percentage of my profit the improvement would take. On
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smaller improvement decisions, if the percentage was relatively small (see Appendix B), I would
opt for the improvement which would make the staff happy. With the more expensive
improvement choices, I made the decision to go with the breakdown fix rather than the
preventative fix. My thought was the breakdown fix would mean the problem would not return
quickly nor would it cause the staff extra work. I assessed the problem and looked at the 8 wastes
of lean where I decided if the improvement would increase any of the wastes with staff
(under/over utilizing talent, over processing).
Conclusion
Total Quality Management follows a quality cascade which starts with the company,
moving to the management methodologies and techniques, then the employees, which ultimately
drives customer satisfaction (Heizer, et al., 2020). This is the part of TQM I focused on when
performing this simulation. Customer satisfaction comes organically if the company and its
employees are diligent about focusing on the TQM processes which follow the vision of the
company (Nugroho & Nurcahyo, 2018). It can be inferred profits will also show the same path.
The QM simulation results showed, at least in this one simulation, the total quality management
approach of mathematics and the human factors demonstrated a successful result.
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References
Heizer, J., Render, B., & Munson, C. (2020). Operations management: Sustainability and supply
chain management (13th ed.). Pearson Education, Inc.
Nugroho, T. W., & Nurcahyo, R. (2018, January). Analysis of Total Quality Management (TQM)
implementation in small medium industries. In Proceedings of the International
Conference on Industrial Engineering and Operations Management (Vol. 2018, No. JUL,
pp. 607-618).
Project Management Institute. (2017). A guide to the Project Management Body of Knowledge
(PMBOK guide) (6th ed.). Project Management Institute.
Quality Management Simulation, Heizer, J., Render, B., & Munson, C. (2020). Operations
management: Sustainability and supply chain management (13th ed.). Pearson Education,
Inc.
Saxena, M. M., & Rao, K. S. (2019). TQM, Six sigma and Lean. International Journal of
Applied Engineering Research, 14(15), 3442-3447.
Skhmot, N. (2017, August 5). The 8 Wastes of Lean. The Lean Way. https://theleanway.net/The-
8-Wastes-of-Lean
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Appendix A
Screen capture from the Pearson OMLab Quality Management Simulation which shows
the overall results from the Quality Management Simulation.
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Appendix B
Worked out example from Pearson OMLab Quality Management Simulation.
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Appendix C
Overall Cost Analysis from MyOMLab Quality Management Simulation.
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