09 Quiz 13 Operational Management

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09 Quiz 13 Operational management

BS tourism management (STI College)

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BM1708

Name Judith Latayan Section BSTM3.1 Date 12/09/21

P-M-I
CHART

Instruction: Read and analyze the case study below. Write your answers on the spaces provided.

• In the Interesting box, write down how each approach would contribute in achieving the objective
of the power plant. In the My Decision box, write down your recommendation on how Lexus
Power Plant will achieve their main objective using one (1) between the two (2) approaches being
compared.

Case Study: Electrical Manufacturing Company


Lexus Power Plant is a large electrical manufacturer based in northern part of India. The company
employs around 12,000 people and is one of India’s leading public sector companies. The company
manufactures large turbines, transformers, etc. which are used in power stations for their clients
that are based in India and abroad. The main objective of the power plant is to establish quality
standards that ensures lower rate of defects in order to minimize the production expenses of the
company.

Response 1: Six Sigma Approach Response 2: DMAIC Approach

Plus (Advantages) Minus (Disadvantages) Plus (Advantages) Minus (Disadvantages)


➢ Because this ➢ When it comes to ➢ It can monitor and ➢ This strategy does not
strategy is developing quality understand the place a premium on
comprehensive, they standards, changing process, assess the risk client demand, which
may cut the product's design of process inputs, and is crucial in any
manufacturing costs or procedure is a collect data to assess a business. The DMAIC
by focusing entirely company's current technique focuses on
disadvantage. Because
on the problem. performance. It the performance of the
it is planned, it has
➢ It has the capacity to enhances the design organization or
the potential to hurt process by generating management.
classify characters
the power plant, and responses to issues
depending on their
it would be ideal if and supervising the
importance.
Determine the they modified the creation,
maximum allowable present technique to documentation, and
tolerance for each provide better implementation of a
category attribute. services. continuous monitoring
Despite the fact that plan to ensure that
this technique actions are carried out
concentrates on according to set
corporate growth, it standards.
also strives to Interesting
exceed In terms of managing expansion, the DMAIC model is
client expectations. fascinating, with this approach focused more on meeting the
Interesting quality criteria of the Lexus power plant.
The six sigma approach is intriguing because it is a more
precise strategy that may help Lexus Power Plant set
quality standards that ensure a lower rate of errors in
order to cut the company's manufacturing expenses.

My Decision
The primary purpose of the power plant is to set quality standards that assure a lower incidence of errors, hence lowering
the company's production costs. I urge that Lexus Power Plant use the Six Sigma technique, according to Management 9
Operations management. Six sigma is a quality benchmark that reduces mistakes by 3.4 percent per million items. This
equates to a 99.9 percent perfection rate, demonstrating that the Lexus power plant was necessary to set quality standards
and remove defects. Six sigma is a typical quality benchmark for many, if not all, key competitors in today's competitive
global economy.
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