Preview

Operations

Powerful Essays
Open Document
Open Document
15948 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Operations
INSTILLING AN AWARENESS OF THE IMPORTANCE OF QUALITY AMONGST PRODUCTION EMPLOYEES AND IMPLEMENTING THE COST OF QUALITY AS A CONTINUOUS IMPROVEMENT INITIATIVE WITHIN A PRODUCTION PLANT

INITIALS SURNAME STUDENT NO

PS XXXXX 2008YYYY

RESEARCH PROPOSAL

Submitted in partial fulfillment for the degree of

B/TECH (OPERATIONS MANAGEMENT)

In the
DEPARTMENT OF QUALITY AND OPERATIONS MANAGEMENT

At the

UNIVERSITY OF JOHANNESBURG

SUPERVISOR: A. Vermuleun

October 2007

JOHANNESBURG

TABLE OF CONTENTS

CHAPTER 1 Page

1.1 Background 1

1.2 Problem formulation 6

1.3 Aim of the research 7

1.4 Primary Objectives 8

1.5 Secondary objectives 9

CHAPTER 2

9 Literature Review 10

10 Research Question 48

11 Scope of the Research 54

CHAPTER 3

3.1 Research Methodology 56

3.2 Data Collection 56

3.3 Data Analysis 57

CHAPER 4

14 Findings of the study 59

CHAPTER 5

5.1 Discussion of findings 61

CHAPTER 6 6.1 Conclusion and Recommendation 65

6.2 Glossary of Terms 67

6.3 Summary of Research 69

6.4 Bibliography 70
Annexure 1 – Workforce questionnaire
Annexure 2 – Measures of central tendency
CHAPTER 1

BACKGROUND TO RESEARCH PROBLEM

1. Introduction

The ZZZ group of companies, with its head office based in RRRRR, GGGGG, develops, manufactures and markets a wide range of high performance biaxially orientated polypropylene films for a wide variety of applications in the food, packaging, label and tobacco industries. The ZZZ group markets its product in over 90 countries, at 7 sites around the world. (ZZZ SA presentation)

ZZZ South Africa is situated in Chamdor, Gauteng and markets its product locally and internationally. The company has a staff compliment of 149 workers,



Bibliography: Figure 1. Internal Rejection Rate Source: Figure 1 is adapted from the Quality data, ZZZ SA, (2007). Source: Figure 2 is adapted from the Quality data, ZZZ SA (2007).

You May Also Find These Documents Helpful

  • Powerful Essays

    The purpose of this project was to gain experience in quality improvement by working with an organization to identify a business problem, analyze the causes, develop an improvement plan, implement changes, and to verify the effectiveness of the solutions. For this project we had to keep scope in mind. This project had to follow certain criteria, such as: that it is a manageable project with a local organization, it can be completed within the time frame of the course, it has a direct impact on external customers, it is relatively simple, and that it is not something that is currently undergoing major changes.…

    • 4310 Words
    • 18 Pages
    Powerful Essays
  • Good Essays

    Our firm is the producer of tangible products. We, as a company, must ensure that we are delivering the highest quality products to our customers to maintain a quality reputation and in order to earn repeat and referral business. We have identified the three types of costs associated with the implementation of quality considerations. We believe that if we are mindful of the following costs our quality will improve, our customer satisfaction will improve and our business will prosper. The three types of costs associated with quality considerations are prevention costs, appraisal costs, internal and external failure costs. Prevention costs are the most effective way to avoid unnecessary problems with production and sales quality. These costs are defined as any steps we as a company can take to pre-emptively avoid any future defects by providing our employees with things such as, proper tools to complete their assigned work, safe and proper working conditions, proper and effective training of all new employees and continual training and education for all existing employees, and by implementing quality control systems to ensure all products produced are up to the company’s and customer’s quality standards. Appraisal costs are the costs associated with the testing and inspection of purchased materials used in the productions process, inspection of the items the company is producing, checking items produced for conformance, quality control audits and field testing of items produced and the cost of the labor associated with all of these items. These costs are ultimately the quality costs resulting from quality control and while they may be high in numbers but are imperative during the manufacturing and production processes. Internal failure costs are the costs that we would incur should we fail to meet the quality standards of the…

    • 865 Words
    • 25 Pages
    Good Essays
  • Good Essays

    Week 3 article Summary

    • 845 Words
    • 3 Pages

    Quality management has been and is considered to be one of the major drivers of performance drivers in organizations. There have been many studies done to explore quality management and their relationship with performance. The purpose of these studies were to help managers and organizations implement effective quality management. Although there are contributing factors to quality management no single factor contributes to effective quality management. Also none of these contributing factors will improve or is guaranteed to improve performance in the organization.…

    • 845 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Operations Decision

    • 342 Words
    • 2 Pages

    Assume you have been hired as a managing consultant by a company to offer some advice that will help it make a decision as to whether it should shut down completely or continue its operations. It currently uses 100 workers to produce 6,000 units of output per month (working 20 days / month). The daily wage (per worker) is $70, and the price of the firm's output is $32. The cost of other variable inputs is $2,000 per day. You are told that the firm's fixed cost is “high enough” so that the firm's total costs exceed its total revenue. The marginal cost of the last unit is $30. (Ch 7 & 8 to solve)…

    • 342 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Risk Scenario

    • 4258 Words
    • 18 Pages

    The impetus for quality improvement has been driven in recent years by three main factors:…

    • 4258 Words
    • 18 Pages
    Powerful Essays
  • Powerful Essays

    ACCT 361 Midterm Notes

    • 4340 Words
    • 13 Pages

    Quality on the production line (conformance to technical specifications) reduces costs and supports a cost leadership strategy…

    • 4340 Words
    • 13 Pages
    Powerful Essays
  • Satisfactory Essays

    This section should include a plan to implement or improve quality using qualitative and quantitative analytical tools. If QM is implemented the ground work and preparation should be included. If the company has already implemented some level of quality, the description of the existing quality processes should be included in addition to the plan for improvement. Minimum of three quality improvement tools should be discussed for three different processes. Application of quality measurement tools (e.g. Six Sigma, and Statistical…

    • 302 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Operations

    • 1332 Words
    • 5 Pages

    In order to execute a successful purchasing negotiation, it is important to understand Buffalo Distributors' needs and objectives. Buffalo's needs are determined by their acceptable level of profit, which $1 billion, or $1.52 billion pre-tax. The Company will need to price accordingly to attain that profit level with consideration to all costs. In addition to pricing needs, other needs that Buffalo must consider to execute a successful purchasing negotiation. To begin with, changes can be made to parameters to reduce cost as opportunities become available. Additionally, our quality factor can be taken as low as 35, with our target being 60, and a high of 80. Delivery can be either Buffalo’s or their supplier’s responsibility, but the landed cost objective discussed previously must still be met. Further, distribution technology is set to automated, service strategy is set to high, and responsiveness is set to high. Finally, minimum purchase commitments per month should be in-line with demand, should include a 20% buffer, and should pay respect to seasonality.…

    • 1332 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Companies and Management professionals now know that quality needs to be built into every level of a company, and it needs to be a part of everything the organization does. From answering the phone to assembling products and serving the end customer, quality is vital for the success of organizations.…

    • 1879 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Toyota Target Costing

    • 14447 Words
    • 58 Pages

    Introduction Many companies in the world gradually promote quality as the central customer value and regard it as a key concept of company strategy in order to achieve the competitive edge (Ross and Wegman, 1990). Measuring and reporting the cost of quality (COQ) is the first step in a quality management program. Even in service industries, COQ systems receive considerable attention (Bohan and Horney, 1991; Carr, 1992; Ravitz, 1991). COQ systems are bound to increase in importance because COQ-related activities consume as much as 25 percent or more of the resources used in companies (Ravitz, 1991). COQ information can be used to indicate major opportunities for corrective action and to provide incentives for quality improvement. Traditional cost accounting, whose main functions are inventory valuation and income determination for external financial reporting, does not yield the COQ information needed. While most COQ measurement methods are activity/process oriented, traditional cost accounting establishes cost accounts by the categories of expenses, instead of activities. Under traditional cost accounting, many COQ-related costs are lumped into overheads, which are allocated to cost centers (usually departments) and then to products through predetermined overhead rates. For example, among various COQ-related costs, the rework and the unrecovered cost of spoiled goods caused by internal failures are charged to the factory overhead control account which accumulates the actual overhead costs incurred (Hammer et al., 1993, pp. 155-64). The predetermined overhead rates should be adjusted to incorporate the normal levels of various COQ-related costs, and excess COQ-related costs will be buried in overhead variances. The cost accounting treatment described above cannot satisfy the needs of COQ measurement. Thus, Oakland (1993, p. 210)…

    • 14447 Words
    • 58 Pages
    Good Essays
  • Powerful Essays

    Cadbury India

    • 6927 Words
    • 28 Pages

    Chocolates had its beginnings in the times of the Mayas and the Aztecs when they beat cocoa into a pulp and made a bitter frothy chocolate out of them. They first became popular in Europe in a highly unrefined form. Then the Hershey Food Company was the first to bring out chocolates in the currently popular solid form.…

    • 6927 Words
    • 28 Pages
    Powerful Essays
  • Satisfactory Essays

    Cost Reduction Techniques

    • 546 Words
    • 3 Pages

    VII. Productivity Improvement and Cost Controls a) Organizing for productivity improvements b) Performance measurements and improvements c) Expected payoff and benefits d) Applying Activity Based Costing to a process VIII. Quality Assurance as a Cost Reduction Application a) What quality control really is b) Establishing a quality policy c) Analyzing specific process costs d) Quality…

    • 546 Words
    • 3 Pages
    Satisfactory Essays
  • Best Essays

    References: John, P. et al (2006) Selected proceedings of 35th Annual conference on African Linguistics: African Languages and Linguistic in Broad perspectives. Cascadilla proceedings project Summerville, MA. Cascadilla Press, USA.…

    • 3027 Words
    • 13 Pages
    Best Essays
  • Powerful Essays

    The twenty-first century is characterized by the use of information and communication technology which has revolutionized our working and living patterns. A new kind of market has emerged out nowadays called as “e-market” or “internet-market”, where customer can perform many of their shopping electronically over the internet through their personal computer or laptop at any time convenient to them, without having to be restricted to regular store visit and can also avail many services through internet itself such as ticket booking, bill payments, etc. Furthermore, customer is expected to perform at least one of the following activity online namely ticket booking, bills payment, purchasing software, music and transferring funds.…

    • 6516 Words
    • 27 Pages
    Powerful Essays
  • Good Essays

    Focusing on quality significantly lowers cost of production at long run. Operations Management (Russell and Taylor, 2000) explains that, manufacturing of products to a high quality standard through implementation of quality…

    • 825 Words
    • 4 Pages
    Good Essays