Discussion Board Replies

Instructions:

The Replies

Reply to each thread marked in bold. Each reply must be at least 200 words and include at least 2 resources. Acceptable sources include the textbook, the Bible, outside scholarly articles, etc.

The following suggestions will aid you in successfully composing substantive responses:

· Compare/contrast the findings of others with your research.

· Compare how the findings of others relate/add to the concepts learned in the required readings.

Share additional knowledge regarding the key topic that relates to the thread.

Threads

1.

Key Concept Explanation: Functionality (Harold Dede)

Functionality is often confused with quality.  A product or service can function properly according to design specifications.  However, how it functions can be of poor quality.  Quality of a product or service, is based upon how it is perceived by customers.  Organizations sometimes produce products and/or services without a focus on their present and potential customers.  Coca Cola in 1985 decided to change its classic formula, and rebrand it as the “New Coke”.  Although the new formula was favored in blind tastes tests, it was largely boycotted by Coca Cola customers.  Coca Cola was forced to bring back its original formula which they branded as “Classic Coca Cola”.  Even though the product was of superior quality in the eyes of Coca Cola executives and marketers, it did not function properly in the eyes of Coca Cola customers (Bhasin. 2016).  In my many years in airport ground transportation, I have attended numerous meetings concerning the quality of airport ground transportation, but many government bodies, and ground transportation providers have failed to consider the functionality of airport ground transportation from the customer perspective.  That customer perspective as to the functionality of ground transportation in general, and airport ground transportation in particular provided an opening for transportation network companies (TNC) to garner a huge market share of ground transportation due to customer perceptions about the functionality, and quality of traditional ground transportation such as taxicabs and van service.

2. Key Concept Explanation: Benchmarking (Jordan Crockett)

            In business, it is important to know where one’s company stands in comparison to other companies in the same line of work.  A common approach in which this is accomplished is through benchmarking. “Benchmarking is the process of comparing your own organization, operations, or processes against other organizations in your industry or in the broader marketplace” (Reh, 2017, para. 1).  Ensuring your business is running smoothly internally is important, but if it is done without measuring that performance externally against other companies it becomes irrelevant and does not tell the total story of how well the organization is actually operating. The biggest difference that may potentially arise when benchmarking is what areas of the business to compare and attempt to improve by studying the practices of another more successful organization.  The fundamental principle of benchmarking really does not change from publication to publication or business to business.  In the end the same goal is trying to be accomplished in attempting to improve one’s business processes by looking at those same processes of other companies that are more efficient and make more money and are also in the same line of business.  The article covered another angle for the purpose of benchmarking as well.  Going into the possibility that another reason for benchmarking is “monitoring competitor's shifting strategies and approaches” (Reh, 2017, para. 3).  That also can benefit our company, but it is approaching it from a different angle than the typical benchmarking principles.  Instead of focusing on another organization’s strengths and using those strengths in order to provide the company with insight of how to improve an area that is not very efficient, it focuses on the weaknesses of that organization.  This gives leadership the opportunity to learn not only from other businesses strengths, but also from their weaknesses and how to avoid them. 

Key Concept Explanation: Brainstorming (Harold Dede)

Brainstorming is a topic that continues to be examined for its purported usefulness in attempting to come up with solutions to various problems.   Advertising executive Alex Osborn first came up with the term in 1953.  His concept was to gather a small group composed of both novices and experts and give them one question to answer, and see what ideas come out of the session.   “Whether or not brainstorming ‘works’ it continues to occupy a very large space in the innovator's toolbox” (Gobble. 2014, p. 60).  The author goes on to suggest that although brainstorming “…has captured our imagination, sometimes to the detriment of other creative ideation…” there could be “approaches that might be more effective, or just more suitable to the particular task at hand” (p. 60).  Meredith and Shafer consider brainstorming to be “…among the most, if not the most, widely used techniques in business to stimulate and foster creativity” (2016, p. 244).  The whole idea behind brainstorming in business is to encourage employees to think outside the box.  Each idea, no matter how outrageous or against the norm is examined.  It gives the group or team a chance to listen to each other’s ideas, and possibly improve on those initial ideas during a brainstorming session.  It is not the intent of a brainstorming session to criticize the ideas presented by individual members of the group.  The concept is for each individual to be creative and innovative in regards to the business processes that they are analyzing for their organization.  Brainstorming “…focuses more on the quantity of the ideas generated rather than the quality” (Meredith and Shafer. 2016, p. 244).  After all ideas from the brainstorming session are presented to the organization, each idea can be critically evaluated.  The value of brainstorming in an organization will be weighed against the value of employees working on business processes on an individual basis.  The effectiveness of brainstorming will depend upon the operational or supply chain problem that a company is facing in its short and long term strategy.

3. Key Term: “Lean Six Sigma” (Daniel morales)

As organizations work to monitor their processes, naturally improvements are made in order to create better and more efficient processes. Lean Six Sigma is the idea of combining the philosophy of lean management with the practices of Six Sigma programs with the goal of creating better, more efficient practices within the workplace. A number of advantages come to the company with lean management programs, which is why managers around the globe are trending more towards its practices. By adopting the lean management philosophy managers enjoy the benefits of cost savings, revenue increases, investment savings, workforce improvements, and uncovering problems within their business. I chose to research more about Lean Six Sigma, because I am currently in a finance class as well and it asked me as a CFO what would I do to help create/maintain cash flow within my struggling business and lean management processes came to mind. After writing a little about lean management processes and using what I have learned so far in that paper, I noticed the concept of lean six sigma and wanted to learn more about that as well.  Managers across the globe are trending towards lean management programs. The lean philosophy is applied in order to efficiently and effectively use the resources an organization already has at its disposal (Meredith & Shafer, 2016). Meredith and Shafer argue that lean management comes with a variety of benefits including: “reduced inventories and space, faster response to customers due to shorter lead times, less scrap, higher quality, increased communication and teamwork, and greater emphasis on identifying and solving problems” (2016). Managers are taking these benefits of effectiveness and combining them with the consistency benefits of Six Sigma; calling it Lean Six Sigma. 

            Knapp describes Lean Six Sigma as “a comprehensive system for achieving and sustaining business success through understanding customer needs, data discipline, adding value by reducing waste, and diligent attention to managing and improving process” (1988). Meredith and Shafer argue the necessity of combining lean management with Sigma Six in order to stay competitive in today’s business environment. An organization that focuses on eliminating waste through the use of lean management but does not focus on addressing consistency in programs will miss opportunities to enhance effectiveness (Meredith & Shafer, 2016). On the other hand, companies that focus too much on reducing inconsistencies but fail to address efficiency also limit their effectiveness. Therefore, a company that focuses on both efficiency and consistency creates the most effective and competitive business practice. 

            Knapp explains that a key component to the Lean Six Sigma model is the top manager’s involvement and support. In her paper she explains how the top manager influenced the success or failure of Lean Six Sigma by making the decisions consistent with the programs and creating open communication for others to learn. Apart from top management involvement, another key part of the Lean Six Sigma is statistical and graphical analysis; which is used to measure results and the financial return of Lean Six Sigma. Lastly, Knapp believes that infrastructure is key to the success of Lean Six Sigma.

Key Concept Explanation: Project Definition (jonathan Wilson)

Project definition requires that the project “has a clear beginning and end…with a clear specification of the desired objective (Meredith and Shafer. 2016, p. 37).  In defining the project, stakeholder involvement is needed because it is necessary to determine their roles in a project, and determine “…at which stage they should each be involved in the project definition process…” (Aapaoja, A et al. 2013, p. 1).  Project definition cannot be done in a vacuum.  The project objective will be impacted by stakeholder acceptance as well as functionality for all stakeholders.  “Projects frequently require different emphases during their life cycle” (Meredith and Shafer. 2016, p. 37).  Technical expertise may be needed at the beginning, “…cost overruns in the middle, and on-time completion at the end” (p. 37).  Stakeholder expertise and input are needed at each phase of a project to ensure successful completion.  As stated in this week’s textbook readings, projects can be construction projects which have a definitive timeline and budget.  Projects can also be organizational enhancements that benefit workflow and cost reductions as in the Veterans Health Administration case cited which centralized patient billing, increased collections, and reduced the agency’s cost.  “…Projects are processes that are performed infrequently and ad hoc, with a clear specification of the desired objective” (p. 37).  

4. Key Concept Explanation: Inventory Management (Jordan crockett)

            Having the right inventory and efficiency managing that inventory are very important aspects in the operation of a successful business.  Too much inventory can be detrimental and costly to a business in the same way not having enough inventory can be, so striking that balance is critical in maximizing profit.  When it comes to inventory, having the perfect amount of product is critical in order to accomplish the organization’s commitments and goals.  Ensuring a company’s inventory is properly managed can be a critical to a company’s overall success than any other factor that goes into making a successful business.  Both scenarios of having too much inventory and not having enough inventory can be as detrimental as the other.  With a top priority of any company being customer satisfaction, not having the required inventory being requested by customers will almost guarantee the loss customers.       At the same time, having too much inventory on hand that never gets sold can be a detriment to the company, but from a different angle.  Building up inventory costs money, so the goal when building an inventory is to sell as much of that inventory as possible in order to maximize profit.  Not being able to sell a majority of inventory means that money spent on products is never recuperated and thus becomes a loss for the company. Effectively using inventory is a key factor in inventory management.  The goal is for the inventory to be managed at a level to where the inventory does not run out, but at the same time not overstocked.  Different types of inventory must be handled in different ways.  For example, having an overstock of perishable items creates a more immediate concern than a product that does not have a shelf life, so they both are able to be managed differently.  Managing inventory is a very delicate balance that takes diligent and careful work to determine exact numbers of products that will maximize profit.  An inventory does not have to be managed using only one technique, there are many ways to be successful in managing it.  The one thing that must exist is attention to detail and a very diligent manager.  In order for an inventory, especially if it is large, to be properly managed the manager must understand what customers desire and what their habits are.  Based on this information determines the size of the inventory that should be on hand in order to ensure profits are being fully maximized.  The book does a really job breaking down the different types of inventories that exist and the numerous ways that if not managed correctly can be damaging to an organization’s performance. 

Key Concept Explanation: Logistics (StepehenSmith)

Business Logistics can be defined as a “part of the value chain that plans, implements and controls the efficient flow of goods, services and information from the source to the consumer” (Martí, Puertas, & García, 2014, p. 2982). Understanding logistics will aid mangers to solve important problems with transportation, storage, and packaging, which, in turn, gives the firm more competitiveness in the global marketplace (Martí, Puertas, & García, 2014). Logistics is a process that moves products, equipment, and cargo from on location to another in a specific timeframe (Dan, Renqiang, Xiaozhen, & Jie, 2016). This topic intrigues me for the reason of professional curiosity. I have been recently working in an TSA international warehouse where understanding logistics is pivotal for the completion of tasks and for micromanaging the movement of goods. Meredith and Shafer (2016) view logistics from a product perspective. The textbook fails to evaluate the importance of analyzing logistical measurements.  Meredith and Shafer (2016) bifurcates the focus of logistics management as either responsive or efficient. The textbook contends that there are innovative and functional products. Whereas functional products refer to those that consist of an easily predictable demand pattern (e.g. batteries and toilet paper), innovative products are continuously improved, altercated, and have an unpredictable demand pattern (Meredith & Shafer, 2016). Meredith and Shafer (2016) suggest that while organizations that ship functional productions should focus on efficiency, firms that ship innovative products should focus on responsiveness (Meredith & Shafer, 2016). Meredith and Shafer (2016) do not evaluate the conflicts that logistics implementation encompasses. In addition, the textbook does not highlight the importance of analyzing and monitoring logistical control measurements. It is impossible for logistics managers to satisfy the all of the requirements that involve logistics operations (Mehrsai, Thoben, & Scholz-Reiter, 2014). To complete some requirements, logistics managers must abandon other objectives, which leads to conflict (Mehrsai et al., 2014). Researchers have named this conflict as a “dilemma of operations planning” (Mehrsai et al, 2014, p. 4715). Thus, logistics managers must evaluate performance measurements in order to optimize logistic operations. Some of the measurements include work-in-progress (WIP), schedule reliability, and utilization (Mehrsai et al., 2014).