Questions on ( quality in operation management )

STUDENT DETAILS

Student Name

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Student ID

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INSTRUCTION FOR SUBMISSION OF HARD COPY (PRINT) ASSIGNMENTS

1. Read and sign your cover sheet. 2. Attach this sheet to the front of your assignment. 3. Your assignment should be submitted to the relevant lecturer.

ASSIGNMENET DETAILS

Program Name

BS in Management Information Systems

BS in Business Management

BS in Accounting

Course Code MGT 214 Course Name Operations Management

Assignment/Project Assignment 1 Lecturer’s Name Ms. Dalal Bamufleh

Due Date 18/ March / 2014 Date submitted

REQUEST FOR EXTENSION All work must be submitted by the due date. An application to extend the due date on the basis of special consideration must be authorized by the course lecturer. Cheating and assisting to cheat are offences under the Yanbu University College’s policy. STUDENT’S STATEMENT I have read and understood the information provided on this assignment cover sheet and in the college’s policy relating to cheating and assisting to cheat, collaboration and plagiarism. I certify that the attached work is entirely my own except where work quoted is duly acknowledged in the text; that I have not worked with another person or persons except where specifically permitted by the lecturer, and that this work has not been submitted for assessment by myself or any other person in any other time. I have retained a copy of my work.

Students Signature

Date

Mark/Grade

Assessed by & Date

MANAGEMENT SCIENCE DEPARTMENT

Assignment Cover Sheet

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The cover page should carry the following:

 Name and logo of the University College

 Program title

 Subject code and title

 Name of lecturer

 Name and ID of every member of your group (maximum THREE students in a group)

 Date of submission

The assignment must be:

 Submitted as a hard copy on time (late assignments will be rejected)

 Type written

 Include all Headings

 Edited for typo and grammatical errors

 Left and right alignment of 2 cm

 1.5 spacing

 Font size - 11

 Lettering – Times New Roman

 Paragraphing – 2 spaces

OBJECTIVES:

CLO PLO Total marks Marks awarded

4 PS4, AS6 30

Assignment Format 5

TOTAL MARK AWARDED 35

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Categories 90-100% (Level 4)

80 -89% (Level 3)

70-79% (Level 2)

60 - 69% (Level 1)

Problem Solving

Student demonstrates a higher level of problem solving, Learner provides a strategic approach in presenting examples of problem solving, while drawing logical conclusions which are not immediately obvious. Student provides well- supported ideas and reflection with a variety of current and/or world views in the assignment. Student presents a genuine intellectual development of ideas throughout assignment.

Student exhibits a good command of problem solving skills in the presentation of material and supporting statements. Assignment demonstrates the student’s above average use of relating concepts by using a variety of factors. Overall, student provides adequate conclusions.

Student takes a common, conventional approach in guiding the reader through various linkages and connections presented in assignment. However, student presents a limited perspective on key concepts throughout assignment. Student appears to have problems applying information in a problem- solving manner.

Student demonstrates beginning understanding of key concepts, but overlooks critical details. Learner is unable to apply information in a problem-solving fashion. Student presents confusing statements and facts in assignment. No evidence or little semblance of critical thinking skills.

Analytical Skills

Demonstrates a sophisticated understanding of the topic(s) and issue(s). Presents an insightful and thorough analysis of all issues identified and demonstrates complete command of the strategic concepts and tools studied.

Demonstrates an accomplished understanding of the topic(s) and issue(s) Presents a thorough analysis of most issues identified and demonstrates good command of the strategic concepts and tools studied.

Demonstrates an acceptable understanding of the topic(s) and issue(s) Presents a superficial analysis of some of the issues identified and demonstrates limited command of the strategic concepts and tools studied.

Demonstrates an inadequate understanding of the topic(s) and issue(s) Presents an incomplete analysis of the issues identified and makes little or no connection between the issues identified and the strategic concepts studied in the reading.

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INTRODUCTION

Portakabin is part of the Shepherd Group. This is family company supplies modular buildings nationwide. The Portakabin brand is the most widely recognized brand in modular construction in the UK and its modular buildings provide high quality working environments for many businesses and organizations, for example, offices, schools, hospitals or hospitality suites. Most businesses operate in competitive markets: they have to 'take on' and 'see off' rivals. Each organization must decide for itself how best to try and do this. Not all firms come up with the same answer and for good reason. Firstly, there are several different ways of gaining competitive advantage. Secondly, businesses need to play to their strengths and not all businesses have the same strengths. Thirdly, many markets are segmented and what is important to one set of customers may be less important to another set. So businesses need to decide which segments of the market they are targeting. Ways of seeking to gain competitive advantage include:

 offering lower prices

 offering clearly superior products at above average prices

 delivering products more quickly

 offering superior customer service, including after sales service

This case study focuses on how Portakabin has set about gaining a competitive advantage in the hire and sale of temporary or permanent accommodation by concentrating on quality. Portakabin has

A Portakabin Case Study

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positioned its products at the top end of the market: it looks to provide high levels of quality at premium prices. Quality is associated with consistency. A customer who is happy with the first buying experience needs and wants to be equally happy on each further occasion. Portakabin has the motto 'Quality - this time - next time - every time'. The company believes that clients who really care about quality are willing to pay that bit more to obtain it and see 'the extras' as worth the additional expense. Today the company operates in a range of European countries as well as the UK.

WHAT IS QUALITY?

Quality relates to 'appropriate use': how well a product does what it is intended to do. Portakabin's 'Ultima' building illustrates quality well. The Ultima specification includes:

 modern design

 high quality materials

 layout and fitting of the building to clients' requirements

Allied to:

 rapid construction

 to provide:

 a smart modern working environment

 an image that reflects the status of the client.

The 'appropriate use' quality comes from two sources. One is internal to the company. Portakabin has developed its range of buildings around its own market research, which discovers customers' precise needs. The company knows how important it is to offer optional extras, such as high quality carpeting, fitted furnishings and climate control systems to provide a quality working environment. Simultaneously being able to offer not only the building but also the aforementioned accessories, gives the customer a quality 'one-stop-shop' service. The other source of quality control is external e.g. national building requirements and standards. Portakabin's products, whether interim or permanent, comply fully with all appropriate building regulations. They also meet the demands of ISO 9001: Quality Management Systems. This is an internationally recognized standard which acts as a form of guarantee that everything the company does is managed to the highest quality standards. The group's Quality Systems Manager (QSM) is responsible for ensuring that Portakabin has in place systems that guarantee quality throughout the Group. To manage quality, the QSM has created an electronic system that all PCs throughout the whole company can access. One of the system's key features is the 1-page Quality Manual that defines the requirements of the Quality Management System. This is easy to communicate both within the organization and also to customers.

QUALITY PRODUCTS

The term 'product' covers not only goods but the services that support them. Portakabin offers a

range of tangible products e.g. Lilliput (a modular nursery building) and Titan (a modular building for

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office applications). The company also offers key services e.g. Total Solutions, a planning and project

management service for customers wanting to hire modular buildings. Portakabin also offers a wide

range of support services to clients for whom a modular building is part of a larger plan. If requested,

Portakabin will take on the customer's project from start to finish. This includes managing planning

applications, project management and providing health and safety advice, as well as providing access

for the disabled.

Product quality also relates to how well a product meets changing demands. In modular buildings,

technologies are increasing the range of what is possible. At the same time, customers are becoming

more particular about their own requirements. For example, they want building solutions that are

safe and clean, which minimize disruption, save time and guarantee quality. Quality involves keeping

pace with these demands.

Modular construction involves manufacturing a building off-site in a controlled factory environment.

For example, the steel modules used to construct Ultima buildings are fully fitted out with all electrics,

plumbing, heating, doors, windows and internal finishes before they leave a Portakabin production

center. This enhances their quality and also reduces program times.

Being registered as meeting the requirements of ISO 9001 is very important to Portakabin. This is

because many customers will deal only with organizations that can demonstrate they meet this

rigorous standard. All of Portakabin's products meet with modern standards and requirements, and

this enhances consumer confidence. To reinforce this quality system, Portakabin has a 'zero tolerance'

quality checking system (see section 4) in place, so that no building may leave the production site

until it has been checked against, and complies with, demanding customer standards.

Furthermore, because of their high quality standards, Portakabin are the only modular building

company to offer quality guarantees in the form of 5 and 20 year warranties.

The standards required are wide ranging. For example, the recently ratified Kyoto Protocol requires

industrialized nations to limit their production of gases that are harmful to the environment.

Portakabin takes this requirement very seriously. As a result, all of its buildings are thermally efficient

to minimize energy use. Following Kyoto there are a range of new building requirements and these

are particularly important for Portakabin's public sector customers such as hospitals and schools.

QUALITY PROCESSES

Any form of production activity involves sets of interlinking processes. Portakabin's factory-based production process combines standardization with customization. The modules to be assembled come in standardized sizes and shapes. However, the way they are put together and their interior design depends on clients' individual specifications. For example, modules that are assembled for Sainsbury's to train new checkout staff are different from those designed for an easy-Jet office.

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To ensure that all customers get what they want, Portakabin deploys the Quality Systems approach referred to earlier. A Corporate Quality Team (comprising senior managers) is responsible for ensuring that individual teams understand quality processes. Communication takes place by means of process charts. These are clear illustrations that set out the processes involved e.g. in creating a new set of school classrooms or laboratories. The essentials of the Quality System are: 1. Say what you do By studying the Quality Manual, teams working on a particular process know what the job requires. If in doubt, they can ask team leaders. This process enables everyone involved to understand and state the process and their role within it. 2. Do what you say Once they understand the process, team members are able to implement it e.g. by constructing a new building for a specific client. 3. Record what you have done Construction teams record all actions taken, so that all those involved know the current position, what has gone on before and what still needs to be done. 4. Review what you have done Records are regularly reviewed both to ensure delivery targets can be met and to identify any problem areas. 5. Take remedial action where necessary If problems or potential problem areas are identified, steps are taken to eliminate or reduce these. 6. Then start the process again This procedure is followed for each stage in each process to ensure that everyone benefits from solutions to problems, which have already been devised. These essential steps can be illustrated in the form of a hierarchy of quality processes: An essential part of improving quality is to identify problems as and when they occur. These can then be addressed and resolved immediately. This is what Portakabin mean by 'zero tolerance'. To address any issues, Portakabin deploys a 'commando team' as part of its Quality Team. This team scrutinizes products and processes from the customer's viewpoint. On one occasion the team found blistering on the walls of a particular building, a quick 'alert' to the manufacturing team led to the fault being eliminated before it became a problem for the customer. Teams complete quality reports with the purpose of:

 fixing the immediate problem

 identifying its cause

 making changes to prevent the problem reoccurring.

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QUALITY SERVICE

Providing customer service is another vital part of Quality Management. See steps 6 and 7 in the chart below. The company believes that providing exceptional levels of customer service is as important as the quality of the products it makes. To support this commitment, it has developed a number of initiatives aimed at continuously improving service. Portakabin:

 guarantees to complete projects on time and on budget

 operates a Customer Charter that sets out minimum standards that customers of its Hire

Division can expect to receive. This charter includes the pledge where Portakabin will

recompense the customer if it fails to deliver a building on time

 offers a complete plan, design and build service, whereby a client can choose simply to accept

the keys and open the doors on completion

 runs a comprehensive customer satisfaction survey every month.

CONCLUSION

In a competitive market, businesses stay ahead by offering products that are different and/or superior

in ways that matter to customers. Portakabin has positioned itself at the top end of the modular

buildings market in terms of quality, whilst at the same time providing value-for-money products that

fully meet key standards set out in IS0 9001. The most recent external audit of Portakabin's practices

showed that the company is meeting the required standards in all aspects of quality. This outcome is

the result of a great deal of thought, careful planning and ongoing education and training of a skilled

and dedicated workforce.

QUESTIONS: Please read the case study and answer the following questions: 1. What are the products and/or services that Portakabin Company produce and deliver? (5 marks)

2. How does Portakabin Company define quality? (5 marks)

3. What are the quality management techniques that Portakabin use? Demonstrate how

Portakabin apply them? (10 marks)

4. Explain how Portakabin deals with production quality problems? And analyze how does this

contribute with company overall quality? (10 marks)

REFERENCE:

http://businesscasestudies.co.uk/portakabin/the-importance-of-quality-in-creating-competitive- advantage/what-is-quality.html#axzz3T3lQZYzM