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MGMT 659 SFSU Make To Stock versus Make To Order Questions

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Management

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San Francisco State University

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MGMT 659

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Application Lesson 15

Part I (10 points each)

1. What is a service blueprint, and how does a “poka-yoke” fit into the design of a service

blueprint?

A service blueprint is the flowchart of a service process, emphasizing what is visible and with is

not visible to the customer. A poka-yoke is defined as procedures that prevent mistakes from

becoming defects. They are commonly found in manufacturing but also can be used in service

processes. Poka-yokes fit into the design of a service blueprint very well. Service blueprints are

used to ensure there is a process that is followed. It helps visually depict the many different

pieces and activities that go into being successful and mitigating as much risk as possible, in that

respect, a poka-yoke would be the procedure used to prevent mistakes from turning into defects.

Poka-yokes are worked into the service blueprint so there is less likelihood of a mistake

occurring. Based on the intertwined relationship between the service blueprint and a poka-yoke,

an example would be during the holiday’s stores offer an item guaranteed in stock, however

there are none available when you arrive at the store. A poka-yoke in this situation would be the

store ensuring they use the phrase while supplies last on their advertising, this ensure they do not

over promise an item that has the potential to sell out quickly.

2. Define the concepts of make-to-stock versus make-to-order and give examples for each.

Make-to-stock items are standard products that are stored in finished goods inventory. A good

example of make-to-stock items would be bathing suits and flip-flops made during the winter in

anticipation of the coming summer months when these items will be considered hot

commodities. This allows companies to remain steady throughout the year as far as production

goes. The best way to think about make-to-stock items is that these are they items you purchase

on a frequent basis; they are items you can purchase directly off the shelf at Target, Walmart and

Amazon. Make-to-order items are only made when triggered by an order. These are custom

products that either can’t be made until a customer specifies what they want or items that would

cost more money/become obsolete, if made-to-stock. The main item that comes to mind for me is

computers, others include cars that are built and ordered instead of picked up off the lot, major

aircraft for companies like Lockheed Martin and Boeing, as well as the US Government. When

thinking of make-to-order products, these are items you would purchase, as a normal consumer,

once in a while or only one time; these include custom furniture, a custom-made

wedding/engagement ring, custom made clothing. These are items that will require a consumer

to wait for the item, these are not readily available.

3. What is “cost of quality” and give an example of how a cost of quality analysis might be used

by a manufacturer.

Cost of quality means all costs attributable to the production of quality that is not 100 percent

perfect. These costs include appraisal costs (ie: the cost of getting products certified as good to

go), Prevention Costs (ie: quality control costs that prevent defects), Internal failure costs (ie:

scrap, rework, repair), and finally external failure costs (ie: loss of customers goodwill, handling

complaints, etc.). All of these are contributors to the cost of quality. Reducing the cost of quality

can increase productivity. Manufacturers are held to high standards regarding the quality of a

product they are producing, especially if it could cause harm if defective. The manufacturer

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would use a cost of quality analysis to ensure their product was in compliance thus saving them

money down the road regarding recalls, loss of customer goodwill, complaints of customers and

ultimately having to repair or replace the defective item.

4. In your opinion, why has Six Sigma taken such a hold of the manufacturing world?

Six Sigma, often referred to as Lean Six Sigma, is a highly disciplined process that helps us

focus on developing and delivering near-perfect products and services. The main goal of Six

Sigma is to identify the number of “defects” in a process, then systematically figuring out how to

eliminate them and get as close to “zero defects” as possible. The Six Sigma process has 5 steps

(D)efine (M)easure (A)nalyze (I)mprove (C)ontrol. (DMAIC) Manufacturing is about yielding a

product that is functional and a good quality product. When defects are found, the company must

either correct the issue or they have to scrap that product and start over. Once a defect is

identified, a responsible manufacturer then must inspect the finished products more closely to

ensure there are no other defects present. Not only is this time consuming, it is expensive. The

goal of a manufacturing company is to increase profits and keep costs low. Through the

implementation of a Six Sigma process, it gives a manufacturer the opportunity to catch those

defects and work to eliminate them to the fullest extent possible. The Six Sigma process values

prevention over inspection which can lead to cost savings when looking at the cost of quality.

This process helps companies, not just manufacturing as the Six Sigma usage has branched out to

other parts of business, prioritize activities and resources and helps with continuous

improvement.

5. Is it better to “design in” quality in a manufacturing process, or is it better to “inspect quality

in”? Explain.

Quality in manufacturing begins in the design phase and must be built into the components that

come together to make a product. Once a product has reached the point of inspection and defects

are found, they are simply looking to pull the item from the finished products and devise ways to

correct the issues. The way to ensure quality is designed in, a manufacturer should ensure they

are performing thorough inspections of their incoming products prior to acceptance. Through

well-defined requirements and open communication between the supplier and the manufacturer

regarding the expectations will contribute to the quality of a product. As stated in the text by Dr.

Deming “Inspection does not improve the quality, nor guarantee quality. Inspection is too late.

The quality, good or bad, is already in the product. As Harold F. Dodge said, “You cannot

inspect quality into a product.”

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Application Lesson 15 Part I (10 points each) 1. What is a service blueprint, and how does a “poka-yoke” fit into the design of a service blueprint? A service blueprint is the flowchart of a service process, emphasizing what is visible and with is not visible to the customer. A poka-yoke is defined as procedures that prevent mistakes from becoming defects. They are commonly found in manufacturing but also can be used in service processes. Poka-yokes fit into the design of a service blueprint very well. Service blueprints are used to ensure there is a process that is followed. It helps visually depict the many different pieces and activities that go into being successful and mitigating as much risk as possible, in that respect, a poka-yoke would be the procedure used to prevent mistakes from turning into defects. Poka-yokes are worked into the service blueprint so there is less likelihood of a mistake occurring. Based on the intertwined relationship between the service blueprint and a poka-yoke, an example would be during the holiday’s stores offer an item guaranteed in stock, however there are none available when you arrive at the store. A poka-yoke in this situation would be ...
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Tags: Service Blueprint service process Poka Yoke cost of quality quality control costs