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EMEN 5040 Quality, Strategy, and Value Creation – Exam 1   Wendy Bailey, Fall 2016 Section 1 – Basic Knowledge – Strategic Planning and Policy Deployment Provide ALL Answers on the answer Sheet Provided

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EMEN 5040 Quality, Strategy, and Value Creation – Exam 1

 

Wendy Bailey, Fall 2016

Section 1 – Basic Knowledge – Strategic Planning and Policy Deployment

Provide ALL Answers on the answer Sheet Provided. For Section 1, provide the answer which best answers the question or completes the statement.

Imai indicates Policy Deployment "calls for everyone to interpret policy in light of his own responsibilities and for everyone to work out criteria to check his success in carrying out the policy".

In the statement above:

1. What is the most important aspect or attribute of the process of interpret(ing) policy?
2. What is the term that we use in class to describe "criteria" that are to be "work(ed) out" described in the definition above?
3. Breaking down CPMs into their contributory elements (Level II, Level III, etc.) is referred to as a ________________ ________________ analysis; which uses a ____________________ diagram.
4. The process by which a Management Lead Team identifies the customers that are central to their ability to achieve their strategic plan is referred to as _____________________________.

The most important premise associated with this process is that Management selects the _____________________, but that (the) ____________________________ selects the customers/products.

5. What two characteristics or attributes do Focal Points and Check Points have in common? What single characteristic or attribute defines the primary difference between Focal Points and Check Points?
6. Why was the Earthgrains RDP management team not permitted to write a Value Proposition that stated: ‘To create consumer loyalty for our customers by providing high quality private label products’?
7. The Statement which tells employees, basically,
   1. 1. What the organization does;
      2. Who are the firm's primary customers;
      3. Where the organization is attempting 'to go'; and
      4. How it will appear when it arrives is referred to as a ___________________________________________________
8. For the purpose of constructing a Strategic Plan, Tracy & Wiersma described three models by which companies could differentiate themselves. Which of these three models is invariably / most typically selected for use by a commodity manufacturer?
9. Companies that genuinely employ the Product Leadership / Product Innovation model can be identified by two actions that they repeatedly execute as related to their product portfolio. What are these two actions?
10. A statement that describes a skill or technology at which a firm excels, that the competition cannot, or only with great difficulty, catch up with is referred to as a _____________________.
11. The ______________________________________________________ for a firm describes those compelling value-added elements or features of its products/services that determine why a customer would purchase goods or services from that organization rather than from the competition.
12. The ______________________________________________________ for an administrative unit describes why their function should not be outsourced.
13. Measures which tell you whether your Strategic and Business Plans are working, and which in general describe the overall health of your business are referred to as ____________________; and are / may generally be categorized in two groups: __________________________ and ____________________________.
14. The process of determining the major themes in a company's vision, mission, and value proposition statements, and using them to generate performance measures is referred to as a(n) __________________ __________________
15. The instructor presented a number of terms which are commonly employed in developing Strategic & Business Plans, and in subsequent Policy Deployment efforts & models. Insert the term associated with each of the definitions presented below.
    1. A broad goal or objective, representing one of the 'Critical Few'.
    2. A sub-component of the term immediately above, which is still relatively broad, yet which still indicates a need for a relatively large gap to be closed. It may also encompass a number of administrative areas.
    3. A sub-component of one of the 'critical few', which is relatively broad and indicates a need for a relatively small gap to be closed; or for a current condition to be maintained.
    4. A highly focused and narrow objective which relates to closing a significantly large and specified gap, by a certain date or time.
    5. A highly focused and narrow objective which relates to maintaining or slightly improving the status of a CPM.
16. Below are a number of the elements presented by the Instructor from the FASCO Motors Strategic Plan.
    1. Achieve $600 MM in 1998 Sales (Minimum)
    2. Maintain and Improve Safety Performance
    3. Significantly Improve the Financial Performance of the FASCO Motors Group
    4. Achieve Breakthrough Improvements in Generated Revenues
    5. Achieve a 50% Reduction in Lost Work Day Cases for 1998
    6. Design and Deploy an SQA System Across All Divisions Focusing on Contributions to Total System Cost Reduction

Identify the strategic planning term that defines each of these elements (most of but not necessarily all the terms you just finished employing to answer question 15).

17. What type of Team would most likely be deployed to work on Element 'B', above? ______________________________________________
18. What type of Team would most likely be deployed to work on Element 'C', above? ______________________________________________
19. What type of Team would most likely be deployed to work on Element 'F', above? ______________________________________________

Section 2 - Application, Synthesis, & Evaluation: An Exercise In Strategic

Planning and Policy Deployment Part A (Part B Will Be Presented in Exam 2)

 

Last year, during a discussion with some of your fellow Engineering Management students with unique backgrounds and interests, you all stumbled upon an idea that makes nanotechnology a viable industrial-scale process.  In the year since, with the help of some venture capital, you have built a production-scale prototype nanoassembler that you call the NanoSuite I that can take a design and raw materials and turn it into a finished product by assembling it atom by atom.  Congratulations!  If you can figure out how to capitalize on this, you could make billions! You are ready to build a business to do this, and you will call it…NanoTek™!

But there are about a billion things you could do with your new technology – how are you going to prioritize what to work on?  Everyone has a different idea of what is important and people are getting frustrated – you all know you should be working together, but there is no consensus on what to do!

Luckily, just in time you recall your EMEN 5040 course.  Could the way towards profitability and consensus be through BPE?

Well, it’s worth a shot…

Part 1 – Background

Nanotechnology is amazing stuff – using your process you can build, atom by atom, anything you design and program into your NanoSuite I assembly unit.  The problem is that for now, your process is expensive and slow.  It requires a large amount of power and the special element, Unobtainium³⁴² which itself is very expensive.  On the other hand, for many applications there is no economical conventional way to manufacture what your customers need, so you can charge a lot for your services.  You don’t need to sell in huge volumes, you just need to pick the right markets and products to generate capital to establish your viability and grow the business.

After talking amongst yourselves and examining the potential markets for your products, you decide that the following very different markets show the most promise for your new manufacturing process:

• Material science – making custom materials for research and small-volume manufacturing that are difficult or impossible otherwise
• Medical devices – making medical devices that are tailored at the atomic level
• Food replication – Your machine can take any feedstock of carbon, hydrogen, oxygen, nitrogen, calcium, potassium, phosphorous, sulfur, and chlorine and turn it into specialty foods.  This basically results in you dumping garbage in one end and getting anything you want out of the other.  Garbage in, 1945 Chateau Mouton-Rothschild Jeroboam and panda steaks out.
• Baby toys – you won’t believe the baby toys you can make with nanotech…

                 

To help you visualize what NanoTek looks like, here is the current organizational chart:

 

 

 

Part 2 – 10-year Vision

You really feel things start to come together as you work on the vision.  It is clear that you are going to have to concentrate on those products that are low-volume, but high-profit.  It isn’t easy, but after a while you do eventually come up with a consensus 10-year vision:

To be recognized as the world’s premier supplier of nanomanufactured products in those markets in which we choose to participate, while operating in a way to grow our profitability over time.

During the course of your discussions to create the vision, you agreed that the recognition mentioned in the vision needs to be recognition by each of your markets.  Also, the startup costs are substantial – you are all funding this out of not just your own funds but those of some angel investors – so you must be not just profitable, but increase profit each year in order to pay your obligation.  The minimum acceptable profitability growth is a 10% increase over last year’s profit, where profit is measured by Net Revenue and is defined:

Net Revenue = Gross Revenue – Total Allocated Expenses

You have predicted that a reasonable goal for the first year is $200,000 Net Revenue from $1,000,000 of gross revenue and that all of the increase in profit will be through revenue growth while expenses will be constant regardless of revenue.  If profitability falls short one year, the next year’s target remains unchanged.  In other words, you would have to make up for the shortfall, or risk losing your intellectual property to your outside investors.

Problem 1:

For this Vision Statement, your task is to identify every construct, all possible Level I and Level II KPIs or NFIs associated with each construct, and all relevant metrics and target(s) over the next five years associated with the KPI or NFI you identify. Consider only the information provided to this point. Provide your answers on the answer sheet, recognizing there may be more spaces than you require.

Problem 2:

Then, I’d like you to answer the following questions:

1. What would the total process (i.e. create a Phase I BPE Policy Deployment / Strategic Plan) you are about to execute be referred to as in Japan?
2. What would this term (1. above) mean, translated into English?
3. As you develop this plan, what would Imai and I say is the most important factor associated with how the plan is developed?
4. In using the term ‘Policy’, what will we call that element(s) of our plan for the Phase I BPE effort?