What is Performance Ethic Program (PEP) Discuss
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Operations Management
Case Studies
case study (20 Marks)
By 2001, with revenues of $ 125.91
billion and net earnings of $ 13.68 billion, the USbased General Electric
Company (GE) was easily the largest diversified company in the world. Out of
the company's 24 different businesses, some were so large that they could independently
feature in the Fortune 500 list of companies. GE operated in more than 100
countries and had over 250 manufacturing plants in 26 countries. The company
was one of the largest employers in the world with strength of around 275,000
employees. GE remained the only company listed in the Dow Jones Industrial
Index that had been included in the original index in 1896. Six Sigma is a well
structured, data driven methodology for eliminating defects, waste, or quality
control problems in all kinds of business activities. It is based on a
combination of well established statistical quality control techniques, simple
and advanced data analysis methods and the systematic training of all personnel
at every level in the organization involved in the targeted activity or
process. It is based on the statistical concept that the output of most of the
physical processes follows a normal distribution, with the processes centered
at the mean Theoretically; any process would have a natural spread of 3 Sigma
(standard deviation) from the normal distribution mean on either side of the
center. Six Sigma is a sophisticated quality program that is designed to reduce
defects to 3.4 per million opportunities. The program focuses on streamlining
all the processes in the organization to improve productivity and reduce
capital outlays while increasing the quality, speed and efficiency of the
operations. The concept was pioneered by Motorola in the early 1980s.
Motorola's initiative stemmed from its belief that improving quality would
reduce costs and that the highest quality producer should be the lowest cost producer.
Six Sigma enabled Motorola to achieve defect free performance in its
manufacturing, designing, engineering, and business processes. Six Sigma was
originally developed to be used for 'physical process' those performed in
manufacturing and easy to observe record, analyze and measure. However, in the
years to come, it was extended to processes that were not as explicit as the
physical processes. It encompassed some business areas like bid and proposal,
and procurement and contract management. While Six Sigma comprised strict
measurements for physical processes, it involved identifying waste in the form
of delays for other processes. The primary objective of Six Sigma was to
increase customer satisfaction through continuous improvement in quality. In
the 1990s, GE, one of the world's largest diversified companies took
initiatives to implement the Six Sigma quality tool.
Answer
the following question.
Q1.
What is Six Sigma? Explain.
case study (20 Marks)
In 19992001, TISCO took measures to
reduce costs further by adopting innovative strategies and other cost cutting exercises.
For example, TISCO stopped using manganese, an expensive metal used to increase
the strength and flexibility of steel. The company made efforts to reduce its
product delivery time from 34 weeks in 1998 to 2 weeks in 2000. The company
aimed to further reduce the time to one week. TISCO also took steps to reduce
its manpower costs. Between 1996 and 2000, TISCO reduced its workforce from
78,000 to 40,000 employees. Analysts opined that cutting its workforce by
38,000 employees was not an easy job and the company was able to do it with a
lot of communication with employees. TISCO had adopted Performance Ethic
Program (PEP),
under which, it planned to promote
hardworking young people to higher positions depending on their performance,
rather than following the convention of seniority. This exercise was expected
to cut the management staff from 4000 to 3000. PEP had two core elements.
Firstly, it proposed a new organizational structure, which was expected to
foster growth businesses, introduce more decision making flexibility, clear
accountability, and encourage teamwork among the managers and the workforce
Thus operational changes were made at TISCO that enabled the company to become
the lowest cost producer of steel in the world. TISCO initiated a five phase modernization
program in the early 1980s, to overcome problems in the steelmaking process.
The program's primary objectives were to enhance the operational processes and
reduce costs. The operations' aspect was addressed in the Phase III of the program
with the help of consultants McKinsey and Booz Allen Hamilton. McKinsey designed
a program called Total Operational Performance (TOP). TOP's main objective was
to impact the bottom line with minimum expenditure and minimum time. TOP enabled
TISCO to improve its performance. TISCO also achieved cost reduction through
other strategies like manpower reduction, organizational restructuring, and
using information technology to enhance certain business processes. With the
completion of the modernization program, TISCO was able to record profits
despite the low global demand for steel and cheap imports.
Answer
the following question.
Q1.
What is Performance Ethic Program (PEP)? Discuss
case study (20 Marks)
The stock control maintains a set of
stock control cards properly classified and codified for various items held in
stock. Minimum and maximum levels are fixed on these cards to effect timely
recoupment as well as to control investment. Stock department base don
requirement of market by various stores raises the purchase requisition which
show the quantity to be ordered and delivery requirements. If the materials do
not arrive in time, the stock control sends a warning to the purchase section
so that purchase department could take a suitable action to expedite supplies.
The stock control also contributes to stock reduction through ABC/VED/FSN
analysis and consumption details etc. for compiling purchase budgets. Traffic
or C and F. The function of the traffic section is to clear goods coming by
rail, sea, air etc as well as to dispatch finished goods. The document relating
to incoming goods are sent to them by the purchase section or accounts
department or directly by the supplies. On receipt of the documents the traffic
section will contact the railway
authorities, streamer agent, or airline office, pay any charges due and take delivery
of the goods
Answer
the following question.
Q1.
What is stock control? Discuss one of the methods of stock control in detail.
Q2.
Why the function of traffic section is most important? Explain.
case study (20 Marks)
The case discusses the evolution of
environmentally sustainable 'Green IT' practices at Wipro and its pursuit of
'IT for Green' as a big business opportunity. Responding to criticism from
government and nongovernment agencies, Wipro introduced an electronic waste clearance
service in 2006 for its customers. In June 2008, it unveiled an enterprise wide
charter called eco eye to promote ecologically sustainable business practices.
The eco eye blueprint embraced several goals to reduce the organization's
carbon footprint, manage its water and energy efficiently, develop new
benchmarks in recycling waste, minimize the use of hazardous substances, and
motivate employees to follow green practices in their professional and personal
lives. Extending its greening mission to physical infrastructure, Wipro adhered
to the LEED specifications developed by the US Green Building Council (USGBC).
Two of Wipro's premises at Gurgaon (near Delhi) and Kochi in Kerala had been
certified as green buildings by USGBC, with a Platinum rating for Gurgaon and a
Gold rating for Kochi. typically, in any information technology organization,
the data center is a storehouse of information but it is power hungry and is
often criticized by environmentalists for its high energy consumption At the workstation
level, Wipro introduced an enterprise wide policy to substitute CRT monitors
with LCD monitors. Bringing in nearly 32,000 LCD monitors, Wipro realized an
energy savings of 66 per cent per desktop. The scope of Wipro's green
initiatives included its internal infrastructure and operations; environment friendly
products, green computing solutions, and take back services for its customers;
as well as advocacy for e waste legislation.
Answer
the following question.
Q1.
Discuss the need for top management to champion enterprise wide commitment to
environmental sustainability.
Q2.
Explain the need for regulation in an emerging economy to create a level
playing field on issues such as e waste.
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