Jerry Yan Part B Answer

- 6 Sigma complemented by diagnostic tool - CMMI

Pic 01 : Infamous F4 - who couldn't afford RM7 hair cut

Pic 02: F4 with sure bad back ache due to poor posture

Pic 03: Barbie Doll of Taiwan

Pic 04: Guy- "I bet my hair is longer."

ANSWER B

1. 6 SIGMA is a statistical analytic system to ensure that defects remained only 3.4 defects per 1 million units. To improve the value added system, J Yan could use the DMAIC methodology.

2. Management tool to diagnose current capability is the use of CMMI technique. J Yan’s operation is in Level 2 of CMMI of a “managed process” in the distribution system where books delivery ranges from 48 hours to 4-5weeks according to book types ordered. Application on the web site processing of customers’ orders:

DEFINE CUSTOMERS’ NEEDS

3. allowing customers access to the information they require about the books of interests to them. Contents of book, chapters, editor’s reviews, critiques and other readers can also be viewed.

4. faster delivery for the rarer books as 4 weeks deemed too long compared to normal books order of within 48 hours.

5. cheaper pricing for books will appeal to wider market.

MEASURE THE CURRENT SATISFACTION LEVEL

6. Calculate number of web site hits per week.

7. Ascertain amount of time spent surfing the page contents

8. record number of books returned within 30 days where refunds are given. This will measure number of dissatisfied customers

8a.{additional point} server capacity is limited result in deletion every 6 months of clients order patterns

ANALYSE THE CURRENT SYSTEM

9. for point [6] above: dissatisfaction on web contents due to poor and inconsistent book reviews. This relates to the high labour turnover, disruption as individuals resigned and replaced by editors and reviewers result in inconsistent benchmark reviews. Customers may feel and suspicious of book review integrity.

10. for point [7] above: contents of web page is insufficient to retain surfers attention. To click away from web page is easy. Indicates the contents are poorly researched and inconsistent.

11. for point [8] above: Customers compliants due to poor reviews and critiques that are inconsistent, Inpart due to high labour turnover and poor control to ensure certain standard of performance reviews are adhered to.

11a. for point [8a] above: Poor HR planning to hire and retain an I/Tech expert to maintain the servers capacity and manage its traffic

IMPROVE THE CURRENT SYSTEM

12. SOLUTIONS TO POINT [6] : - have a panel of reviewers/ judge to arrrrive at a more consensus conclusion about the book. - have a profile or experience/backgrouind/qualification of individual panel of book reviewers so that users on internet could place their estimate of trust on such individuals. - re-look to job design offering flexible hours and variable rewards of measuring amount of hits on their book reviews site.

13.SOLUTIONS TO POINT [7] :- standardize at CMMI Level 3 on all processes across J Yan’s uploading information on websites. Have a central editing committee before information are posted.

14. SOLUTIONS TO POINT [8] :- returned damaged books : have in contract with courier services that they compensate for damges caused on products delivered. - returned books due to disappointment: offer feedback to editors if they need to re-draft the web page reviews. -returned books due to non-delivery

– install ERP (Enterprise Resource Planning) which tracks all orders and books on hand for better inventory management. -books never collected by courier service provider. Appoint 3 courier service providers and embed in the contract of termination clause if negligence evidence of poor services arise.

-Play SIMULTANEOUS Game Theory as instilling discipline amongst suppliers who don’t wish to lose their contracts.

15. SOLUTIONS TO POINT 8A- expand capacity during peak period- back up files for CRM purposes to study customers order trends- share resources with rivals,if necessary, if overloaded server happens-alternative channels, install IT internet routers, use wireless, use satellites so that interntet can be permanently connected.

CONTROL

16 MEASURE customers satisfaction through:o web page hitso number of internet saleso number of new customers

17MEASURE learning & growth through: - innovative rates of change on web design- ideas that translates to commercial success

18MEASURE organization perspective through:- number of employees complaints- number of resignation per month as a total- number of conflicts and disciplinary actions.

19 MEASURE financial perspectives- profit and revenue growth, ROI, dividends yield ensuring that it meets with shareholders’ expectations.