BTEC Level -7: Extended Diploma in Strategic Management and Leadership Westford Assignment Tasks Unit 11 : Strategic Quality

ty and Systems Semester: 123-1201(3)/1205(2) Aug-Oct 2012 Email asy2fana@yahoo.com

Learners Name: . ID: .. Class (Course): .. Section . Unit title: Date assessment details issued: .. Date handed in: . Word Count: . STATEMENT OF AUTHENTICITY I confirm that this is my own work and that I have not plagiarized any part of i t. I have also noted the assessment criteria and pass mark. I declare that the w ork I am submitting for assessment contains no sections copied in whole or part from any other sources, unless it is explicitly identified by means of quotation mark or in the case of very long quotations, by means of wholly indented paragr aphs. I declare that I have also acknowledged such quotations by providing detai led reference as in an approved format. I understand that unidentified and un-re ferenced copying both constitutes plagiarism which is a very serious offence. Learners signature___________________ Date: / / In order to pass this unit, the evidence that the learner presents for assessmen t, needs to demonstrate that they can meet all the learning outcomes for the uni t. The assessment criteria determine the standard required to achieve the unit. Learning Outcomes Assessment Criteria (AC) to Test Outcomes Tasks Learning Outcome 1 Understand the role of operations management in an organisation Operations management Task 1 AC1.1 - explain the importance of effective operations management in achieving o rganisational objectives AC1.2 - evaluate the success of existing operations management processes in meet ing an organisations overall strategic management objectives Task 1 (1.1)

Task 1 (1.2)

Learning Outcome 2 Understand the importance of managing quality in an organisation AC2.1 - explain the importance of effective quality management in achieving orga nisational objectives AC2.2 - evaluate the success of existing quality management processes in meeting an organisations overall strategic management objectives Task 1 (1.4) Task 1 (1.5)

Learning Outcome 3 Be able to plan a strategic quality change in an organisation Task 2 AC3.1 - plan a strategic quality change to improve organisational performance AC3.2 - define resources, tools and systems to support business processes in a s trategic quality change AC3.3 - evaluate the wider implications of planned strategic quality change in a n organisation AC3.4 design systems to monitor the implementation of a strategic quality chang e in an organisation Task 2 (2.1) Task 2 (2.2) Task 2 (2.3) Task 2 (2.4) Learning Outcome 4 Be able to implement a strategic quality change in an organisation AC4.1 - implement a strategic quality change in an organisation. AC4.2 - embed a quality culture in an organisation to ensure continuous monitori ng and development AC4.3 - monitor the implementation of a strategic quality change in an organisat ion Task 2 (2.5) Task 2 (2.6) Task 2 (2.7) Learning Outcome 5 Be able to evaluate the outcomes of a strategic quality change in an organisation AC 5.1 - evaluate the outcomes of a strategic quality change in an organisation AC 5.2 - Recommend areas for improvement to a strategic quality change that alig n with organisational objectives Task 2 (2.8) Task 2 (2.9)

Required Task 1: Strategic Quality and Systems Assessment and Grading: This assessment is based on achievements in learning outcomes. In order to pass, all criteria identified in the assignment with reference to learning outcomes o f the module must be met. Word Count/Limit: 2,500 words (+/- 10%) Due date: End of Week 7 (9th September 2012). The date of submission is final a nd non-negotiable. Please study the following case Study on Road Stone available at www.seai.ie/Yo ur_Business/Energy_Agreements/Special_Working_Groups/AM_SWG_2008/roadstone_tqm.p df and complete the following tasks Case Study: Roadstone TQM Roadstone, Bunratty, Co. Clare ROADSTONE is the leading manufacturer and supplier of building materials in Irel and. It is strongly committed to energy efficiency and environmental sustainabil ity. Roadstones strategy involves developing IS393 certified energy-management sy stems to drive energy efficiency. It is currently certified to the standard in n ine quarries, with an additional ten planned for 2009. The Bunratty, Co Clare qu arry was certified in 2008. As a result of Roadstones membership of SEIs Energy Ag reements Programme and participation in the Alternative Methodologies Special Wo rking Group, a project was undertaken to improve energy performance at Bunratty using alternative methods. The initial intent was for SEI to work with Roadstone to investigate an opportun ity to perform a Six Sigma project on the Blacktop process, diagnosing the varia bility in input process and material variables which link to energy usage, and c ontrolling the quality of the end product. Preliminary data analysis suggested a variability in the amount of energy required to process batches and this could vary by up to +/-15%. This indicated that the process was not in statistical cont rol. Historically, there has been an acknowledged high reject rate of aggregate produ ced for tar processing at Bunrattys Blacktop plant. This rejected aggregate is se gregated into a reject hopper, located close to the hot bins. To reach this stage, the aggregate has been transformed and subseq uently dried and heated using considerable amounts of energy. A reduction in the amount of rejected product will have immediate quantifiable energy savings. The use of alternative methodologies requires understanding of data collection tech niques and the application of the most appropriate improvement tools in a chosen focused area or process. A problem solving technique was required to reduce the rejection rate of aggregate materials, as this was the most evident issue in th e process and it had a direct influence on energy usage. The timeframe for this project did not allow Six Sigma to be used, but it remains valid for the Blackto p process. All objectives met The objectives of this project were to demonstrate that alternative methodologie s such as Total Quality Management (TQM) and Statistical Process Control (SPC) c

ould be used to considerably reduce the reject rate, improve the energy performa nce and, ultimately, save money in the Titan tar plant. All objectives were met. The reject rate at the hot bins was reduced by 76% betw een November 2008 and February 2009. The management team has continued to scruti nize the defect rate and is using root-cause analysis to bring about further red uctions. The energy, CO2 and energy related cost savings associated with the 76% reduction in reject rate are considerable. Energy performance indicators (EPIs) are used by Roadstone to demonstrate contin uous improvement of the energy performance of the Tar plant. The improvement tre nd is plotted in Figure 1. This reduction in energy requirement per tonne of pro duct is considerable and include all energy reduction initiatives at the site in addition to this project.

The tar plant process In the Titan tar plant, a batch process blends the aggregate, binder and any add itives at an elevated temperature to produce a homogenous mix. The major compone nts are the cold-feed system, bitumen supply system, dryer, mixing tower and emi ssion-control system. The mixing tower consists of the hot-bin elevator, screen deck, hot bins, weight conveyor, bitumen weighter and mixer. The dryer operates on a counterflow system and is on an incline. The hot, dry aggregate is discharg ed from the dryer at the lower end and transported by the hotbin elevator to the hot-bin screening deck. Aggregate is then separated into one of six hot bins by size. The aggregate in the hot bins is discharged from a gate at the bottom of each bi n into the weight conveyor, according to the blend. Similarly, the bitumen is pu mped from the tanks into a weight bucket and held ready for discharge into the m ixer. The aggregate from the hot bins is mixed with the bitumen until the aggreg ate surface is uniformly coated with bitumen. The mix is then discharged to the skip, which transfers the mix into one of four holding silos. Trucks drive under the silos and are gravity-fed.

The approach: plan, do, check, act The approach to solving/reducing the excessive reject rates problem was based on Demings plan, do, check, act (PDCA) methodology. This continuous-improvement met hodology fosters an approach whereby measurement and analysis are used to determ ine the main contributor(s) to a problem and its root cause. An action plan is i mplemented to correct the problem, while verification and standardization steps ensure that the new method becomes the standard. Data-analysis tools helped to h ighlight the energy invested in each of the aggregate ending up in the reject bi n, after the dry-and-heat process. The combined energy service was split into four processes: dry and heat, bitumen storage, mix, and fill. It was graphed using a stacked bar chart (Figure 02). Checks lead to corrective actions Sampling of aggregate from the hot, cold and reject bins began in November 2008. For quality-control purposes, aggregate is a 3D shape, with a length, breadth a nd depth measurement. The breadth of the aggregate is an important measurement as the screen meshes are square-shaped; if this mid-point measurement is larger than the mesh size, the aggregate will not pass. Contamination fixed there was inconsistency found in samples of aggregate measured from the hot bins.

Samples for the 14mm bin had a mean of 13.16mm and standard deviation of 2.4. Sim ilarly, samples of aggregate from the 10mm bin had a mean of 10.9mm and standard deviation of 1.91. Results of the sampling inspection and analysis were discusse d with the plant manager and quality technician. A number of possible causes for the excessive defect rate were sought from operators, the plant manager and qua lity technicians. Their opinions were entered in a fishbone or Ishikawa diagram. The Ishikawa diagram helps identify the root cause of a problem by using a stru ctured approach to continually question why the

When the team examined machine-related causes in the screens and hot bins, the e xamination revealed that common walls between the bins were corroded, causing co ntamination across the bins. It was determined that the corrosion had recently d eteriorated and the defect was detected by this sampling process. Remedial actio n was taken immediately. The fishbone diagram was modified to include this conta mination issue. Sampling of aggregate from the hot, cold and reject bins continu ed. By implementing a corrective action to address the hot-bin contamination, th e average reject rate fell by 60%. Faulty Sensor Replaced Actions to reduce the defect rate and improve energy performance using the plando-check-act methodology have continued. For example, during routine sampling of the breadth measurement of the 10mm hot bin and the reject bins, in March 2009, it was revealed that the aggregate in each of these bins was statistically iden tical. This information was shared with the quality technician and the plant man ager, who took corrective action. They discovered that the high-level sensor on the 10mm hot bin was faulty, causing the operators to continue filling the 10mm bin, even though the bin was at its maximum capacity. This caused the 10mm aggregate to overflow into the reject hopper. The faulty sensor was replaced immediately and the rejec ts rates monitored. Since the corrective action was carried out, the reject rate has fallen by a further 16%. The Measures of Success Measurement is the key ingredient for continued-improvement programmes. The adag e, If we cannot measure, we cannot improve, is apt. Collecting and analyzing bread th measurement data helped understanding of the size, shape and spread of aggregate in the hot bins and mad e this easily communicable. Process Improvement More detailed process capability studies were carried out during this project. P rocess capability can be quantified using two calculated measures: Cp and Cpk. T he Cp compares the size of the process variation with the size of the tolerance. Cpk measures capability in a similar way and also takes account of the position of the sample mean in relation to the specified limits. That is, it measures ho w well the process is centred within the specification. The mean, standard devia tion, Cp and Cpk results for 6mm, 10mm and 14mm hot-bin samples, taken in Novemb er 2008, January 2009 and March 2009 are shown in the following table. It shows that the process, in general, gradually improved over the three months. There is one exception: the 10mm hot-bin samples taken in March 2009. Results in dicate that the distribution is deviating from the tolerance. This will be inves tigated further and will become the next corrective action in the continuous-imp rovement programme.

Quality techniques boost performance This improvement project was initiated as a result of collaboration between Road stone and SEIs Alternative Methodologies Special Working Group. It was on the bas is of an energy initiative that it investigated a quality issue, which in turn y ielded significant energy improvements. In all such projects, cost, quality, pro ductivity and energy are found to be inter-dependent. An initiative on one issue invariably leads to improvements in others. The alternative methodologies bring with them a discipline of measurement and co ntinuous improvement, with an emphasis on standardisation, through procedures, i nstructions, training, etc to ensure that the improved system becomes the norm and is not allowed to slip ba ck to the old ways. In the case described above, it is evident that quality has a direct bearing on Roadstone Bunrattys energy usage per tonne of production. Quality techniques such as TQM and SPC can be used with great effect in improvement projects. The plant manager and his quality and operations team are actively seeking the next impro vement opportunity. They will continue to measure and monitor rejected aggregate rates and apply Six Sigma, PDCA or other such improvement methodologies to continuously improve bot h quality and energy performance. An energy-performance-indicator league table m ay be used to compare how other Tar plants in the Roadstone group are performing . Plants with less favourable ratings should monitor and measure their percentag e rejects and apply TQM and SPC tools, such as those detailed in this report, to make energy-performance improvements. The companys IS393 certification should pl ay a vital role in ensuring that the improved energy performance of the Titan ta r plant is maintained into the future.

Questions to be addressed in completing the Assignment tasks: 1 1.1 After carefully reading the case study and understanding various quality initiatives explain the importance of effective operations management in achiev ing organisational objectives of ROADSTONE as a leading manufacturer and supplie r of building materials? (Criteria 1.1) 1.2 Critically evaluate the success of existing operations management proce sses in meeting ROADSTONE overall strategic management objectives? (Criteria 1.2) 1.3 From the case study, list out top three quality initiatives and explain the importance of effective quality management and the role in achieving ROADST ONE objectives? (Criteria 2.1) 1.4 Discuss the level of success of existing quality management processes i n meeting an ROADSTONE s overall strategic management objectives (Criteria 2 .2)

Required Task 2: Strategic Quality and Systems Assessment and Grading: This assessment is based on achievements in learning outcomes. In order to pass, all criteria identified in the assignment with reference to learning outcomes o f the module must be met. Word Count/Limit: 4,500 words (+/- 10%) Due date: End of Week 12 (12th October 2012). The date of submission is final and non-nego tiable. Questions to be addressed in completing the Assignment tasks: 2 1.5 Assume that you are heading the strategic quality initiative at ROADSTO NE , develop a plan for establishing the strategic quality change to improve org anisational performance? Guidance: Your plan should describe the key tasks and milestones and include SMA RT targets. Include the resources, tools and systems that will support the busin ess process involved in the quality change process (Criteria 3 .1) 1.6 Define and recommend the resources, tools and systems to support busines s processes in the strategic quality change? (Criteria 3 .2) 1.7 Critically evaluate the wider implications or repercussion of planned st rategic quality change in ROADSTONE? (Criteria 3 .2) 1.8 Develop a suitable frame work or systems (metrics) to monitor the impl ementation of the strategic quality change institutionalized in the ROADSTONE? (Criteria 3 .4)

1.9 Define the key critical tasks or milestones to implement the strategic q uality change for ROADSTONE? (developed in Question No 1.5) (Criteria 4 .1) 1.10 Develop a strategy for ROADSTONE to embed a quality culture to ensure co ntinuous monitoring and development? (Criteria 4 .2)

1.11 Monitor and develop an appropriate metric for the implementation of stra tegic quality change at ROADSTONE? (Criteria 4 .3) 1.12 Evaluate the outcomes of a strategic quality change at ROADSTONE ? (Criteria 5.1) 1.13 As a Subject Matter Expert (SME) recommend areas for improvements to a s trategic quality change that align with ROADSTONE objectives (Criteria 5.2)

Guidelines for Completion of Tasks Textbook Reading: Complete all assigned textbook and other suggested reading. Su pplemental Academic Reading (as detailed in the Syllabus and will be progressive ly added) Further Research and the use of the Harvard Referencing System: In addition to the above reading resources, you should find and review additiona l relevant resources and supporting materials. Additional reading and resources for your review are available in Moodle. Be certain to correctly cite and reference all resources, using the Harvard Refe rencing System. Statement of Authenticity and Submit All Work to Moodle Complete the title page and sign the statement of authenticity All work must be submitted as an electronic document in Word to the appropriate area in Moodle as well as sending it by e-mail to your instructor - no exception s. Work that is not submitted to Moodle by the prescribed deadline will be acce pted be accepted ONLY under the resubmit policy in the Handbook. The report should be grammatically correct and word processed. Pages should be n umbered. You will pass the assignment only if you achieve ALL Pass criteria. Student must provide evidence that learning outcomes of the subject have been me t.

Assessment guidelines in your tasks, from the Unit Specifications Assessment

Learners need to research information on quality management in an organisation a nd produce a report discussing their findings and making recommendations for str ategic quality changes. For AC 1.1 and 1.2, learners need to explain the importance of effective operat ions management in achieving organisational objectives clearly, indicating how t his takes effect in their own organisations or the organisation they have chosen to base their assessment evidence on. They then need to evaluate the success of operations management in meeting their chosen organisations strategic management objectives. For AC 2.1 and 2.2, learners need to explain the importance of effective quality management in achieving their chosen organisations objectives. Following this ex planation, they need to evaluate the success of existing quality management proc esses in meeting their chosen organisations strategic management objectives. For AC 3.1 and 3.2, learners need to plan a strategic quality change that aims t o improve organisational performance in their chosen organisation. The plan need s to be action orientated, detailed, and include SMART targets. It should clearl y define the resources, tools and systems that will support the business process es involved in the quality change process. For AC3.3, learners need to evaluate the wider implications of their planned str ategic quality change. They could assess how the organisation will be perceived from outside, as well as discussing the knock-on effects of the change to system s, people and functions, and their performance within the organisation. For AC3. 4, learners need to design systems that will monitor the implementation of their planned strategic quality change. These could be associated with the layout and flow of processes, or other aspects of monitoring using IT systems. For AC 4.1 and 4.3, learners need to implement and monitor their planned strateg ic quality change. For AC4.2, learners need to provide evidence to demonstrate h ow they embedded a quality culture into their chosen organisation. For example, they could describe the senior management commitment to the culture change and p erhaps how self managing teams have been introduced. For AC 5.1 and 5.2, learners need to evaluate the outcomes of the implementation of their strategic quality change and make recommendations on how furtherimprove ments can be made. The improvements recommended need to clearly align with organ isational objectives.