BSNS 6350 (V. 2.

2)

Business Process
Improvement

Peter J Mellalieu
Preface

i
Feedback on this iBook
This is the first iBook I have written. I have attempted to exploit many of the interac-
tive features of the iBook format. However, to gain the full advantages of these fea-
tures you must view this iBook on an iPad or Mac computer using the iBook app.

For those without access to the iBook version, you may view a .pdf version produced
from the iBook. However, the .pdf version does not present all the features available
in the iBook version.

Known faults
I have attempted to provide hyperlinks to resources that are embedded in the iBook
version. I am aware that upon conversion from the iBook to .pdf some of the links
fail to be converted properly. Its a mystery.
Interactive Preface.1 Email
For those enrolled in the Unitec courses BSNS 6350 and 7350 you will be able to lo- feedback to the author
cate the resources on the course learning management system, Moodle.

I welcome your feedback on your experience of the iBook and pdf versions of the
course handbook. Please send me your PMIs to: peter.me@me.com

PMIs
P: What examples of Positive experiences with the iBook/pdf?
M: What examples of Minus experiences with the iBook/pdf?
I: What examples of Interesting features of the iBook/pdf?

Keep up to date: Version 2.2; 2014-08-27

This iBook is updated in response to your feedback. You can download the latest
iBook and pdf version from my Bookry Bookshelf: peter.me@me.com

Thanks for your feedback!

Peter J Mellalieu

ii
CHAPTER 1

Course Handbook
Measure what is measurable, and make
measurable what is not so.
Galileo Galilei

BSNS 6350
Business Process Improvement

Lecturer: !! Peter J MELLALIEU

Office:! ! OAKRIDGE 054-1012
Phone:! ! 815 4321 Extension 8108
Mobile:! ! 021 42 0118 (Preferred)
Email:! ! pmellalieu@unitec.ac.nz

Department of Management and Marketing

Bachelor of Business
Unitec Institute of Technology

3
SECTION 1

Introduction
Figure 1.1 Unitec staff
Overview

1. Who can help me be

succesful with my study?
2. What is this course about?
3. What assessments must I
complete?
4. What resources are available
to help me?

Unitec staff are usually happy to discuss with you how to achieve success in your studies and life on campus.

All businesses must satisfy customers and deliver products to
customers efficiently. The manner in which delivery is man-
aged must match the organisations strategy to ensure busi-
ness success. Senior management must fully support the strat-
egy and business philosophy adopted. Furthermore, it is nec-
essary to coordinate the organisations activities with those
operations of other organisations, such as suppliers and dis-
tributors.
This course is explores the principles and techniques to assist
the focus on efficiency improvement. The course continues
from BSNS 5350 Business Process Management dealing with
the remaining topics of importance introduced in the course
textbook Heizer and Render (2014).
Welcome to Unitec BSNS 6350 Business Process Improve-
ment.

4
1. Key Staff Key Contacts
Support Centre / Counselling Service, B28 Tel. 815 4321, Ext 7248 or 8160
Sukesh Sukumaran, Head of Department: Management & Marketing
Maia Mori Development Staff, Pukenga B171 Tel. 815 4321 Ext 7093
(DoMM), Tel. 815 4321, Ext 8635, ssukumaran@unitec.ac.nz
Unitec Campus Bookstore, Tel. 815 4321 Ext 7490 or DD 8154390
Dr. Liz Rainsbury Head of Department: Accounting & Finance, Tel. 815 4321,
Ext 8803, erainsbury@unitec.ac.nz Te Puna Ako -Learning Support Centre, Tel. 815 4321 Ext 8611
Andrew Slessor Programme Leader BBus, Tel. 815 4321, Ext 8811. Unitec Library Front Desk, Tel. 815 4185
aslessor@unitec.ac.nz Pacific Centre for Teaching, Learning and Research, Tel. 815 2949
Nadesa Goundar Programme Leader NZDipBus Tel. 815 4321, Ext 7097 Student Loans & Allowances Administrators Jacky Brodie Tel. 815 4321 Ex
ngoundart@unitec.ac.nz 8244
Alastair Emerson Programme Leader Dip Mgt/. GDipBus, Lecturer Depart- USU Students Association at Unitec, www.usu.co.nz
ment of Management & Marketing Tel. 815 4321, Ext 7033.
aemerson@unitec.ac.nz Dr. Peter Mellalieu, Associate Professor, Tel 021 42 0118, +64 9 815 4321 Ext
8108 pmellalieu@unitec.ac.nz, Room Oakridge 054-1012
Jeff Marriott, Programme Leader Mbus, Tel 815 4321, Ext 8131
jmarriott@unitec.ac.nz
Ngaire Molyneux Lecturer/Maori Advisor Tel. 815 4321, Ext 7065,
nmolyneux@unitec.ac.nz
Malama Solomona Lecturer/Pacific Advisor, Tel. 815 4321, Ext 7030
msolomona@unitec.ac.nz, or pacific@unitec.ac.nz Tel 8154321 ext
Manjula Kambalapuram Programme Administrator - BBus, DipMgt/
GDipBus, DipProfAcc, Tel. 815 4321, Ext 8622,
mkambalapuram@gw.unitec.ac.nz
Daniel Mangaraj Programme Administrator MBus Tel 8154321 Ext 8614
dmangaraj@unitec.ac.nz

5
 Topics/Content outline:
2. Course descriptor: Manufacturing and services management, mathematical decision making tools, loca-
tion selection, layout improvement, inventory management techniques and models,
Course title Business Process Improvement
scheduling, just-in-time management, queuing theory and application, product life
Course number: BSNS 6350
cycle, greening the business, and product management.
Main programme: Bachelor of Business
Level: 6 Course scope and exclusions: analytical models
Credits 15 The term 'analytical' is used broadly to include the traditional mathematical model-
ling approaches of operations management (queuing, inventory, location, Dis-
Pre-requisites: BSNS 5350 Business Process
Management/APMG 5350 counted Cash Flow (DCF), decision networks, layout, assembly line balancing), and
Business Process Management also 'systems thinking' frameworks, such as 'lean production', kaizen, Just-In-Time,
Co-requisites: None green business operations, product life-cycle analysis, and VSM (Value Stream Map-
Restrictions: APMG 6350 ping).
Compulsory/elective: Compulsory(Management Ops
The scope of the course excludes supply chain management, quality management,
stream)
and project management. These topics are covered in depth in other courses con-
ducted by the Unitec Department of Management.
Learning time:
Lecturer contact hours Non-contact hours Total hours Infographic and video
39 111 150 An infographic and video explaining the course aims and learning outcomes are
available here:
Course aim:
To conduct and communicate the results of Business Process Improvement (BPI ) Mellalieu, P. J. (2013). Introduction to Business Process Improvement at Unitec.
investigations in a manner appropriate for both corporate and small-medium enter- Unitec Institute of Technology. [video] Retrieved from
prise (SME) client contexts. http://www.youtube.com/watch?v=03TKlbrmSTA&feature=youtube_gdata_
player
Learning outcomes
Mellalieu, P. J. (2013). Introduction to Business Process Improvement at Unitec [Info-
Identify and apply appropriate analytical models [See below] to optimize the graphic]. Retrieved from
1. productivity, growth, effectiveness, and environmental sustainability of business
processes. https://dl.dropboxusercontent.com/u/49418067/BPI%202013_PUBLIC.pdf

Build, test, evaluate, and apply spreadsheet-based analytical models for undertaking Learning and teaching approaches
2.
BPI investigations. A mixture of in-class discussions, lectures, video clips, class exercises will be util-
ised. Guest lectures will be arranged where possible.
Draw upon and share expertise in operations management in the roles of both
3.
consultant and client.

Develop skills, knowledge, and confidence relevant to applying BPI and operations
4.
management methods to an Industry Based Learning (IBL) project.

Develop skills, knowledge and confidence relevant to undertaking advanced studies

5. [Level 7 & 8] in operations management, quality management, strategic
management, and/or management science.

6
Interactive 1.1 Course Overview Interactive 1.2 Introduction to Business Process Improvement at
Unitec [Video]

Professional
Technical Pre-Requisites

Related courses

Source: http://www.youtube.com/watch?v=03TKlbrmSTA

7
3. Assessment Assessment breakdown and due dates
Week
Id Weight Nature of assessment Component Sub-weight
Learning due
Id Weighting Nature of assessment
outcomes
1 15 Concept tests
A series of concept tests evaluating basic 1, 2
1 15 Practice 1a 2.5 3
principles of BPI and analytical calculations

An individual BPI investigation presenting a 1, 2 Final 1b 12.5 13

series of formal technical reports applying
appropriate spreadsheet-based analytical Spreadsheet-based
2 35
2 35 frameworks including: mathematical analytical frameworks
decision making tools, location selection,
Introduction 2a 12.5 6
layout improvement, inventory management,
scheduling, and queuing.
Advanced 2b 22.5 12
An individual investigation presenting a 1, 3, 4, 5
formal technical report applying appropriate
3 15 Integrated BPI
integrated BPI approaches including Lean, 3 15
TPS, JIT, and Kaizen. approaches

A team assignment reporting the application 1, 3, 4, 5 Project Proposal 3a 5 6

of product life cycle analysis, product Final Report 3b 10 13
4 20 management, and environmental
sustainability principles to business 4 20 Team assignment
processes.
Project Proposal 4a 5 7
A peer-rating of the students contribution as 3, 5
5 15 a consultant to the project team and other Oral/Audio-Video 4b 5 10
students assignments. Presentation
TOTAL 100 Final Report 4c 10 12

Peer-rating of team
5 15
contribution
WARNING!!! You are required to submit ALL assignments. Failure to submit an Provisional 5a 5 8
assignment will result in FAILURE of the course. If you fail to resubmit an IN-
COMPLETE assignment, then you will fail the course as a whole. Final 5b 10 13

TOTAL 100 100

Follow this link for Semester-Specific dates of classes and assignments, Interactive
1.3

8
 Assessment Breakdown

Concept Tests
Team Contribution
15%
20%

Team Project
15%
Spreadsheets
35%

Integrated BPI
15%

Assignment assessment policy

All assignments submitted for this course are required to conform to the course as-
signment assessment policies and standards.

These standards are presented on the course e-learning site in these sections:

Course assignment assessment policy

Mandatory written and oral communication standards
General information
The specifications and assessment rubrics for all assignments are detailed on the
course e-learning site.

9
4. Topics, content and reading schedule Week
Topic Reading
Beginning
Week Investigate product life cycle analysis
Topic Reading
Beginning Concept of the product life cycle is
Chapter 5,
discussed
Appraise the decision-making process and Effect of product life cycle on product Ch 5 Sup-
practice for business process management Heizer & plement 5
6 development is evaluated for both
1 Decision criteria (MaxiMax, MaxiMin, Render manufacturing and services
Equal Likelihood, Expected Mean Value) Part 4 Design and operations for Assignment 2a
Decision matrices Module A Assignment 3a
environmental sustainability
Effect on capital planning is evaluated
Introduction to spreadsheet modelling for
operations management Heizer &
Barlow (2006) Appraise the decision-making process and Render
Examine the appropriateness of just-in-time practice for business process management Part 4
and Lean methods for New Zealand (Advanced topics continued from Week 1) Module A
2 Toyota Production Systems Heizer &
Render Decision tree analysis
Principles of JIT Net present value calculations
Chapter 16 Chapter 7
JIT systems and methodology 7 Break-Even analysis for multi products Supplement 7
Kanban systems
Application to NZ is evaluated
Advanced professional practices in Barlow (2006)
Discuss layout decision processes and spreadsheet modelling for operations
practice management (Continued from Week 2) Assignment 4a
Discuss the options and types of Assignment 5a
manufacturing facility layouts Chapter 9 Advanced Technical Report Writing for
3 Demonstrate methods for analysing
operations management
process, product and warehouse Assignment 1a
layouts Investigate inventory management processes
Analyse types and analysis of service
and practice
facility layouts 8-9 Definition and types of inventory Chapter 12
Inventory costs and their origin
Introduction to Technical Report Writing for
Fixed order quantity models
operations management
Fixed period models
Accounting for variation in demand and
Discuss scheduling process and practice for
4-5 both manufacturing and service organisations lead time using statistical analysis
Scheduling of services Chapter 15
Manufacturing systems scheduling
Assembly line balancing
Synchronised manufacturing systems
Job shop scheduling methods

10
 Week Interactive 1.3 Semester-Specific dates for assignments
Topic Reading
Beginning
and course activities

Investigate queuing theory process and

Heizer &
practice
Fundamentals of queuing theory and its Render
10 Part 4
application to business
Single server models Module D
Multi-server models Assignment 4b

11 (Continued)

Discuss location decision processes and

practice
Demonstrate methods of location strategy
Analyse the factors affecting location Chapter 8
decision
12 Discuss and apply qualitative and Assignment 2b
quantitative methods of location decision Assignment 4c
making
Demonstrate methods in analysing facility
location decisions

Additional
resources
Investigate processes and methods unique to Refer to
services management Moodle site
13 Structuring the service system
Service delivery systems are Assignment 1b
investigated Assignment 3b
Assignment 5b

14

Assignment due dates are SUBJECT TO CHANGE. Refer to the Course Moodle site Download available from https://www.dropbox.com/s/
and Interactive 1.3 for semester-specific dates. di3g4aznskze7mr/Semester%20specific%20schedule%20of%20dates
%202014.pdf?dl=0

11
5. Learning resources
Prescribed text
Heizer, J., & Render, B. (2014). Operations Management: Sustainability and Supply
Chain Management [Global Edition] (11th ed.). Pearson Education.

New Zealand eBook version available here: (cheaper, interactive features)

Heizer, J., & Render, B. (2013). Operations Management: [Global eBook Instant Ac-
cess Edition] (11e ed.). Pearson Education.
http://www.pearsoned.co.nz/9780273788195

Recommended texts

Barlow, J. (2006). Excel Models for Business and Operations Management [online e-
book]. John Wiley & Sons.
http://unitec.eblib.com.au/patron/FullRecord.aspx?p=241134

Turner, K., Ireland, L., Krenus, B., & Pointon, L. (2011). Essential Academic Skills
(2nd ed.). Melbourne: Oxford University Press.

Manalo, E., Wong-Toi, G. & Bartlett-Trafford, J. (2009). The business of writing: Writ-
ten communication skills for business students (3rd ed.). North Shore, NZ:
Pearson Prentice Hall.

Students are required to access Unitec e-learning Moodle site and the internet for
materials relevant to this course.

12
Online resources Student Learning Support Centre (Te Puna Ako)
Students are required to Te Puna Ako, Learning Support Centre 815 4321 Extn 8611
Building 180, Mt Albert campus
Access the Unitec Learning Management System (LMS) Moodle internet site
for materials and communications relevant to this course. See Moodle Course Monday to Friday, ! ! 8.30am - 4.30pm
BSNS 6350: http://moodle.unitec.ac.nz/course/view.php?id=540 ! ! ! ! Evenings by arrangement
Use http://turnitin.com to submit written components forming parts of all Mt Albert campus
assignments Phone ! ! ! +64 9 815 4321 ext 8611
Use a citation management system such as Endnote or Zotero to manage their
database of reading. See http://www.zotero.org Web address; ! ! http://libguides.unitec.ac.nz/TPA

Use Unitec library - all prescribed texts and reference texts are placed on
course reserve for your emergency use.
Use Unitec Library online databases

How to access library assistance

Main Library

Building 110, Gate 4, ! Mt Albert campus

Monday to Thursday, ! 8.00am - 9.00pm
Friday, ! ! ! 8.00am - 6.00pm
Weekends, ! ! ! 9.00am - 4.30pm

Phone: ! ! ! Front Desk ! (09) 815 4185

Email: ! ! ! library@unitec.ac.nz

Web address: ! ! http://library.unitec.ac.nz/

Study Guides: The Unitec Study ToolBox

http://libguides.unitec.ac.nz/studytoolbox

13
SECTION 2

General
Figure 1.2 Campus view from Gate 4, Carrington Road
Overview

1. Must I attend class?

2. Who is the course lecturer?
3. What are my responsibilities
as a student?
4. What are Unitecs
obligations to me?
5. What are Unitecs rules and
policies that are relevant to
me?

"The only good is knowledge and the only evil is ignorance." Socrates

14
1. Contact sessions: Studios and conduct
Your learning experience assumes that you will attend class contact studios to clar-
ify assignment requirements and to participate in extending the learning you gain
from the section: Topics and Content Outline: Reading Schedule, Section 4. Accord-
ingly, all studio sessions are compulsory. Email your team and tutor in advance if
you will fail to attend.

Studio sessions will be the primary time discussions will be held about the assess-
ments.

Please ensure that before coming to the studio sessions that you are prepared. Skim
read the relevant chapters prior to the relevant class. Prepare questions and/or case
examples you would like to discuss drawn from recent news events.

Follow up classes by reading fully the chapters indicated in the section: Topics, con-
tent and reading schedule

15
2. Lecture attendance and conduct

Unitec is required BY NZ LAW to record and report to the immigration

department on the attendance of any student present in New Zealand
under a Student Visa. Therefore, if you are attending Unitec on a Stu-
dent Visa you are expected to attend all lectures.
ALL students are strongly encouraged to attend every session as a range of
differing subject matter, guest lecturers and in class group activities and discus-
sions are designed to enhance student learning and experience. Punctuality is
an important courtesy for lecturers and students and is, of course, a manda-
tory requirement in the business environment.
Email the tutor and your team beforehand if you have to miss a class.
An attendance register will be taken at the start and end of each class to moni-
tor the attendance of each student for administrative purposes.
Lecture sessions for all students will be the primary time for coaching and dis-
cussions. Class meetings will include discussion about the assessments and
assignments. Please ensure that before coming to the lecture sessions and tuto-
rials that you are prepared. Read the relevant chapters (at least) the night be-
fore lectures. Prepare questions and/or case examples you would like to dis-
cuss. We expect you to be up to date on current industry developments.
Team work is an essential component of this class. You will be rated on the
quantity and quality of your contribution to your teams assignments. Your
team will expect to check in with your progress on team tasks prior to and af-
ter the formal component of the class session.
Cell phones are not permitted to be on, or used, during class time and must
only be done so during break times or by prior lecturer agreement.
Our lecture sessions should be fun and interactive. Please feel free, and wel-
come, to participate in any discussion and debate. We want to hear your
views!
In grading all assessments, consideration may be taken into account of stu-
dents who do not regularly attend lectures and team meetings.

16
3. Unitec and BBus policies and procedures Unitecs commitment and expectations of students
Unitec is committed to providing you with:
Unitec guidelines on policies and procedures
Lecturers who are well prepared and organised
Please read the policies specific to the Bachelor of Business in conjunction with the
Display a thorough knowledge of their subject
Unitec publication, Your Guide to Unitecs Rules and Policies.
Good communicators
All students should obtain a free copy of the BBus Student Handbook which in-
Provide you with useful feedback on your performance
cludes information on:
Responsive to your learning needs
Lectures and Conduct
Qualifications that are credible and portable
Academic Dishonesty
A quality education in a climate of continuous improvement
Online Enrolment
Accurate information about your programme
Attendance Policy (International and Domestic)
Assessment that is fair, valid and timely
Assignments (Format, Presentation, Referencing, Submission, Extensions)
The opportunity to evaluate courses and teaching in confidence
Exams (Regulations, Timetables, Special Consideration Applications)
A learning environment that is safe and one that enables you to achieve your
Assessment (Collection of Assessments, Uncollected Assessments, Reconsid- full potential.
eration)
Special Assessment Consideration (SAC)
We expect students to:
Results
These documents are available on Moodle and via Unitecs main site: Be punctual and reliable in attendance

Unitec rules and policies: Be well organised and prepared for each class
http://www.unitec.ac.nz/current-students/support/rules-and-policies/rules-and- Be committed to your own learning
policies_home.cfm
Participate actively in group work and other learning activities associated
BBus Handbook: with their programme.
http://moodle.unitec.ac.nz/mod/resource/view.php?id=194076 Abide by Unitec statutes and regulations
Respect the rights of your fellow students and Unitec staff
Provide useful feedback to courses and teaching to assist us in improving our
programmes and services.

17
4. Course tutor Mihi
Ko Tongariro te maunga
Ko Waikato te awa
Ko Huguenot te iwi
Ko Geering te rangatira
Ko Mellalieu te hap
Ko Pukawa te marae
Ko Boeing te waka
Ko Kaiako Jean-Pierre ahau

About
Associate Professor Peter MELLALIEU teaches innovation, strategic thinking, new
venture development, and sustainable development and at Unitec Institute of Tech-
nology, Auckland.

Peter emigrated from the United Kingdom in the mid-1960s. He grew up in the Wai-
kato, later studying biotechnology, industrial engineering. and management at Mas-
sey University (Manawatu).

After university graduation he worked in Wellington as an industrial scientist imple-

menting novel Decision Support Systems for long-range strategic development in
several agribusiness sectors including the New Zealand dairy industry. Later, Peter
worked in Belgium in an entrepreneurial new venture information technology
(CAD/CAM) systems company. The Flanders-based company was located near his
familys 17th century Huguenot roots as silk-weavers in a north-east French village,
Malaloy, in the Champagne producing region of Alsace-Lorraine.

Peter J MELLALIEU, PhD, BTech(Hons), MPubPol, CertIwiEnvMgt
StrengthsQuest Talents: Strategy. Learner. Ideation. Activation. Intellection. [Input]
Returning to the Manawatu in 1987, Peter commenced his tertiary academic teach-
ing career at Massey University. In 2000, he organised a conference on the theme
strategies for sustainability and success in which he engaged thought leader theolo-
gian Sir Lloyd Geering as keynote speaker. This conference lead to his current re-
search interests in education for sustainability, eco-innovation, eco-enterprise, and
eco-magination.

He spends many happy hours walking, sailing, singing, and skiing with family,
friends, and learning partners around Tongariro, Taupo, and Auckland.

18
Contact
Department of Management and Marketing
Faculty of Creative Industries & Business
Unitec Institute of Technology
Carrington Road, Mt Albert, Auckland

Office:! ! OAKRIDGE 054-1012

Mobile: ! 021 42 0118 (Preferred) Interactive 1.4 Peter Mellalieus Office at Oakridge 054
Phone:! 815 4321 Extension 8108
Email:!! pmellalieu@unitec.ac.nz

LinkedIn:! http://www.linkedin.com/in/petermellalieu

Publications:!http://unitec.academia.edu/PeterMellalieu

Journal:! http://pogus.tumblr.com

Skype:!! myndsurfer

Unitec:! Staff directory

Appointments and communications with course tutor

For an appointment with the with course tutor, please email, text, or phone at least
24 hours in advance. All efforts will be made to accommodate your request for an
appointment. All requests for an appointment will be confirmed prior to any ap-
pointment.
Location: https://goo.gl/maps/qUwPy
If you drop in for an unconfirmed appointment while the lecturer is busy with
other duties, an appointment may not be appropriate or possible. In these instances,
offence is not intended. You are encouraged to make an appointment by phone or
email to avoid this possible occurrence.

Please ensure your written communications use formal business English. plz dnt uz
txt. That is, please avoid text abbreviation language.

You may attempt to text or phone this lecturer between the hours of 8:00 am and
9:00 pm 24/7.

19
 CHAPTER 2

Assignment guidelines
Writing and success
Write. Rewrite. When not writing or
rewriting, read. I know of no shortcuts.
Larry L. King

Feedback from employers informs

Unitec that you can DOUBLE your
entry-level salary in a management
position through possessing writing and
oral communication standards that
Example of a cover
page for a formal re- enable your work to be presented
port. Source: (An-
nual Report 2007:
Carbon Finance for directly to an employers clients without
Sustainable Develop-
ment, 2007) hand-holding by your manager.

20
SECTION 1

Written reports
Figure 2.1 Students collaborating to write a report
Overview

1. What are the requirements

for a Formal Technical
Report
2. What are the requirements
for an Executive Summary?
3. How can I improve my
professional writing to meet
the requirements of this
class?
4. What is a typical assessment
rubric for a Formal Report?
5. What is the six-trait rubric
for professional writing?

21
Assignment requirements
Report your recommendations, analysis and discussion in the format of a For-
mal Technical Report with Executive Summary. See Required Sections below.
State all assumptions and estimates that you use.
Ensure you show all workings and formulae for calculations. Include examples
of your calculations.
Submit copies of spreadsheets used in your calculations as Appendixes to your
reports.
Use additional resources where necessary to aid your discussions.
Submit your report through http://Turnitin.com immediately before class on
the due date. The required Turnitin access codes and due dates are on speci-
fied in in the Semester Specific Dates document, Interactive 1.3
Interactive 2.1 shows a typical assessment rubric for a Formal Technical Re-
port. The EXACT rubric for each specific assignment will be detailed in the As-
signment Specification for that assignment.
All Formal Reports are required to include an Executive Summary, Interactive
2.3
Formal writing is required to meet a high professional standard, the require-
ments for which are detailed in Interactive 2.5.
22
Formal Technical Report: Required sequence of sections
Unitec Assignment Cover Sheet
Report Title Page
Table of Contents
List of Illustrations (ie Figures and Tables)
Abbreviations and Glossary
Acknowledgements
Executive Summary [See Interactive 2.3]
1.0 Introduction (what is the purpose of the investigation; overview of report)
2.0 Background (who is the audience/client for the report; where is the investiga-
tion to be conducted; relevant theory and principles)
3.0 Investigation Method (how was/will be the study carried out in practice.)
4.0 Results (Present the data collected. Use appropriate analytical frameworks to
analyse data. Provide examples of calculations
5.0 Discussion (Discuss the implications of your results in relation to the client
and purpose of the report
5.0 Conclusions (Summarise the key results and discussion. Present succinct con-
clusions. Note any limitations of the study and areas for future investigation.)
6.0 Recommendations (On the basis of your summary and conclusions, what
actions do you recommend the client/audience should implement?)
References
Appendices
Appendix A
Appendix B
 Contents of each section of a Formal Report
Interactive 2.1 Assessment rubric for a TYPICAL formal techni- Guidance on completing each section of a Formal Report is explained in detail in
cal report Interactive 2.2:

Mellalieu, P. J. (2014, May 22). Guidance for writing a formal technical report. Inno-
vation & chaos ... in search of optimality. Retrieved from
http://pogus.tumblr.com/post/86483674558/guidance-for-writing-a-formal-techni
cal-report

Turner, K., Ireland, L., Krenus, B., & Pointon, L. (2011). Essential Academic Skills
(2nd ed.). Melbourne: Oxford University Press. Retrieved from
http://books.google.co.nz/books/about/Essential_Academic_Skills.html?id=TRyC
ZwEACAAJ&redir_esc=y

Pagination
Use Roman numerals (i, ii, iii, iv, v x) commencing from the Table of Contents
(page i) through to the Abbreviations section. Use modern numerals (1, 2, 3 100)
commencing from the Executive Summary (Page 1).

This rubric explains precisely where you will earn marks for each
component of a typical formal technical report assignment. Source:
Mellalieu, P. J. (2014, May 27). Source: Assessment Rubric for Operations
Management Investigative Report. Peter Mellalieus GoogleDrive. https://
docs.google.com/spreadsheets/d/11s-r-
aOMVW6YHZ9gvFGEMO1iG5LqDtFnkYU0FEawfts/pubhtml

23
 Executive summary
Your report must include an Executive Summary. An Executive summary IS NOT
AN INTRODUCTION!!!! It is a self-contained document that includes Purpose,
Overview, Scope, Findings, and Key Recommendations.

Here is a scaffold of an Executive Summary that you may adapt freely (based on
my implementation of Turner et al, Ch. 7, p. 145):
Interactive 2.2 Guidance for writing a formal technical report Overview: This report investigates alternative layouts for a new laboratory
for .

Purpose: The purpose of the report is to present and justify recommenda-

tions that will guide Celestial Chocolates to .

Scope: The investigation undertaken used data provided by Celestial Choco-

lates and data sourced by the authors investigations. A spreadsheet-based De-
cision Support System Model was constructed to calculate the impact of vari-
ous alternatives using several mathematical models..

Findings: The principle results found are that Celestial Chocolates . [sum-
marise the main results and findings]

Recommendations: On the basis of our analysis we recommend that Celes-

tial Chocolates:

1. IMPLEMENT the linear laboratory layout, illustrated in Figure 3.2..

2. NOTE that the next best alternative is ..
Source: Mellalieu, P. J. (2014, May 22). Guidance for writing a formal
3. NOTE that if Celestial Chocolates adopts the new biscuit chocolate then
technical report. Innovation & chaos ... in search of optimality the recommended laboratory layout is...
http://pogus.tumblr.com/post/86483674558/guidance-for-writing-a-formal-
technical-report For examples and guidance and guidance to writing an Executive Summary, see In-
teractive 2.3

24
 Formal written language quality
The quality of your communication is a CRUCIAL requirement for your success in
this course .... and your future career. Feedback from employers and recruitment
consultants informs Unitec that you can DOUBLE your entry-level salary in a man-
agement position through possessing writing and oral communication standards
that enable your work to be presented directly to an employers clients without
hand-holding by your manager.
Interactive 2.3 Guidance for writing an executive summary
Accordingly, for this course you are expected to write in a style suitable for an inter-
national business audience for whom English is a second language. This style of Eng-
lish is termed Global English.

Furthermore, all of your assignment writing is assessed according to the Figure Six-
trait method, Interactive 2.4. The figure specifies the criteria used to assess your
writing quality.

The resources in Interactive 2.5 explain some of the special writing features your
tutor requires: Global English, paragraphing, and word choice, for instance.

Assignments that fail to reach the required minimum standard of writing will be re-
turned for re-writing. You will receive no additional marks if you are required to re-
submit. Get your assignment write first time! Further details are explained in In-
teractive 2.5

Assistance to improve your professional writing

Review the video Interactive 2.6
Schedule and attend a workshop or personal coaching session provided by the
Unitec Student Support Centre
Source: Mellalieu, P. J. (2013, October 3). Exemplars and guidance for Discuss your draft writing with members of your project team, learning clus-
writing a technical executive summary and report. Innovation & chaos ... ter, or tutor
in search of optimality. View the resources available at Study Guides: The Unitec Study ToolBox
http://pogus.tumblr.com/post/62931215234/exemplars-and-guidance-for- http://libguides.unitec.ac.nz/studytoolbox
writing-a-technical

25
Interactive 2.4 The six-trait rubric for assessing professional writing Interactive 2.5 Required formal written language quality guidelines
quality

Many written assignments in this course are assessed against the six-trait
rubric.
Source: Mellalieu, P. J. (2013, July 25). Assessment Rubric for Professional
Language: Six-Trait Method for Evaluating Writing Quality (Ver 1.5) (pdf).
Unitec Institute of Technology. Retrieved from https://
dl.dropboxusercontent.com/u/49418067/Six%20trait%20rubric
%202013_PUBLIC.pdf
These guidelines provide resources to ensure you meet the writing requirements
for this course.
Source: Mellalieu, P. J. (2013, October 3). How can we incentivise our students
to develop an appropriate professional writing style? My policy and practice.
Innovation & chaos ... in search of optimality. Retrieved from
http://pogus.tumblr.com/post/62944857816/how-can-we-incentivise-our-
students-to-develop-an

26
Interactive 2.6 How to improve your writing using the six trait rubric

Peter Mellalieu and Mary Lim explain how to improve your writing through
the six aspects that contribute to professional writing quality.
Source: Lim, M., & Mellalieu, P. (2013, November 18). Developing
professional writing using the six trait rubric [video]. Innovation & chaos ... in
search of optimality.
http://pogus.tumblr.com/post/67325245170/developing-professional-writing-
using-the-six

27
SECTION 2

Team Contribution
Figure 2.2 A project team makes its oral presentation
Overview

1. How can the differing

contributions of team
members to a project be
rewarded fairly through
academic grades?
2. What is the Team
Contribution Calculator, and
how can I use it?
3. How can weakly
performing team members
be encouraged to contribute
to team performance - or
penalised?

Overview If your team members rate your contribution highly, then you
could achieve100 per centfor your team contribution. In con-
A proportion of the marks you earn in this course are gained
trast, if you free-load or disrupt the team's achievement, then
from your participation in a team project that delivers several
you may achieve azero markfor your team contribution
outputs. Typically, each team member contributes a different
mark. Furthermore, if your team delivers poor results for in
amount of effort to the team's output depending on their am-
your Team Assignments then you will also achieve a lower
bition, capability, and commitment. Accordingly, this assign-
Team Contribution mark. This topic explains and provides
ment enables you to rate the contribution of each of your
the Team Contribution Calculator spreadsheet that your team
team members relative to their contribution to the team's per-
will use to calculate each team members Team Contribution
formance.
mark.

28

Factors used to determine the Team Contribution
mark
Your individual Team Contribution mark is based on these measures and factors:
OUTPUT ACHIEVEMENT:Your personal on-time delivery of outputs and
promises made to your team. Quality of output delivered in support of the
Team Project assignment specifications.
LEADERSHIP AND ENTERPRISE:Actions you take to inspire and direct the
team's goals, strategies, and plans; your initiative, innovation, creativity, and
enterprise.
TEAM HARMONY AND ENGAGEMENT:Activities you take to promote ef-
fective team communication, relationship building, positive working climate,
member inclusion, involvement; overcoming team conflict, team dysfunction,
and team member free-loading.
INPUT BY TEAM MEMBER:Your on-time attendance and contribution to
team meetings. Preparation for team meetings. Prompt response to communi-
cations such as messages, emails, phone calls.
INPUT THROUGH CLASS ATTENDANCE:Your on-time attendance at class,
as recorded by the course tutor. Typically this includes the first 6 - 8 weeks of
the semester up to the point of the submission of your teams project proposal.
Team peer rating
The following items are determined by each team member rating the relative contri-
bution of every other team member. Each of the team members rankings are input
to a spreadsheet your team uses to determines the mark to be allocated for each
team member. The tutor DOES NOT expect to see every team member rated with
the same score.
OUTPUT ACHIEVEMENT
LEADERSHIP AND ENTERPRISE,
TEAM HARMONY AND ENGAGEMENT
INPUT BY TEAM MEMBER
You DO NOT need to wait until the tutor has assessed the final report. Once your
team has completed all work associated with your Team Assignment, please upload
the peer rating component of the spreadsheet to Moodle. The tutor will then add in
the marks for your team assignment outputs to calculate the final contribution for
each team member.
Anonymity or transparency of rating data
One team member should be delegated to enter each students' ratings into the
spreadsheet. To preserve the anonymity of your ratings, the task of data entry may
be delegated to a member of another team.

TEAM RESULTS:The mark determined by the tutor for your teams Team As-
signment outputs. These outputs typically include:

Source data for calculations

The following items are determined from the course tutors records:

TEAM RESULTS from all assignment outputs generated by the team, such as
grades for:

Team Project Proposal

Team Project Workshop or Oral Presentation
Assignment Final Report
Feedback on Final Report and conduct of project from client

29
The Team Contribution Calculator spreadsheet
Download the Team Contribution Calculator Excel (TCC) spreadsheethere:

Mellalieu, P. (2013, May 13). Team Contribution Calculator - Release Version 3.3
[Spreadsheet]. Unitec Institute of Technology.
https://dl.dropboxusercontent.com/u/49418067/Team%20Contribution%20v3.3%
20copy.xls

This video demonstrates how the Team Contribution Calculator spreadsheet func-
tions, Interactive 2.7

Interactive 2.7 Explaining the Team Contribution Calculator

Source: Mellalieu, P. (2013, May 14). Team Contribution Calculator

(Overview). Innovation & chaos ... in search of optimality. Retrieved May
13, 2013, from http://pogus.tumblr.com/post/50359001293/team-
contribution-calculator-how-do-you-assess

30
CHAPTER 3

Assignment 1: Concept tests

31
Concept tests Some questions haveSEVERALcorrect answers. Full marks for the question are
There are two on-line Concept Tests conducted in this course. The tests ensure you awarded ONLY when ALL CORRECT answers have been supplied for a specific
question.
keep up-to-date with course reading, and develop the skills required to carry out
the other assignments in the course. You will require a calculator to conduct some calculations.
Assessment weighting and due date
The test is open book with a restricted time to complete.
Week
Id Weight Nature of assessment Component Sub-weight
due There is a deliberate delay enforced between each of your attempts on the quiz.
1 15 Concept tests
Attempts allowed: 3.
Practice 1a 2.5 3

Final 1b 12.5 13

The due dates for this semester are specified in the Semester Specific Schedule, Inter-
active 1.3.

Practice concept test

This test provides you with a 'trial' example of what your Final Test for this course
will be like, using the Moodle Quiz Delivery system.

This Quiz,Assignment 1a, samples your knowledge of:

The pre-requisite course for this course, particularly the principles of produc-
tivity measurement (Heizer & Render, Chapter 1)
Basic productivity calculations
Basic interpretation of spreadsheets and simple spreadsheet formula
Knowledge of the course handbook and assessment rubrics
The first week of the course: Decision Modeling under conditions of uncer-
tainty and risk.
You have a limited number of attempts at this test. The HIGHEST grade that you
achieve will be awarded to your final grade. However, each attempt reduces the
maximum mark you can gain from the test. Therefore, attempt to gain the highest
mark on your first attempt.

There is a different contribution awarded depending on the question's degree of dif-

ficulty. Marks per question range between 1 and 4 marks.

32
Final concept test You are required to sit the test under Final Examination Conditions. Communica-
The Final Test, Assignment 1b, samples your knowledge of: tion with any students via email, Facebook, telepathy, or any other communication
medium will result in your IMMEDIATE course failure and possible exclusion from
All chapters that form the required reading from Heizer & Render the degree programme.

BPI calculations practiced in the class, particularly those used for Assignment
2a and 2b.
Interpretation of spreadsheets and spreadsheet formula
Material presented as part of student and tutor presentations and discussions
Material covered in all Assignments.
You have ONE attempt at this test.The grade that you achieve will be awarded to
your final grade. Multiple attempts are NOT PERMITTED.

There are FIFTY questions.

There is a different contribution awarded depending on the question's degree of dif-

ficulty. Marks per question range between 1 and 4 marks.

Some questions haveSEVERALcorrect answers. Full marks for the question are
awarded ONLY when ALL CORRECT answers have been supplied for a specific
question.

Some questions require you to:

Google Search
Follow a URL to access web resources and download spreadsheets.
Therefore, TAKE CARE you do not loose your test!

You will require acalculatorto conduct some calculations.

You may bring and use your own computer.

You will require to accesscorrectly functioning versions of spreadsheetsyou have

prepared for Assignments 2a and 2b. Links tocorrectly functioning versions of
spreadsheets may be provided in the test.

The test is open book with arestricted timeto complete: 3 hours

Attempts allowed: 1.

33
 CHAPTER 4

Assignment 2: Analytics
Spreadsheet risk
In the report into the 2012 JPMorgan
Chase trading loss, a lack of control over
spreadsheets used for critical financial
functions was cited as a factor in the
trading losses of more than six billion
dollars which were reported as a result of
derivatives trading gone bad.

Tools of the trade: an

evolution

34
APPLIED ANALYTICAL FRAMEWORKS: PART 2A Assignment requirements

This is an Individual assignment.

Assessment weighting and due date To be eligible to pass this course this assignment must be submitted.
Week You are NOT REQUIRED to write a Formal Report for this assignment.
Id Weight Nature of assessment Component Sub-weight
due Report your recommendations, analysis and discussion for Questions 2 and 4
Spreadsheet-based in the format of an Executive Summary with Appendixes. For guidance on the
2 35 analytical frameworks required structure, see Interactive 2.3
Your answers for Questions 1 and 3 should be presented as Short Answers IN-
Introduction 2a 12.5 6
CLUDING full examples of calculations presented.
Advanced 2b 22.5 12 Ensure you show all workings, formulae, and references for calculations.
The due dates for this semester are specified in the Semester Specific Schedule,Inter- State all assumptions and estimates that you use.
active 1.3. Use additional resources where necessary to aid your discussions.
Include copies of spreadsheets used in your calculations as Appendixes to each
Overview section (question) of your document.
The professional operations manager takes many roles. One important role is trans-
lating other peoples vague ideas into mathematical models. The operations man- Marks will be deducted if you fail to document your answer with the profes-
ager then applies these mathematical models to explore the implications of alterna- sional language standards detailed in Interactive 2.2
tive decisions and designs. Once you have identified an appropriate mathematical Submit your assignment through http://Turnitin.com immediately before
representation for the problem under investigation, it is productive to use software class on the due date.
to carry out the required mathematical procedures. Used effectively, software, such You are ALSO required to submit functional spreadsheets to Moodle for ALL
as spreadsheets, can help you: questions, combined into one spreadsheet document. Alternatively, you may
share a Google Sheets version of your spreadsheet with the course tutor.
Achieve speed and accuracy in calculations;
Warning
Conduct sensitivity analysis to explore what if the input data was slightly Some questions DELIBERATELY fail to provide all data. You are required to iden-
higher or lower than the data first entered into the software. tify missing data and request the data from the course tutor via the Moodle Discus-
Often, your spreadsheet will subsequently be used by someone else. Consequently, sion Board.
it is important to ensure that your spreadsheet is created and documented to profes-
Professional practice and Decision Support Systems
sional industry standards, and realised as a Decision Support System (DSS).
For guidance to achieving best practice for spreadsheet design, see Interactive 4.1
Assignment 2 and the concurrent classwork guides you through the practice of cre-
ating, testing, and utilising mathematics-based spreadsheets for several aspects of Assignment 2, Part B
the operations management discipline. Details for Part B, due Week 12, will be provided at a later date.

35
Assessment Rubric for BSNS 6350 Assignment 2a
Mark
Assignment Topic availabl
e

You WILL be required to REWRITE your assignment if your assignments

PROFESSIONAL PROFESSIONAL writing quality fails to achieve a mark of 5/6 on this rubric. See
WRITING / 6 Assessment Rubric for Professional Language Six-Trait Method for Evaluating Writing
Quality for details.

Ideas Ideas are relevant, insightful and original. 1

Organisation Correct application of specified genre: Executive Summary for Q2 and Q4. 1

Word choice The reader can easily understand what you intend. 1 Interactive 4.1 Guidance on best practice for spread-
Fluency Your succinct, lucid construction of sentences helps make your meaning obvious. 1 sheet design
Grammar Minimal copyediting is required to polish your paper for publication. 1

Originality All assistance acknowledged honestly and correctly. 1

Question 1 / 14 Decision-making under conditions of uncertainty

1a Decision alternatives 6

1b Sensitivity analysis 2

1c Recommendations 3

1d Purchase of economists advice (EVPI) 3

Question 2 / 25 Capital budgeting at Happy Lifes Retirement Village

2a Annual operating costs and income 10

2b Internal Rate of Return 5

2c Maximum net discounted cash flow 5

Executive Summary Report plus Appendices 5

Question 3 /15 Laboratory layout at Celestial Chocolates Source: Mellalieu, P. J. (2013, August 2). Guidance on best
3a Comparison of the two proposed layout alternatives 5 practice for spreadsheet design. Innovation & chaos ... in search
3b Improved third layout 5 of optimality. http://pogus.tumblr.com/post/57098889972/
3c Impact of biscuit chocolate 5 guidance-on-best-practice-for-spreadsheet-design
Question 4 /30 Line balancing of assembly lines at Gizmo Gadgets Production Company

4a Balanced assembly line; number of workstations 10

4b Idle time and superior arrangement 5

4c Impact of six workstations 5

4d Extended work day 5

Executive Summary Report plus Appendices 5

Spreadsheeting Spreadsheet competency

Correct calculations; Input cells clearly identified; Correct units of measurement and 10
precision; Documentation of method and formula

Total 100

36
Question 1: Decision-making under conditions of uncertainty Question 2: Capital budgeting at Happy Lifes Retirement Village: Part I: Dis-
(14 Marks) counted Cash Flow
(25 marks)

Widget Manufacturing Company (WMC) has received a large order for supplying
the latest uPed consumer electronic device. WMC can arrange for the supply of the Given the data below recommend what actions management should undertake in
uPed according to a variety of alternative manufacturing policies, shown in Table each case. Ensure you discuss the implications for the future of the company.
1.1
Happy Life Ltd proposes to establish a new retirement village. However, the com-
a. Given the net returns in Table 1.1 determine which decision would be made pany is unsure how many rooms to construct. Their decision will be based on sev-
under each of the Equally Likely, MaxiMin, MaxiMax, and Expected Mone- eral factors. Two important factors are:
tary Value decision criteria. the state of the economy which influences the number of people that can
b. Sensitivity analysis: For each decision criterion, how would your recom- afford to retire into such complexes, and
mendation alter if the returns in an Optimistic state of economy were re-
the long term cost of capital required to raise funds for the project
duced by 12.0%
c. State and justify which decisions you would recommend to each of the fol- The data estimated by Happy Life is:
lowing types of decision maker:
The capital cost of building a 65 room complex is $25 million
Mrs Maria Grande - Has a large portfolio of diversified investments man-
aged to achieve the best likely economic return. The capital cost of building a 100 room complex is $60 million
Mr Smee Lee - A cautious business owner whose life capital is totally The capital cost of building a 150 room complex is $100 million
invested in this one business.
Happy Life estimates that occupancy rates will be 95%, 75% and 50% de-
d. An economist has offered to advise the company EXACTLY which future pending on an Optimistic, Neutral, or Pessimistic condition of the econ-
state of the economy will occur over the life of the contract. She has offered omy.
to provide this advice for a fee of $8000. Would you accept the economists
offer? If yes why? If not, why not? Economists have agreed (remarkably!) that future condition of the economy
will be Optimistic.
Conduct a Discounted Cash Flow analysis of the project to identify
Table 1.1 Net returns from alternative manufacturing policies for Widget Manufactories Com-
pany
a. The annual operating costs and income for each size of room complex
b. The Payback Period for each size of room complex
State of Economy
Alternatives c. The Net Present Value for each room complex based on the current cost of
Optimistic Neutral Pessimistic capital.
Employ labour NZ$80,000 NZ$70,000 NZ$50,000 d. The Internal Rate of Return (IRR) for each size of room complex
e. The capacity of the retirement village (number of rooms) that should be built
Subcontract labour NZ$120,000 NZ$70,000 NZ$45,000 by the company that maximises the net discounted cash flow for the com-
Lease robot NZ$120,000 NZ$110,000 NZ$55,000 pany over the lifetime of the complex.

Buy robot NZ$130,000 NZ$100,000 NZ$30,000 Ensure you discuss your choice of criteria for making the decision, and all assump-
Subcontract manufacture ? ? ? tions and limitations.

Note
The spreadsheet you develop for this question will be used in Assignment 2 (b).

37
Question 3: Laboratory layout at Celestial Chocolates
(20 marks)

You are the Director of Operations for Celestial Chocolates, owned and managed
by Dr Freda Charlston. Celestial Chocolates (CC) are the inventors, manufacturers,
and distributors of exceptional quality chocolates.

CC is considering several layouts for a new chocolate laboratory used by the recipe Figure 3.1: Number of trips between the various work stations in the
invention and testing department. Your mission is to investigate and recommend the laboratory, trips per day per technologist.
best laboratory layout so that food technologists can devote their time and energy to
product development rather than wasting time walking around the laboratory. Spe- To
cifically, you have been asked to evaluate several laboratory layouts. Based on your
recommendation to Dr Charlston, she will proceed to place a contract for building From Refrig Counter Sink Storage Stove
the chocolate laboratory.
1 2 3 4 5
Figure 3.1 shows the number of trips between the various work stations in a typical Refrig 1 - 12 6 0 0
laboratory based on a work study of the existing laboratory layout. Figures 3.2 and
3.3 show two laboratory layouts under consideration. Counter 2 5 - 4 3 8

Construct a spreadsheet-based Decision Support system to investigate the situa- Sink 3 3 15 - 4 0

tion.
Storage 4 3 5 0 - 5
a. Use your DSS to compare and contrast the two proposed layout alterna-
tives. Which alternative do you recommend?. Report your ALL your findings Stove 5 0 5 8 4 -
and assumptions. Recommend the layout that minimises the total trip dis-
tance travelled by a typical food technologist in a typical working day.
b. Design a third layout that might improve on the two proposed layouts. Use
your DSS to investigate the features of your proposed layout. Adjust your
recommendation as presented in 3 (a). Figure 3.2: Laboratory Layout A: Linear: Distance between work stations,
c. Interviews with the food technologists have identified the benefits of a biscuit walking distance in metres
(twice-cooked) chocolate. This new range of chocolates will require DOU-
BLE the number of trips from the Counter to the Stove, and an additional 8
Refrig Storage Sink Stove Counter
trips from the Stove to the Counter to conduct the twice-cook operation.
Evaluate the effect of this change to current practice. 1 2 3 4 5

2 2 2
3

38
 Question 4: Line balancing of assembly lines at Gizmo Gadgets Production
Company Ltd.
(30 marks)

Gizmo Gadgets Production Company is intending to manufacture a product that re-

Figure 3.3: Laboratory Layout B: Right-Angle: Distance between work
stations, walking distance in metres
quires several tasks in its manufacture. The company is required to deliver a produc-
tion of 32 units per day. The tasks and assembly time per task are presented in Ta-
ble 4.1. The table also shows the precedence relationships between tasks.
The company proposes to operate one shift per day. The nominal work day is 8
hours. However, assume 8 hours of work time available per day because of time
for breaks and cleanup.

Refrig Storage Sink Construct a spreadsheet-based DSS to investigate the following:

1 2 3 a. Balance the assembly line for Gizmo Gadgets Production Company Ltd.
Draw a sketch of your balanced line. State the minimum number of worksta-
tions required to satisfy the daily production rate. Determine the cycle time.
3
2 1 b. Discuss the idle time resulting from the balanced line arrangement identi-
fied in (a). Is it satisfactory or would you consider some other figure more
desirable? HINT: Discuss the average idle time per unit made, idle time per
5
Stove day, and the overall process efficiency. Identify a superior arrangement.
4 Explain your recommendation.

7 c. If only six workstations were to be used what would the daily production
2 rate be on a re-balanced line?
6 4
d. Discuss the affect on the assembly line if the hours worked per day could
be extended by having 3 hours overtime per day. Would the assembly line
8
Counter have a different workstation arrangement? If so, sketch the new arrange-
ment and discuss its efficiency.
5

39
Table 4.1 Assembly time and precedence chart for Widget Production
Task Assembly time (minutes) Precedence
A 10 -
B 6 A
C 6 B
D 3 B
E 8 A
F 2 C,D
G 7 F
H 14 E
I 5 G,H
J 7 I
K 9 G, J
L 10 K

40
 CHAPTER 5

Assignment 3: TPS
Kaizen
Think of how to do it, not why it cannot
be done.
Masaaki Imai (1985)

How can we learn to apply the principles

New Zealand super-
yacht builder Alloy of a a comprehensive Business Process
Yachts deploys a sys-
tematic approach to
improving workplace
Improvement framework, such as TPS,
productivity informed
by principles of the to a small-medium enterprise in New
Toyota Production
System.
Zealand?

41
IMPLEMENTING THE TOYOTA PRODUCTION SYSTEM: Evaluation when they help you. You earn earn higher grades for helping your Learn-
ing Cluster members.
LESSONS FROM A PERSONAL EXPERIMENT
A Project-Based Learning Assignment Extra for experts
If you are employed in a workplace, you are invited to suggest to your manager that
Assessment weighting and due date you conduct this assignment investigation as a pilot project in some small aspect of
Sub- Week the companys operations. Special conditions may apply regarding confidentiality,
Id Weight Nature of assessment Component
weight due risk management, and safety. Please discuss your Project Proposal with your course
tutor in advance of your submission of Assignment 3 (a).
Integrated BPI
3 15
approaches Assessment rubric
Your Project Proposal, Part 3a, will be assessed out of 36 marks, using the following
Project Proposal 3a 5 6
sections from the rubric shown in Interactive 2.1.
Final Report 3b 10 13
Your Final Submission, Part 3b, will be assessed against the full 100 marks shown in
The due dates for this semester are specified in the Semester Specific Schedule,Inter- the rubric Interactive 2.1. Consequently, in your Part 3b submission, you have the
active 1.3. opportunity (and requirement) to improve your writing of the components you sub-
mitted for Part 3a.
Significant question
How can we learn to apply the principles of a a comprehensive Business Process Im-
provement framework, such as TPS, to a small-medium enterprise in New Zealand?

Scenario
Assume that in 12 weeks time you intend to graduate successfully from your Unitec
course in BPI. In anticipation of your success, you have gained employment from
mid-December in a medium-sized New Zealand company. The position requires you
to introduce processes for raising the companys productivity through applying sev-
eral principles of BPI.

In preparation for your new position, you have decided to experiment applying the
principles of BPI to the spaces you use as part of your daily life. These spaces in-
clude your study, kitchen, laundry, bathroom, workshop, garage, and/or garden. In
particular, you have chosen to practice and apply the principles of the Toyota Pro-
duction System (TPS).

Your mission
Write a Formal Technical Report that demonstrates comprehensive, documented
evidence that you are competent to lead a programme to improve a small/medium
organisations productivity through applying the principles of the Toyota Produc-
tion System (TPS).

Individual project with peer support

Draw upon the advice of your Learning Cluster as you conduct and write your assign-
ment. Your Learning Cluster members earn higher grades for Assignment 4 Peer

42
 Getting started
Project Proposal - Assignment 3 (a)
1. READ the relevant chapters of your text, Heizer & Render, (2013) Ch. 16 JIT,
Lean Operations and the Toyota Production System.
2. Select one or more of living spaces that you utilise as part of your daily life
(For example, study, kitchen, laundry, bathroom, garage, workshop, and/or
garden).
3. Document a BEFORE TPS record of the space(s). Include photographs and
Figure 5.1 Sections required for Part 3a sketches.
4. Document your plan of how you will apply the TPS principles to the space.
COMPONENT MARKS
5. Identify any risks to people, equipment, and the environment that may result
from the implementation of your proposed plan. Identify appropriate risk miti-
Front Matter 0 gation and contingency plans. ie How will you PREVENT identified risks from
occurring? How will you RESPOND if an accident occurs?
6. State your expectations of the benefits that might accrue from applying the
Introduction 10 TPS to the space(s) chosen
7. Establish a daily reflective journal (learning log) to report all events in Part (a)
and Part (b). Prepare your journal to include evidence including performance
Background 10 data, sketches, photographs, reactions from stakeholders and other observers.
8. Identify a specific TARGET company into which you could introduce your
Investigation 10 new-found competencies and report your findings.
9. Report your Project Proposal using the sections detailed in Figure 5.1

References 0 10. Ensure your specified components of your report meet the requirements of the
Assessment Rubric detailed on Turnitin and Interactive 2.1

Appendixes 0
Conduct the investigation - Collect the data for Assignment 3 (b)
Six Trait rubric for writing quality 6 1. Apply the TPS principles for a period of at least four weeks (ideally six weeks)
2. Report a daily reflective journal/learning log of all the above events. Include
evidence, performance data, sketches, photographs, reactions from stakehold-
Total 36 ers and other observers.
3. Draw upon the advice of your Learning Cluster as you conduct and write your
assignment. Your Learning Cluster members earn higher grades for helping
you (and vice versa).

43
Full Formal Technical Report - Assignment 3 (b) continued
1. Report all your findings as a fully-documented Formal Technical Report.
2. Include in your final report a revision of your Project Proposal to specify the
ACTUAL method and results of your investigation.
3. Discuss the advantages, disadvantages, and challenges of applying TPS in a
small-medium New Zealand company.
4. Summarise your findings and present recommendations about how you would
Figure 5.2 Toyota Production System Philosophy
apply TPS into the specific target small-medium company you identified in 3
(a).
5. Appendix: Submit a copy or URL link to your reflective journal/learning log.
Alternatively, include copies of your journal in the Appendix.
6. Ensure your report meets the requirements of the Assessment Rubric detailed
on Turnitin and Interactive 2.1

Source: http://withfriendship.com/user/mithunss/toyota-production-
system.php

44
 CHAPTER 6

Assignment 4: Mission Zero

Ray Anderson:
I always make the business case for
sustainability. Its so compelling. Our
costs are down, not up. Our products are
the best they have ever been. Our people
are motivated by a shared higher purpose
esprit de corps to die for. And the
goodwill in the marketplace its just
been astonishing.
Source: http://blog.gaiam.com/quotes/
New Zealand small-
medium company
authors/ray-anderson/56443
Soar Print uses pa-
per from responsibly
managed forestry
schemes, and uses
inks that are 99%
vegetable based,
Soar has a fully-
certified environ-
mental management
system that maxi-
mises energy effi-
ciency and greatly
minimises waste.
How can lessons learned from the
Soars sustainability
initiatives have been exemplary practice of multinational
recognised with a
raft of accreditations
and awards. Source:
Interface Flor be adapted and applied to
http://www.soarprint.
co.nz/unequalled-su a specific small-medium New Zealand
stainability/
enterprise?

45
PRODUCT DEVELOPMENT AND PROCESS IMPROVE- ambition for a company that in 1994 manufactured ALL of its product (floor cover-
ings) from virgin fossil-fuel-based resources (plastic polymers).
MENT: LESSONS FROM THE CASE OF INTERFACE AND
X?
A Project-Based Learning Assignment Your mission
Select an exemplary international company that has committed to achieving mini-
mal environmental impacts comparable to those of the company Interface.
Assessment weighting and due date
Week Write and present a technical report that describes how lessons from Interface and
Id Weight Nature of assessment Component Sub-weight your chosen exemplary company could be applied to a specific New Zealand small/
due
medium organisations product (service) development and process improvement.
4 20 Team assignment
Your particular challenge is to demonstrate how win-win outcomes could be gained
Project Proposal 4a 5 7
for both organisational productivity and environmental outcomes targeted to the
Oral/Audio-Video 4b 5 10 context of a small-medium NZ enterprise.
Presentation
Team Project
Final Report 4c 10 12 This is a team project. Your individual grade will be determined from:
The grade achieved by your team for components 4(a), 4(b) and 4(c)
Peer-rating of team The peer rating by your team members of your contribution, as determined by
5 15
contribution the Team Contribution Calculator, components 5 (a) and 5 (b).

Provisional 5a 5 8
Assessment rubric
Final 5b 10 13 Your Project Proposal, Part 4a, will be assessed out of 36 marks, using the sections
of the rubric shown in Figure 6.1.
The due dates for this semester are specified in the Semester Specific Schedule,Inter-
active 1.3. Your Final Submission, Part 4b, will be assessed against the full 100 marks shown in
the rubric Interactive 2.1. Consequently, in your Part 4b submission, you have the
Scenario opportunity (and requirement) to improve your writing of the components you sub-
In six weeks time you will graduate successfully from your Unitec course in BPI. In mitted for Part 4a.
anticipation of your success, you have gained employment from mid-December in a
medium-sized New Zealand company. The position requires you to introduce proc-
esses for raising the companys productivity through applying several principles of
BPI. Your specific focus will be process improvement, product development, and
environmental sustainability.

In preparation for your new position, you have decided to conduct an investigation
to identify lessons for your prospective employment that can be learned from an ex-
emplary global company, including Interface Global
(http://www.interfaceglobal.com/)

Interface is an exemplary US-founded company. In 1994, Interface, under the leader-

ship of Chief Executive Ray Anderson, embarked on a Mission Zero to achieve a net
zero environmental impact from its operations by 2020. This was an extraordinary

46
 Getting started
Project Proposal - Assignment 4 (a)

1. Review the video about Interface Flor, Interactive 6.1

2. Skim read the relevant chapters of your text, Heizer & Render, (2013) Supple-
ment 5: Sustainability (pp. 223 - 239), and Chapter 5, Product Design. Review
Chapter 2, The Global Environment and Operations Strategy.
Figure 6.1 Sections required for Part 4a Project Proposal
3. Review secondary sources of information about Interface (include Interfaces
own corporate sources, and those of other authors and commentators. You will
COMPONENT MARKS also be provided with exemplary assignments on the topic of Interface from
previous students.)
4. Explain WHAT motivated Interface to adopt Mission Zero
Front Matter 0
5. Explain HOW Interface introduced, developed, and extended its Mission Zero
programme
Introduction 10 6. Discuss the RESULTS that Interface has achieved from pursuing Mission
Zero. Note especially results related to productivity improvements, new prod-
uct developments, sales growth, and environmental impact. Include illustra-
Background 10 tive EXAMPLES.
7. Identify a specific, willing New Zealand small-medium TARGET company into
which you could introduce your new-found competencies identified from this
Investigation Method and Project assignment
10
Plan 8. Select and justify your choice of another exemplary international company that
has committed to achieving minimal environmental impacts comparable to
References 0 those of the company Interface. Ideally, the company operates in an industry
from which your could draw lessons for your small-medium TARGET com-
pany.
Appendixes 0 9. Develop and report your Project Proposal using the sections detailed in Figure
6.1
10. Ensure your specified components of your report meet the requirements of the
Six Trait rubric for writing quality 6
Assessment Rubric detailed on Turnitin and Interactive 2.1

Total 36 Oral/Audio-Video Presentation - Assignment 4 (b)

1. Submit the Executive Summary of your Final Report and a draft of your Final
Report.
2. Prepare and present your findings in an oral or pre-recorded audio-visual pres-
entation to your target small-medium enterprise.

47
Conduct and report the investigation - Assignment 4 (c)
1. COMPARE and CONTRAST the approach taken by Interface and your selected
international company to achieve Mission Zero (or similar)
2. Discuss the advantages, disadvantages and CHALLENGES of applying the ap-
proaches taken by your international company in your TARGET small-
medium New Zealand company.
3. Identify specific SOLUTIONS to the challenges you have identified.
4. Summarise your findings, and present RECOMMENDATIONS to the small-
medium enterprise target you identified in your Project Proposal.
5. Update your Final Report based upon feedback received during the Oral Pres- Interactive 6.1 Interface Flor
entation.
6. Ensure your Final Report meets the requirements of the Assessment Rubric
detailed on Turnitin and Interactive 2.1
7. Complete and submit the Team Contribution Calculator, Interactive 2.7

Interface Flor is a pioneer in achieving win-win outcomes for

both profits and environmental sustainability.
Source: ECO BIZ: Interface Carpet (2). (2007). Retrieved from
http://www.youtube.com/watch?
v=BerHLW6KhRY&feature=youtube_gdata_player

48
Selected Bibliography
Anderson, R. C. (2009). Confessions of a Radical Industrialist (video). Retrieved
from http://www.youtube.com/watch?v=M3qFL3kRDDE

Anderson, R. C., & White, R. (2009). Confessions of a Radical Industrialist: Profits,

People, Purpose - Doing Business by Respecting the Earth. St. Martins Press.

Anderson, R. C., & White, R. (2011). Business Lessons from a Radical Industrialist.
St. Martins Griffin.

ECO BIZ: Interface Carpet (2). (2007). Retrieved from

http://www.youtube.com/watch?v=BerHLW6KhRY&feature=youtube_gdata_play
er

Interface Global. (n.d.). Retrieved May 16, 2011, from

http://www.interfaceglobal.com/

InterfaceFLOR - Mission ZeroTM. (2009). Retrieved from

http://www.youtube.com/watch?v=NrsK4Vn1ExY&feature=youtube_gdata_player

Langer, E. (2011, August 11). Ray Anderson, greenest CEO in America dies at 77.
The Washington Post. Retrieved from
http://www.washingtonpost.com/local/obituaries/ray-anderson-greenest-ceo-in-a
merica-dies-at-77/2011/08/10/gIQAGoTU7I_story.html

Shockley, J. (2011, August 9). A Goodbye to an Inspirational Icon: Ray Anderson of

Interface Flooring Dies at 77. Green Building Elements. Retrieved June 5, 2012,
from http://greenbuildingelements.com/2011/08/09/ray-anderson/

Sustainable Business Network - Helping business succeed through sustainability.

(n.d.). Retrieved July 26, 2012, from http://www.sustainable.org.nz/

49