Services and Lean (Questions 1 – 3)

Servicesand Lean (Questions 1 – 3)TAKE HOME FINAL EXAM (upload to Canvasby 3:40PM onWednesday,December 12, 2018)

Dr. Greg Magnan

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OPER 3600–01, Fall 2018                             NAME:            __________________________________

  • Working individually, respond to THREE of the questions below, ONE from each of the three sections (Section 1 is Q1-3, Section 2 is Q4-7, and Section 3 is Q8-9.
  • Question in Sections 1 and 2 are worth 40 points and Section 3 are worth 20 points. (100 points possible).
  • In general, responses for each question should be about 400 words [Note: summary questions (3 and 4) and the lean activity (#2) may be shorter if using tables and graphs to summarize and images to present as-is and to-be conditions.]
  • The use of other sources to support your responses is encouraged; be sure to properly cite and, if possible, provide links.
  • This exam must be completed individually. See SU’s ‘Academic Integrity Policy’ here.

SECTION 1 [40 points]: Services and Lean (Questions 1 – 3)

Respond to ONE question from this section.

1.   [Lean/Services/The Goal]: The “Health Care’s Service Fanatics” article [located in the HBP Coursepack] and the“Going Lean in Health Care (2005)” article[located in the Module 9 Start Page] bothdescribe the transformational journey of each organization (the Cleveland Clinic and Virginia Mason Medical Center, respectively) as they moved to execute their customer experience and lean implementation strategies [both of which are examples of Continuous Improvement from the course roadmap slide]. Note that there is a part B) below.

  1. Identify four common/shared components of their journeys (Cleveland Clinic and Virginia Mason) and for each, describe the roleof that component in each organization’s transformation. Two of the shared components can come from the structural or infrastructural boxes on our “Course Roadmap” slide, and two should come from either other parts of the slide (e.g., competition, financial objectives) or some common component that is not on the slide (I encourage you to have at least one component that is not on the slide).
  • From the book The Goal:

(1) Articulate why the accounting performanceinitially declined at the Bearington facility as Alex and his team were actually improvingoperational performance (and were successfully moving toward their goal).

(2) What elements of financial(e.g., elements on the financial statements) performance changed during the process?How? Why?

(3) Briefly compare the “Five Focusing Steps” of TOC with the continuous improvement focus of Lean. Are they more similar or more different? Why?

2.   [Lean] Applying the principles of lean to your home/personal life, use the A3 tool to “improve” some area of your home (e.g., kitchen, refrigerator, closets, cupboards, garage, etc.). If you only have smaller projects, you may have to do two events). You can use the A3 example in the SMR reading or either of the A3 templates that are in module 9 on Canvas.

  1. Before you begin the work, note:
  2. The goals and objectives of the event
  3. The process or approach you will use (which may include a plan and step by step process; be sure to cite your source), and
  4. Identification of the ‘7 Wastes’ the project will address.

  5. In addition to the space on the A3, you are encouraged to provide some before and after images/video to support the current and end-state conditions.
  6. Identify and discuss the quantifiable changes, such as the amount of materials remaining/removed in the location, the pre- and post- space requirements, space made available, etc.
  7. What goals were achieved? What other benefits did you realize after the event that you didn’t consider before you started? How much time and money did you spend?
  8. After the project and reflection, how would you alter your approach if you were to use these tools/process again? In other words, what lessons did you learn about executing the change that you could apply in the future?

3.   [Services] In the servicescapesassignment, students populated the OneNotepages with individual observations of the service environments at many cafés. Task: organize the datafrom any four teams into useful information. Possible areas to analyze MAY include: analyzing by café type (e.g., Starbucks, independent coffee shops, food-oriented), range of smells and sounds, type of queuing system employed, proportion with strong base of regular customers, etc. Visual representation of the data/information (e.g., charts and graphs) is encouraged.

SECTION 2 [40 points]: Sustainability & SCM (Questions 4 – 7)

Respond to ONE question from this section.

4.   [Sustainability]In the sustainability reportassignment, students populated the OneNote pages with operations-related environmental and social initiatives highlighted in the reports of multiple companies. Forany four teams, summarize the data and create an ‘executive summary’ of the information (with charts). Possible areas to analyze MAY include: Which companies/industries were represented? Were there common initiatives identified in the table? Any common resources or themes? What was uncommon? What were the overall reactions of students to the reports and/or other voices? Etc. Visual representation of the data/information (e.g., charts and graphs) is encouraged.

5.   [SCM andSustainability]Access the Nike FY 16-17 Sustainable Business Reportand read the ‘About This Report’ page, read the linked CEO letter and quickly read through the major reported items athttps://sustainability.nike.com/innovating-sustainably,watch the TED talk with Steve Howard, former Chief Sustainability Officer at Ikea [13:18] and watch the TED talk with Harish Manwani, former COO of Unilever [7:49].

  1. Why are Nike, Ikea, and Unilever addressing sustainability? What are the drivers?
    1. What elements of sustainability are they addressing?
    1. Evaluate the content of the company and supplier codes of conduct as published in Social Accountability International’s SA8000 standard, the 10 principles in the UN Global Compact, the Fair Labor Association’s Workplace Code of Conduct (see ‘Set Standards’ in the diagram and click through until the full set appears), and the International Organization for Standardization’s ISO 26000 (select‘Preview our standards’ on the right side of the site.)What are the objectives of the codes? What elements/issues appear in all four codes? Why do you think there are differences?
    1. Review eitherUnilever’s or Ikea’s or Nike’s supplier code of conduct. How closely does it overlap with the codes you evaluated above? Does it support what you heard or saw in Part A of this question?

6. [SCM and Sustainability] This question involves Nike’s FY 16-17 Sustainable Business Report, the Global Reporting Initiative’s GRI standards, and the article from class, ‘What’s your strategy for supply chain disclosure?’ [linked in the Module 8 Start Page on Canvas].

A) What items from the ‘Supply Chain Disclosure Radar’ graphic (from the article) are included in the Nike report?
B) From the ‘Supply Chain Transparency Matrix’ graphic, where would you position Nike? Why?
C) Of the major items reported by Nike, which cell of the ‘Supply Chain Disclosure Matrix’ graphic is most represented?
D) Looking though GRI’s ‘GRI 102’ publication, which of the GRI standards is Nike using? Why is Nike using GRI standards?


Alternatively, you can respond to this question using materials from Apple…

A) What items from the ‘Supply Chain Disclosure Radar’ graphic (from the article) are included in Apple’s Supplier Responsibility and Environment2018 Progress Reports?
B) From the article’s ‘Supply Chain Transparency Matrix’ graphic, where would you position Apple? Why?
C) Of the major items reported by Apple, which cell of the ‘Supply Chain Disclosure Matrix’ graphic is most represented?
D) Why do you think is Apple using GRI standards? [This page lists where the GRI Standards appear in Apple’s materials.]

7.   [SCM andSustainability]This question is about palm oil, including demand, production and commitments by brands. In addition to the resources that are linked in this question, you are encouraged to research (and cite in your answer) other sources.

  1. Why is global demand so strong and continuing to grow?
  2. What are the most critical environmental and social impacts of oil palm plantations and palm oil production? How might palm oil production be similar to the message in The Story of Stuff?
  3. How are big brands responding to the challenge? [For this section, do list several brands that have made public commitments to sourcing responsibly.]
  4. Review sites and statements on palm oil by a few NGOs (such as Amnesty, Rainforest Action Network, WWF, Greenpeace, etc.) and summarize their positions.
  5. Identify and briefly describe three (3) reasons why brands are having such difficulty in meeting their commitments to sustainable sourcing of palm oil.

      Here are several links to palm oil resources to get you started:

SECTION 3 [20 points]: Sustainability &PM (Questions 8 – 9)

Respond to ONE question from this section.

8.   [Sustainability]: Increasingly, the financial/investment community is asking public companies to share their non-financial data (i.e., sustainability, ESG, risk, etc.). Identify and explain THREE reasons why this trend is growing, both internationally and in the USA. [~300 words]

9.   [Project Management]: For the following project data: A) create the associated network diagram, B) determine the critical path(s) and the expected completion date, and C) determine the activities that have the most slack.

Activity Predecessor Duration (Days)
A None 4
B None 3
C A 6
D A 4
E B 7
F B 3
G C 9
H D, E 6
I F 7
J G 3
K G, H, I 5
L I 7
M J, K, L 4

[End of exam]

EXTRA CREDIT (5 POINTS)

  1. Personal Carbon Footprint Reduction:

Using the ideas from your carbon footprint calculation and post (or other ideas you thought of since then), determine a change you could make for at least one or two days, execute the change, and comment on your reaction to the behavioral change you experienced (e.g., meatless Mondays).

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