Description
The Process Improvement Plan (PIP)focuses on how to make operations efficient, and safe, comply with external regulations and safeguard against issues like those caused when Marketing promises earlier delivery dates. For this discussion, recommend you prepare a PIP that includes three (3) sections: background, analysis, and execution. Your analysis should include research on various process improvement methodologies. Also, the execution section should include which of the methodologies you want the staff to implement. Create separate checklists for the department staff to conduct continuous process improvement.The vendor comparison matrix is a supply chain management tool that should list the various criteria you want the staff to use when comparing vendors, as well as the details on how the staff should determine the value of the criteria. For example, if you include quality as a criterion for comparing vendors, state how quality will be quantitatively measured and the various quality ratings the staff are to assign. You also want to quantify each comparison criterion, so an overall quantitative measure is created for each vendor. This quantitative measure is how you will rank the vendors from best to worst. The vendor comparison matrix goes in the “execution” section.
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Unit 7: Discussion – Process Improvement Plan (PIP) & Vendor Comparison Matrix
Zeinab Yakubu Alhassan
Park University
MBA576 Operations Management
Professor William Gaught
February 25, 2024
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Process Improvement Plan (PIP) – Kibby & Strand
In today’s dynamic business landscape, organizations strive to maintain a competitive
edge by continuously optimizing their operational processes. This imperative is especially
pronounced for companies like Kibby and Strand, where the effective management of receiving,
production, and shipping directly impacts customer satisfaction and overall success. To address
the challenges inherent in meeting customer demands while ensuring operational effectiveness,
this paper presents a comprehensive Process Improvement Plan (PIP) and a Vendor Comparison
Matrix (VCM) and through the implementation of this PIP, Kibby and Strand can streamline
their operations, improve delivery times, and ultimately elevate their competitive position in the
market.
PIP – Lean Six Sigma
Drawing upon established methodologies such as Six Sigma, Lean Manufacturing, Lean
Six Sigma (LSS), Total Quality Management, and Kaizen (Tamimi et al., 2023). Even though
Clancy et al. (2023) state in their article that, “Six Sigma is the most suitable process
improvement methodology which aims to improve the quality of process outputs by identifying
and removing the causes of defects and minimizing variability in manufacturing and business
processes”, Drohomeretski et al. (2014), state in their article that “individually, lean
manufacturing and Six Sigma are unable to reach the improvement rates that LSS is achieving”
It relies heavily on statistical analysis and employs a DMAIC (Define, Measure, Analyze,
Improve, Control) (Chen et al., 2023) or DMADV (Define, Measure, Analyze, Design, Verify)
framework (Alaghbari et al., 2021).
The approach to be used in this plan is the Lean Six Sigma methodology.
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Checklists To Ensure Operational Efficiency Using the Six Sigma Methodology:
Receiving Department
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Measure Receiving Accuracy: Track and analyze error rates to identify areas for
improvement (Brown & Williams, 2017).
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Analyze Receiving Process Flow: Identify bottlenecks and inefficiencies in the receiving
process through value stream mapping (Jones & Miller, 2018).
•
Implement Technology Solutions: Utilize barcode scanning or RFID technology to
streamline receiving operations and improve accuracy (Anderson & Davis, 2019).
•
Safety Measure: Implement emergency response training by providing comprehensive
training for receiving department staff on emergency response protocols to ensure swift
and effective action in the event of accidents or incidents (Smith, Johnson, & Thompson,
2020).
Production Department
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Define Production Process Goals: Establish objectives for cycle time reduction, defect
minimization, and overall efficiency (Johnson & White, 2016).
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Measure Production Efficiency: Track key performance indicators such as cycle times,
throughput, and scrap rates (Clark & Garcia, 2017).
•
Analyze Production Workflows: Identify constraints and opportunities for improvement
using process flow analysis (Lee & Martinez, 2018).
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Safety Measure: Implement machine guarding by ensuring all production machinery is
equipped with appropriate guards and safety devices to protect workers from hazards and
prevent accidents (Smith, et al., 2019).
Shipping Department
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Measure Shipping Performance Metrics: Track fill rate, shipping errors, and delivery lead
times to assess departmental performance (Turner & Martinez, 2018).
•
Analyze Shipping Processes: Conduct root cause analysis to identify factors contributing
to delays or errors in the shipping process (Wang & Patel, 2019).
•
Control Shipping Operations: Implement real-time tracking systems and shipment
verification processes to ensure accuracy and reliability (Perez & Johnson, 2021).
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Safety Measure: Implement hazardous materials handling protocols by developing and
enforcing strict protocols for handling and shipping hazardous materials to mitigate risks
and ensure compliance with safety regulations (Gonzalez & Ramirez, 2020).
Vendor Comparison Matrix
Criteria
1. Price:
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Description: Are prices reasonable? Willingness to negotiate prices to reduce the cost of
purchase. (Stevenson, 2021, pg. 672).
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Rating Scale: 1-5
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Using the price of cotton for example to rate the suppliers, to establish a standardized
process for assigning the 1-5 rating values for price assessment, follow a methodical
approach based on the provided price range and desired intervals:
Determine Price Range: Given:
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Lowest price for an item: $1
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Highest price for an item: $5
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Price range: $4 ($5 – $1)
Calculate Interval Size: Since we want to use five intervals for our rating scale, divide the price
range by 5 to determine the interval size: Interval size = Price range / Number of intervals = $4 /
5 = $0.8
Define Rating Intervals: Create five intervals based on the calculated interval size:
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Interval 1: $1.00 – $1.79
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Interval 2: $1.80 – $2.59
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Interval 3: $2.60 – $3.39
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Interval 4: $3.40 – $4.19
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Interval 5: $4.20 – $5.00
Assign Rating Values: Vendors with prices in the lowest range interval would be scored 5, the
next interval 4, and so on:
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Interval 1: 5
6
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Interval 2: 4
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Interval 3: 3
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Interval 4: 2
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Interval 5: 1
Hence, we have the following.
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5: Lowest price within the range
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4: Slightly higher than lowest price
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3: Moderate price
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2: Higher than average price
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1: Highest price within the range
2. Quality and Quality Assurance:
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Description: Procedure for quality and quality assurance. Documentation of quality
problems and actions taken. (Stevenson, 2021, pg. 672).
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Rating Scale: 1-5
Determine Quality Range: Given:
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Lowest quality: 20
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Highest quality: 80
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Quality range: 80 – 20 = 60
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Calculate Interval Size: Since we want to use five intervals for our rating scale, divide the
quality range by 5 to determine the interval size: Interval size = Quality range / Number of
intervals = 60 / 5 = 12
Define Rating Intervals: Create five intervals based on the calculated interval size:
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Interval 1: 20 – 31 (Lowest quality)
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Interval 2: 32 – 43
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Interval 3: 44 – 55
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Interval 4: 56 – 67
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Interval 5: 68 – 80 (Highest quality)
Assign Rating Values: Vendors with the highest quality are rated 5, the next highest 4, and so
on:
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Interval 1: 1
•
Interval 2: 2
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Interval 3: 3
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Interval 4: 4
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Interval 5: 5
Hence, we have the following.
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5: Excellent quality, minimal defects, or issues
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4: Good quality, occasional minor defects
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3: Average quality, noticeable defects but still acceptable
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2: Below average quality, frequent defects impacting production
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1: Poor quality, significant defects requiring rework or replacement
3. Reliability:
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Description: Lead times and on time delivery falls here also falls here. The vendor’s
ability to deliver materials on time as promised. (Stevenson, 2021, pg. 672).
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Rating Scale: 1-5
Determine Reliability Range: Given:
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Lowest reliability: 60%
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Highest reliability: 95%
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Reliability range: 95% – 60% = 35%
Calculate Interval Size: Since we want to use five intervals for our rating scale, divide the
reliability range by 5 to determine the interval size: Interval size = Reliability range / Number of
intervals = 35% / 5 = 7%
Define Rating Intervals: Create five intervals based on the calculated interval size:
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Interval 1: 60% – 66%
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Interval 2: 67% – 73%
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Interval 3: 74% – 80%
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Interval 4: 81% – 87%
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Interval 5: 88% – 95%
Assign Rating Values: According to the instruction that vendors with the highest reliability are
rated 5, the next highest 4, and so on:
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Interval 1: 1
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Interval 2: 2
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Interval 3: 3
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Interval 4: 4
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Interval 5: 5
Hence, we have the following.
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5: Consistently delivers on time or ahead of schedule
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4: Occasionally delivers slightly late, but within an acceptable timeframe
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3: Delivers on time most of the time, with occasional delays
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2: Frequently delivers late, causing disruptions to production schedules
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1: Unreliable delivery, often missing deadlines causing significant production
delays
4. Reputation and Financial Stability:
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Description: The vendor’s reputation in the industry and financial stability. (Stevenson,
2021, pg. 672).
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Rating Scale: 1-5
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Determine Range:
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Lowest reputation: 20%
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Highest reputation: 90%
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Reputation range: 90% – 20% = 70%
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Interval size = Reputation range / Number of intervals = 70% / 5 = 14%
Rating intervals:
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Interval 1: 20% – 33%
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Interval 2: 34% – 47%
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Interval 3: 48% – 61%
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Interval 4: 62% – 75%
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Interval 5: 76% – 90%
Rating values:
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Interval 1: 1
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Interval 2: 2
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Interval 3: 3
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Interval 4: 4
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Interval 5: 5
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Hence, we have the following.
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5: Excellent reputation and strong financial stability, well-established in the
industry with a solid financial track record.
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4: Good reputation and stable financial standing, generally respected in the
industry with a consistent financial performance.
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3: Average reputation and moderate financial stability, mixed feedback in the
industry with some fluctuations in financial performance.
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2: Below average reputation and shaky financial stability, concerns raised in the
industry about reliability and financial health.
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1: Poor reputation and weak financial stability, significant doubts in the industry
about reliability and financial viability.
5. Flexibility:
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Description: The vendor’s ability to adapt to changing needs and requirements. The
vendor’s ability to be agile and responsive to changes in requirements, ensuring that they
can effectively meet the dynamic demands of Kibby and Strand’s operations. (Stevenson,
2021, pg. 672).
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Rating Scale: 1-5
Determine Range:
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Lowest flexibility: 30%
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Highest flexibility: 90%
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Flexibility range: 90% – 30% = 60%
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Interval size = Flexibility range / Number of intervals = 60% / 5 = 12%
Rating intervals:
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Interval 1: 30% – 41%
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Interval 2: 42% – 53%
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Interval 3: 54% – 65%
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Interval 4: 66% – 77%
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Interval 5: 78% – 90%
Rating values:
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Interval 1: 1
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Interval 2: 2
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Interval 3: 3
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Interval 4: 4
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Interval 5: 5
Hence, we have the following.
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5: Excellent flexibility readily adjusts to changes in order quantities,
specifications, or delivery schedules with minimal disruption.
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4: Good flexibility demonstrates willingness to accommodate changes but may
require some negotiation or lead time.
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3: Average flexibility can accommodate minor changes but may struggle with
larger adjustments or frequent alterations.
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2: Limited flexibility, inflexible or resistant to changes, requiring significant effort
or concessions to accommodate.
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1: Poor flexibility, rigid and unwilling to adapt to changes, causing significant
challenges in meeting evolving needs.
Template
Criteria
United Fabrics
Reliable Clothing
Tigerlilly Textiles
*Price
2
3
5
Quality
3
3
2
Reliability
3
5
4
Reputation and
4
5
3
5
3
5
Financial Stability
Flexibility
Note: Ratings are on a 1-5 rating scale. 1 = Poor, 2 = Fair, 3 = Good, 4 = Very Good, and 5 =
Excellent. *The rating for price is the other way round. (1 for excellent, 2 for very good and so
on).
Conclusion Based on Results of Template
United Fabrics offers competitive pricing with acceptable quality and reliability levels.
Their strong reputation and financial stability provide assurance of their reliability as a business
partner. Additionally, their exceptional flexibility makes them well-suited to meet Kibby and
Strand’s evolving needs and requirements. Whereas Reliable Clothing demonstrates consistent
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reliability and a stellar reputation in the industry, offering competitive pricing and acceptable
quality, although their flexibility may require some negotiation for accommodating changes.
Finally, Tigerlilly Textiles In light of the evaluation parameters, offers high pricing with belowaverage quality but demonstrates commendable reliability and exceptional flexibility. However,
there may be some concerns regarding their reputation and financial stability, which warrant
further consideration when evaluating their suitability as a long-term business partner. Especially
as Kibby & Strand is Keen on Quality and cost reduction in their operations, this vendor may not
be a favorable match.
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Reference
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to Improve Site Rollout Projects in MTN-Yemen Company. PM World Journal, 10(2), 1–
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Anderson, K., & Davis, M. (2019). Implementing Technology Solutions in Receiving.
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Brown, F., & Williams, G. (2017). Measuring Receiving Accuracy: A Case Study. Operations
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Chen, P.-S., Chen, J. C.-M., Huang, W.-T., & Chen, H.-T. (2023). Using the Six Sigma DMAIC
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