MGT 325, MGT 421, MGT 424

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ATTACHED FILE(S)

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

المملكة العربية السعودية
وزارة التعليم
الجامعة السعودية الإلكترونية
College of Administrative and Financial Sciences
Assignment 3
Management of Technology (MGT 325)
Deadline: 30/04/2022 @ 23:59

Course Name: Management of Technology

Student’s Name:

Course Code: MGT325

Student’s ID Number:

Semester: 2nd

CRN:

Academic Year:2021-22
For Instructor’s Use only

Instructor’s Name: Sulaiman Albawardi

Students’ Grade:
Marks Obtained/Out of 10

Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
· The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
· Assignments submitted through email will not be accepted.
· Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
· Students must mention question number clearly in their answer.
· Late submission will NOT be accepted.
· Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
· All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
· Submissions without this cover page will NOT be accepted.
Course Learning Outcomes-Covered
· Explain of the concepts, models for formulating strategies, defining the organizational strategic directions and crafting a deployment strategy. (Lo 2.2)
Assignment 3 Marks:10
Students are requested to read the opening case of
chapter 10 “Organizing for Innovation” from their book Strategic Management of Technological Innovation (Page Number-197-200) of e-textbook.
Based on your understanding of the case and concepts studied until now answer the following question in 300-500 words each.
1.What are the advantages and disadvantages of the creative side of Google being run as a flexible and flat ‘technocracy’?
(3 marks)
2. How does Google’s culture attract the kind of employees it can attract and retain.
(1.5 marks)
3.What do you believe the challenges are in having very different structure and controls for Google’s creative side versus the other parts of the company.
(2.5 marks)
4. Some analysts have argued that Google’s free-form structure and the 20 percent time to work on personal projects is possible only because Google is prior success has created financial risk in the company. Do you agree with this? Would Google be able to continue this management style if it had closer competitors?
(3 marks)
NOTE: It is mandatory for the students to mention their references, sources and support each answer with at least 2 peer reviewed journal.
ANSWER

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

المملكة العربية السعودية
وزارة التعليم
الجامعة السعودية الإلكترونية
College of Administrative and Financial Sciences
Assignment 3
Quality Management (MGT 424)
Due Date:04/30/2022 @ 23:59

Course Name:

Student’s Name:

Course Code: MGT424

Student’s ID Number:

Semester: Second

CRN:25193

Academic Year:2021-22-2nd

For Instructor’s Use only

Instructor’s Name: Dr. Gaurav S. Vishwakarma

Students’ Grade:Marks Obtained/Out of 10

Level of Marks: High/Middle/Low
General Instructions – PLEASE READ THEM CAREFULLY
· The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
· Assignments submitted through email will not be accepted.
· Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
· Students must mention question number clearly in their answer.
· Late submission will NOT be accepted.
· Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
· All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
· Submissions without this cover page will NOT be accepted.
3rd Assignment
Instructions to search the case study:
1. Via your student services page, log in to the Saudi Digital Library.
2. After your login with your student ID, search for the following article:
QUALITY IMPROVEMENT IN PRODUCTION ENTERPRISE. CASE STUDY.
By KONIECZNA, Monika1
ISSN number: 1641-3466
Learning Outcomes:
1. Recognize the importance of quality management theory, principles, and practices applied in businesses on national and international levels. (CLO1)
2. Use quality improvement tools and practices for continuous improvement to achieve the organizational change and transformation.(CLO3)
Quality Improvement in Production Enterprise Case Study
This paper examines the different meaning of quality and its relation to the companies` continuous development efforts. In this article, the six-sigma tool as one of the common quality approach was discussed and presented intensively through a case study application in a book printing company.
Read the case study thoughtfully and answer the following questions:
1- Discuss the different quality term as presented by the author. Which one of these terms is more practical from your point of view? ( 250 – 300 words – 3.5 points)
2- Describe the printing company` production process current state. Which one of the current issues listed is more critical and why?( 250– 300 words – 3.5 points )
3- Do you think the proposed actions for improvements are efficient? Explain. ( 200– 300 words – 3 points )
Answers
1. Answer-
2. Answer-
3. Answer-
4. Answer-
5. Answer-

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

المملكة العربية السعودية
وزارة التعليم
الجامعة السعودية الإلكترونية
College of Administrative and Financial Sciences
Assignment 3
Communication Management (MGT 421)
Due Date:25/4/2022 @ 23:59

Course Name: Communication Management

Student’s Name:

Course Code: MGT 421

Student’s ID Number:

Semester: Second

CRN:

Academic Year:2021-22-2nd

For Instructor’s Use only

Instructor’s Name:

Students’ Grade:
Marks Obtained/Out of 10

Level of Marks: High/Middle/Low
General Instructions – PLEASE READ THEM CAREFULLY
· The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
· Assignments submitted through email will not be accepted.
· Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
· Students must mention question number clearly in their answer.
· Late submission will NOT be accepted.
· Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
· All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
· Submissions without this cover page will NOT be accepted.
Learning Outcomes:
1. Illustrate techniques and skills of correct business research report writing; learn report writing style using an approved style; and, apply the basics of oral communication in a presentation of a project, including, proper speech, organization, use of graphical aids, and effective non-verbal communications.
2. Analyze effective business letters, memorandums, and case studies.
Assignment Question(s):
Data is the new oil for businesses. Generally, businesses relay on these data to perform better. There are many tools businesses use to collect data such surveys. Surveys are particularly useful because you can quickly get the responses of your audience. In your future workplace, you will have many opportunities to create, use and participate in surveys. Your task for this assignment is to assess your ability and knowledge in creating a survey.
1. Choose the reason and audience for your survey carefully. (2 marks)
2. Develop your survey. (8 marks)
Note: Use MS Words only to develop your survey

Answers
ZESZYTY NAUKOWE POLITECHNIKI ŚLĄSKIEJ 2018
Seria: ORGANIZACJA I ZARZĄDZANIE z. 119
QUALITY IMPROVEMENT IN PRODUCTION ENTERPRISE.1
CASE STUDY 2
Monika KONIECZNA 3
Politechnika Poznańska, Wydział Inżynierii Zarządzania; monika.t.konieczna@doctorate.put.poznan.pl 4
Abstract. The main objective of this paper is to determine the meaning of quality in present 5
enterprise as well as its influence for the continuous development. There is shown comparison 6
of chosen quality management conceptions as well as description of one of them, Six Sigma 7
which is an innovative approach to quality. Presented case study was developed in a printing 8
company specialized in production of books in hard covers. This study presents the 9
proposition of improvement to increase the effectiveness of the production process.10
Keywords: quality management, process improvement. 11
1. Introduction 12
In recent years, it may be noticed a huge pressure on enterprises to maintain and develop 13
high quality level in organization, and at the same time to decrease ineffectiveness and reduce 14
the number of errors. In order to gain and keep customers, organizations have to compete with 15
each other. Sometimes it may be difficult, because present enterprises show very good 16
adaptation to upcoming changes. It is essential to understand that the most important in 17
quality management is to satisfy customers’ needs, because the customers are the factor which 18
drive the market economy nowadays. There are many different conceptions, methods and 19
tools that may be used to maintain the good quality level and help in continuous development 20
in the company. One example of well-known conception is Six Sigma which is an innovative 21
method introduced in Motorola by Bob Galvin and Bill Smith in the middle of the eighties.22
The article focuses on presenting the term of quality and emphasize its role in continuous 23
development in production enterprise. It also shows differences between conceptions of 24
quality management and describe one of them in details. Knowing all main conceptions, 25
methods and tools the company can freely decide which is adequate to its brand and activities 26
and which to use in specific situations. Presented case study shows the bottleneck which 27
appears during production process in one of the printing company. There is shown the whole 28
152 M. Konieczna
analysis of the problem as well as proposition of improvement which may be introduce in 1
order to increase the effectiveness of the whole process. 2
2. Quality improvement 3
There are many different definitions of quality which can be found in literature 4
(Słowiński, 1996). Generally, quality is defined as the sum of characteristics of a product or 5
service which gives the opportunity to meet the customer’s needs (Rogoziński, 2000). This 6
definition can be completed by the definition of quality management, as a continuous 7
improvement of everything which is performed in the organization in aspects of quality using 8
well-known methods and with the participation of all employees. According to ISO norm 9
9000, quality is “degree to which a set of inherent characteristics fulfils requirement” (PN-EN 10
ISO 9000:2006 – polish version). 11
The evolution of the term quality may be presented as follows: 12
 Quality is efficiency in use – J.M. Juran, 1970, 13
 Quality meets customers’ needs – T. Ishikawa, 1980, 14
 Quality is something when missing means loss for everybody – G. Taguchi, 1980, 15
 Quality means zero defects – P.B. Crosby, 1985 (Rączka, 1993). 16
Nowadays, it may be seen that quality is one of the basic factors which decides about 17
company’s competitiveness. Quickly changes environment requires from enterprises easily 18
reacting for them. The company is forced to search for new conceptions and methods of 19
development. Contemporary environment is characterized by process globalization, 20
shortening the life-cycle of products and technology. Scientific and technological 21
development, increased level of education, easy migration of all resources, high distribution 22
of technology and information, are the chances for organization to achieve better position in 23
the market and being more competitive (Łukasiński, 2013). 24
High-quality products and services give the company competitive advantage in domestic 25
and international market. Good quality increases productivity, while reducing costs, but what 26
is the most important, it creates satisfied customers who are more willing to buy the products 27
again and will also recommend the company to other buyers. When mass production has 28
started, there was a need to introduce quality control to the process and create separate quality 29
departments. During 1950’ W. Edwards Deming and Joseph Juran were invited to Japan to 30
help the companies in quality management. They strongly believed in importance of quality 31
and using statistical tools in order to improve quality. Nowadays, everyone may learn from 32
the Japanese that it is impossible not to pay attention to quality and that taking care of quality 33
issues is the responsibility of every employee in organization (Evans, 1992). 34
Quality improvement in production enterprise… 153
Quality improvement should be connected with a widely understood customer 1
satisfaction. However, sometimes it is really difficult to define the term of quality which may 2
be understood in several ways, because it is an individual and subjective evaluation of every 3
client (Bielawa, 2011). If the quality is assumed as a totality of meeting expectations relative 4
to acquired product or service it may happen that the same purchase will have different 5
evaluation from a different customer. Despite these variances it is worth to take care of 6
quality aspects. The issue is particularly important for everything which goes directly to the 7
customer. Therefore, it is observed at this time that in management practice many companies 8
tend to implement variety of instruments related to quality improvement (Lenik, 2011).9
Starting from popularization of technical control in production enterprises, from XX 10
century intensive development of organization form, methods and range of quality 11
management has started. Especially, the last decades brought new conceptions in this field.12
It is difficult to date particular phases of quality management, because they develop 13
differently in other countries or branch of economy.14
Quality management can be divided into stages: 15
 technical control – it takes place in production enterprise, the objective of the control 16
is final product and its technical aspects, 17
 quality control – this stage claims that quality cannot be extorted from technical 18
controls, but it has to be created in enterprise, the responsibility for quality should be 19
taken from management and employees, 20
 quality development – this stage contains more functions of management, controls and 21
corrections, planning and control stimulating (Woźniak, 2008). 22
Main conception and standards of quality management are presented in the table below. 23
Data which may be compared are timeliness, range and dominant feature. 24
Table 1. 25
Comparison of chosen quality management conceptions 26
Conception/Standard Timeliness Range Dominant feature
Quality management
system ISO 9000
Used since the 80’ XX
century until today
Used in every
organization. There is no
geographic, political and
cultural boundaries
Formal and bureaucratic,
but allowing freedom in
the interpretation and
application
Standard compliance-
requirements of
industry standards
Used since the 70’ XX
century until today
Range limited to industry Formal and bureaucratic,
not flexible
TQM Known since the 80’ XX
century until today
Known and introduced to
organizations all over the
world
Appeal for common
commitment and
improvement
Kaizen Known since the 80’ XX
century until today
Used in organizations in
which Japanese culture
of work is accepted
Similar to TQM
Six Sigma Known since the 80’ XX
century, but widely
disseminated only from
last 10 years
For now limited, used
mostly in big
organizations
Based on planning of
venture which goal is to
measure the
effectiveness of activity
154 M. Konieczna
cont. table 1 1
SPC (Statistical
Process Control)
Beginnings from the 30’
XX century (Shewhart),
but widely known during
70’ and 80’
Used in organizations
with mass production,
now a fixed component
in automotive industry
standards
Based on statistical tools
and methods
Source: Hamrol, 2007. 2
3
To achieve the goals and realize the tasks of every organization it is needed to have some 4
funds that enable to form the quality of the products at every stage of the product life cycle.5
In literature different techniques and methods supporting quality management may be found. 6
They may be divided into:7
 Conceptions and principles of quality management – by using the principles of quality 8
management in practice the organization can strengthen its position on the market, 9
increase the revenue and achieve other benefits. They help in establishing the strategy 10
and goals of the company. The examples can be TQM, Six Sigma or Kaizen. 11
 Tools of quality management – in quality management the strategic and operational 12
decisions at every stage of production process should be made based on facts. To gain 13
actual data, tools of quality management are essential. They are usually divided into 14
traditional and new tools. The examples are a block diagram, Ishikawa diagram, 15
Pareto diagram, histogram, correlation graphs, control card.16
 Methods of quality management – the methods are more complex than tools. Using 17
methods of quality management requires knowledge from statistics, data processing 18
and consequence. In every method the set of tools are used. The examples can be: 19
Quality Function Deployment, value analysis, FMEA, Statistical Process Control 20
(Hamrol, 2017). 21
Although the term of quality is difficult to clearly define and measure, it is essential to 22
take care of it in an organization. The main determinant of quality nowadays is a customer 23
and his needs and expectations which should be met in order to achieve his satisfaction. The 24
companies need to focus on development and improvement of all the processes and in general 25
its functioning. Different types of quality management system may be found in different 26
organizations. It is important to choose the best practice adequate to the branch and activity of 27
the company.28
3. The concept of Six Sigma 29
Six Sigma is an implementation of proven quality in organization. Sigma is a Greek letter 30
used in statistics to measure the variability in the process. The performance of the company is 31
measured by the sigma level in their process. Most of the companies agree on three or four 32
Quality improvement in production enterprise… 155
sigma performance levels as a norm, but it may be seen that in these cases the processes 1
create between 6210 and 66807 defects per million opportunities. In order to meet all the 2
customers’ needs and expectations that are still increasing, the Six Sigma program may be 3
introduced and implemented in organization. At the Six Sigma level there are 3.4 defects for 4
million opportunities. Six Sigma is based on reliable and valuable methods that are commonly 5
known. It refuses the whole complexity which characterizes Total Quality Management 6
(TQM). It was counted that there were around 400 different methods and tools connected with 7
TQM which may be overwhelming and difficult to implement and use. Six Sigma based on 8
smaller amount of methods and tools and trains leaders who are known as Master Black Belts 9
and have theoretical and practical knowledge about proven methods (Pyzdek, 2013). 10
Six Sigma may be characterized by six principles: 11
 concentration on customer, 12
 based on facts, 13
 process approach for improvements and management, 14
 proactive management, 15
 cooperation without boundaries, 16
 toleration of defects, but set for perfection (www.projekty.4innovations.pl/2009/08/ 17
charakterystyka-metody-six-sigma). 18
Sigma Performance Scale is presented below in the form of table. It shows the defects per 19
million opportunities, percentage of good products and estimated cost or poor quality 20
according to Sigma level which may occur in organization. 21
Table 2. 22
Sigma Performance Scale 23
Sigma level Defects for million
opportunities (DPMO)
Percentage of good
products
Estimated Cost or Poor
Quality (% Revenue)
1 sigma 690 000 31% >40%
2 sigma 308 537
(uncompetitive enterprises)
69.14% 30-40%
3 sigma 66 807 93.32% 20-30%
4 sigma 6 210 (average enterprises) 99.38% 15-20%
5 sigma 233 99.97% 10-15%
6 sigma 3.4 (world’s leaders) 99.99% <10% Source: Watson, 2005. 24 25 The goals of Six Sigma are connected with eliminating the number of defects, taking care 26 of the customers’ satisfaction, elimination of time in production cycle, reduction of costs 27 connected with mistakes and reparation and improvement of the image of the company in the 28 market. Taking into consideration the functioning of all aspects of enterprises the main tasks 29 of Six Sigma program are: a measure of customer satisfaction which has to be defined at an 30 every stage of the project, determination of the quality index as well as the estimated number 31 156 M. Konieczna of products with defects. After each cycle of DMAIC phases, gained results should be 1 analyzed and actions to reduce the time in one cycle should be taken (Aruleswaran, 2009). 2 Although Six Sigma is usually perceived as a method which may bring many profits to an 3 organization there are some myths connected with the perception of its functioning which 4 may result in resistance of workers before its implementation. The first myth claims that it 5 may work only in manufacturing organizations. Although, before Six Sigma was much more 6 popular in the production companies, in the recent time there are a lot of publications about 7 implementation and using Six Sigma in other processes such as administration. Another 8 example of the myth is that Six Sigma ignores the needs of the customers and focuses only on 9 the benefits for the organization. It is rather a wrong interpretation, because every customer 10 brings profit to enterprise. Many people also think that Six Sigma is just another quality 11 program using complicated statistical methods and tools, but actually it is a way of managing 12 the whole organization and maintaining the best quality level. When implementing Six Sigma 13 with full awareness it may bring different profits even in short period of time (Breyfogle, 14 Cupello, Meadows, 2001). 15 One of the methods which supports Six Sigma is DMAIC cycle which based on process 16 improvement. DMAIC is an acronym comes from Define, Measure, Analyze, Improve, 17 Control. All these five phases are connected which each other and help to order the whole 18 improvement process. The goal of the first phase Define is to identify the problem which will 19 be an issue to solve in the next stages. It is also about defining all needed resources, processes 20 in organization and support from management. It is important to divide the processes into 21 external and internal, and firstly focus on elimination of the external ones. The next step 22 which is Measure, is about collecting data and information which will be needed in the next 23 stages to compare the results and to show the achieved progress. The most important in this 24 phase is to check if there is enough data to measure. In Analyze stage different analysis are 25 performed using various tools and methods of quality management. It is needed to perform 26 process capability. The main goal of Improve phase is to create an action plan which should 27 be implemented in order to achieve planned goals, while the last stage, Control is about 28 continuous verification if implemented changes bring expected profitability (Shankar, 2009). 29 4. Case study 30 The research study was done in 2018 in the printing company which is specialized in 31 production of books, especially in hard covers. The enterprise was found in 1989 and 32 nowadays it is one of the leaders in printing industry not only in Poland, but also abroad.33 It offers wide range of products which means that the production process is diversified and 34 advanced. The main customers of the company are the biggest publishing houses from Poland 35 Quality improvement in production enterprise… 157 and other European countries. The company owns three production halls and offices.1 It employs more than 300 workers which perform their activities on different production 2 machines. 3 The enterprise develops quickly, invests in new machinery and production halls. In 2014 it 4 received ISO 9001 and 14001 certificates. It also got Forest Stewardship Council certificate 5 that confirms the responsible attitude for environmental issues and practical care about 6 forests. The company has already implemented different tools of quality management to 7 support the production and eliminate unnecessary activities. However, there are still some 8 downtime in production process which should be improved. The implementation of lean 9 management was supposed to bring different profits to organization, but what is more to 10 deliver the product to the customers in shortest possible lead time and according to their needs 11 and requirements. 12 Due to the fact that competitiveness on the market is high, the enterprise wants to increase 13 its efficiency and provide products with higher quality. At the same it tries to maintain the 14 same amount of resources and machinery. In order to monitor implemented lean management 15 tools and methods continuous control is used in daily activities. The companies nowadays 16 have to attract their customers by demonstrating the ability to meet their expectations and 17 offering highest possible quality of products and services. 18 The first phase of research study started with the meeting in the company where the 19 processes and its bottlenecks were discussed. Also the management board took part in this 20 discussion. After deep analysis of the whole process it was seen that there are some downtime 21 of the production on specific printing machines. It was observed that two machines has lower 22 efficiency than others and also that the efficiency level is not stable, but it varies depends on 23 different seasons. The main problem was clearly defined in the form to be understood by 24 everybody involved in the quality improvement process. Based on the discussion with 25 management board, the needed resources were also defined. The idea is to offer the customer 26 the product with highest possible quality and deliver it on time. That is why it is important to 27 analyze and implement some solutions in order to increase the effectiveness of the process 28 and eliminate bottlenecks which appears on production line. 29 Measured data, which are the process capacity, are presented in the form of graphs below. 30 It concerns the amount of printed products on two specific equipment Roland IV and Roland 31 V which are four-colors printing machines used in the technique called offset printing. The 32 data are taken from years 2014-2017 and presented month by month for comparison of 33 particular period in different years. From the first graph it may be seen that production 34 process is not stable and varies a lot. There are some fluctuations which appeared on machine 35 Roland IV. The bigger amount of products were produced in the second half of the year. 36 158 M. Konieczna 0 200 000 400 000 600 000 800 000 1 000 000 1 200 000 1 400 000 1 600 000 1 800 000 2 000 000 1 2 3 4 5 6 7 8 9 10 11 12 2015 2016 2017 1 Figure 1. The amount of production on machine Roland IV, month by month in years 2015-2017 2 3 Second graph presents the amount of produced goods on machine Roland V. It may be 4 seen that there are a lot of instability of the production process, similar to previously 5 presented machine. The highest production was in July 2017 which may be surprising, while 6 the lowest was in July 2016. It is well visible that there is no rule which determine the level of 7 production and process efficiency. 8 0 500 000 1 000 000 1 500 000 2 000 000 2 500 000 1 2 3 4 5 6 7 8 9 10 11 12 2015 2016 2017 9 Figure 2. The amount of production on machine Roland V, month by month in years 2015-2017. 10 11 From the graph below it may be noticed that the quantity of printed products was always 12 bigger on machine Roland IV. In general, the lowest production was in 2015 on machine 13 Roland V while the biggest production was in 2014 on machine Roland IV.14 Quality improvement in production enterprise… 159 0 2 000 000 4 000 000 6 000 000 8 000 000 10 000 000 12 000 000 14 000 000 16 000 000 18 000 000 2014 2015 2016 2017 Roland IV Roland V 1 Figure 3. The comparison of production on machines Roland IV and V, month by month in years 2 2015-2017. 3 4 Analyze phase started with discussion about measured information and data. After 5 collecting all ideas about the reasons of downtimes in the production processes, gained issues 6 were divided into few categories of causes, such as man, method and machine. From the data 7 it was seen that there are a lot of fluctuations in the printing process which may be due to the 8 fact that there is a significant rotation of the employees working on production line. Usually, 9 during holiday season when the human resources are limited there is a help from students 10 internships. Continuous rotation results in additional time spent on trainings. Another cause of 11 variability of the process is connected with lack of clear work instructions concerning process 12 of production and setups. It is not defined for workers which activities should be perform in 13 order or which processes may be eliminated. Also technical state and condition of the 14 machine have influence on the process performance. The machinery used in printing company 15 is old, so its maintenance requires costs and time which has a big impact on production 16 effectiveness. 17 Improvement proposition concerns all three aspects which are the main reasons for 18 downtimes on machines Roland IV and V. First proposition is connected with performing 19 SMED on printing machines to eliminate unnecessary activities and reduce the time spent on 20 setups. Single minute means that the time needed for a setup is with a single digit. In the 21 printing company it was observed that there was no procedure how to do changeover in the 22 way to be the most effective. After preparing correct work instructions SMED may be 23 implemented in production process. Another proposition how to increase the effectiveness of 24 production performed on the printing machines is to decrease rotation of workers. The key to 25 long-term employee retention is the recruitment process. It is very important to look for26 a specific potential in candidates during interviews. After hiring qualified employees, the 27 company have to face much more difficult issue - how to keep an employee and motivate to 28 develop and work effectively. One idea is to introduce the bonus system for workers to thank 29 160 M. Konieczna them for their engagement. The last proposition of improvement is to prepare good work 1 instructions which will help to identify internal and external activities, eliminate unnecessary 2 operations and organize work to be most effective. 3 Very important in improvement process is control which is the last phase of DMAIC 4 cycle. Control should be continuous in order to be effective and to check future process 5 performance. It may be done by creating a control plan which help in measuring the results 6 and checking if the estimated progress and set goals were achieved. Control is the process 7 which is essential in measuring if the implemented changes bring profits to the organization. 8 It may be done by comparing the performance from analyze phase and after implementation 9 of improvements. 10 5. Conclusions 11 Taking all into consideration it is essential to take care of quality aspects in enterprise. 12 Nowadays, the environment is changing at the rapid rate and that is why the ability to quickly 13 react to upcoming changes is very important. However, the term quality is difficult to define, 14 it is essential to satisfy the customers’ needs, because they are the factors which drive the 15 economy. The history of quality and different conceptions and tools may contribute to better 16 understanding the development and evolution of quality management. In different 17 organizations there may be found different ways of quality development and improvement. 18 The enterprise has to decide by itself which method is adequate for it and which one brings 19 the best profits. One of the presented methods is Six Sigma which based on DMAIC cycle. 20 Using this methodology in the printing company helps in defining and measuring the main 21 problem which occurs on production line. Analyze of the issue is essential to create the 22 improvement proposition which was presented in order to increase the effectiveness of the 23 process. It may be achieved if there is continuous control. 24 Bibliography 25 1. Aruleswaran, A. (2009). Changing with Lean Six Sigma. Puchong, Selangor: LSS 26 Academy. 27 2. Bielawa, A. (2011). Postrzeganie i rozumienie jakości - przegląd definicji jakości. Zeszyty 28 Naukowe Uniwersytetu Szczecińskiego. Studia i Prace Wydziału Nauk Ekonomicznych29 i Zarządzania. Szczecin. 30 Quality improvement in production enterprise… 161 3. Breyfogle, F., Cupello, J., Meadows, B. (2001). Managing Six Sigma. A Practical Guide 1 to Understanding, Assessing, and Implementing the Strategy That Yields Bottom-Line 2 Success. New York: John Wiley & Sons. 3 4. Evans, J. (1991). Statistical Process Control for Quality Improvement. A Training Guide 4 to Learning SPC. Upper Sandle River: Prentice-Hall, Inc. 5 5. Hamrol, A. (2007). Zarządzanie jakością z przykładami. Warszawa: PWN. 6 6. Lenik, P. (2011). Doskonalenie jakości w rodzimych organizacjach w kontekście 7 zagranicznych doświadczeń TQM. Zeszyty Naukowe Wyższej Szkoły Oficerskiej Wojsk 8 Lądowych im. gen. T. Kościuszki. 9 7. Łukasiński, W. (2013). Proces kształtowania projakościowego zarządzania organizacją. 10 Zeszyty Naukowe UEK. 11 8. PN-EN ISO 9000:2006 – wersja polska. 12 9. Pyzdek, T. (2003). The Six Sigma Handbook. New York: The McGraw-Hill, Inc. 13 10. Rączka, M. (1993). Jakość totalna. Przegląd Odlewnictwa, 5. 14 11. Rogoziński, K. (2000). Nowy marketing usług. Poznań: Wydawnictwo Akademii 15 Ekonomicznej. 16 12. Shankar, R. (2009). Process Improvement. Using Six Sigma. A DMAIC Guide. Wisconsin: 17 ASQ Quality Press. 18 13. Słowiński, B. (1996). Podstawy badań i oceny niezawodności obiektów technicznych. 19 Koszalin: Wydawnictwo Politechniki Koszalińskiej. 20 14. Woźniak, D. (2008). Niektóre aspekty zarządzania jakością. Zeszyty Naukowe Instytutu 21 Ekonomii i Zarządzania. Koszalin: Politechnika Koszalińska. 22 15. www.projekty.4innovations.pl/2009/08/charakterystyka-metody-six-sigma, 01.12.2017. 23 Copyright of Scientific Papers of Silesian University of Technology. Organization & Management / Zeszyty Naukowe Politechniki Slaskiej. Seria Organizacji i Zarzadzanie is the property of Silesian Technical University, Organisation & Management Faculty and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. 225 sch87956_ch10_223-248.indd 225 11/12/1810:34 AM Chapter Ten Organizing for Innovation Organizing for Innovation at Google Google was founded in 1998 by two Stanford Ph.D. students, Sergey Brin and Larry Page, who had developed a formula for rank ordering random search results by relevancy. Their formula gave rise to an incredibly powerful Internet search engine that rapidly attracted a loyal following. The search engine enabled users to quickly find information through a simple and intuitive user interface. Italso enabled Google to sell highly targeted advertising space. The company grew rapidly. In 2001, Brin and Page hired Eric Schmidt, former CTO of Sun Microsystems and former CEO of Novell, to be Google’s CEO. In 2004, the company went public, raising $1.6 billion in one of the most highly anticipated IPOs ever. Under Schmidt, the company adhered to a broad yet dis- ciplined mission: “To organize the world’s information and make it universally accessible and useful.” This led the company to leverage its core search and advertising capabilities into blogging, online payments, social networks, and other information-driven businesses. By 2014, Google had sales of over $66 billion, and employed more than 57,000 people. Despite this size, however, the company eschewed hierarchy and bureaucracy and sought to maintain a small-company feel. As noted by Schmidt during an interview, “Innovation always has been driven by a person or a small team that has the luxury of thinking of a new idea and pursuing it. There are no counter examples. It was true 100 years ago and it’ll be true for the next 100 years. Innovation is something that comes when you’re not under the gun. So it’s important that, even if you don’t have balance in your life, you have some time for reflection. So that you could say, ‘Well, maybe I’m not working on the right thing.’ Or, ‘maybe I should have this new idea.’ The creative parts of one’s mind are not on schedule.”a In accordance with this belief, Google’s engineers were organized into small technology teams with considerable decision-making authority. Every aspect of the headquarters, from the shared offices with couches, to the recreation facilities and the large communal cafe known as “Charlie’s Place,” was designed to foster Final PDF to printer sch87956_ch10_223-248.indd 226 11/12/1810:34 AM 226Part ThreeImplementing Technological Innovation Strategy informal communication and collaboration.b Managers referred to Google as a flex- ible and flat “technocracy,” where resources and control were allocated based on the quality of people’s ideas rather than seniority or hierarchical status. Schmidt remarked, “One of the things that we’ve tried very hard to avoid at Google is the sort of divisional structure that prevents collaboration across units. It’s difficult. So I understand why people want to build business units, and have their presidents. But by doing that you cut down the informal ties that, in an open culture, drive so much collaboration. If people in the organization understand the values of the company, they should be able to self-organize to work on the most interesting problems.”c A key ingredient in Google’s organization is an incentive system that requires all technical personnel to spend 20 percent of their time on innovative proj- ects of their own choosing. This budget for innovation is not merely a device for creating slack in the organization for creative employees—it is an aggres- sive mandate that employees develop new product ideas. As noted by one Google engineer, “This isn’t a matter of doing something in your spare time, but more of actively making time for it. Heck, I don’t have a good 20% project yet and I need one. If I don’t come up with something I’m sure it could negatively impact my review.”d Managers face similar incentives. Each manager is required to spend 70percent of his or her time on the core business, 20 percent on related-but- different projects, and 10 percent on entirely new products. Accord- ing to Marissa Mayer, Google’s head of search products and user experience, a significant portion of Google’s new products and features (including Gmail and AdSense) resulted from the 20 percent time investments of Google engineers. In 2015, the company was reorganized into Alphabet Inc., a holding com- pany, wherein Google and other divisions such as Access, Calico, CapitalG, Nest, and others were wholly owned subsidiaries. The divisions retained their flat and flexible reporting structures.e In a podcast interview at StanfordUniversity, Andy Grove (former CEO of Intel) remarked that the company’s organization appeared chaotic, even noting “From the outside it looks like Google’s organizational structure is best described by... Brownian motion in an expanding model” and questioned whether Schmidt believed this model would continue to work forever. In his response, Schmidt responded, “There’s an important secret to tell, which is there are parts of the company that are not run chaotically. Our legal department, our finances. Our sales force has normal sales quotas. Our normal strategic planning activities, our normal investment activities, our M&A activities are run in a very traditional way. So the part of Google that gets all the attention is the creative side, the part where new products are being built and designed, and that is different. And it looks to us like that model will scale for quite some time ... it looks like small teams can run ahead and that we can replicate that model for that part of the company.”f Discussion Questions 1. What are the advantages and disadvantages of the creative side of Google being run as a flexible and flat “technocracy”? 2. How does Google’s culture influence the kind of employees it can attract and retain? Final PDF to printer sch87956_ch10_223-248.indd 227 11/12/1810:34 AM Chapter 10Organizing for Innovation 227 OVERVIEW The structure of an organization and the degree to which it uses formalized and stan- dardized procedures and controls can significantly influence its likelihood of inno- vating, the effectiveness of its innovation projects, and the speed of its new product development processes.1 For example, it is often argued that small, flexible organiza- tions with a minimum of rules and procedures will encourage creativity and experi- mentation, leading to more innovative ideas. At the same time, it is also frequently pointed out that well-developed procedures and standards can ensure that the organi- zation makes better development investment decisions and is able to implement proj- ects quickly and efficiently. How then do managers decide what structure and controls would make the most sense for their firm? A vast majority of firms use some type of product team structure to organize their new product development process, and we will look closely at how teams are com- posed and structured in Chapter Twelve, Managing New Product Development Teams. This chapter focuses on the organization-wide structural dimensions that shape the firm’s propensity and ability to innovate effectively and efficiently. We will review the research on how firm size and structural dimensions such as formalization, stan- dardization, and centralization affect a firm’s innovativeness. By focusing on these underlying structural dimensions, we will elucidate why some structures may be better for encouraging the creativity that leads to idea generation, while other structures may be better suited for efficient production of new products. We will also explore struc- tural forms that attempt to achieve the best of both worlds—the free-flowing organic and entrepreneurial structures and controls that foster innovation, plus the formalized and standardized forms that maximize efficiency while ensuring coherence across all of the corporation’s development activities. The chapter then turns to the challenge of managing innovation across borders. Multinational firms face particularly difficult 3. What do you believe the challenges are in having very different structure and controls for Google’s creative side versus the other parts of the company? 4. Some analysts have argued that Google’s free-form structure and the 20 percent time to work on personal projects is possible only because Google’s prior success has created financial slack in the company. Do you agree with this? Would Google be able to continue this management style if it had closer competitors? a J. Manyika, “Google’s View on the Future of Business: An Interview with CEO Eric Schmidt,” McKinsey Quarterly, November 2008. b From “The Google Culture,” www.google.com. c Manyika, “Google’s View on the Future of Business.” d B. Iyer and T. H. Davenport, “Reverse Engineering Google’s Innovation Machine,” Harvard Business Review, April 2008. e R. Price and M. Nudelman, “Google’s Parent Company, Alphabet, Explained in One Chart,” Business Insider, 2016. Available at: http://www.businessinsider.com/chart-of-alphabet-google-parent-company- infographic-x-gv-2016-1. f Podcast retrieved on April 13, 2009, at http://iinnovate.blogspot.com/2007/03/eric-schmidt-ceoof-google.html. Final PDF to printer sch87956_ch10_223-248.indd 228 11/12/1810:34 AM 228Part ThreeImplementing Technological Innovation Strategy questions about where to locate—and how to manage—their development activities. We will review some of the work emerging on how multinational firms can balance the trade-offs inherent in these choices. SIZE AND STRUCTURAL DIMENSIONS OF THE FIRM Size: Is Bigger Better? In the 1940s, Joseph Schumpeter challenged supporters of antitrust law by propos- ing that large firms would be more effective innovators.2 Schumpeter pointed out that (1)capital markets are imperfect, and large firms are better able to obtain financing for R&D projects, and (2) firms with larger sales volume over which to spread the fixed costs of R&D would experience higher returns than firms with lower sales volume. Large firms are also likely to have better-developed complementary activities such as marketing or financial planning that enable them to be more effective innovators, and they are also likely to have greater global reach to obtain information or other resources. Another advantage of size may arise in scale and learning effects. If large firms spend more on R&D in an absolute sense, they might also reap economies of scale and learn- ing curve advantages in R&D—that is, they may get better and more efficient at it over time.3 Through investing in R&D, the firm develops competencies in the new product development process and thus may improve its development process. Itmay accumulate better research equipment and personnel. Furthermore, as a large firm gains experience in choosing and developing innovation projects, it may learn to make better selections of projects that fit the firm’s capabilities and have a higher likelihood of success. Large firms are also in a better position to take on large or risky innovation projects than smaller firms.4 For example, only a large company such as Boeing could develop and manufacture a 747, and only large pharmaceutical companies can plow millions of dollars into drug development in hopes that one or two drugs are successful.5 This suggests that in industries that have large development scale (i.e., the average develop- ment project is very big and costly), large firms will tend to outperform small firms at innovation. In theory a coalition of small firms ought to achieve the same scale advantages, but in practice, coordinating a coalition of firms tends to be very difficult. While a single large firm can exert hierarchical authority over all of the development activities to ensure cooperation and coordination, coalitions often do not have such a well-defined system of authority and control. On the other hand, as a firm grows, its R&D efficiency might decrease because of a loss of managerial control.6 That is, the bigger a firm gets the more difficult it can become to effectively monitor and motivate employees. Furthermore, as a firm grows, it becomes increasingly difficult for individual scientists or entrepreneurs to appropri- ate the returns of their efforts; therefore their incentives diminish.7 Thus, as the firm grows, the effectiveness of its governance systems may decrease. Large firms may also be less innovative because their size can make them less nim- ble and responsive to change. Large firms typically have more bureaucratic inertia due to many layers of authority and well-developed policies and procedures.8 For example, in the early 1980s, Xerox discovered that the administrative layers it had added to prevent errors in new product development had the unintended effect of blocking a Final PDF to printer Part Three: Implementing Technological Innovation Strategy Chapter 10: Organizing for Innovation Organizing for Innovation at Google Overview Size and Structural Dimensions of the Firm Size: Is Bigger Better?

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