JIGJIGA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

SCHOOL OF GRADUATE STUDIES

DEPARTMENT OF BUSINESS ADMINSTRATION (MBA)

GROUP ASSIGNMENT ON - PRODUCTION AND OPERATION

MANAGEMENT (POM)

COURSE TITTLE- PRODUCTION AND OPERATION MANAGEMNT

COURSE CODE –MBA (524)

SUBMITTED TO- Dr. FEKADU YEHUALASHET (PHD)

SUBMISSTION DATE- 28/4/2021 GC

JIGJIGA, ETHIOPIA, 2021 GC

 GROUP FIVE

NAME OF STUDENTS ID NO

1. ESKADMASS KASU………………………………………………….GSW/0224/12

2. BAHIRU ABEBE………………………………………………………GSW/0086/12

3. BEHAILU ZEWDU……………………………………………………GSW/0089/12

4. MESRACHE ABERA………………………………………………….GSW/0228/12

5. MANDEFRO TADESSE……………………………………………….GSW/0203/12
 I. Answer the following Questions:
1. What are the potential benefits and drawbacks of locating companies in foreign countries?
Locating companies in foreign countries many gives a huge benefit these are:-
 In terms of lowering taxes,
 access to markets,
 avoid shortage of foreign currency,
 Availability of raw materials and lower labor costs than a comparable domestic
location.
On the other hand, the potential drawbacks of locations in foreign countries often related to:-
 The political and economic stability of the host country and attitudes of the populace
towards a particular nation
 A need for greater co-operation among investment and aid agencies, and for institutional
support to field representatives of aid agencies to engage in a broader range of
investment capacity-building activities. Such enhanced responses presuppose that
international organizations give investment capacity building a very high priority at both
headquarters and the field level.
2. Explain the consequences of Poor Quality Management in Service Organization.
Quality is important to business organizations and can benefit them in a variety ways. Some
examples include: an enhanced reputation for quality, the ability to command premium
prices, an increased market share, greater customer loyalty, fewer service problem and the
like.
Poor Quality Management in service organization may causes different effects on the
company. Some of the common consequences of poor quality management are
- Loss of business
- Decreases market share.
- Less customer loyalty
- Huge service problems
- Lower customer satisfaction
- Loss profits
3. Who are the Gurus of Quality Management? Explain their contribution.
Quality management is a set of opinions and ideas for improving the quality of products or
services, which widely called management philosophy. Its main aims are to satisfy customers
and survive in the market.
GURUS; means a “respected teacher”, “Spiritual leader”, “Good person” a wise person who
in his field has not only made a great contribution and innovation, but also a large-scale
revolution. People who have established themselves and profiled philosophical trends in
quality, are the gurus of quality.
 Dr. W. Edwards Deming has emerged as the most influential gurus of quality
management in the United States and Japan, he is best known for the “Deming cycle”.
He worked with statistical sampling to improve quality and also introduced the concept
of variance to the Japanese and a systematic approach to problem solving which
eventually was called the plan, do, check, act or PDCA cycle.
 Dr. Joseph M. Juran has had the most influence on the theory of quality management
after Deming among other gurus. He defined the quality as “fitness of use” and
developed concept of cost of quality.
 Phillip B. Crosby is best known for his concept of “zero Defects”, he believed that an
efficient quality management must be “based on Prevention-based system”, and
claimed that mistakes can be happened because of lack of knowledge and the attention
of employees in the organization. He coined phrase “quality is free”.
 Amand V. Feigenbaum introduced total quality control. His principle describe that
for manufacturing the product with high level quality, total quality control should be
considered instead of the implementation of the production quality control alone.
 Kaoru Ishikawa was a Japanese quality guru who “pioneered quality management
processes in the Kawasaki shipyards, and in the process became one of the fathers of
modern management. He developed cause-and-effect diagram and identified concept
of internal customers.
 Walter A. Shewhart; he developed concept of statistical control charts and
contributed to understanding of process variability.
 Genichi Taguchi:- he developed Taguchi loss function and focused on product design
quality.
  Shiigeo Shingo: - He was a Japanese industrial engineer who distinguished himself as
one of the world’s leading experts on manufacturing practice and the Toyota
production system.
Contribution of Shigeo Shingo: - He was consultant for Toyota
- Achieved Toyota production system
- Poka Yoke system (avoiding errors) and single minute exchange dies
- He prize awarded for excellence in manufacturing and concept of source
inspection
- Reduce changeover time just in time system with Taiichi Ohno
- Mistake proofing, stop mistake repeating
4. Assume that processing times for new account opening at commercial bank of Ethiopia are
shown in the following Table. Five samples of four observation each have been taken and all
values are in minutes. Based on the information given under, to obtain three-sigma control
limits for means of future times, the Bank standard time to deliver the requested service is
0.04 minutes

Sample 1 Sample 2 Sample 3 Sample 4 Sample 5

10.2 10.3 9.7 9.9 9.8
9.9 9.8 9.9 10.3 10.2
9.8 9.9 9.9 10.1 10.3
10.1 10.4 10.1 10.5 9.7

a. Calculate the Upper Control Limit (UCL) and Lower Control Limit (LCL)
b. Draw the control chart
c. Interpret your result

Given n=4
Z=3
δ =0.04
a) Upper control limit (UCL) =10.10
Lower control limit (LCL) =9.98