Costs of Poor Process Performance  Defects: Any instance when a process fails to satisfy its customer.  Prevention costs are associated with preventing defects before they happen.  Appraisal costs are incurred when the firm assesses the performance level of its processes.  Internal failure costs result from defects that are discovered during production of services or products.  External failure costs arise when a defect is discovered after the customer receives the service or product. © 2007 Pearson Education
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ISR Test Roles & Responsibilities Stakeholders involved in the defect management process should be aware of their respective roles and responsibilities, as indicated below, to ensure that key activities within the defect management process are accounted for. Roles General Responsibilities System Owner /Tester      Execute test cases Raise issues and document defects found during testing Communicate upstream and downstream defect consequences Proactively participate in defect triage meetings and track defect status Certify System Remediated Quality Assurance (QA)     Review the defects logged for validity and severity Report the defect status on a daily basis to Test Lead Coordinate the execution of daily scheduled test events Coordinate defect triage meetings and monitor defect resolution progress Impacted Systems Remediation Point of Contact (ISR POC)  Support System Owner Testers with defining and documenting defects  Responsible for overseeing defect fix progress among Test team, Technical team, and Functional team  Manage ALM test execution and defect status for respective ISR system  Proactively participate in defect triage meetings and tracking defect status Technical / Functional Support Teams  Support execution and validation of test scenarios  Review, fix, and/or reject defects  Proactively participate in defect triage meetings and tracking defect status -5-
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Organizational Chart of a Manufacturing Firm Board Board member member Board Board member member Board Board member member Board Board member member Chief Chief Executive Executive Officer Officer Legal Legal counsel counsel President President V.P V.PSales/ Sales/ Marketing Marketing Industrial Industrial Products Products DirectorDirectorSales Sales Western Western Region Region Industrial Industrial Products Products Sales Sales Manager Manager V.P V.PHuman Human Resources Resources Industrial Consumer Industrial Consumer Products Products Products Products DirectorDirectorDirectorDirectorHuman Sales Human Sales Resources Resources Eastern Eastern Region Region Industrial Industrial Products Products Sales Sales Manager Manager Consumer Consumer Products Products DirectorDirectorHuman Human Resources Resources V.P V.P Production Production Industrial Industrial Products Products DirectorDirectorProduction Production V.P V.PResearch Research and Development and Development Consumer Consumer Industrial Industrial Consumer Consumer Products Products Products Products Products Products DirectorDirectorDirectorDirectorDirectorDirectorProduction R&D Production R&D R&D R&D Western Western Eastern Eastern Region Region Region Region Consumer Consumer Consumer Consumer etc. Products Products etc. etc. etc. etc. etc. etc. etc. Products Products Sales Sales Sales Sales Manager Manager Manager Manager etc. etc. etc. etc. etc. etc. etc. etc. etc. etc. etc. etc.
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DAT 5.1 Survey Design: A Brand Audit Example Description Surveys are used to gather customer feed- back about a firm, experience, or brand, by asking customers to respond to a series of questions. When to Use It • • To understand how customers think or feel about an entity or topic (e.g., brand, new product). Best to use when such feelings or thoughts are not observable in other types of data. Designing a Survey Experiments can establish the causal impact of marketing actions (e.g., new ad campaign), but they often cannot answer “why” or “how” questions: Why did customers respond so positively to that ad campaign? What makes them love a brand so much that they pay more just to buy it? How do customers make up their minds about whether to buy a certain brand? In such cases, surveys offer a clear advantage. They directly elicit responses from customers (or potential customers), and thus they provide deep, qualitative and quantitative feedback to the brand about its standing in the marketplace. To conduct a good survey, the firm must take into account four crucial factors: 1. The objectives for conducting the survey must be clear. A firm should have a specific, written statement of how the survey findings will relate back to the firm’s marketing program. Some objectives might include gauging responsiveness to a firm’s advertising efforts (to help it tweak its advertising copy), obtaining feedback on service staff (to improve service quality), or comparing the preferences of customers who use or don’t use the firm’s products (to understand the target population). 2. The firm must be careful to sample customers appropriately for any survey. Appropriateness involves obtaining a credible quantity (i.e., number of responses) but also credible quality, such that the firm receives relevant feedback according to the criteria used to separate those who are included in the survey from those who are not. If a firm is conducting a survey to obtain feedback about its service staff, for example, it needs to make the survey available to customers who recently used its service, because they are the ones most likely to recall the service experience accurately. 3. Surveys should contain penetrating, precise questions. Designing questionnaires is one of the most important parts of the survey design. All questions must measure the property they are supposed to measure, and they must mean the same thing to everyone. Furthermore, survey designers need to avoid the pitfall of asking loaded questions, which will cause a response bias. Thus, writing survey questions is an iterative process. 4. The firm should conduct the survey and store the data in a structured format, following a consistent process for organizing and analyzing survey data. The process should be defined well before it ever receives the first responses. Then the survey responses should be analyzed qualitatively (open-ended questions) or quantitatively (scale-type questions), often with the assistance of analytical software. © Palmatier 30
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The Cost of Quality (2 of 2) • Cost categories related to quality • Prevention cost: cost of planning and executing a project so it is error-free or within an acceptable error range • Appraisal cost: cost of evaluating processes and their outputs to ensure quality • Internal failure cost: cost incurred to correct an identified defect before the customer receives the product • External failure cost: cost that relates to all errors not detected and corrected before delivery to the customer • Measurement and test equipment costs: capital cost of equipment used to perform prevention and appraisal activities Information Technology Project Management, Ninth Edition. © 2019 Cengage. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
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Industry Evolution and Firm Strategy Firm Level Strategy Introduction Growth Maturity Decline Must be focused upon new products for new markets. Expansion of product lines Costs of production must be lowered to compete. Competitors and initial firm are viewed as providing similar products/services. Firms which remain are trying to compete on price rather than value. Niche markets. Expansion into new markets Firms attempt to achieve market penetration of existing and new markets. Market needs have been met. Firm must begin to recover R&D investments. Use product R&D to offer added features to existing products Process R&D to achieve efficiencies (e.g. TQM) Use in other, higher growth industries. First mover has developed new products for new markets. Firms enter to compete with first mover. Firms attempt to become low cost provider. Competitors have relocated to more attractive industries. First mover is providing products/services for a small number of customers. Development of infrastructure to increase service to existing and new markets. Long-term relationships are being developed with suppliers/customers. Minimal Expenses: Existing infrastructure is being utilized. Pricing Attempt to recover product R&D costs by price skimming. Few, if any, competitors. Price is inelastic. Price becomes more elastic as competitors introduce similar products. Price is elastic. Pricing to achieve economies of scale. Price to attempt to maintain margins on smaller demand. Advertising Firm must communicate value of new products/services to target market. Because competitors have entered industry, first mover needs to advertise value added features. Focus is upon existing markets. Message is lower price than competitors. None: Invest in higher growth industries. Products Markets Role of Technology Competition Distribution 6
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FMECA Column Definitions Component Relay Transformer Motor Actuator (Hydraulic) Switch (SP,DT) Cathode Ray Tube Brake Mechanism Power Supply 03/22/2019 Failure Mode Failure Cause Contacts Fail Shorted Contacts Welded Contacts Fail Open Contacts Dirty Coil Fails Open Open Circuit Coil Coil Shorts Insulation Breakdown Coil Fails Open Open Circuit Coil Bearings Fail Worn Bearing, Lubrication Problem Brushes Fail Open Dirty Worn Brushes Coil Fails Open Open Circuit Coil Coil Fails Short Insulation Breakdown Leaks Worn Seals Fails to Return Lines Blocked Contacts Fail Shorted Contacts Welded Contacts Fail Open Contacts Dirty Fails to active Mechanism Failure Performance Degradation (Illuminance) Chemical Coating Degradation Blurred Image Focusing Screen Misalignment Incorrect Colour Failure of Colour Gun Failures to Activate Mechanism, Corrosion, wear, blockage of fluid line Failures to Disengage Mechanism, Corrosion, wear, blockage of fluid line Loss of Output Internal Component failure Unregulated Output Internal Rectifier, Condenser Failure Incorrect Voltage Level Internal Regulator Failure Excessive Noise EMI Filter Failure rd
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21 New Questions Everyone, regardless of circumstances, should have enough food Everyone, regardless of circumstances, should have health care Everyone, regardless of circumstances, should have a place to live Most people who are poor waste a lot of their time The poor are treated the same as everyone else The poor have the same opportunity for success as everyone else The poor face challenges that are the same as everyone else Governments should do more to help the poor Charities should do more to help the poor Businesses should do more to help the poor  Individuals should do more to help the poor  Lack of transportation is a major challenge for the poor  Lack of social support (family, friends, church) is a major challenge for the poor  Lack of education is a major challenge for the poor  Lack of child care is a major challenge for the poor  Lack of self-control is a major challenge for the poor  It upsets me to know that many people are poor  I feel that I know what it is like to be poor  I feel that I understand why someone may be poor  I feel that I have enough direct experience with the poor  I feel that I could personally make 
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