BA 101 1st Edition Lecture 9 Outline of Last Lecture 1 Announcements A Midterm 1 2 Lecture Capacity continued Automation Contribution Margin Outline of Current Lecture I Foundation update II Lecture A Total Quality Management B Human Resources Current Lecture I Foundation The official rounds open after the midterm Round 1 is due Tuesday Feb 10th by 11 59 pm Meet your deadlines Rounds total after each class each week round 1 story is posted on blackboard Strategic questions Are you going to serve the high or low tech market Or both How many products will you offer When will you introduce them How will you translate serving customers into meeting your organizational goals of profit Your sales forecast II 4 techniques use those that are known to work best Determines how much product to produce Drives the proforma statements Can be used to test different possibilities Lecture A Total Quality Management Increasing quality expectations and performance through advanced production techniques Total Quality Management is the act of monitoring and improving the quality of products and services a company produces Primary Objectives educate and train managers and employees encourage increased responsibility and discover production improvements These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Investing to improve the process by which tasks are accomplished for example Chris spends 20 hrs week reading and retains 70 of the information then he invests time and money into taking a speed reading course and after the course he has reduced his hours per week to 10 and retains 80 of the information TQM Initiatives and Benefits 1 Continuous process improvement reduces material costs 2 Vendor just in time inventory reduces material costs inventory carrying costs admin costs 3 Quality initiative training reduces labor costs 4 Channel support systems more for you money sales budget and demand 5 Concurrent engineering reduces R D cycle time 6 UNEP green programs UN Reduces material cost increases demand for your now environmentally friendly products 7 Benchmarking reduces admin and inventory carrying cost 8 Quality function deployment effort reduces R D cycle time increases marketing effectiveness 9 6 Sigma concurrent engineering reduces material and labor costs increases marketing effectiveness 10 GEMI TEQM reduces material and labor costs very new to foundation not entirely sure why or how it works 1 5 and 8 9 are known to be very effective and well worth investing in For optimal results spend between 250 000 and 1 million each year Don t exceed 2 million in any 1 category over the 8 rounds diminishing returns One way to approach this is first year put in 750 2 nd year put in 750 3rd year put in 500 this is for a singular category Then move on to a different category TQM last thoughts be selective Focus on categories that will help with the strategy you are going with Finish the areas you re investing in before moving on B Human Resources people s role in business activities Complement number of workers The needed complement is the number of workers required to fill the production schedule for the first shift without overtime If you are expecting overtime next year match the needed complement by 100 Caliber Talent of the workforce A greater investment up to 5000 per worker results in higher productivity and lower employee turnover The more the company spends the higher the skill level or caliber of the worker that is hired Training the investment of time Better training leads to higher productivity lower employee turnover but takes people off the job while they are being trained Each training hour costs 20 per worker Training reduces the need to recruit new workers and reduces separation costs when workers are laid off Human Resources choices As a manager your choices your decisions and your behavior give definition to the world in which you work As a manager you shape the organization that your employees inhabit Including employment agreement the structure of the job interpersonal interaction use decency and respect A historical perspective The industrial revolution Changing work enviroments The role of unions Variations in Human Resources Management Current trends The role and impact of unions historically collective bargaining has been the best way for workers to have an impact on their working conditions More than 100 000 contracts are in effect today This represents 9 million workers in the private sector There are an additional 8 million workers are covered under labor agreements in the public sector ex Teacher s union